vard Case Study: "Boeing 737 Manufacturing Footprint: The Wichita Decision"
1) Executive Summary:
Subject: Boeing manufacturing plant in Wichita, Kansas
Mission Statement: To retain leadership in the commercial airline industry while offering a quality product to consumers while maximizing profit.
Services Description: Currently being utilized as the primary manufacturer and assembler of the Boeing 737 airplane. This site is responsible for design innovations on commercial airplanes and assembly of these airplanes. It is also responsible for the manufacture of various components involved in the abovementioned process.
Employee Relations: Labor relations are currently strained. There is a tension filled environment that is not likely to diminish under any circumstances. As such, the environment is affecting productivity and therefore it is affecting the profit margin which may be obtained by continuing to retain this manufacturing site. The nature of this manufacturing plant is such that it requires an extraordinarily large labor force which is not competitive in today's market. Thus, without a tremendous influx of cash to update the plant technologically, the labor force must remain (reduction due to technology is not an option). Additionally, this large work force mandates a great deal of money be diverted to pensions, benefits, and salaries. Thus, it affects ROI negatively.
Management Team: Senior management has shown a complete disregard for profit margins
The Boeing Company designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products.
This business level strategy allows Boeing to create distinctive competencies from its rival, Airbus and gain an edge over them. Boeing has been successful in maintaining this business model due to its high R&D which has led to some great innovations in aircraft manufacturing such as the production of Advanced Winglet, Digital Airline, Performance Based Navigation System to name a few. Boeing has also prioritized customer service in their corporate strategies and have implemented GoldCare IT Enterprise Suite as means of 24/7 customer service regarding operations along with AOG solutions as means of after sales service to the customers. As mentioned Boeing Dreamliner 787 has been created keeping in mind the customers’ psychological desires in mind which sets Boeing apart. Boeing has been very successful over the years to create their competitive advantage and maintain its superior performance and they continue to do
As for BA, their vision is being ‘the world’s most responsible airline’, their value is centred on putting people first.
Boeing corporations is an American based Multi-National-Corporation that designs, produces and distributes both military and commercial Aircraft. As a Multi-National-Corporation, Boeing has offices and factories in different countries and have a centralised head office in Chicago where they coordinate global management. One of Boeing's flagship products is the Boeing 787-Dreamliner which is a mid-range commercial aircraft. The Boeing 787 is one of the latest Boeing Products that demonstrates the principals of a Multi-National-Corporation. It sources components, from 7 different countries, as well as utilising research and technology facilities across 20 countries worldwide.
In this paper Team C has selected to report financial outcomes for the Boeing Company. We will compare and contrast three potential financial outcomes that we envision for the initiative in using the most recent annual report and other financial statements. We will evaluate our discoveries to determine the most likely outcome. We will also include calculations that support our analysis of various financial outcomes and discuss the financial effect on Boeing. Boeing is the largest global aircraft producer that started in the mid-1916 and continues to grow by producing the biggest
One reason for their success is because of the commitment of the mission statement that is that the company is dedicated to the highest quality of customer service delivered with a sense of warmth, friendless, sense of individual pride and company spirit. Their low, discount air fares and bags fly, free the point to point services, and the strong fleet base which
Boeing’s products are highly diversified and cater to all sectors within the aviation industry. Some of Boeing’s original products were the result of contracts with the Navy, and bombers that were in use during World War II. Current products span a wide variety of commercial, defense and space products. Some of the most well-known commercial airplanes Boeing produces are the 747 and the 737 jetliners. Both of these production lines are over 40 years old and contribute to significant portions of annual revenues. Boeing also manufactures many different defense aircraft, including helicopters, airplanes, and weapons systems. Occasionally, Boeing will create parts for spacecraft, but its main work in space-related products are its satellite systems and global positioning systems. Boeing has been involved in space-related technologies since 1995.
using their own core competencies to turn the airline around. By applying their own strategies,
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
Neelman, understanding the next steps in growing the organization, brought together a highly skilled management team to run the company. Neelman providing the necessary strong leadership, along with the talented management team formulated clear operative goals and directions based on his vision. Decisions that were made emphasized the need to provide a better passenger experience such as choosing New York JFK as the home base of the airlines. Customer interaction (external environment) and employee satisfaction (internal) were the important factors in formulating the mission. The Mission statement included Safety, Caring and Integrity that can be attributed to the customers and the mission statement also included fun and passion that can be attributed to the employee satisfaction.
As the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security system, Boeing puts a lot of efforts and innovations in its products and services. These include commercial and military aircraft, satellites, weapons, electronic information and communication systems, and performance-based logistics and training.
As the largest aerospace company in the world, the Boeing Company employees more than 153,000 people in some 67 countries. The great dominance of Boeing is due to its 1997 merger with McDonnell Douglas Corporation, an aerospace manufacturer, and its 1996 purchase of the defense and space units of Rockwell International Corporation, an aerospace contractor. The corporation is the world’s number one maker of commercial jetliners and military aircraft with more than 9,000 commercial planes in service worldwide, including the 717 through 777 families of jets
Above SIA’s mission statement provides a clear picture of its goals & objectives. As stated in the vision and the mission statement, Singapore Airline is aiming to be a global company in the air transportation industry. They plan to provide their customers a reliable and an excellent travel experience in the highest standards. However, while meeting the requirements of the customers, simultaneously they intend to meet Shareholder & employees expectations by maximising shareholder returns and making a better work place for the
.Furthermore, it is commendable that, the three core values of the company which reiterates the value of work and people, but allows the employees to have fun, are reinforced by the company at all times. From all indications, these unique core values have partially helped to catapult the airline to the financial statutes they are
* To operate and remain as one of the most profitable airline in the airline industry.