Boeing : An Effective Strategic Plan Should Be Implemented

Growing faster than manufacturing, retails and financial services, the Travel and Tourism industry outperformed the global economy is 2012 (World Travel and Tourism). This continuing increase in world travel and tourism is expected to help the airline business. JetBlue can take advantage of the growing

This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better

The Boeing Corporation is the world’s leading aerospace company and is the largest manufacturer of commercial jetliners as well as military aircrafts. Boeing has teams that manufacture missiles, satellites, defense systems, and communication systems. NASA turns to Boeing when they need something and Boeing operates the International Space Station. Boeing has a broad range of capabilities and skills, which is probably the reason they are the world’s leading aerospace company. With the Boeing headquarters in Chicago, more than 170,000 people in 70 different countries find themselves employed with the corporation and

Boeing adopts a very thorough, well planned out process to manage the project. The stages are defined clearly and tasks involved in each stage are carried out sequentially. The first stage of their approach is the project definition phase during which Boeing identified holes in the market not met by existing planes, assessed future airline needs, considered alternative plane configurations, explored feasibility of possible technologies and performed preliminary estimation of costs. During the market assessment, analysts gathered information regarding future needs of airlines by speaking directly to

A strategic plan provides a roadmap to a company execution its strategy. It is an essential management that helps the organization do a focused job because all energy, resources, and time are aimed in the same direction. The two fundamental and parts of a strategic plan are the mission and vision. Mission and vision statements are crucial to communicating the “who, what and why” it is and exist. An organization that exemplifies these principles flawlessly is Southwest Airlines. The mission of Southwest Airlines is a dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit (Southwest, n.d). The vision is to become the world's most loved, most flown, and most profitable airline. This paper will attempt to evaluate the mission and vision of Southwest Airlines for the

In today’s business world, Aviation industry is frequently developing rapidly in order to compete among each other and survive in the larger markets. The passenger air travel industry is facing aggregate competition between low cost/no frills carriers -LCC and the more traditional full service carriers-FSC (Hunter 2006). Due to rapid development, consumer trend improved in the market because flying on mainstream carriers was no longer cost-effectively practical, which lead to an appear of low cost carrier (Whitelegg, 2005). Subsequently, operation strategy is fundamental to the success of the businesses. Slack, Brandon-Jones and Johnston (2013) defined operation strategy as “ The pattern of strategic decisions and actions, which set the role, objectives and activities of the operation (Slack, Brandon-Jones and Johnston: 2013: P70). In this essay, it will be discuss, how two successful businesses: British Airways and Ryanair compete and survive in the airline industry according to strategic operations performance. British Airways (BA) is a worldwide airline based in United Kingdom. It is a famous flag carrier airline. British Airways was established on 31st March 1974 and is now among the largest airlines compared to Ryanair, which is, an international airline based in Ireland. It is known as the low cost airlines and was set up in 1985 by the Ryanair family.

This paper analyzes the goals and actions of Boeing by analyzing its critical success factors as well as its strategic roadmap.

2. Boeing VS Airbus 2 Abstract The demand facing aircraft manufacturers for new orders is in principal derived fromthe perceived future demand for commercial aviation. Several key external economic factorsare likely to outline demand for new aircraft. These factors are accessed from the perspectiveof decision makers in the airline industry, Airbus and Boeing, in this paper. Also analysed inthe paper are the relevant strategies employed by both airliner makers to manipulate thisfactors or manoeuvre around them in order to survive in the market. The relevant theories ofstrategic management are also analysed in the paper. The

Doganis, R. (2010). Flying Off Course - Airline Economics and Marketing. London and New York: Routledge.

Over the last decades of airline industry, due to the oil crisis, 9/11 attacks, SARS outbreak and the intense competition within the airline industry, airline companies have faced the challenge such as airline companies bankrupted(Lin & Fang,2003), so the airline companies decide using the “strategic alliance” to run their business, not only can collaborate with other airline companies to increase the domain of the operation but also cut down the cost to increase the operational performance and profitability. (Tang&Tseng, 2010)

The purpose of this report is to inform airline executives about the external forces affecting their industry and what they can do to keep up with the changing business atmosphere. The terrorist attacks of 9/11 had a grueling effect on the economy, and while most industries are almost back to their pre-9/11 financial status, the airline industry is lucky to break-even. This report will explain three leading trends that are forcing the airline industry to re-think their stance on strategic planning.

There are many factors that may impact Boeing’s responsibilities, however there are also factors that that influence the company’s planning methods. Boeing’s strategic, tactical, operational, and contingency planning can be influenced by factors such as the economy, wars and terrorism, and globalization. Boeing must take into consideration the country’s economy when planning. If the country is experiencing economic issues such as a recession which typically hinders the airline travel business it will impact Boeing’s opportunity for profitability. If there is a decrease in airline travel then the needs for the airlines to purchase planes will decrease which can have a significant impact on the company’s profits. Boeing works with its suppliers to strategically plan on how to deal with the economic issues and be competitive within the industry.

The Boeing Company is the world’s largest aerospace and the leading manufacturer of commercial jetliners and defense, space and security system, with 159,469 employees across the United States and in more than 65 countries. The revenue is proximally $95 billion annually. The Chicago, Illinois-based company also designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles, and advanced information and communication systems. There are two business elements, including Commercial Airplanes and Defense, Space & Security (40%).

As an industry, aviation is not immune to changing economics, low demands, and threats. Throughout the history, there have been hundreds of airlines formed, but some have already disappeared and some are still going strong. Aviation industry is constantly being challenged by economic status, organizations, and individuals which affect the revenue, growth and profitability of each airline. Tragic events that took place on September 11, 2001 put a huge dent in the industry but currently in the process of recovering slowly and steadily. Demands for air transportation is constantly on the rise even with occasional sets backs encountered by the industry such as; terrorism, changing economics, skyrocketing fuel prices, demand changes, and increasing competition.

Airline is a complex industry. It involves major capital requirements for aircraft, monitor by government regulations, restrictions and state policy, competitive reaction from other tourist transport and requiring high level of expertise to operate and manage. Airline facing increasing globalization, rising fuel prices, heavy repair & maintenance cost, raising labor costs, increasing competition and requirements for higher service levels and greater flexibility.