Boeing Financial Analysis

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.

Airbus was planning to introduce the A380 in direct competition to Boeing 747 to compete in the large aircraft sector. The rivalry between Airbus and Boeing was already intense. Boeing’s market share reduced from 70% in 1974 to 45% in 1990 while Airbus’s market share had increased from 1% to 34% during the same time (Exhibit 5). Encouraged by this increase in market share, Airbus was contemplating the introduction of A380. Development of new product line is extremely expensive in the Aircraft sector. Following is a quantitative analysis of the project to calculate the risks involved in introducing a new line of Aircrafts.

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 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.

Market Leading Position. Lockheed Martin is the world’s leader in combat and logistical aircraft, anti-missile systems, maritime surveillance and recon systems, space systems, and unmanned aircraft. In conjunction with providing systems they are also the largest supplier of IT services, system integration, and training to the United States Government. They have

Boeing was founded in 1916 and has become a leading producer in military and commercial aircrafts. The organization consists of two businesses supported by nine corporate functions. The company leadership roster includes one who is the chairman, president and chief executive officer and a ten person executive council. Boeing operates using their own management model which is used to attain world class growth and productivity. “Boeing strives to achieve their leadership and management goals worldwide in all activities and at every level by encouraging team effort, recognizing

After a few number of mergers & acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen.

Dominating the commercial aircraft market for decades, Boeing is considered to be the most highly competitive U.S aerospace industry. “U.S. firms manufacture a wide variety of products for civil and defense purposes and, in 2010, the value of aerospace industry shipments was estimated at $171 billion, of which civil aircraft and aircraft parts accounted for over half of all U.S. aerospace shipments. The U.S. aerospace industry exported nearly $78 billion in products in 2010, of which $67 billion (or 86% of total exports) were civil aircraft, engines, equipment, and parts” (Harrison, 2011). However, its position of influence has lessened in recent years. This is due to its main competitor, Airbus, who in recent years has made significant

Boeing’s management plan shows determination to improve through creation of new more members of their airplane family (commercial airplanes). This would also be achieved through integration of military platforms, systems for defense and the war fighter by use of network-centric activities. Boeing plan is also inclusive of creation of improved technology to solve problems across all business units. Boeing plans to e-enable airplanes where automation is the key to this development. Finally, Boeing is determined to arrange for financing solutions to its customers. Through this it will be able to attract more potential customers. Moreover, it can also be able to establish a better relationship with its customers through provision of incentives and sales promotion.

THE BOEING COMPANY: STRATEGIC AUDIT I. CURRENT SITUATION A. Current Performance Boeing performance has been outstanding for the past few years. Their Return on investment rose from three percent to 6 percent from 1998 to 1999, but it did drop to five percent in 2000. In 1996 Airbus claimed 42% of the market share, while Boeing had 64%. Boeing is looking at falling below the 50% mark. Boeing's profits have been doing quite well. They have risen drastically in the past few years, which can be seen in the profitability ratios. Boeing is doing fine when it comes to profitability, even though they have dropped slightly since 1999.

Boeing Airplane Company, commonly referred simply as The Boeing Company, is among the largest worldwide aerospace companies. Boeing is an American multinational corporation that designs, manufactures, and sells airplanes, rockets, rotorcraft, and satellites all over the world. The company also provides leasing and product support services to over 150 countries, and it is the largest exporter in the United States by dollar value. Boeing stock is a component of the Dow Jones Industrial Average.

By comparing the above companies, Boeing is a very strong and stable company. Large cap companies have market caps of $5 billion or more. This category includes the big blue chip companies that are household names to most investors. Although investors in stocks in any market capitalization category incur risk, surprises have traditionally been less likely among these blue chip companies (Ross, 2011). Their high return on equity measures how much the shareholders earned for their investment in the company.

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.

Boeing was the sales leader of the airframe industry, as well as one of America’s leading exporters. It had built more commercial airplanes than any other company in the world. Sales in 1981 were $9.2 billion; of the total, $5.1 billion were ascribed to the Boeing Commercial Airplane Company, the firm’s aircraft manufacturing division. Other divisions produced missiles, rockets, helicopters, space equipment, computers and electronics. History The Boeing Company was founded in 1916 by William E. Boeing, the son of a wealthy timber man who had studied engineering at Yale. In its earliest days, the company built military aircraft for use in World War I. It began to prosper in the 1920s and 1930s, when the civil aviation market expanded, primarily because of the demand for mail carrying. At about that time, William Boeing issued a challenge

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