The customers' negotiating power is the first important factor that affects the organization's strategic, tactical or operational planning process. Indeed, this is a particularity of the industry where Boeing is competing. This is characterized by very expensive and price that can reach tens of millions for one aircraft. The customers are generally governments or other large organizations that have a high negotiating power. A negotiation for a set of planes can reach several million of the bill.
From this perspective, Boeing needs to have a negotiating margin and to be able to take the right decisions when it comes to completing a deal or not. If this a long - term collaboration, the company can let the deal go for less of the initial price. All this is, however, related to strategic planning, since the deals are usually made before the planes are built.
The social factor, represented by the employees and the unions is also an important factor. It determines the internal policies related to employee motivation, to their salaries, also affecting the overall budgetary planning. Additionally, the employee-related policies affect the long-term strategies for the company, who will need to decide on the number of employees that are needed in order to tackle the existing projects.
Finally, technological developments are an important factor that impacts the company's development. Indeed, this is a highly competitive industry where research and development plays a fundamental role in the company's evolution. From this perspective, the company will need to have an R&D long-term strategic plan that will determine the strategic objectives,...
Boeing Planning Function of Management at Boeing As a provider of military equipment, a developer of defense technologies and an innovator in the field of aeronautics, the Boeing Corporation is a complex global network of divisions, departments and geographic contexts. For a corporation such as Boeing, a leading force in the development and retail of military technology, and lately with a focus on missile guidance systems and other non-commercial endeavors, the era
These different factors play a role in setting long-run strategy at Boeing, such as product development and decisions regarding manufacturing capacity. The company must also make human resources decisions based on expected demand, and the period of planning can stretch 5-10 years or more. Tactical planning can also be a long-term process at Boeing. This is impacted by competition within the defense industry, the expectations for DoD budgets and the
The Large Cargo Freighter (Dreamlifter) delivered major assemblies in the first half of 2007, and the company expects final assembly of the first 787 later in the second quarter of 2007. Boeing also expects to fly 787 engines on an airplane test bed sometime in the first quarter of 2007. In summary, the three dominant factors of commercial aircraft demand, business jet demand, and supply chain planning, forecasting, and manufacturing
Boeing is one of the United States' largest exporters and is a predominant aerospace and defense corporation. Boeing is the world's largest global aircraft manufacturer (by deliveries and revenue), and the second-largest defense and aerospace contractor (ranking in Defense News). The history of Boeing is as exciting as any in history, and encompasses thousands of individuals, innovations, and spectacular technological developments in airline design and manufacturing. Of course, most everyone
McNerney needed to concentrate on this function, as several challenges in the past, such as labor disputes leading to walk offs, had hindered the organization. Weber (2008) details how McNerney skillfully has been able to lead external forces, specifically the Defense Department, yet that internal leadership has yet to be fully developed. For this reason, the threat again of labor stoppages is a major concern for the company. McNerney
Boeing Case Study: Financial Planning As globalization force changes to business practices to remain competitive, organizations will be challenged to maintain a working environment that meets business demands. Hence, Boeing is no exception. A growing trend toward outsourcing production or services exists. Outsourcing has spawned different meanings: acquiring a product or service rather than producing it, contracting out of a company's non-core, non-revenue-producing activities to specialists, or delegating to an external
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