Private Sector Company Boeing - Term Paper Example

Mid- Term Paper. The private sector is the sector that is owned by private entrepreneurs and the public sector is that where the ownership, functioning and development is looked into by the government. The strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. There are a number of strategies that both the public and private sectors employ in the daily functioning and running of the companies and organizations. In this paper we shall look at the similarities that exist between the different strategies that they both follow and whether there exist any similarities between the two sectors and their strategies. The strategies of a company are influenced by the goal of the company, but the goals that are pursued by the public sector and the private sector are very different. The goal of the private sector is usually profit maximisation while that of the public sector is that of achieving social welfare and ensuring that all the members of the society have access to the various services that are provided by them. There do exist some similarities between the two sectors. For example, both are today following the strategy of technological advancement for greater efficiency and also following method which help in the promotion of efficient use of resources so that the production process is carried out in a more sustainable manner, thus ensuring maximum utilization of the given resources and saving resources for the future. The private sector was set up by governments to ensure that social welfare was not neglected and that all goods and services were provided to the masses. The private sector is to cater to the needs and the demands of the society as a whole and provide for those services that the private sector was unable to provide or would not provide. (Science Direct) Over the past two decades the role of the private sector as well as the public sector has undergone a lot of changes. There has been a rapid increase in the private sector activity and there has been more and more investment and development in the industry while in the public sector, there have been cases of privatization of some, and there has been a move made to ensure that their working becomes more efficient. Entrepreurship was a term associated earlier only with the private sector but today this is also a major player in the public sector. Recent research made on the public sector shows that Entrepreurship in this sector has become more and more exploratory just like the private sector. (Emerald.) A private sector company Boeing is the leading aircraft manufacturer, and has been for a long time. It has been a global leader, but in 2001 it faced tight competition from another company called Airbus, where Airbus managed to secure more orders than Boeing. This was a waking call for the company and it started to readjust its strategies and marketing techniques. There was a difference of strategies that each had adopted, after the 1992 survey that had been conducted by EADS. Boeing had focused on more efficient flights, whereas Airbus had focused on long haul flight and main airports, and the results were seen in 2001 when Airbus got more orders, although the aircrafts were heavy and were only able to land at 35 airports, while Boeing aircrafts are more efficient and landed on more airports. (Hitt, Ireland and Hoskisson.) Airbus was also more sensitive to the needs of the customers while Boeing ignored the demands of the customers and Airbus designed the A-320 which gave competition to Boeing’s 737 and 757. This also reduced the popularity of the Boeing aircrafts. But after the waking call of 2001, Boeing changed its strategic planning and management. It came up with a new design that was not only efficient but also took care of the needs and demands of the customers and ensured that it was comfortable and more dynamic that the existing Aircraft. It also made strategic changes in its marketing and promotion which lead to an increase in demand of the flight and its marketing areas. The new aircraft model launched by Boeing 787 Dream line had the desired effects and today is in the winning line, and also it helped in the realisation of implementation of different strategies in the production process which lead to the creation of a more efficient global chain, which had customers all over the world, Japan, India, China, US, UK and many others. (Hohm, Sargent and Moser.) There has also been observed a certain slackening and defiency in the working and management of the Airbus production. It has been slow in the delivery of A-350, and has been forced to carry out its production mainly in the European countries such as Spain, Germany, France, etc. this has lead to a lower rate of growth and production, while Boeing has mainly outsourced the work in the production of 787 Dream line and almost 85% of its production ahs been done through outsourcing. Boeing has been concentrating on making additional efforts of ensuring that it keeps getting feed backs and continues to maintain the connection with the airline customers as well as the passengers so as to ensure sensitivity to the requirements of the customers thus ensuring that the value of its product remains high. Boeing also follows today a diverse strategic planning due to which it only receives 50% of its revenue from commercial aircraft, the other 50% comes from military and space satellite launching contacts and this too has ensured that it is not completely dependent on the market and thus helped in strengthening its position in the global market. In 2008, it was again able to regain its position at the top as the main supplier of aircrafts at the global level overtaking Airbus and all its other competitors. It started out performing Airbus in 2006 and was able to gain grounds on Airbus in 2008 and has been able to maintain its position since then. (CRM) It was able to do so only with careful planning and through changing and carefully managing its strategy. (Ward). DWP is a public sector enterprise and has recently been awarded with the e-Government National Awards 2008. It is a Human Resource Organisation, which helps in organisational learning and design technology. (Case Studies) It is a part of the modernisation program that is being run in a number of governmental organisations so that they can improve their working skills and also ensures efficiency and better management. It recently has helped in increasing the honing skills of trainees in management and training. It’s most recent achievement is that it has helped in the training of 70,000 staff members who are responsible for the payment of social security benefits through technological inputs, which has ensured greater efficiency in the working and development of the whole team and organ. (Public Technology.Net) The DWP has also developed and enhanced a new training system which is more innovative than its predecessors and has ensured the increasing the skills of employees through direct emulation of the jobs that they would have to do and perform at the desks and while using computers. This helps in ensuring greater efficiency of the working capacity in the workplace. It has developed e-solutions that helps in the training of new employees and helps in the saving of valuable time and monetary resources and is more cost intensive. It is also more flexible and engages the trainees better than what the training process had earlier. It has led to savings and also helped in reducing the number of drop outs in the training stage. It allows that the new content is authored in house. It can now also develop new designs and build new e-learning in the time that it earlier required just for the basic designing and also the time period has been reduced from weeks to hours due to the development of this new technology, and due to the shorting of the time span there has been a reduction in the resources required like costs of external supplies, etc and the products can now be developed at homes itself and the maintaince that is also required is very low. It has also helped in reducing the testing time, supplier development cost, etc. The new system is better for both, the trainees as well as the trainers and the feed backs have indicated that it is more realistic and practical than the previous model. Many are of the belief that this deserves national recognition, and should be implemented in all organizations as it will help improve efficiency and help in cost cutting. Another example of the private sector is that of those that are functioning in India. India was able to deal with the Asian financial crisis and still be in a stable position due to the investments that the private sector had made in the industries. Due to these investments there was a sound base in place which the private sector has developed over the years so as to ensure that there is greater development and growth and there is greater profitability and investment. Due to the historical, financial and economic background of the country the government has been unable to invest in the various industrial fields, and it is the private sector that has over the years developed the industrial sector of the country. After the opening up of the economy in 1991, and then the government having to liberalise further in 2005 due to its contract against its loan, there has been major steps in privatisation and the private industry has seen technological revolution and has over the past two decades or so adopted policies that are more efficient and that make optimum use of the resource available. This has helped in developing the labour force of the country also and has helped ensure greater utilization of all the resources available in the market. There have been changes in the strategic management and there has been observed a gradual shift from the labour intensive to a more technical based mode of production in the country that has not only increased efficiency but also increased production and the value of the product that is being marketed. (Score Card) These strategic changes have also affected the public sector in the country and there has been a growing trend of privatisation of the public sector companies in the country as it is believed that this is more productive and cost effective method of production and distribution. Due to the increasing competition at the national and global level the companies have adopted more dynamic strategies that are more sensitive to the requirements, demands and needs of the customers and there have been seen greater changes in the marketing strategies of the private sector organizations that has had a direct and positive impact on the sale of these organizations. (ADB) Thus, we see that there are a number of similarities in the strategies of the public and private sector and these focuses mainly on customer satisfaction, utilization of resources, greater efficiency, and etc. But there are also certain dissimilarities that spring from the fact that the goals that are pursued by these two sectors are different and their end purposes are polar opposite to each other. But it cannot be denied that there are certain strategies that are common to both and that help in the better functioning of both. Reference: Public Technology.Net: Case study: DWP Learning Modernization accessed on Saturday, July 25, 2009 at http://www.publictechnology.net/modules.php?op=modload&name=News&file=article&sid=19405. Balance scorecard accessed on Saturday, July 25, 2009 at http://www.ap-institute.com/Balanced%20Scorecard.html. ADB: India: Case studies on private sector development and operations accessed on Saturday, July 25, 2009 at http://www.adb.org/Documents/Evaluation/Case-Studies/CS-IND-PSDO/CS-IND-PSDO.pdf.\ Case Studies: Strategic performance management Specialists accessed on Saturday, July 25, 2009 at http://www.excitant.co.uk/pages/case_studies_access.htm#Public_sector. Ward. M.A 2006: INFORMATION SYSTEMS TECHNOLOGIES: A PUBLIC-PRIVATE SECTOR COMPARISON; The journal of Computer Information Systems 2006 accessed on Saturday, July 25, 2009 at http://www.allbusiness.com/technology/computer-software-management/4086942-1.html. CRM: public vs. private sector Accessed on Saturday, July 25, 2009 at http://www.government-crm.com/governmentcrm.htm. Hohm, Sargent and Moser: A quantitative comparison of the effectiveness of public and private refuge resettlement programs, Accessed on Saturday, July 25, 2009 at http://www.jstor.org/pss/1389583. Science Direct: Process reengineering in the public sector: Learning some private sector lessons accessed on Saturday, July 25, 2009 at http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V8B-3SWY0JV-1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=d096d10ef2c4ab0d6711978e3c0aebb0.\ Emerald: Public and private sector entrepreneurship: similarities, differences or a combination? Accessed on Saturday, July 25, 2009 at http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=31FFA177727E9775554D91DFC5A3D143?contentType=Article&contentId=1775091... Hitt, Ireland and Hoskisson. Strategic Management Competitiveness and Globalization, Edition 4, 5, 6 or 7. South-Western., 2001-2007, pg 104-208. people deliver the results. A culture of performance so your people deliver the results. 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