Boeing Company - Research Paper Example

Boeing Company Management planning function of Boeing Boeing corporation does not only integrate the defense systems, but also provide commercial airlines services. Its corporate functions include: operations and technology, communications, business development and strategy, finance, human administration, law and public policy, international operations and engineering (Berridge, 2003). Boeing Corporation is the second largest aerospace and defense contractor in the world. In addition to that, it is the largest exporter in the United States. It is well known worldwide as it deals with many responsibilities. Ethical, legal and social responsibilities are the major factors that have an impact on management planning. Boeing organization has a very unique business structure, which consist of two business solutions that are tied together. The two businesses of the Boeing organization are commercial airlines and the integrated defense system. The driving force behind the Boeing organization is the stakeholders, which include the employees, customers, communities and shareholders (Berridge, 2003). The management model used to direct the planning and focus of the company is a simple and effective method of planning and analysis that yield better results for the business. Good business results are driven by the Boeing’s aptitude to encourage leadership and growth in the organization. Boeing receives performance –driven management at all levels since it makes its employees to share in both their successes and failures through education (Heumann, 2005). Planning is concerned with the future consequences and impacts of the present decisions of a company. In other words, Planning is a very important function of management and operation of Boeing Company. For this reason, staff cannot be mobilized and production can not begin unless planning is completed. The major function of management in any organization is to maximize the profits in order to benefit the company and the owners. Any decision that might enhance the return of the investment would appear to be proper course of action, as long as they are legal (Gilman, 2006). Boeing benefits from the use of industrial research; the industrial research enhances the increase of the choice of customers, as well as providing safe and effective services to them. The other function of research and development is to ensure that there is an effective and services for the customers. Successful resolutions and operations of a company; especially Boeing company depend mostly on the degree of the relationship between the company and the government under which the airline is operating. Management at Boeing through tactical, phenomenal strategic and contingency planning will continue to dominate the industry in aerospace, if it utilizes planning as an essential element for the business model (Heumann, 2005). Factors affecting Boeing’s strategic, tactical operation, and contingency planning. According to Garvin (2002), commercial aircraft industry has many uncertainties, which consist of risks and other factors that could affect the overall success of a business. Economy, government and terrorism are the major factors that could affect the Boeing’s strategic, tactical operation and contingency planning. The economy of a country is a major factor that influences the aircraft’s manufacturers; the demand for the airline is poor when there is recession. For this reason, the purchasing power of airlines will be negatively affected. Large companies, especially Boeing often focus on the targeting cost of management. Boeing has implemented the target costing as a pilot project, where the strategy is now used companywide. However, reaching the target cost is challenging the entire value chain of the company (Berridge, 2003). The company cooperates with the suppliers to explain the market pressures on the cost based on an economy’s performance. Adopting a low cost strategy therefore, would result to company’s cost being lower than that of the competitors; this will enable the company to offer an high quality item at a lower price. To achieve success at this strategy, the company must consider their cost drivers and control them. Low-cost leadership is one of the commonly used strategic approaches that would enhance the establishment of the company. Another factor is the government, which can influence the planning strategy of the company by imposing some regulations and legal restrictions. The government can establish the ground rules at which a company should operate; the company has got no choice, but to follow the implemented laws. The regulatory changes often force significant changes in the organization’s practices and strategic approaches, hence affecting the business’ operation (Gilman, 2006). The other dynamic factor that affects the strategic management plans in Boeing Company is the presence of the wars and terrorism. The terrorist attacks are usually not predictable and it gives the company as well as the passengers the fear for traveling. For this reason, the customers may not use the company’s planes to travel. Many airlines have stopped their flights to countries with war breakouts; Middle East is one of the countries with the fear of plane attack (Garvin, 2002). Threats and terrorist attacks have prompted airline carriers to invest huge sums of money to be used at airports. In order to control terrorism, the intelligence services of Boeing must work directly with the team responsible for the nation’s security. Air terrorism can be reduced by combining the government’s actions and their security agencies, as well as the carriers and airport management (Heumann, 2005). Legal issues, ethics, and corporate social responsibility influences the management planning of Boeing Legal issues, social responsibility and ethics have been part of the learning experience for Boeing organization. Every major corporation or industry which has survived the test of time has incurred some form of legal issues. Legal issues can cost a company in terms of money as well as in terms of time. Boeing is one of the corporations that have incurred some form of legal issues; it is undergoing a strike that concerns the mechanics that are pursing extended contracts, as well as better benefit pay packages (Berridge, 2003). Through this striking, Boeing Company has had a potential of loosing millions of money through revenue. Moreover, they could loose contracts and bids for the future development through legal issues. Social responsibility of a company has been one of the basic issues confronting the business. It is defined as the process in which mangers take the responsibility to identify and accommodate the interests affected by the actions of the organization. Most businesses have paid significant attention to the social impact of their economic activities (Gilman, 2006). This has enhanced introduction of codes of ethical conduct by organizations, as well as accommodating the interests of various groups in the society through social endeavours. However, the activities ofcorporate social responsibility has been criticized by the parties, who claim that the only advantage of social responsibility in profit yielding. According to Garvin (2002), the cost burden of various responsibilities lowers stockholders returns, as well as enhancing the integration of the increasing numbers of different cultures to their offices. Ethical issues have had effects on the management of Boeing organization. However, many businesses view the business ethics in terms of directorial compliance with legal principles and adherence to internal regulations. Ethical issues bound the airline industry of Boeing (Berridge, 2003). Boeing has a long and diverse history, and ethics is a fundamental component of the organization’s mission. The company has strengthened and enhanced the ethics program, specifically as to hiring the existing and the former employees. The Boeing’s ethics organization was more decentralized before, but today, it is more centralized with over 100 full-time advisors who are not budgeted to individual business units, but fully belong to Boeing centralized office (Heumann, 2005). The corporation has taken a comprehensive look at its entire ethics, as it contributes to the effective management of the business. References Berridge, K. (2003). Planning function of management in large companies. New York: Guilford press. Garvin, A. (2002). Airlines organizations: Boeing aerospace. Oxford, England: Clarendon Press. Gilman, S. (2006). Addiction: strategic management and planning. New York: Macmillan publishing company. Heumann, M. (2005). Smart Business Systems for the Optimized Organization. Sidney: Schwartz. Read More