The Management of Boeing - Case Study Example

Boeing Table of Contents Introduction 3 Planning Function of Management of Boeing Company 3 Impact of Legal Issues, Ethics, and Corporate Social Responsibility on Management Planning 5 Factors that Influence the Companys Strategic, Tactical, Operational, and Contingency Planning 6 Conclusion 8 Reference 9 Introduction In order to sustain in the industry and to look at future prospects with hope, the primary criteria that every company needs to ensure is that its ‘planning’ process is in place. The management of the company is responsible for planning, executing and evaluating the entire process. The entire planning functions of the management includes the development of organization’s objectives, planning premises, development of sub-plan for uncertainties, follow up and evaluation of plans. However, there are certain factors that influence the planning process of the management. In this paper, the planning functions of Boeing Company will be discussed and analyzed to identify the most important influencing factors in its planning process. Boeing is the world’s largest manufacturer of different types of commercial and military aircrafts that also includes “rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems” (Boeing-a, 2010). It is the leader in aerospace industry and the services provider to more than 90 countries including NASA. This giant aerospace manufacturer is always in the process of improving its innovative product line to meet the expectations of its existing and potential customers. Planning Function of Management of Boeing Company The efficient management planning functioning of Boeing is the most vital factor for its success in nearly 90 countries. Boeing is the largest manufacturer and seller of aircrafts. Its primary operational functions include designing, assembling and supporting commercial jetliners, defense systems and launch vehicles. It also has strong network-centric solutions, networking technology and advanced systems in order to fulfill its clients’ requirements. Therefore, the management needs to take care of all these operational and other supporting activities to meet the long term objectives of the company. However, the primary objective of Boeing’s management is ‘sustainability’ and in order to do so, the management aims “to have a positive, tangible impact in communities where Boeing employees live and work” (Boeing-b, 2010). The company’s favorable policies and organization structure are the most crucial factors for its world class performances. Figure 1, depicts the corporate functions of Boeing that includes all the necessary functions that help the company to provide world class performance. Figure 1: Corporate Functions Divisions of Boeing (Source: Boeing-c, n.d.) According to this figure, the management of Boeing has divided its operations into two major segments i.e. commercial airplane and defense, space & securities. For providing better performance in its operational segments, Boeing has developed nine levels of management functions. Each of these functions is crucial for its world class performance. Boeing employs over 157,000 employees across 70 countries and with this strength the management is able to perform all the functions starting from business development and strategy. The division of these corporate functions includes all the important activities that are crucial for its sustainability. The global planning functions of Boeing basically concentrate on five major areas that include financial goals and performance, global growth strategies, technologies & productivity improvements, leadership development, sharing best practices and ethics and compliance. The planning functions of Boeing’s management aims to create value by driving the long term growth. The global success of Boeing and its future prospects attests its outstanding planning functions in the field of management. Impact of Legal Issues, Ethics, and Corporate Social Responsibility on Management Planning Law, ethics and corporate social responsibility (CSR) are the three important factors that influence the management planning functions. The planning process of Boeing has been complicated by issues related to legal, ethics and corporate social responsibility. The management planning functions have been developed to avoid the legal issues. However, in 2000, Boeing faced deep trouble when nearly 38 women employees filed a complaint against the company for gender pay discrimination (Businessweek, 2004). The company in fear of being humiliated publicly asked the management to settle the legal issue behind the closed doors. The managerial decisions not only benefitted the company but even its relationship with the employees, customer and public greatly improved. In order to maintain the CSR in its management planning, Boeing has taken up serious measures to improve the environmental performance. Being a global corporate citizen, it is working with many non-profit organizations to promote environmental welfare activities. However, the most prominent example of its CSR activities is its philanthropic efforts that aim to preserve endangered species and plants (Boeing-d, 2010). The values of Boeing include leadership, integrity, quality, customer satisfaction, brotherhood, a diverse & involved team, good corporate citizenship and true efforts to enhance the shareholder’s value. These values have been developed in order to contribute ethically to its stakeholders and society. Management planning functions system is the one that executes it. For example, Boeing has developed a hotline set up that “listens to and acts on concerns expressed by employees and others about possible violations of company policies, laws, or regulations such as improper or unethical business practices, and health, safety, and environmental issues” (Boeing-e, 2010). Factors that Influence the Companys Strategic, Tactical, Operational, and Contingency Planning The management model of Boeing includes several important factors and activities related to strategic, operational and contingency planning. Figure 2 depicts the Management Model of Boeing. Figure 2: Boeing Management Model (Source: Boeing-c, n.d.) Operational activities include many influencing factors like profitability, innovative technology and environmental concerns. Boeing is the leading manufacturer of aircraft, and technology is the primary factor in its business. The management emphasizes on technological development as the use of advanced technologies helps to gain efficiency and cost effectiveness. In 2006, Boeing Company developed ‘Boeing 787’ and the technology used for designing and assembling was economically favorable (Edward, 2006). Technological research and development is directly related to profitability and is influenced by the selection of product by the company. In order to increase its profitability, the company concentrates on integrated defense systems and commercial airline because the sale of these products has maximum contribution to its total revenue. To reduce carbon emission, Boeing is trying to develop fuel efficient airplanes, with the help of its technological development, which will consume less fuel. Boeing has successfully developed strategies for enhancing its environmental performances which has helped the company to meet its objectives related to CSR. Conclusion Boeing Company’s planning functions of management has been developed in order to meet its long term objectives that include its profitability, stakeholders and environment. The management of the company considers crucial factors like law, ethics and corporate social responsibility while planning its management functions. However, the important factors that influence strategic and operational planning are profitability, technology and environmental issues. These three factors are closely interlinked with the company. The overall growth and successful fulfillment of Boeing’s objectives bear evidence of its management’s efficient planning functions. Reference Boeing-a. (2010). About us. Retrieved August 12, 2010. from http://www.boeing.com/companyoffices/aboutus/. Boeing-b. 2010. Sustainability. Retrieved August 12, 2010. from http://www.boeing.com/aboutus/sustainability/index.html. Boeing-c. No date. The Boeing Company. Retrieved August 12, 2010. from http://www.boeing.com/companyoffices/aboutus/overview/powerpoint/boeing_overview.ppt. Boeing-d. 2010. Environment and Global Corporate Citizenship. Retrieved August 12, 2010. from. http://www.boeing.com/aboutus/environment/gcc.html. Boeing-e. 2010. Ethics. Retrieved August 12, 2010. from http://www.boeing.com/companyoffices/aboutus/ethics/hotline.html. Businessweek. 2004. Coverup At Boeing?. [Retrieved August 12, 2010. from http://www.businessweek.com/magazine/content/04_26/b3889088.htm. Edward, C. (March 1 2006). Flying in Formation; The massive global collaboration effort behind Boeings 787 reflects the changing nature of its business. Retrieved August 12, 2010. from http://www.allbusiness.com/technology/software-services-applications/13443774-1.html. Read More