Drone Navigation Companies - VectorCal and the Boeing Companies - Essay Example

Drone Navigation Companies

VectorCal and the Boeing Companies

VectorCal is a drone navigation company dealing in artificial aircraft and satellite. Their war jets can work with either a director or automatic directive. Its CEO, Mr. Dominic, works hard to ensure that they acquire both private and government contracts. Regarding its operational years, the company maintains a high rank in aircraft systems supply considering its experience and efficiency in the field. Over the years, they have attained several contracts from some nations concerning security systems. The firm’s success is accredited to good management and goal-oriented projects that rarely fails because it improvises technological tools (Holtz, 2012). Additionally, they obtain more contracts because the company offers quality services at an affordable price. The organization aligns with their clients’ needs, ensuring that at the end, they obtain quality services. It stipulates that their chances of winning indentures are higher than their counterparts, which include developed companies.

On the other hand, the Boeing Company located in Chicago is one of the largest aircraft manufacturers particularly in rockets, airplanes and overhead satellites. Its president Dennis Muilenburg accounts for the company’s recent success in managing more contracts in the USA over the years. It recorded a staggering income of more than $90 billion in the year 2015, making it among the highest earning firms across the globe. Since its reimbursement in the year 1917, the organization won many contracts especially during the World Wars and Cold War. The USA government supported its activities because of its regular supply of advanced aircraft to the government over the years. However, some private companies and government bodies as FBI considers its charges as higher than the other organizations in the market, making them discard their services. The firm’s most recent project of developing a Phantom Eye Drone powered by hydrogen gas was a success because the aircraft could stay 65,000 feet above the ground for four days. During the duration, it will not require any refueling.

In the year 2014, VectorCal received a $48.6 million contract from SBIRS Auxiliary Support Centre and On-Orbit Test sustainment. The respective contract involved supporting the organizational flight base while improving their ability to monitor their performance. The primary aim was ensuring that they sustain the Geosynchronous Elliptical Orbit for the company. The contracting company considered VectorCal because they offer affordable services. The mentioned project was a long-term agenda. Most Drone navigation companies would ask for a payment that exceeds the capability of developing companies. Additionally, VectorCal creates a better customer rapport with the clients compared to her counterparts. The facet attracts more contracting companies to dwell on their services. Subsequently, the organization marketing strategies are effective and efficient. For instance, they have several social sites on Facebook and Twitter, which updates potential clients of their new products. Moreover, it is convenient to visit their premises as they deal with both governmental and private contractors.

Contrary, the most recent contract for the Boeing Company weighs at $10 billion, which includes a supply of 767-300 freighters ordered by FedEx Corporation. The purchaser is ready to incur an additional cost of $4.2 billion after concluding that contractors will provide the gesticulated equipment in time. The Boeing Company’s rapport with most government remains the fundamental reason behind the numerous contracts in the 21st century. Moreover, her experience assures the firms in need of her services due to effectiveness and efficiency. Typically, they won the deal because of the intelligence behind their services. The organization is capable of improving its aircraft because they employ the best technological means during the production process. Considerably, the Boeing Company offers quality planes and missiles that can protect the interest of their nations.

VectorCal Company is eligible to cost reimbursement contract. The company is still developing meaning they cannot accommodate the high cost of human labor required in the process (CCH Incorporated, 2007). Additionally, they are not in a position to offer extra services because of the little returns earned. Their counterparts are capable of such expenses because of a high profit earned at the end of every financial year. Concerning the contract, the provider, which in my case is VectorCal can seek for fiscal support from the other company in the case where they are unable to complete the task efficiently. For example, the government might order certain specifications for a jet fighter; however, because VectorCal lacks particular equipment, it can ask the contractors to buy on their behalf. Hence, the suggestion is best for the company because it reduced the risks of making losses during the production process. In the end, the case firm will benefit from the transaction.

On the other hand, the Boeing Company is adept at working with both the cost reimbursement and fixed price contracts. As gesticulated, the former will offer such an organization the luxury to undertake its operations at a lower cost accounting for possible losses (CCH Incorporated, 2007). The firm can concentrate on other contracts at the same time because the current one will have minimal risks. Furthermore, fixed price will still work for this second case. Under this contract, the Boeing Company accepts the agreement suggesting that it will start and complete the project at a fixed fee without bidding for more payment after completion. It insinuates that the firm will undergo all the labor, transport, and material expenses without relying on their contractors (Murphy, 2008). Therefore, before making any steps, the company will have to calculate the total expenditure to prevent the occurrence of possible losses. Such a contract is advantageous because the organization will have the opportunity to set their price for the whole process (Murphy, 2008). The contractors can accept the deal or discuss taking into account the possibility of their counterpart’s failure.

VectorCal has to manage both the direct and indirect costs in it operation. The former includes direct labor, manufacturing supplies, wages or salaries and direct materials (Drury, 2008). The company must make sure that they have the right number of human labor to maneuver the machines. Additionally, their salaries are fundamental for the maintenance of better management-employee rapport. Moreover, the firm must consider the amount allocated to production materials and the cost of supply (Drury, 2008). Contrary, the organization will incur indirect costs like supervision salaries, insurance, and quality control costs. Such expenses occur during the production process insinuating that the company might not have accounted for them. Hence, VectorCal sets extra cash to accommodate such necessities in time.

Conversely, the Boeing Company faces the same issue regarding their undeviating and ancillary costs during production. As gesticulated, the cost of labor concerning wages and salaries will maintain even in the case because employment is a necessity for production (Drury, 2008). Consequently, the firm must consider commission earned by the employees because of useful work. It encourages them to commit in their daily duties. Moreover, the organization has to account for the cost of manufacturing supplies (Drury, 2008). It assures a continuing support for the acquisition of necessary resources. Subsequently, they incur indirect costs like administrative expenses for their officers and personal cost in different departments. Additionally, overhead charges will increase the cost of production but in an unplanned manner. For instance, the company pays regular rent when displaying their products in large showrooms. Therefore, because the government is considering the effectiveness of the companies, it will be straightforward the Boeing Company will acquire the contract. They will have an upper hand because of the high number of suppliers and human labor stipulating that they will complete the duty within a short duration.

Regarding the sensitivity of the Department of Defense in the USA, the Boeing Company will be up for the task. Foremost, the company is eligible to conduct either fixed-price or cost reimbursement contract insinuating that they provide a variety for the government to decide on them. They have adequate labor and the ability to pay their wages and salaries in time meaning they rarely experience delays because of internal affairs. They can undertake the task within the shortest time possible. Over the years, the firm managed to outdo most of their competitors across the globe as they have a better foundation with the necessary equipment in accomplishing their tasks (Hutton, 2011). Additionally, the increased number of worldwide contracts makes the company eligible to opening other branches near client’s proximity for effectiveness.

The issue about experience affects most companies across the globe. The newer firms struggle in a competitive market because they are unable to match their rivals’ standards Holtz, H. R. (2012). The aspect is not a case for the Boeing Company. The government will consider it started in the late 19th century and since then it offers efficiency in aircraft supply during the World Wars and other crises later. Such facets give them an upper hand over their rivals. Moreover, the organization is better suited to modern technology because they already have the head start to developing aircraft; hence, with the necessary expertise they can manage improved forms (Holtz, 2012). Lastly, the company is one of the few across the globe with the proficiency to develop rockets and other advanced missiles. Therefore, the Department of Defense will consider its request because of the ability to provide the best-weaponized aircraft and better security system.