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Strategic Issues Paper - Essay Example

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Several companies today, across all industries are facing the problem of rising fuel prices, rising environmental concerns (global warming), remaining cost competitive, finding skilled manpower resources, retaining employees, availability of cheap labor and the increasing threat…
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The Aerospace and Defense Industry is also reeling under the pressure of rising fuel prices. This is evident from the fact that the Boeing Aircrafts manufacturing company’s response to the said problem, which pointed at the rise in demand for fuel efficient planes owing to the constant upsurge in global oil prices. Rising fuel consumption and an equally simultaneous rise in fuel prices are a matter of grave concern for the organizations in almost all the sectors of the economy, which are increasingly finding it difficult to cope with such external threats and have been trying to battle these external environmental forces with innovative strategies.

The company is over booked with demand for such fuel efficient planes which has far exceeded the supply (Boeing Comments, 2008). Faced by the problem of growing customer concerns about the environmental hazards caused by some of the poisonous substances used in the manufacture of PCs and other similar electronic devises, Dell Computer Electronics, developed and launched its Sustainable Business Development Program, that dealt with such problems, with a promise to contribute towards the cause of greener and cleaner environment and at the same time achieving its overall organizational goals of steady economic development (Dell, 2008) .

Several manufacturing companies across the globe, today, are increasingly facing problems from the high rate of penetration of low cost manufacturers from emerging countries especially from India and China. The fact that the cost of production cycle depends largely on the availability of raw materials, as well as, the availability of low cost and cheap labor. These two countries have a talented pool of human resource in abundance which they use to their advantage by producing cost effective and good quality products.

The saturation in the Western markets as well as the high cost of labor, is further making things difficult for the western

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