Download file to see previous pages...
government in 1978 as well as the European Union’s adoption of a mutual airspace, the airline industry has witnessed even worse situations. Recently, a large number of low carriers have penetrated the airline market globally. It is also securing the departure of legacy carriers, which have been regarded as household names for the past few decades (Topham, 2013).
In the past three decades, the airline industry has grown at a steady pace, and is forecasted to do so in the coming future. RPK (revenue passenger kilometers), an indicator of a passenger paying for a single kilometer has grown threefold in the last thirty years. Most of the forecasts pertaining to the industry today reveal that both RPK’s as well as revenue ton kilometers, which represents the RPK’s freight version will double from the expected GDP growth of 3 percent (TradeGov, 2009).
Presently, the large commercial aircraft (LCA) fleet, which is airplanes having more than 300 seats and over is approximately 16,000 and rising. The anticipated capacity to cope with the growth in traffic by the year 2023 is about 35,000. About 70 percent of these airplanes are nonexistent and will be produced by Boeing, Airbus, as well as other companies in the LCA industry. With respect to the present list prices, the aircrafts will demand additional buildup of assets amounting to approximately $1.6 trillion (TradeGov, 2009) (U.S.InternationalTradeCommission, 2009). This paper will undertake an analysis of the Boeing Aircraft Company based on its supply chain management.
The LCA industry serves as the major supplier of assets for the airline industry. The major competitors in this case include Boeing Company and Airbus S.A.S. the two companies are offered support by their respective governments in diverse ways. This situation is indicative of the airline industry’s national flag carriers. The assistance that the government provides to these companies in characteristic of two major factors. Firstly,
...Download file to see next pagesRead More
On the other hand, it is obvious that competent management involves proper planning. In effect, supply chain planning should constitute forecasting, efficient discovery and prioritizing of all essential sources of supply and add value to the product along the supply chain.
The company’s boss, Jim McNerney, articulated that In spite of a number of growth programme tests, the company is strong and is growing tougher, and it is expected to continue development in the financial outcomes in 2008 and further than that. The corporation, in matters of business aircraft, had verified sales in 2007 having 1,413 sales contrasted with Airbus's 1,341.
At the same time, organizations are becoming responsible for their partners and suppliers’ social and economic performance due to the increased demands as well as strong economic performance. These pressures are coming from a number of sources, which include the community, employees, governments, and socially aware organizations.
Research and practice shows that connecting and informing on supply chain, its management and the distribution of characteristics that dictate management of corporate organizations have greatly contributed to the integration of supply chain and its management.
An elaboration to this finding has been offered in the discussion of this essay. Boeing Aircraft Company Boeing Aircraft Company is one of the largest manufacturers of military aircrafts and commercial jetliners. Boeing believes fundamentally in the expansion of its products and services to meet the changing desires of the customers through utmost quality assurance, in accordance with the prescribed relevant legislative norms.
The author states that a business strategy includes several organizational functioning strategies, such as supply chain management strategy, production strategy, marketing strategy, human resource management strategy and financial strategy. These all are equally important for an organization to achieve significant business growth rate.
The company cites problems with global supply chain that has been unable to deliver parts to the assembly plant as the reason for latest postponement of the delivery. Though the company claims that this does not have any impact on its financials, this inordinate delay has seriously hit the stock prices of the company.
ver, it has been observed that in order to achieve success, companies need to integrate their available resources and networks effectively to ensure optimum success. This process of management that a company follows is termed as supply chain management. A supply chain is a
So, there is a basic introduction to the topic where a simple knowledge regarding the decision making process has been formulated. An elaborate discussion has been made under the analysis section where the problems of supply chain
6 Pages(1500 words)Research Paper
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Research Paper on topic Analysis of Boeing Aircraft Companys supply chain management for FREE!