The case involved the National Labour Relations Board (NLRB) which was the complainant, and Boeing, the defendant. It was filed by the NLRB after the management board of Boeing announced that it planned to relocate part of the company’s production line of the 787 Dreamliner from its current station in Washington DC to its new location in South Carolina. The new plant in South Carolina would not be under the union. This plan was to ensure that the company would produce a total of 10 Boeing 787 Dreamliners in a month with three being assembled at its South Carolina base while the rest were to be assembled at its current hub in Seattle. In its submissions, the NLRB argued that the decision by Boeing to relocate unionized workers to its new South Carolina plant was an act of discrimination aimed at punishing the union for its persistent and unwavering stand on labour laws. It also argued that the relocation plan named “Project Gemini” had far-reaching effects since it would create significant job losses for middle-level employees who were at that time unionized. Therefore, the board was seen to take the decision as an act of retaliation against the employees who had at an earlier time stalled the operations of the giant aircraft maker through a strike.
To support its facts, NLRB presented documents from the company which in its opinion confirmed its concerns to be valid. Boeing in its submission vehemently denied the allegations presented by NLRB stating that its decision to relocate part of its production work for the 787 was purely motivated by economic reasons and not as an act of retaliation against the worker’s union because of the strikes that had earlier been staged by its workers who were under the union. Boeing also advanced the view that the threat for job losses of its unionised employees was non-existent since the company had created more than 5000 unionised jobs in its Washington DC base after the opening of the South Carolina plant. The company further argued that the arguments made by the National Labour Regulation Board were blown out of context. Boeing asked the court to dismiss the case. However, a keen analysis of the documents presented in court by NLRB showed that labour issues were part of the considerations which motivated Boeing to move some of its workers to South Carolina. In addition, the plaintiff also confirmed that Boeing’s “Project Gemini” had a high-risk capacity and greater cost implications as compared to maintaining the whole production line of the Boeing 787 Dreamliner at its then Washington DC base. However, Boeing officials responded to this by arguing that the postulated financial gains were to be long-term rather than short-term.
The National Labour Regulation Board based its case upon Sections 8(a) (3) and 8(a) (5) of the National Labour Regulations Act. It argued that Boeing’s decision to relate its relocation to South Carolina to economic reasons was a clear violation of Section 8(a) (3) which prohibited any actions and decisions by an employer to implement any major entrepreneurial activities which by nature adversely and negatively affected unionised employees. Examples of entrepreneurial activities were linked to actions by Boeing to relocate its entire production lines and departments or subcontracting the same to other business entities. Basing its argument on these sections of the Act, NLRB argued that Boeing’s intentions were driven by discriminatory motives conjured to undermine and interfere with the worker’s union’s operations or create an escape route from its then prevailing union activities. On other hand, the case advanced by NRLB could further be supported by Section 8(a)(5) which termed it illegal for an employer to refuse to collectively bargain with the union representatives on matters that directly affected the union’s members. Boeing, on the other hand, drew its argument from the fact that the National Labour Regulation Act would not penalize an employer for taking decisions that had economic values and that its decision was not informed by any past experiences with the labour union. The company asserted that its motives were pure and not retaliatory and therefore, the case against them did not warrant any legal basis as per the National Labour Regulation Act.
As an administrative law Judge, I would find the case by the National Labour Regulation Board to have merit considering the facts presented and the arguments made by both parties. Boeing’s decision though taken on the basis of acquiring future economic gains cannot escape the fact that the company took into consideration its previous unpleasant experiences with the worker’s union. It cannot be true for the company to present the fact that its decision was purely economic. The documents submitted by the NLRB are also a further confirmation that the company was also using the plan as an attempt to undermine and restrict the activities of the labour union. In addition, the submissions made by the company do not show that the company had exhaustively engaged the union in collective bargaining with respect to this matter. Therefore, drawing my judgment from Sections 8(a) (3) and 8(a) (5), I would find the case of NLRB against Boeing to have legal merit. Boeing should therefore first engage the workers union in collective bargaining and address all the concerns of the union before embarking on this plan in order to make sure none of the parties is victimised by the other.
Management planning involves the use of many approaches in business undertakings to ensure efficiency and productivity is achieved. In the course of business planning several factors have to be considered including legal, social and economic implications of the intended management plan.
In this report we are going to analyse several measures and strategic plans undertaken by Boeing through its management planning and the implications of these plans on several issues or subjects. The report is going to look into legal, ethical, strategic and even contingency planning undertaken by Boeing.
Safety
The issue of safety is very paramount in many spheres of business, especially in the aviation industry where Boeing is a major industry player. Safety is considered a legal, ethical and social responsibility in that safety affects the lives of many people through various ways. For instance Boeing owes their customers safe airplanes that they can travel in, because if Boeing produced many faulty airplanes then they could face lawsuits from victims or disgruntled customers.
Aviation authorities such as the FAA take safety seriously and in cases where an airplane manufacturer is found to be at fault concerning ignorance of safety procedures in the production of its airplanes then serious legal implications are bound to occur (Spindler, 2008). Authorities such as the FAA usually fine airline manufacturers in cases of design flaws in their airplanes since these problems usually lead to fatal consequences like air crashes in which many lives are lost.
A good safety record is important in building an organisation’s reputation, airlines and other customers in the aviation industry take safety seriously into consideration during product acquisitions. In its management planning Boeing has undertaken safety plans during the manufacturing of its airplanes; the company usually conducts a lot of products safety tests. As a social responsibility measure, Boeing has recently undertaken measures to produce fuel efficient airplanes.
These measures are aimed at ensuring environmental safety is enhanced by the firm globally, environmental protection is a social responsibility cause that should be undertaken by firms like Boeing (Ijjasz, 2004). Boeing’s production of less noisy and fuel efficient airplanes show its commitment towards environmental safety as the aviation industry experiences phenomenal growth.
Over the years Boeing has strived to produce airplanes that reduce CO2 emissions to the atmosphere and thus all these efforts are a testament that safety is vital within the Boeing Company (Ijjasz, 2004).
Education
Several factors affect the strategic, tactical and operational plans that affect Boeing and education is one important factor highly considered in management planning at Boeing. The aviation industry is a fast changing industry that requires various initiatives to stay ahead of the competition.
Boeing uses education especially within the organization to spur growth and initiate projects aimed at producing innovative products. Education plays a critical role in Boeing’s manufacturing processes since engineers have to apply knowledge sourced from different places.
The use of education is at the heart of Boeing’s strategic plans as the company makes use of research and development (R&D) to come up with new technologies that make it stay ahead of competition. Boeing employs a lot of capable engineers who play a critical role at the company and to empower their engineers, Boeing spends lots of monies in training and employing quality engineers (Spindler, 2008).
Boeing’s range of products which span the airline, space and military industries are highly sophisticated and thus they require technical expertise to use these products. As an operational strategy, Boeing educates most of its customers on utilisation of its products (Boeing, 2010). It conducts pilot training programs, military tests and offer technical expertise and support on products and airplanes sold by the company.
Education at Boeing is highly emphasised as employees at all levels of the company are educated on technology as measure of reducing technical barriers that may exist between employees. This strategy ensures that employees are technologically aware of the various technologies that exist and that lack of understanding does not stand in the way of the company movement into the future (Spindler, 2008).
Innovation
Innovation plays an important role for Boeing because the aviation industry is a fast changing and technological industry. Boeing has been an innovative leader in the aviation industry, for example the company’s launch of the Boeing 747 series of huge airplanes that ensured transportation of a large number of passengers.
This was a first in the aviation industry that led to other companies following in pursuit of Boeing’s innovative practices. Boeing’s strategy of using innovation to set trends and to stay ahead of competition has endeared a lot of customers to its products (Ijjasz, 2004).
In the crowded field of military manufacturing, Boeing has come up with innovative products such as stealth bombers and use of sophisticated satellite surveillance systems. Boeing acquisition of McDonnell Douglas, a military contractor a long time ago ensured the company acquired technology to be used in producing sophisticated military products.
As a strategy of staying ahead of competition, Boeing has invested a great deal in acquiring and developing new technologies that ensure the company’s airplanes and products operate efficiently and competitively in the market.
Boeing innovation in the military field has grown over the years to involve technologies in areas of surveillance, mobility and global strike. Boeing’s military technology is state of the art and lately it has produced naval equipments such as the F/A-18E/F Super Hornet which is capable of advanced combat missions both in the air and at sea.
Due to the wide range of products, Boeing has divided the company into various divisions as a plan to attach employees in their core sectors (Boeing, 2010). This strategy has guaranteed the exchange of technology and knowledge between divisions which has transcended traditional operations leading to turning of innovative ideas into high quality products.
Customer Satisfaction
In the operation of a business planning, one important reason in conducting planning is to be aware of the customers’ needs. Boeing takes their customer needs very importantly, customer satisfaction guarantees Boeing of continued growth and sustainability of its business operations. Boeing has a wide array of products ranging from military, civilian and space oriented technologically advanced products which satisfy the needs of the different customers they cater for (Spindler, 2008).
The mantra ‘customer is king’ is believed and closely held at Boeing, where employees and management go out of their way to meet the needs of the customer. For instance the US government’s high expenditure in military benefits Boeing due to the fact that the company is able to anticipate the needs of its customer and thus come up with high end satellite and rocket launching systems to be used by the military.
Today consumers are very demanding and thus the increased air traffic has not elude Boeing’s attention, therefore the airplane manufacturer has manufactured airplanes capable of covering long haul flights within a short period of time. To cater for the huge air traffic, Boeing has manufactured long haul aircrafts capable of carrying many passengers such as Boeing-747X (Boeing, 2010).
Customer prefer working and buying products from reputable and responsible manufacturers, the recent concerns of environmental protection and reduction of green house gas emissions has made many companies to realign their strategies to respond to these concerns. Boeing in relation to environmental protection has pioneered technologies which ensure that their airplanes are fuel efficient and reduce emissions during their flights.
Customer needs are the reasons behind the varied range in Boeing products, for instance Boeing has smaller aircrafts to cater for local short regional flights. Safety concerns raised by customers have been addressed by Boeing through use of technologies employed by the company in producing military planes to make commercial airline operations safer.
Conclusion
The procedure for business planning involves factoring a lot of strategies and procedures which ensures that an organisation’s goals and objectives are met according to expectations.
Boeing is a large aviation manufacturer that has global presence and in order to maintain its position in the industry, it has identified plans that make it unique and stuck to these plans to remain competitive. Management planning involves making use of efforts from different stakeholders to come up with strategies or policies to be followed in achieving an organisation’s goals and objectives.
Boeing’s are mainly centred towards customers’ needs and involvement of all stakeholders especially employees in producing quality and effective products. Boeing’s focus on people and trying to address and satisfy their needs through technology and using simple but efficient techniques in planning, analysing and emphasizing plans which generate results.
Completion of Production and Subsequent Modification
As compared to doing modification during production to all the thirty planes that were under production, it is advisable for the Boeing Company to complete the assembly process first then do the modifications later.
One primary reason why the company should implement the option is because this method will guarantee assembly or production of safer airplanes. In engineering endeavour, safety should the primary fact factor that any manufacturing and assembling company should consider, airplanes being transportation machines that fly over great heights and long distances; hence, the need to ensure that they are up to standard.
Failure to take this seriously may put at risk people’s lives, which may make the company to incur numerous liabilities in case of an accident that may result due to a manufacturing error. Under this method, the flaps, ailerons, landing gear, hydraulics, and other aeroplane system are supposed to undergo thorough testing to ascertain their functionality, a case that is contrary if the modifications are to be made during the production process.
As a result of this, likelihoods of the testing procedures changing are high; hence, the nature of high safety risks associated with this method, as this dictates that testing must be done after the two-person cockpit has been fully put in place. Testing before installing the two-person cockpit is very important, as it will facilitate correcting of any assembly problems that may be disguised or not discovered if the production process is started afresh.
In addition to levels of safety that are associated with the this method, this method is also cost-effective, because of the lesser labour hours that it requires, as compared to running the modification and production processes concurrently. In any project it is important to minimise the costs associated with the manufacturing and acquisition of any product to increase its net value, not only to its manufacturers, but also to its purchasers.
A project’s value must have both a business value and make sense in terms of meeting the financial budget requirements, because of huge sums of funds that are required in the commercial aircraft manufacturing industry. Therefore, considering that these thirty planes had been assembled to some level, it would be more expensive to do the modifications along the production process, as this will increase the scrap costs.
On the other hand, to reduce the risk of exceeding the time scheduled for the project, Boeing should take this option as will guarantee that the company will meet all the production deadlines; hence, minimise the likelihoods of incurring losses associated with fines from its customers. This is the case primary because, the airline industry is a fast moving industry and because every firm in the industry wants to meet its strategic goals; any delays in delivery of the ordered aeroplanes will mean a reduction in such companies.
As compared to budget overruns, bearing the liability of late product delivery is more expensive; hence, the need of the company to take an approach that will ensure it minimises the likelihoods of such liabilities arising. Further, although this method may compromise the initial design of the airplanes, because of its associated cockpit configuration risks, this is something that the Boeing Company can minimise by using a careful assembly process, using required management controls.
Finally, this approach is better as compared to running the modification and production process concurrently, because it does not require any disruption of the original production plan. This is very crucial in maintaining the learning curves, as this method will reduce the number of experts that are required to facilitate completion of the thirty aeroplanes.
Maintaining a learning curve is a primary deliverable not only to stakeholders, but also to assemblers, because of the significance of this parties getting acquainted with the required levels of knowledge about the working of the entire aeroplane system. In addition maintaining the learning curve will guarantee an increased rate of production and meeting of all production time schedules.
Control mechanisms are utilized by business organizations in order to have successful management of the businesses. The control mechanisms provide an avenue along which the managers move to bring up the level of productivity, boost innovation, and to ensure there are shared values and beliefs in the company.
One of the control mechanisms that have been successfully used by the Boeing Company is the “employee incentive programs”. According to Bateman and Snell (2009), “employee incentive programs” are utilized in order to control employee productivity and this is carried out by encouraging the employees and giving them rewards for their hard work.
The Boeing Company has taken an initiative to offer rewards as well as incentives to its employees. Among these incentives offered by the company include; “health insurance, vacations, wellness programs, and retirement benefits’ (“Boeing”, 2011).
In addition, the company also offers limited legal and financial advice to the employees at without charging them any fee. As a result of the implementation of these programs by the company, the employees have achieved satisfaction and this has made it possible for it to effectively carry out the management functions of organizing and controlling on human capital.
It is of great importance for any manager of an organization to raise the level of “employee incentives” and lead. Indeed, those business managers who are effective have also the ability to play the role of leading. The management is offered with precious opportunities by such mechanisms (employee incentives).
This control mechanism tool will develop the capability of the manager to have power over the employees and also facilitate the company’s growth. Leading, as a function of management, operates together with employee incentives and this is for the reason that incentive programs give encouragement to the employees in a number of ways.
Through these programs, the employees will be in a position to feel appreciated and at the same time, there will be increased motivation among the employees as well as increased productivity. It is quite vital for the management of an organization to make use of this control mechanism at the time it is making an effort to lead and this is because; employees want their great efforts in their work to be rewarded.
In essence, working with motivated employees makes it easier for the management to carry out its functions. It will be easier for the management to plan for activities in the organization with an assurance that they will be effectively carried out. More so, controlling, organizing and coordinating of the activities will be effective. This is the reason why the Boeing Company has been successful in its operations through the use of the employee incentive programs as a control mechanism.
Therefore, it can be concluded that, all organizations’ management should make use of the control mechanisms. Such control mechanisms as “employee incentive programs” is the means that is used to ensure there is motivation and enthusiasm among employees. This offers several benefits to the organization and its management as well as to the employees.
The “employee incentive programs”, as a control mechanism, has a great positive impact on the management functions, especially the function of leading. This function is given a positive instrument for development and transformation by the control mechanism of employee incentives. Through the use of this control mechanism (employee incentive programs) in an effective way, the Boeing Company’s management has been able to perform its functions effectively.
Reference List
Bateman, T.S. and Snell, S. (2009). Management: leading and collaborating in the competitive world (8th ed.). New York: McGraw-Hill.
Boeing is among the most reputable airplane manufacturing companies, and it makes the planes for airlines as well as for military purposes all over the world. The organization has been able to climb the corporate ladder by striving to fulfill customer requirements. The reason behind Boeing’s success is designing and constructing tailor-made planes depending on their intended purpose.
Therefore, this paper analyzes the various roles played by Boeing, and how they influence management planning in the organization. The roles include ethical responsibility, legal responsibility, social responsibility, and other strategic and operational roles.
Ethical Responsibility
Boeing regulates the behavior of its employees regardless of their location through a set of rules. The organization’s ethics states that employees should never share information of a given client with another party. This implies that the details provided by customers must remain confidential.
Besides, the company should remain neutral at all times. Wilson and Gilligan (2005) argue that such ethics influence the management practices because regardless of the strategies that are to be implemented, the organization must adhere to the set code of ethics.
The work ethics in this organization sets the limits of employees’ aggression; hence employees are under obligation to put the interests of the organization before theirs. Moreover, the code of ethics creates barriers between employees and the customers of this organization. Likewise, the ethics apply to all the entities that interact with Boeing including suppliers and outsourced workers.
However, shared ethics may create conflicts because the firms that have been contracted by Boeing have their own code of ethics. According to Alexander (2008), the clash in ethics may affect operations negatively because what could be right to Boeing could be wrong to another contracted firm.
For instance, Korean Air, a supplier of Boeing 747-8 wing part, has different code of ethics that are restricted to the Korean culture, hence conflicts may arise. Therefore, Boeing is sensitizing its staff through training sessions to make sure that they understand the ethics better.
Legal Responsibility
Boeing is active in legal responsibility. This has been achieved through active participation in cleanliness programs that involve its employees. Boeing is on the frontline in creating awareness on the effects of carbon emissions, and because most of its goods are known to be powered by substances that emit carbon, it has come up with innovative technologies of minimizing the amount of carbon emitted from its engines.
Likewise, Boeing has been recycling its waste as an affirmative action towards sustainable development. This includes injecting a considerable amount of money into environment conservation projects, such as designing energy efficient airplanes.
According to Alexander (2008), recycling of waste influences management planning because Boeing now has to take care of its waste, and this means that more resources will have to be set aside for this purpose.
This was a task that was previously undertaken by another entity, but now Boeing has no option because it is against the expectations of the society for an organization to pollute the environment.
Moreover, the law is against the disposal of toxic waste into the environment. Therefore, Boeing designates funds at the commencement of every financial year for waste management purposes.
In compliance to the requirements of protecting the environment, Boeing has had to introduce new technologies as a way of reducing carbon emissions which are costly because the price of acquiring materials is high because of scarcity of reusable materials.
The emergence of new technologies comes with the need of hiring new personnel who can handle such tasks of implementation. Moreover, the new technologies, such as computer aided design (CAD), affect employment because the organization has to trim its workforce.
Similarly, the legal requirement for Boeing is to provide health care incentives and ensure employees work in a healthy environment. Boeing tries its best to meet these requirements, but there are other external factors that may undermine its efforts. First, employees can be injured while performing their tasks most probably because some of them ignore the laid out safety precautions.
In addition, Boeing can never fire any of its employees based on their medical background, and hence it has had to carry on with such employees who are certainly a liability in waiting.
Social Responsibility
Boeing has a social responsibility in fostering equality by hiring employees from different backgrounds. The organization owes its success to the different skills that are possessed by its employees, which are essential in achieving organizational goals.
Women have a special place at Boeing, and in fact there is an activist group within this organization that fights for the rights of women. Generally, Boeing is a multicultural organization because there are people from all races; meaning that Boeing does not judge employees according to their background.
Cultural diversity has enabled Boeing to excel in penetrating new markets. Randolph (2003) explains that diversity influences management planning because the operations have to be assigned to people who possess relevant skills, which is an advantage to Boeing.
In addition, Boeing has to lead by example, and that means it has to be the first to apply what it preaches. For instance, in taking care of the environment, Boeing had to introduce recyclable carpets in its planes; this had to come with extra costs.
Other factors that affect the operations of Boeing include environmental issues, innovation, and productivity. Environmental concerns are related to the issues discussed under legal responsibility.
However, one major environmental concern is the way the company has enhanced fuel efficiency in a bid to reduce carbon dioxide emissions. Spindler (2008) asserts that the present airplane models are efficient with regards to air pollution; particularly, fuel efficiency has improved by 70% in the recent years.
Likewise, innovation and productivity can be attributed to the various research centers that the company has, including research and development department within the Commercial Airline. New models invented by different divisions help Boeing to be competitive and productive in the airline industry.
Conclusion
Boeing is a reputable company, and is still struggling to remain at the top of the most reputable companies. From the look of things, Boeing involves its employees in decision making processes, and that is why it has designated channels of communication.
Maybe, Boeing realized that it had to instill discipline on its employees, and thus they provided them with a direct telephone that is designated to handling matters concerning the code of ethics.
The communication decision is important because at times employees are tempted to bend work ethics, especially when there are no laid out rules. This is common in cases where employees have strict deadlines to meet. Moreover, in management planning, an organization is supposed to have a clear vision of future requirements, just like Boeing Corporation.
References
Alexander, M. (2008). Management Planning for Nature Conservation: A Theoretical Basis & Practical Guide. New York: Springer.
Randolph, J. (2003). Environmental Land Use Planning and Management. Washington, DC: Island Press.
Spindler, M.J. (2008, April 4). Management Planning – Boeing’s Future on Track. ArticlesBase. Web.
Wilson, R. & Gilligan, C. (2005). Strategic Marketing Management Planning, Implementation and Control. (3rd Ed.). Burlington, MA: Butterworth-Heinemann.
The safety problems of Boeing 787 Dreamliner raised a great number of questions about the supply chain of this company as well as its reputation (Irving 1). One of the issues that are often discussed is the inability of the company to take control over the manufacturing and design process.
This paper is aimed at discussing the factors that could have contributed to the challenges that Boeing currently encounters. On the whole, it is possible to argue that Boeing failed to play the leading role of a leading assembler that could identify possible defects at an early stage. This is the reason why this corporation currently faces significant difficulties. This is the main argument that should be discussed in more detail.
It should be noted that the strategies of Boeing were subjected to criticism after two of their 787 Dreamliners caught fire due to the defects of their lithium batteries (Irving 1). These incidents prompted airlines and governmental agencies to ground these jet airliners (Irving 1). At this point, one cannot tell whether 787 Dreamliners will return to the market. There are several aspects should be considered in order to explain the origins of this flaws. It should be noted that Boeing strongly relied on outsourcing while developing this plane.
For instance, one can mention that this project involved 50 supplies; moreover, these organizations were working at 135 sites that were located in different countries (Walther 104). To a great extent, this approach was aimed at reducing the costs of development. However, one can argue that it is extremely difficult to monitor and guide the efforts of these different agencies.
Some limitations of this approach manifested themselves before the launch of this jetliner. For example, the company was not able to complete this project on time (Smock 57). When designing this airplane, the management of Boeing departed from its traditional approach to supply chain. As a rule, Boeing acted as the main producer that assembles the component parts provided by other firms (Tang 77).
In other words, this organization could detect possible defects. In contrast, while designing this jetliner, Boeing enabled other companies to act as assemblers (Tang 77). The company itself was supposed to foster cooperation among the suppliers. The most important indicator is that at least 70 percent of manufacturing processes were completed by business partners of Boeing (Tang 78).
This is the main difference that should be taken into account. At the very beginning, this approach only resulted in numerous delays. Nevertheless, it turned out that the problems were much more serious than the management expected. The main problem is that an organization might fail to ensure the quality of every component and assembly.
It should be noted Boeing often used the components manufactured by outside suppliers. Such a policy is not new for this company, and it is any possible for any organization to manufacture every component part.
For example, the lithium batteries installed on Dreamliner were produced in Japan (Plumer unpaged). Such a strategy can be quite justified because it helps to reduce operational expenses. Nevertheless, the suppliers of Boeing failed to detect the possible flaws of these lithium batteries or other component parts that could be the underlying cause of ignition.
Furthermore, even now the engineers cannot accurately ascertain the cause of these defects. This is one of the challenges that Boeing has to overcome now. More importantly, this corporation has to restore its reputation and regain the trust of major customers, especially airlines (Walther 104). This task is critical for competiveness of Boeing.
Overall, it is possible to identify several obstacles that Boeing could encounter while developing the Dreamliner. One of them is the necessity to coordinate the work of many agencies. This task might have been easier if Boeing had to work with several suppliers. Nevertheless, this activity becomes very challenging when a company has to interact with fifty suppliers.
Additionally, the corporation has to ensure the highest quality of the component parts. Again, Boeing was usually able to do it when the company was the main assembler of the component parts. However, in this case, Boeing entrusted this responsibility to other firms that could have very little experience in the assembly of jetliners. This is one of the main issues that can be identified. They resulted in the main deficiencies of their supply chain.
These examples indicate that the supply chain management can be critical for the long-term sustainability of manufacturing companies. The defects of 787 Dreamliner can threaten the reputation of Boeing, and this issue can be even important than the cost of recalling and repairing their airplanes.
One should take into account several important issues. First of all, outsourcing cannot be regarded as the only factor that contributed to the problem. As it has been said before, manufacturing companies inevitably have to use the components produced by other firms. The main problem is the failure to monitor the work of suppliers and ensure the highest quality standards. The management of this corporation should be aware of these challenges
One of the necessary prerequisite for the successful functioning of any business are control mechanisms. They are created to ensure that the company develops according to a preestablished plan and achieves its goals by directing and managing the work of the company’s employees (Bateman & Snell, 2008).
In the modern practice of management, researchers single out three types of management control: bureaucratic, market, and clan control. The characteristics of bureaucratic control include application of formal rules and standards in a hierarchical structure based on authority (Bateman & Snell, 2008).
Market control features prices, competition, and profit as its basis, and establishes market relationships between business parties (Bateman & Snell, 2008). Lastly, clan control differs from the aforementioned two types of control in the fact that rather than basing on authoritative tradition, it employs the relationships of cooperation between parties who share common values, beliefs, and culture, and express deep trust in each other (Bateman & Snell, 2008).
The Boeing Company is an example of a business that opts for employing a whole system of different control types that help balancing the company’s activities. On the one hand, the Boeing Company employs bureaucratic control mechanisms embodied in The Boeing Company Code of Basic Working Conditions and Human Rights (The Boeing Company, 2010).
The Code stipulates the key standards of attitudes to employees and recognizes their role in developing the Boeing business. In this respect, the Boeing Company demonstrates utilization of clan control principles as well, since it expresses deep trust in its employees. Clan control principles become obvious in the Boeing Company statement on culture (The Boeing Company, 2010).
The principles of clan control reveal themselves, inter alia, in values such as cooperative effort encouraging the Boeing diverse team to involve actively in the constant process of innovation (The Boeing Company, 2010). Diversity and inclusion signify the Boeing Company tendency to employ marketing control principles as well. The Executive Commitment to Diversity exemplifies the company’s striving to creativity and innovation as the core objectives of its activities (The Boeing Company, 2010).
In addition, marketing control principles reveal themselves in the activities of Boeing Capital Corporation that provides financial solutions to the company, and in the creation of Global Corporate Citizenship that promotes cooperation among various branches of Boeing industries for mutual benefit (The Boeing Company, 2010).
When evaluating the effectiveness of the aforementioned control mechanisms, it becomes obvious that the key to the Boeing Company success on the market lies in the interrelation and combination of all the three types of control mechanisms. On the one hand, bureaucratic mechanisms allow for preserving a certain authoritative basis that unites a whole set of separate organizations and provides the employees with rigid standards of behavior.
On the other hand, the employees are highly motivated to demonstrate their constant individual input in the common business by promoting individual creativity and innovative ideas. The direction of the Boeing Company control activities towards the market allows creating a weighted system of checks and balances from all the cooperating businesses which assist each other in successful activities.
The main result of such synthesized approach to employing various types of control mechanisms is aimed at customer satisfaction: customer is the key to the Boeing Company success, and therefore employment of all the three types of control mechanisms benefits comprehensive customer satisfaction and consequently adds to the company’s success.
References
Bateman, T. S., & Snell, S. A. (2008). Management: Leading and collaborating in a competitive world (8th ed.). New York, NY: McGraw Hill.
Support activities are such types of activities, which can make the delivery of any other primary activity possible. Usually, support activities are all about different kinds of competitions within one concrete sphere.
There are four major categories of support activities, which, in their turn, are divided into several more specific activities: general administration, technology development, human resource management, and procurement.
In order to take leading positions in the desirable spheres, it is necessary to take some of these support activities properly and be aware about the consequences of such use.
The Boeing Company is one of the most widely known aerospace companies and, at the same time, the largest manufacturer of numerous military aircrafts. At the beginning of the 1900s, Boeing appeared on the world scene and amazed consumers with its novelty and practicality.
To achieve the desirable success, the company never stops to demonstrate its capabilities and provide its consumers with advanced technologies, e-enabling airplanes, military platforms, and other captivating financial solutions for each of its customers. (Boeing)
Support activities for the Boeing Company should be analyzed in order to comprehend how this company is able to take the leading position for such a long period of time, and then identify and analyze its strengths and weaknesses.
As it was mentioned above, four categories of support activities consist of some sub-activities, which are necessary for the company. Identification of some of them should help us clear up its strengths. One of the support activities that relates to general administration is “excellent relationships with diverse stakeholder groups.” (Dess et al., 81)
Boeing offers two ways to own stock at this company: be a registered shareholder or be a beneficial shareholder. It is one of the strengths of the company, because it provides its customers with more opportunities to participate in the life of the company and promote its development.
Another activity in the sphere of human resource management is invigorative programs in order to motivate all employees of the company. It is underlined that any employee is an important key of the Boeing’s success and growth.
The benefits package is another strength of the company, that helps to meet the needs of workforce, provide financial protection of employees’ families, and promise proper retirement benefits.
Technological development is something that supports the whole value chain. However, Boeing is not always able to meet all critical deadlines. This is why such support activity demonstrates one of the slight weaknesses of the company. Sometimes, not all the deadlines can be met because of weather conditions or terroristic attacks.
Of course, they are not huge in numbers, but still, such possibility exists and has to be considered. “Procurement refers to the function of purchasing inputs used in the firm’s values chain, not to inputs themselves.” (Dess et al., 82) One of such activities is purchasing different advertising and media services.
Boeing is one of the companies, which pay much attention to new advertising technologies in order to satisfy the vast majority of consumers’ needs. This is why their careful attitude and attention to novelties make this organization more powerful in comparison to other aerospace companies.
These and many other support activities prove that the Boeing Company chooses the best ways to achieve the desirable success and be the leader in this sphere. Sophisticated workers and perfectly arranged management help to grow and develop day by day and be ready to win all the competitors.
Works Cited
Boeing., Copyright 1995 – 2009. Web.
Dess, Gregory, G., Lumpik, G. T., and Taylor, Marilyn, L. Strategic Management: Creating Competitive Advantages. McGraw Hill Professional, 2004.
Boeing Company is an American based aerospace and defence company that have been in business since 1916; it has its headquarters at Chicago, Illinois. William E. Boeing, is credited as the founder of the company, its first place of business was in Seattle, Washington as a plane making company; currently it is the world largest plane manufacturing company.
The success that the company has had over the years is attributed to strategic and timely decisions made by its managers. The company specializes in passengers and defence planes (Boeing Company corporate website, 2011). This paper discusses managerial role in the company and factors affecting planning role of the company’s management.
Planning function of management
The success of a business is a function of the quality of its management; there are different roles and functions of management. Planning is the main function of management as it sets the pace for a company into the unpredictable future. Planning ensures that activities are well thought and coordinated. Strategic decisions of various functions of an organization are considered when planning. It involves reflective thinking that consider an organisations goals and deriving methods to attain them.
Boeing is among the world first plane manufacturing companies, the management in earlier years had to plan for the strategy to use venture in the green market with the new products that it had developed. Innovating and inventing of planes called for management to make strategic decisions as well as plan for the future with the resources they had.
Currently the plane making industry has high competition as companies develop products that are responsive to customer needs. Among the competitors of the company are Airbus Plane Company, McDonnell Douglas, and American Lockheed (Boeing Company corporate website, 2011). To remain competitive, the company management planes for the future and develops different strategies to make the company competitive.
After developing a plan, the management goes further and oversees its implementation; in the implementation stage, the management mobilizes resources, controls and monitors the decision made to see its success (Williams, 2001).
Effects of legal issues, ethics, and corporate social responsibility on Boeing planning role of the management
Managerial decisions are affected by internal and external environment that a company operates; when making a decision, both the factors must be put into consideration. Boeing operates in more than one country, through having an assembly point or through selling its products to the country; when making decisions, the company has to consider legal implications of the decisions in different countries. It has to abide to legally accepted behaviours.
For example, the United States has labour laws that give citizens of the country the right to proper working conditions, the company has no choice other than develop appropriate working conditions as specified by the law. In keeping benchmarks, the company is guided by the aerospace safety regulations.
Businesses operate in environments that have external factors that are influenced/ influence the business. With globalisation and increase in people awareness of their rights, there have been calls for conducting business ethically. Ethics in business means conducting a business in socially, economically, politically and environmentally friendly manner.
When coming up with a product the company has to consider what processes and programs are ethically considered just and are acceptable. For example, before manufacturing a plane, the company puts a lot of emphasis on safety and comfort of the facility, it ensures that the plane is working well and can handle the capacity specified effectively. In plane manufacturing, safety and giving assurance that the plane can function effectively is considered ethical.
To create good relations with its customers and the environs it operate in, Boeing has to make decisions that are responsive to the needs and expectations of the communities; the company also engages in corporate social responsibility activities. Corporate social responsibilities are actions that a company commits its self to do, not for its income generation but projects that benefit the society.
The responsibilities that the company has engaged in include; building of medical centres and hospitals, building schools, scholarships to students, developing and financing environmental conservation programs and charity work (Andrew & Dirk, 2004).
Three factors that influence the company’s strategic, tactical, operational, and contingency planning
Planning process involves making decisions that will affect a company into the future; it involves using current and past information to make strategic, tactical, operational, and contingency decisions. Before making a decisions, the management needs to elaborate and understand the problem at had so as they can plan how to tackle the issue. Some factors affect planning at Boeing Company they include:
External factors
Airplane manufacturing industry is highly competitive with each company developing its own unique products and processes to see its success. Before making strategic, tactical, operational, and contingency planning decision, the company has to analyse the external effects that the decision will have.
The major external forces include competition: the company has to consider the level of technology and the kind of products that its competitors have, it aims at being a leader in the industry thus, and it must be a notch higher in innovation, product development and innovation.
Another external force that affects the company’s planning role is the operation of world economies: the company targets both domestic and local markets, the performance of world economies determine the level of market that the company is likely to command. It puts this into consideration when planning to do something.
Corporate goals and objective
The company organisational structure offers some direction that the company has to follow; when making strategic, tactical, operational, and contingency planning decisions, the company has to follow the line of business that it was established to venture into. The decision has to be guided by its mission, vision and corporate plan that it aims to fulfil.
Corporate goals and objectives calls for different planning in the company and shapes the direction of decisions made. Corporate goals and objective include dividends policy, resource distribution policies, share allocation and floating policies among others.
Internal potential
When a plane has been made, its implementation depends with the resources, strength and capacity of the company. Before making a certain plan to do something, the company aims ensures it understands the potential it has so as when a program has been implemented it will be a success. Internal potential include factors like human resources, brand name, intellectual property, or innovativeness (Williams, 2001).
Conclusion
The growth and competitiveness of an organization is influenced by the quality and acceptability of decisions made by its managers; generally, management functions are planning, leading controlling/monitoring and organizing. The success of the Boeing Company is attributed to strategic managerial decisions: the company’s management ensures that it makes responsive, timely and strategic decisions.
References
Andrew, C.,& Dirk, M.(2004). Business Ethics. Oxford: Oxford university Press.
Boeing Company corporate website. (2011). BOEING. Web.
Williams, S. (2001). Making better business decisions: understanding and improving critical thinking and problem-solving skills. London: Sage.
Boeing Company is the world largest aircraft manufacturer. Aerospace Support (AS) is a division of one of the two major Boeing business units. The Company has tried to cut a niche for itself by trying to prove itself the market leader in provision of support or sustenance services to airplanes, throughout their life cycle. It should be understood that the support life cycle phase of a plane usually reaches when a plane has already been sold, delivered and already in use by customers.
The products of Boeing Company in this support system includes modification; training, repair and provision of spare parts to its customers. Provision of these products to the highest degree assists many customers for the reason that some of these products such as modification, though performed at a cost, may sometime be much expensive and mostly when provided by other Companies relatively to the one that sold the airplane.
Being the world largest planes manufacturer and a market leader in this sector is not a small achievement at all. To gain such success, there must be models, theories, concepts and strategic ways in which Boeing Company at large and Boeing aerospace support deploys so successfully to drive performance and be competitive within their sector. Among the concepts and strategies deployed by Boeing aerospace support, include the way in which the company makes use of the state-of-art technology.
By use of above range technology, the company has been able to provide both indisputable goods and services to their customers in a way that is unmatched by its competitors. Such advanced technology equally gives the company a strategic position in the sector, as well as facilitating improvement of its operations (Mather, 2005, P.56). Correspondingly, the company has equally been propelled to such height by the ways in which it handles it staffs and customers.
Customer satisfaction is among the factors that drive growth and profitability, and mostly in a service offering business (Heskett & Jones, 1994, P.8). The authors further notice that in order to guarantee the satisfaction of its customers, a service offering business must manage all the aspects of its processes that affect its customer’s satisfaction.
Service Profit Chain
Service-profit chain is one of the strategies deployed by Boeing aerospace support in order to remain competitive in the market space. By this strategy, the company has been able to make sure that its customers are very satisfied by the quality of services it offers. The service-profit chain works when employees’ satisfaction enhances internal service quality. In return, employees’ satisfaction improves employees’ loyalty that enhances productivity.
On the other hand, superior output implies better external services significance for customers. Incase such a strategy can be competently implemented, Boeing aerospace support can actually benefit from improving performances and sustainable competitive advantage in the market space they occupy.
Sometimes it becomes necessary for a business to understand its level of performance and at the same time become conscious of the strength of its relationship with its customers. This aspect significantly helps a business to determine its strength and similarly the level of its customer’s loyalty.
This is usually achieved through collection of customer-focused data that indicates customers’ loyalty, satisfaction and the perceived value. It should be remembered that, Boeing Aerospace Support was a Malcolm Baldrige award winner in the Service Sector Category. Research on its service operations found them excellent as per the Malcolm Baldrige criteria. Continued research is key to the built in excellence in service provision at Boeing Aerospace.
To collect data, for instance data indicating customer satisfaction with the products and services that are offered by Boeing aerospace support, surveys tailored to those specific products and services are used. The respondents are expected to provide information concerning their knowledge of the question asked. From the data collected, analysis is done and conclusive decisions reached. Such decisions include improvement on particular areas, which according to the analysis was reflected to be in need of improvement.
Customer loyalty is also established through the same way, where customers are asked questions specifically tailored for the product mentioned. From analysis of the data collected, an individual can tell whether the customer base of the company is declining or expanding.
One of the greatest strength of Boeing aerospace is its ability to formulate policies and equally create a strategic advantage by putting into operation the intent of these strategies into action (Stern, 2002, P.134). Stern further observes that through a systematic approach to planning, a company can build up and carry out key strategies to grant value added products and services.
Boeing aerospace has utilized this chance to provide value added products to their customers through it focus on performance excellence. Being a recipient of Malcolm Baldridge Award, the company has since then improved and for this reason expanded its planning framework from a simple process to a complex systematic approach.
In order to achieve the strategic objective of the business, the Company engages the entire organization. This is for the reason that all members of the company from high in the leadership echelon to the subordinate member are equally important, if the Company is to experience growth and profitability.
Total Integrated Marketing
Total integrated marketing is yet another tool utilized by Boeing aerospace support and which indeed has catapulted the company to the level it is today. The strategy involves winning and at the same time retaining customers over the long term, for the sake of business prosperity (Hulbert et al, 2005, p.45). Through this strategy, the company has been able to focus on the growth and profitability of the company. These customers form the foundation on which the profitability structure of the company is established.
In order to retain these customers, the company has to present them with the best services, not only worthy the cash they pay, but also to appreciate their loyalty to the company. Through this strategy, Boeing aerospace support has been able to maintain a fair profit over the years; this is feat that has not been met by many of its competitors. This means that in the market space that the company occupies, it has a strategic advantage compared to its rivals.
Customer Life Cycle
Once Boeing Company has sold and delivered a plane to its customer, be it a military or a commercial plane, it stands a better chance than its competitor does to tell the type of modification the plane may need in future. Additionally, the company is best placed to tell the type of training necessary for the client’s staffs in order to make it possible or easier for them to handle the plane, or the repair parts the plane may need in future in case it develops a mechanical problem.
Upon realizing this, Boeing aerospace support, which is a part of the two major business division of Boeing Company, makes use of this chance to implement a strategy called customer life cycle (CLC). Organizations that implement customer life cycle as a service strategy aim at delivering lifetime value to a customer. This means that the organization focuses on a product offering that serves the customers in a lifetime i.e. responding to their characteristic across life’s stages.
From this strategy, Boeing aerospace support ends up attaining a strategic advantage over its rivals, for the reason that the company is assured of continuous supply of its products such as spare parts to the customer’s plane, as well as providing the rest of the services. This propels the company’s sales, which eventually enhances the company profitability and growth (Coe, 2003, p. 20).
Resource Based View
The way resources are applied in a company or organization is of paramount importance. Internal capacity of an organization is determined by the kind of resources at its disposal. Whether a company is to be successful in a competitive market can hugely be determined by the way its resources are applied and utilized (Norton, 2000, p.76).
In order to overcome this predicament, Boeing aerospace support has systematically applied a theory called Resource Based View. According to resource based theorists in strategy, companies can establish a competitive advantage based on how they build resources and apply the same resources towards organizational goals. In order for a company to create a competitive advantage, it must not own or possess resources owned by other numerous competitive companies.
A good example of the way Boeing aerospace support has taken advantage of this theory and competently utilized it, is through technological advancement. State-of-Art Technology is one resource that Boeing aerospace Support, has managed to outdo its competitors.
To achieve such advanced technology requires a lot of money, which many companies cannot raise. This implies that through such elaborate technology, Boeing aerospace has been able to provide products and services that its rivals cannot match, not only in monetary value, but also in Quality. Eventually, the Company creates a competitive advantage and in the process becomes the market leader.
Although it may sound obvious, employees are the main determinants of the success or failure of any organization (Godfrey, 2000, p. 219). This is the reason why, after becoming conscious of this, Boeing aerospace tried to improve the effectiveness and efficiency of their workforce through creation of conducive environment for learning.
Availability of competent staff has many advantages to an organization, in that they help execute obligation with a lot of professionalism and competency. Similarly, such competent or high trained staffs will enable the company reduce unnecessary cost of operation caused by redundant mistake and errors. Staff training will therefore enhance competitive advantage in a Company.
Boeing Company believes that high skilled employees stand a better chance of enabling the company to achieve both its short and long-term goals. In this perspective, the company has hugely invested in education, training and development of it staffs. This investment by Boeing includes a charitable tuition support program and a number of distinctively tailored programs. There are a number of techniques in which it staffs are trained.
The company implements the formal system where test are given after the end of a lesson in order to reinforce learning (Griffin, 2007, p.167) Similarly, there is some online training where a person is given a lecture and afterward provided with a test to check his understanding.
Finally, to those who successfully complete the course they are issued with a certificate from the company reflecting what someone was trained on, as well as the grade that the trainee attained. A number of advantages ensue from this type of training. Boeing Company after successfully training a person usually retains that staff and in many cases, such a person is promoted or receives a higher income. Incase such a program is well managed it is capable of delivering outcomes that sustain performance enhancement and a spirited advantage.
The Current business environment has become so unpredictable and sometimes very volatile for a business to flourish. This tendency has heavily been because of world economic shock that has affected businesses worldwide regardless of their sizes or monetary worthiness (Takahashi, 1987, p.45). Takahashi in addition observes that it is in this perspective that only those businesses, which are adoptive to changes, will overcome such economic turmoil and other volatile circumstances that may face businesses in the near future.
Having equally experienced the same hardships and yet be able to maintain it number one spot as the world leading plane manufacture, Boeing company in general and Boeing aerospace support must be strategically strong compared to their competitors on matters pertaining changes (Kotler, 1982, p.234). Among the strategies that the company could have taken advantage of, is their ability to adopt rapidly when faced with changes in condition.
In case of changes in their customers’ demand, the company is well versed with the appropriate technological knowhow, which gives it a spirited advantage compared to its opponent. In most cases, one will realize that the opponents to Boeing Company are mostly incapacitated in some fundamental areas like finance, which makes it completely impossible for them to mount any competition that can actually challenge Boeing aerospace support.
Key Success Factors
It is important for internal managers and external investors to be aware of how a business organization is likely to perform in both the medium and in the long-run (Parmenter, 2010, p.34).
Parmenter further notes that some of the reasons why an internal manager may wish to know how a business is likely to operate both in the middle and in the end, may include their desire to make the necessary amendments to prevent chances of the business incurring any loss. Similarly, the manager may also be tempted to know the areas that need strengthening in order to enhance the company generate more revenue.
On the other hand, an investor may wish to be acquainted with information on the performance of a Company in order to be able to make a rational decision entailing whether to really invest his money on that particular company or shift his mind and invest on a more lucrative company. Boeing aerospace has been able, for a long time, to realize profitability in the course of its business operations, as a result of being able to assess the chances of a particular venture becoming successful or not in the near future and in the long run.
The whole process can be summarized as identifying the key performance indicators or the key factor that are likely to determine success. Boeing Company in general and Boeing aerospace support in particular have applied key success indicator identification as a strategy thus recording such immense success against their opponents. Through identifying the success factors in an industry or during given times, the company has been able to create a competitive advantage over its opponents.
Value Creation
Many companies rush to drive growth at the expense of value creation. This is however not the right way of operation and mostly when an organization is expecting long-term growth. Through creation of value, a company is not supposed to be anxious on the issue of growth. Growth comes automatically after a company has given value development the first priority. Once a company has attained value growth, it means that its customers can now afford to enjoy the quality of products they have been yawning for (Elsdon, 2003, p.54).
Putting value creation first gives companies several advantages over their rivals in driving for cost-effective and sustainable growth. A thriving value creator by no means suffers from a capital deficiency (Fernandez, 2002, p.76).
Fernandez additionally states that they can generate enough capital internally or draw the capital they have need of from the market, which constantly keeps on looking for a lucrative investment possibility. Companies that put value creation first will over time create a group of managers who possess higher standards and better capability than their opponent does.
In order to rank first in the world, Boeing Company has adequately over time produced goods and services that have value. This has been experienced following the inexhaustible demand of its products by variety of customers the world over. The planes made by the company could not be as marketable as they are today, had they had no value in them.
The creation of value by Boeing aerospace is one of its strategies which though has been developed over time has been able to facilitate the company to create a competitive advantage over its opponents. Similarly, Boeing aerospace Support has equally provided services and products with value, and that is why they have cut a niche for themselves as the market leaders.
In the course of provision of its services, Boeing aerospace find it noble to have a more interactive affiliation with their clients, so that the customers do not feel left out in the progressing function or operation. For example, in case of modification and training, the company will perceptibly make use of a physical environment in which the service development is progressed. This physical environment will enhance the interactivity between the company and the customers’ attainable (Rao, 2004, p. 35).
Servisescape
A servicescape is defined as the environment in which the service is bought collectively and in which the seller and customer interact, collective with substantial commodities that makes easy the performance or communication of the service. This theory has for a long time been competently used by Boeing aerospace support and has actually enhanced the relationship between the company and its customer.
This has equally boosted the loyalty of the customers to the company a matter that has made it possible for Boeing aerospace to create a competitive advantage over its rivals. In case a company take advantage of such a theory and competently manage its affairs as stipulated, it will produce outcomes that support performance improvement and competitive advantage.
Serqual
It is possible for a company to experience some service gap between the organization and its customers (Switalski, 1990, p.156). In this case, the service gap could have caused some damage already to the company before it is realized. In order to avoid such future occurrences, Switalski further observes that some companies make use of SERQUAL, which is a survey tool that is well demonstrated and extensively recognized.
Once the service gap are recognized SERVQUAL can once again help the company to prioritize those gaps in term of the impact they may have on the quality of service provided by the company. The same instrument will also assist the firm in knowing the cause and how the gaps have really existed there.
Boeing aerospace has been able to competitively deal with its opponents through utilizing services provided by this instrument. In the end, the instrument has helped the company to avoid incurring preventable losses similar to its rivals for the reason that most of the time it will be aware of such incidences that causes such great loss to incur. This practice has enhanced the company chances of delivering results that sustain performance enhancement and competitive advantage.
Conclusion
From the report on Boeing aerospace above, it is in order to state categorically that mounting a competitive force that can drive a company to number one rank in the world is not a simple feat. Similarly, in order for a company to drive its efforts in trying to clinch the market leader stature equally need a lot of patience and other valuable information and resources that your fellow competitors may not so easily attain.
Boeing aerospace has achieved all there is for a company to achieve. Following the procedure in which the company has travelled however, it is correspondingly important to state that the company has had quite a great deal of patience and a mountain of work to propel its effort for such a stature.
Reference List
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