Case_Analysis_100103_Boeing.ppt

Business Units What is Boeing’s Current Strategy? Vision “People Working Together As A Global Enterprise For Aerospace Leadership” Core Business Strategies Vision Values Leadership Quality Customer satisfaction People working together A diverse and involved team Good corporate citizenship Enhancing shareholder value Business Units Commercial Airplanes World’s largest producer of commercial jetliners Strategic Intent: (1) Focus on customers and the dynamic, complex air travel marketplace (2) Develop an array of products and services that deliver comprehensive customer solutions 2 Primary Business Units (1) Airplane Programs (2) Commercial Aviation Services Business Model Integrated low cost / differentiation business strategy Maintain market share in commercial aircraft industry Flexible manufacturing strategy Strong supplier relationships Develop innovative high-quality products and services How Is the Current Strategy Working? Financial PerformanceMeasures Industry Measures Growth Rate Operating Margin Return On Assets Total Debt to Equity Inventory Turnover Firm Measures Stock Price Revenue # of Commercial Airplane Deliveries Contractual Backlog Industry Measures Industry Measures Stock Price Revenue Airplane Deliveries Contractual Backlog General EnvironmentalAnalysis General Environment General Environment Income Levels Employment Rate Population Internationally - High concentration Domestic - Low concentration Travel Distance Internationally - Large Domestic - Short General Environment Economic Recession Maturing Economy in North America Decreasing Interest Rates Fuel Prices Imports / Exports Delivery Volume General Environment Global Deregulation of Airline Industry Government Assistance to U.S. Airlines Tightened Security Affects the Development of Future Planes Aircraft Safety Regulations Environmental Regulations Labor Union Restrictions on Freighting Industry (e.g., Tariffs) 9/11 Lawsuits General Environment Air Travel Sa