Boeing Company Swot Analysis

Boeing Commercial Airplanes Group: Decision 2001

I. Current Situation

A. Financial Performance - During the past five years, revenues continued to increase, but organizational difficulties caused erratic profitability and due to the engineer's strike, it had come downhill in 2000.

B. Strategic Posture

1. Mission-Vision - For people to work together as a global enterprise for aerospace leadership.

2. Objectives - The Company wants to dominate the world's aircraft market as it once used to.

3. Strategies -Boeing want to run a healthy core business by leveraging strengths through new products and services and by means of opening up new frontiers.

II. Strategic Managers

A. Board - The board is comprised of twelve members. All of them had only been a member of the board for the past two decade, most of them from years 2000 up to date. The members come from inside and outside the organization.

B. Top Management -When the Corporation merges or buys out other companies they often keep on the key players from the new acquisition. The Chief Executive Officer and Chairman of the Board of Boeing Commercial Airplanes is Philip Condit.

III. External Environment

A. Societal environment is outstanding. Commercial airplanes have made international travel so economical that it became a common event for both pleasure and business.

B. Task Environment is very competitive. Airbus Industries had been its main competitor even though Airbus has only entered the industry late into the century.

Authorities in this industry is very strict with what manufactured airplanes they approve of which is understandable given the high risk entailed with the airplanes especially the commercial ones. Even with the mergers and acquisitions done by the company in airplane industry, there is a strict steps that need to be done before pushing through it and to be approved by it.

With the flu bug entering the scene in Asia, this has made some abrupt changes whereby most airlines has delayed or backlogged from their orders.

External Factor Analysis Summary

External Factors Weight Rating Weighted Score Comments

Opportunities

International Traveling 0.25 4.50 1.13 Economical

Customized products 0.15 4.00 0.60 Expert in customizing

Wide Range of Products 0.10 3.00 0.30 Varied products and services

Threats

Asian Flu bug 0.20 4.00 0.80 Brought about drawbacks

Strict Regulations 0.20 4.50 0.90 Follows policies

Tough Competition 0.10 4.00 0.40 Well-positioned

Total Score 1.00 4.13

C. Summary of External Factors

At the present time there are three external factors that are critical. They include the high demand for faster and more convenient ways of traveling, the strict policies and rules implemented by aviation and aircraft authorities and the intense competition in the industry.

IV. Internal Environment

A. Corporate Structure - Boeing is composed of three strategic business segments, Boeing Commercial Aircraft, Boeing Military Aircraft and Missile Systems and Boeing Space and Communications and other units.

B. Corporate Culture - Stakeholders of the company all share the same goal, that is, to have people working together to provide its customers quality products by having a diverse and involved team of employees and executive creating the products of the company. Their culture is an engineering driven company.

C. Corporate Resources

1. Marketing - The marketing strategies are consistent with the company's objectives of bringing in new customers and bringing back repeat customers.

2. Finance - Boeing's liquid ratios are not strong. A good "rule of thumb" is for the current ratio to be 2 and the acid test should be 1. In Boeing's case, the year 2000 current ratio is 1.151, and hasn't been close to 2 in at least the past three years. This means they can cover their current liabilities with their current assets only at 1.151 times.

3. Research and Development - Boeing is constantly trying to make their product much better and safer for their customers. They do this by changing or adding up features that will satisfy the customers need and their passengers as well.

4. Operations and Logistics - The Company not only manufactures airplanes but also provides services such as airplane modification and engineering support. This helps out increase its revenue.

5. Human Resources - Boeing employs more than 150,000 people across the United States and in 70 countries. This represents one of the most diverse, talented and innovative workforces anywhere. On 2000, the union organized a strike lead by its engineers which caused losses for the company.

6. Information Systems - Through their efficient technology, most of their planes have a low operating cost which increases the profitability of the company. This technology gives a lot of boost with the research and development done by the company in providing a much better version of their product or even a new plane.

Internal Factor Analysis Summary

Internal Factors Weight Rating Weighted Score Comments

Strength

Efficient technology 0.25 4.00 1.00 Advanced technology

Employee relations 0.1 4.50 0.45 Skilled