The Boeing stands to be the biggest aircraft manufacturing company around the globe with headquarters at Chicago in the United State of America. It has a high intensity of magnitude in terms of revenue in which it forms the biggest revenue earner in the aircraft industry and positioned the second in both deliveries, aerospace and contracting portfolios in defense around the globe. By 2006, it had the biggest market share with around 55% in the global scenario of the aircraft industry. Its history is credited back in 1916 through the initiative of its founder William. E. Boeing.
It foundation was on two simple “B&W” seaplanes which were built by George Conrad Westervelt. Its advancement since them has been comprised of developments that have seen the company at the cream status of the global aircraft industry it is currently in.Throughout its history, the company has employed varied strategic management which has helped the survival in the environment with high competition. Throughout, it has employed the use of products diversification in terms of manufacturing of high quality products and of a varied nature that can act to serve different consumer needs. Its extraordinary operational systems has enabled it to successfully compete with it competitors.
To the company, environmental analysis of its operational structure is subject to diversified interlinkage of forces and trends that explain the substance of its operational schedules. With the changing aspects of the company since its foundation to the current period, a picture of the changing economic and non-economic factors are to determine the future destiny of the company which is perhaps to assume a more developed nature with changing status of operations in terms of quality of services, products and diversity in its operations.The analysis of the forces and trends as affecting the Boeing. To the Boeing, market forces of demand and supply of its facilities adversely affect its operational structure. To the company, it has developed varied strategic management components that help it adequately perform well in its operation. Perhaps, its diversity in strategies makes it to survive well in the environment.
Basically, the variation in the forces and trend in its operation system is dictated by its advisory goals in which case the company is made to achieve either in the short run or in the long runs. Depending on the nature if its goals the company applies varied strategies to achieve its long term strategies. To accomplish such a mission however, varied strategic approaches have been adopted which may be shaped by the operating, competition, synergy approach to propagate relevant competencies, strategies for dominance in its product and evaluation strategies in its operational structure. (Ganteinbein, 2004)Elsewhere, Boeing is subject to a diversity in the strengths and weaknesses that helps to capture the meeting of its long term objectives.
Its corporate business structure is accompanied by a varied set of strengths and weaknesses that help it achieve its goals. In this respect, organizational strengths and weakness are the adaptive features possessed by the company or even the opportunity cost in relation to its competitor’s success that makes it prosper in its operations. To the company, it has diversified generic and grand strategies to perform its activities. Grand strategies are the contemporary/macro-nature strategies that compliments with its operational structure and the broad market place scenario.
Elsewhere, generic strategies are specific strategies that are captured by the company in line with some specific operational symmetries or even boundaries and are geared towards specific targets in the market system. To the Boeing a variety of these strategies are applied to make it achieve its goals. Macro-economic indicators affecting Boeing A varied macro-economic framework conception affects the operational system of the Boeing Company. These variables are captured in the industry market which has shaped the company to have the operational system it depicts. Perhaps, the future of the company together with its current behavior is subject to operational systems that blend a varied conception of economic indicators that has affected it.
Firstly the most influential economic indicator affecting the Boeing is the competition schemes that dictate the status of demand and supply capacities of the organization.Globally, the aircraft industry fetches a high competition due to the uprising nature of the industry. To the Boeing, its survival has however been ensured through high quality, cheaper and other customers friendly services that has helped it to survive in the market. It has management undertakings that have ensured a customer friendly business approach therefore attracting many customers. To compete effectively in the market, it has employed high quality services through manufacturing of high quality aircrafts and offering a high quality service.
Either, customers are offered with other varied after-sale services that negotiate attraction in the use of the company’s services. The operational environment is highly competitive dictating varied demand and supply schedules. The operating structures in the aircraft industry have highly changed due to the changing global macroeconomic variables. Such diversity in competition has highly determined the various adaptations by the Boeing to adequately commensurate with the demand and supply requirements in the market. (Fisher, 2002)Macroeconomic changes in the global scenery have yielded various operational cost scenarios that affect the company. Due to the changing costs of factors of production, manufacturing and service provision in the global scenery, operating cost have however been costly.
This has been mainly contributed by varied changing costs of productions in terms of energy, consultancy, technology, external cost and other various costs related to the course of production. To the Boeing, the effect of these changes leaves it at a state of no exception to the rule where it has been forced to adopt operational strategies to cater for the changing costs of production. It has captured this economic indicator variable by structuring various cost elements which commensurate with revenue expectations. Cost of production is a macro economic variable that is determined by the economic structure in the economy. In all aspects, business undertakings are structured to adopt various production cost efficiencies in order to achieve the greatest benefit (revenues) possible.
However, these costs are necessarily not variable in working within the firm and are thus independent with the choice of activities in organization. To Boeing, various operational costs are determined by the broad economic theory. Example, the costs of fuel which may be affected globally, purchase of labor capital where different state constitutions may have a varied outlook towards labour and the price of capital which could be affected by the national economic asymmetries such as sourcing of capital finances in the capital market which would however be dictated by the performance of the economies. Elsewhere, Boeing has to feature the aspect of varied government regulations and restrictions.
Depending on the various governments’ regulations in the operating sites of the company, it has to operate within the legal foundations of the different states governments about the aircraft business or the commercial laws as a whole. Various state laws have a varied nature in which they dictate the regulatory standards in commercial activities in which case various regulations have been enacted. Example, the federal government through its laws has enacted legislations prescribing to the corporate governances. Such regulations have limited the Boeing Company from some personal dimensions in its operations.
Other states laws relating to taxation, international trade relations the state company and corporate laws have served to spearhead the dimensions in its operational system, which the Boeing should have. (Macpherson, Pritchcard, 2003) Labor as a macroeconomic variable and an economic indicator highly affects the performance of the Boeing Company. Like any other corporate organization within the economic perception, the Boeing has been highly influenced by the labor force shocks that have led to lack of optimal costing. Like other legal regulations, different states within the radius of the Boeing operation have regulated the labor laws for their citizens. To the Boeing, labor variable is perhaps to affect its future the most.
In every business undertaking human capital (labor) forms an interlinkage between the other features of productions.The demand, supply, efficiency, cost and quality of labor have highly affected the revenue margins of the Boeing. Optimal labor costing has been a big aspect in its operations especially focusing on the high cost of labor which if not properly regulated would probably lead to a loss in profit mark up With its employees amounting to an approximate of 153,000 study reports have revealed that perhaps its revenue would substantially be lowered if optimal labor costing is not sufficiently monitored. However, adjustment of the workers salaries would also call for external legal regulations, which are for beyond the company’s corporate management authorities.