Boeings Management Planning Axia College When evaluating the management planning function at Boeing it is helpful to first know more about the company themselves. Boeing is well-known for manufacturing and producing aircraft. Some know them as manufacturers of commercial aircraft but they also produce aircraft for the military. In addition to its aircraft Boeing also plans the production of satellites, missiles, electronics, and communication equipment. Boeings chain of command begins from a chief executive officer, in addition to a Board of Directors. And from there the chain goes down to Boeings corporate officers, managers, and then their employees. However, no matter what position or title held by an individual every member of the company is expected to conduct their business appropriately. Of course, much like any other company, Boeings management planning function is influenced by some internal and external factors. These factors can include legal issues, ethics, corporate social responsibilities, the economy, local and federal laws, and competition. These influences affect Boeing’s strategic, tactical, operational, and contingency planning. However much these factors play into Boeings management planning the company has remained strong. This is mostly thanks to them being able to overcome any downfalls presented by these outside factors and also their ability to capitalize on the opportunities presented by those same factors. Perhaps the one factor that a company dreads the most is legal issues. However, if a company gets large enough the odds indicate that they will have some legal issues eventually. Those odds did not favor Boeing back in June of 2006.
During this time a rival company named Lockheed Martin Corporation brought Boeing to court based on an issue of an investigation of an improper acquisition of proprietary documents. Boeing employees utilized these documents in an attempt to get government rocket launching business. This particular legal issue also involved the hiring of a former Air Force member who was in charge of supervising Boeing contracts at the Pentagon. The end result of this legal issue was Boeing’s financial chief serving four months in prison on the charge of an ethics violation concerning the job offer to the Air Force member and the rocket launching case. The company themselves was banned from any further work with the Air Force concerning rockets for 20 months. This ban was estimated to cost Boeing an astonishing $1 billion due to the loss of the government contract. This was all thanks to substandard ethics presented by those responsible for these incidences. In the aftermath Boeing officials made moves to improve ethics in the company. The previous legal issue example emphasizes the importance of ethics in business. In that case Boeing lost $1 billion but they were able to move on. However, sometimes a company does not have the luxury of moving on, does Enron ring any bells? To avoid any further setbacks caused by a lack of ethics Boeing has implemented a strict ethics policy. This policy’s main goal is to provide protection for both the company and the employees. Every employee is expected to maintain and enforce this policy and to help them do so they are issued a Code of Conduct handbook.
There is also a hotline that they can call to place anonymous calls to report violations, suspicions, or to find out further information regarding the ethics policy. Boeing takes these policies very seriously because any detouring from this policy can reflect very badly on the company. Having respectful ethics improves the image of the company in the eyes of the public. However, another way for a company to boost their image would involve giving back to the community. In the past Boeing has demonstrated that they take the matter of giving back to the community to heart. They take their social responsibility so seriously it is on a world-wide scale. As of today they are working with various community organizations in 26 states and 14 countries. In addition to these partnerships the employees of Boeing has also donated money to charities and volunteered their personal time to work within their given communities. To date, Boeing employees have given over $10 million to charities and worked countless amounts of man-hours for the betterment of their community. Although maintaining a respectful public image and giving back to the people who help with the businesses success Boeing is foremost a company. And one of the most deciding factors concerning companies would be the economy. Much like every other business the economy affects how Boeing plans operationally, strategically and tactically. Since the recent decrease in the United States economy the major airlines nationwide have been suffering financially. When the airlines suffer many other companies suffer right along with them, Boeing was such a company. Business has decreased and orders have been cancelled.
However, Boeing does have orders for more cost effective planes which only goes on to emphasize just how much the economy can affect Boeings organization. Since the recent economic downfall Boeing has learned that they must remain flexible concerning their control of world-wide manufacturing plans. However, economic standing is not the only factor affecting how Boeing plans tactically and strategically. One other factor affecting Boeing in that aspect would be their competition. Boeing greatest competition in the airline industry is Airbus whereas Lockheed Martin is the largest completion in the defense industry. Boeing is not looking to merely keep up with competitors such as Airbus and Lockheed Martin, they are looking to keep ahead of their rivals. In order to do this Boeing is teaming up with other companies across the globe.
The companies that are partnered with Boeing help with research, development, and demographics. By engaging with these other companies Boeing has a better chance to stay ahead of their competition. And they do this by not only offering affordable products but also by providing the most creative aerospace solutions in the world. Almost since the time of the Wright brothers the government has had their hand in the aviation industry. The government is now in charge of establishing air routes; developing air navigation systems; providing pilots license; aircraft mechanics; and investigating airline accidents. What gave the government the authority over these aspects of the airline industry was the Air Commerce Act. The Air Commerce Act also requires that all aircraft designs must be approved by the government. If an airplane manufacture receives a type certificate the government has approved their design and they can proceed with their production. Companies such as Boeing have no decision in this matter so in order to avoid production delays they simply abide by these laws and regulations. Like any other major business there are many factors that Boeing has to take into consideration in order to maintain their success. Internal legal issues, government regulations, corporate social responsibilities, economy, and ethics are but a few factors that can make or break a company. Fortunately for Boeing they take these factors into consideration during their planning process. Thus, this process is constantly undergoing changes and will continue to do so as long as Boeing remains a successful company.
References Ann, K. (2008). 2nd Update: Boeing 3Q Hurt by Machinists’ Strik;: Stock Down. Retrieved November 15, 2008, from http://www.smartmoney.com/news/ON/?stroy=ON-2008 1022 -000844-1245 Boeing (2008). Corporate Governance. Retrieved November 15, 2008, from http://www.boeing.com/corp_gov/ Boeing (2008). Ethical Business Conduct Guidelines. Retrieved November 15, 2008, from http://www.boeing.com/companyoffices/aboutus/ethics/ethics_booklet.pdf Boeing (2008). Government’s Role in Aviation Safety. Retrieved November 15, 2008, from http://www.boeing.com/commercial/safety/government_role.html Innovative Thinker. (2008). Boeing Management Planning. Retrieved November 15,2008 from http://www.associatedcontent.com Leslie, W. (2006). Boeing Ethics Woes Take Toll on the Bottom Line. The New York Times. Retrieved from http://www.nytimes.com/2006/06/30/business/30boeing.html