Boeing__Factors_Influencing_the_Management_Planning_Process

Boeing: Factors Influencing the Management Planning Process MGT/330 April 7, 2011 Boeing is one of the world’s leading makers of commercial airplanes, military aircraft, missiles, and satellites. As a large global corporation, Boeing has many factors to consider when executing a business plan. Legal responsibilities, ethical responsibilities, and social responsibilities all need to be acknowledged by this multi-billion dollar aerospace company. External factors also need to be considered in the planning process. The economy, competition in the marketplace, and government legislation and regulations will directly affect the organizations business plan. Let’s take a closer look at the affect these factors and responsibilities have on Boeing and how they do business within these constraints. Boeing To understand Boeing we must first look at the services and products they provide. Boeing has been one of the world’s leading producer of commercial jet planes and military aircraft and defense systems. Boeing also works with the National Aeronautics and Space Administration (NASA) providing support and operations for the Space Shuttle and the International Space Station. Boeings customer base includes clients in more than 90 countries. They have offices in all 50 states that provide service and support for their customers (Boeing, 2011). Legal Responsibility The amount of responsibility is magnified by the list of services and products Boeing offers. Legal responsibilities to affect Boeing include acting within the constraints of federal guidelines. In March 2011 the World Trade Organization (WTO) found that Boeings leading competition, Airbus, was accepting billions of dollars in illegal subsidies from European countries (Boeing, 2011). Airbus claimed that the subsidies were necessary to counteract the 2.7 billion of assistance funding given to Boeing by the U.S. government. According to a Boeing press release (2011) the WTO found that Airbus accepted more than $20 billion in subsidies “which harmed the U.S. aerospace industry and resulted in the loss of billions in exports and tens of thousands of U.S. jobs.” Acting within the constraints of the WTO is an important legal consideration that all companies must include within their management planning. Ethical Responsibility Boeings management system begins with their Chief Executive Officer (CEO) and Board of Directors. Information is passed down through corporate officers to managers and finally to the employees. Regardless of their title, all organization members are expected to uphold the high code of ethics issued by the company. To support their employees in upholding Boeing’s code of ethics the company has a telephone hotline that employees can call to ask questions about what course of action they can take that is supported by the company. Employees may also use this hotline to report ethical misconduct. On the first page of the Boeing Ethical Business Conduct Guideline booklet (Boeing, 2011) the company clearly explains its expectation for ethical business decisions. “Boeing’s business plans cannot happen without integrity. We ask you to execute your piece of the business plans with attention to every detail – especially the ethical implications of your own and your work group’s actions. If you think something is unethical, please report it. We commit to you that Boeing will celebrate the courage of people who point out existing or potential ethical problems, and that we will not tolerate retaliation against people who raise legitimate ethical concerns.” By acknowledging compliance and offering support to their employees, Boeing ensures that their organization members have the opportunity to fulfil their ethical responsibility. Corporate Social Responsibility Boeing believes in supporting its employees and the local communities. In 2010 Boeing contributed more than $160 million to charities around the world(Boeing, 2011). Boeing also encourages their employees to volunteer their time and skills to give back to their communities with Boeing employees volunteering more than 400,000 man hours in 2010(2011). Boeing’s charitable contributions help to further education by offering mentoring projects in underprivileged schools, partnering with schools to teach students about environmental issues, and inspiring young people to develop their entrepreneurial skills around the world. On Boeing’s website you can find many examples of how they give back to communities around the world. Boeing recognizes that their social responsibility is about more than giving money, it is about committing to use their resources to make the world a better place. Government Regulations Since the inception of air travel the government has had control over different aspects of the aviation industry. The Federal Aviation Administration (FAA) is responsible for ensuring the continuing safety of air travel. They establish guidelines for everything from the development of the airplanes to the certification standards of the airline mechanics. Regulations implemented by the U.S. Government and the FAA have a direct affect on the manufacturing process of Boeing. These government entities require that all aircraft pass rigorous safety and structural checks before they are flown. Regulations are in place to protect the public from faulty design or manufacturing processes(Boeing, 2011). Boeing must keep these regulations and safety standards in mind during each phase of an aircrafts development. Economic Conditions and Competition Although Boeing’s customer base if widespread the company is not immune from the current economic problems or industry competition. In the last few years the world economy has taken a dramatic downturn. This has made Boeing acutely aware of how perilous their position is in the marketplace. They have had to adjust their business plan to maintain flexibility in a changing competitive environment. One way that Boeing is combating economic constraints and their competition is by working toward developing more fuel efficient aircraft. This will help to make them more competitive and offer airlines a cheaper option. Boeing has also begun partnering with Lockheed-Martin, a market competitor in defense products, to combine resources in developing new technology (Boeing, 2011). This gives both companies an advantage over the competition and offers more to their customers by combining their resources and skills. Conclusion Boeing is an undisputed leader in the aerospace industry. They have maintained this status through many years of a changing market by maintaining a core set of values and working within their legal, ethical, and social responsibilities. Boeing takes these responsibilities very seriously through every stage of their management planning process. By including a level of flexibility in their planning they can change along with economic fluctuations and keep up with the competition. Boeing’s dedication to good business ethics and approach to planning will allow them to continue their success as they move into the future of the aerospace industry. References Corporate Citizenship Report.(2011). Retrieved March 30, 2011 from Boeing: http://www.boeing.com/companyoffices/aboutus/community/2010_report/welcome01.html Boeing. (2011). WTO ruling exposes massive Airbus advantage from illegal subsidies. Retrieved April 1, 2011 from http://boeing.mediaroom.com/index.php's=43&item=1685 Boeing. (2011). Ethical Business Conduct Guidelines. Retrieved March 30, 2011, from http://www.boeing.com/companyoffices/aboutus/ethics/ethics_booklet.pdf Boeing. (2011). Government’s Role in Aviation Safety. Retrieved April 1, 2011, from http://www.boeing.com/commercial/safety/government_role.html .