Boeing_Management_Planning

Boeing Management Planning Paper Billie Holloway Jack Geer July 12, 2010 Boeing Management Planning Boeing is an aerospace company. They are leaders in making commercial aircrafts, military aircrafts, satellites, and missiles. Internal and external factors influence the business planning involving legal, ethical issues, and corporate social responsibilities. There are many factors that influence the strategic, tactical, operational, and contingency planning such as economic conditions, laws, and competition. Boeing has well-built ethics and planning abilities enabling them to maintain success for many years. Planning Function of Management The planning function of management is the process of setting goals and objectives for Boeings organization to achieve over a set period. A plan that will include activities and tasks that needs to be completed to reach the ultimate goal Of Boeing. These plans will also take into account variables and unexpected occurrences. By planning for the unexpected an organization can avoid the chaos associated with unforeseen challenges or problems. In Boeing’s case, the planning is vital within all of its major departments. The company remains efficient by setting goals within its engineering department, sales department, mechanical department, and product testing department, among many others. There has to be specific guidelines set to manage these goals, to ensure that the plans are achieved at the highest level of efficiency. Management planning includes five basic steps. The first step is to analyze the situation that surrounds the goal. The next step is to look at alternative goals and plans that may be used. The third step is to evaluate the goals and plans that have been created thus far. The fourth step is for management to select the final plan to be used. A manager’s final step is to implement the plan that has been created. The plan will need to be explained to all people involved with the plan’s success. Because Boeing has each department using the management planning, it is important for each department to correspond with each other for an effective plan within the business. Influences on Management Planning Legal Issues Legal issues are known to complicate the planning process. In 2000, Boeing was sued because of a complex legal issue concerning the difference in pay because of gender (Business Week, 2004). In 1998 a report alleged "men are more likely to be hired into the high paying positions" (Business Week, 2004. P. 1). A study that was completed the same year showed a pay difference between entry-level managers was $3,741.04. Although there was substantial evidence indicating a pay gap the attorney client privilege obtained by the legal department at Boeing allowed the majority of the evidence to be dismissed. Boeing could settle the dispute out of court. Boeing could save millions of dollars by having a legal team supervision documents and decisions made pertaining to the company. Boeing found it to be better to settle out of court because the results would be better with customers and employees. Ethics To ensure the safety of Boeing’s Corporation and its employees they have created an extensive ethics policy. Employees are obligated to obey and implement the Code of Conduct policy written by the Boeing Corporation. Boeing has implemented additional ethical policies pertaining to the Finance department because of the knowledge of financial records. To help employees with questions pertaining to ethics or the Code of Conduct policies they have set up a confidential hotline service. The hotline service at Boeing is also used by employees to report abuse or suspected abuse of the policies. At Boeing it is important that employees are dedicated in showing leadership, honesty, class, and customer satisfaction (Boeing, 2001). Ethical policies such as the Boeing’s Corporations Code of Conduct must be followed to ensure the integrity of plans being put into action are not compromised. Cooperate Social Responsibilities Boeing is a company appreciated for cooperate social responsibility. The Foundation of Corporate responsibility encourages companies to become involved in charitable efforts and encourages businesses to encourage ethics. Boeing has decided to expand their efforts and become part of this organization (Foundation for Corporate and Social Responsibility, 2008). This is something that every business should have. In becoming part of the Foundation of Corporate responsibility Boeing sponsors corporate events such as renovating the lecture hall at the Royal Aeronautical Society in London, and the Chicago Air and Water Show (Boeing, 2008). Boeing has expanded its charitable efforts by involving themselves in sports and activities related to their business. Businesses being involved in the community helps both promote the business as well as help the community. Three Factors that Influence Planning The three factors that influence strategic, tactical, operational and contingency planning are: 1) economic conditions, 2) competition, and 3) government regulations. Economic Conditions Economic conditions play a large role in deciding how Boeing plans operationally, strategically, and tactically. Since 2001, the United States has been in an economic decline. The decline in economical conditions has caused Boeing suffer because many airlines are in financial trouble. Businesses have been forced to downsize, and Boeing is looking for business in other countries. Boeing is focusing on helping the military by developed more planes and equipment. The United States Air force has contracts with Boeing valued at $49.2 billion (Advantage Business Media, 2007). Boeing also has business relations with Saudi Arabia Airlines since 1995 and is continuing to increase with air traffic (Boeing, 2001). Boeing is also making efforts to expand on the need for aircraft in different countries such as China, India, and Saudi Arabia. Boeing’s future economical plans will depend on the global market trends and demands in the business. Competition Competition is everywhere in the business world. Competition is another instance of how planning strategically and tactically is important to the success of Boeing. One of Boeing’s largest competitors in the aircraft business is Airbus. At this time the leading manufacturer of commercial jets is Airbus (Yahoo, 2008).Which is not a good thing for Boeing as they will now need to work at increasing their business again. Boeing is finding their customers are choosing to work with Airbus more to avoid a backlog and delays. Because of poor decisions Boeing is finding their assembly line to have many problems that is causing them to change their deadline dates. Airbus is finding them backed up on orders because of the increase in demand. The increase in Airbus demand is because of Boeing’s backlog. Boeing has found Lockheed Martin to be their biggest rivalry in defense systems (Yahoo, 2008). In an attempt to meet a greater demand of the public, Lockheed Martin and Boeing have been working together on a number of projects. Instead of competing against each other they are working together to meet the demands of the customers, to keep the business in the future. Government Regulations Government regulations have in a roundabout way affected the output of planes that Boeing has manufactured. Considering that Boeing must obtain a certificate issued by the U.S. Government for new plane model designs before the government will allow the aircrafts to fly. To reduce the amount of injuries and fatalities caused by aircrafts the U.S. Government has created this system. To be approved for flight by the United States Federal Aviation Administration there are many safety requirements that must be met. If these regulations are not followed to the correct standards Boeing and other companies will have a delay in their production of aircrafts. Boeing has admitted to developing delays in some of their aircrafts because of troubles with manufacturing some of their planes. To ensure the aircrafts will not be rejected later down the line they are using tactical planning. Noise ordinances play a large role in when aircrafts can take fight. With the noise ordinances in affect companies are finding they are only able to fly their aircrafts at certain times creating that entitles fewer aircrafts to fly. This creates longer lasting aircrafts because the ware and tare is not extensive. Conclusion Boeing has many factors that involve the business planning ranging. Some of the factors include: internal legal issues, government regulations, corporate social responsibilities, ethics, and economic conditions. Boeing uses their legal department to aid in planning. This ensures that the actions taken are legal and properly placed for success. The legal department at Boeings not only handles the planning process but is also responsible for handling the internal and external matters the rise. Boeing is allied with organizations pertaining to sponsorship. They work with these organizations to assistant in the charitable efforts. Customers and prospective customers moderator corporations base on efforts that have been set in motion making corporate social responsibility exceptionally vital. Business ethics are crucial in the Boeing Corporation. All employees must practice the code of conduct that Boeing has implemented. With the code of ethics enforced so strongly the corporation can uphold durability in the aggressive business. Economic conditions and competition play a large role in planning operationally, strategically, and tactically. Because of the economic conditions being so poor since 2001 in the United States, Boeing has created contracts with other countries that have a steady demand for aircrafts and equipment. Government regulations may create some delays in the rate aircrafts can be released to be put in the air for businesses or the military. Situations in the internal and external environment are continuously altering the planning process at Boeing. References Boeing. (2008, February). Retrieved July 10, 2010, from Foundation for Corporate Social Responsibility: http://www.fcsr.pl/fcsr_eng_nasipartnerzy_boeing.html Boeing. (2001, April 23). Saudi Arabian Airlines Meets Fleet Expansion Goal with New Boeing 777 and 747 Airplanes. Retrieved July 10, 2010, from Boeing: http://www.boeing.com/news/releases/2001/q2/news_release_010423a.html Business Week. (2004, January 24). Cover Up at Boeing. Retrieved July 10, 2010, from Business Week: http://www.businessweek.com/magazine/content/04_26/b3889088.htm Corporate Sponsorships. (2008, February ). Retrieved July 10, 2010, from Boeing: http://www.boeing.com/companyoffices/aboutus/sponsorship/current.html Yahoo. (2008, March). The Boeing Company Profile. Retrieved July 10, 2010, from Yahoo: http://biz.yahoo.com/ic/10/10221.html References Boeing. (2008, February). Retrieved July 10, 2010, from Foundation for Corporate Social Responsibility: http://www.fcsr.pl/fcsr_eng_nasipartnerzy_boeing.html Boeing. (2001, April 23). Saudi Arabian Airlines Meets Fleet Expansion Goal with New Boeing 777 and 747 Airplanes. Retrieved July 10, 2010, from Boeing: http://www.boeing.com/news/releases/2001/q2/news_release_010423a.html Business Week. (2004, January 24). Cover Up at Boeing. Retrieved July 10, 2010, from Business Week: http://www.businessweek.com/magazine/content/04_26/b3889088.htm Corporate Sponsorships. (2008, February ). Retrieved July 10, 2010, from Boeing: http://www.boeing.com/companyoffices/aboutus/sponsorship/current.html Yahoo. (2008, March). The Boeing Company Profile. Retrieved July 10, 2010, from Yahoo: http://biz.yahoo.com/ic/10/10221.html