Boeing Corporation Case Study

GET HELP INSTANTLY

Place Your Question Here

Boeing Corporation Case Study Introduction

SWOT Analysis enables an organization to analyze its internal and external factors namely strength, weakness, opportunities, and threats which in turn, helps in enhancing overall performance. On the other hand, PESTLE analysis focuses on factors affecting the industry as a whole.

Company Name

Boeing Corporation

Type of Industry

Aerospace

Headquarters

United States

Sales/Revenue

$15,751 million

Area served

More than 65 countries

Number of Stores

More than 150

Competition

Airbus, Lockheed Martin, United Technologies, General Dynamics

USP

Defence, Space and Security System, Manufacturer of Commercial Airplanes, Boeing Global Services and Boeing Capital Corporation

Target Group

Government customers

Products

777 Commercial Transport, DC-1 Commercial Transport, B-17 Flying Fortress, O-2 Surveillance, 376 Satellite, Apollo Lunar Spacecraft

Website

https://www.boeing.com/

Boeing Corporation SWOT Analysis

Strengths

  • Boeing Corporation has a reliable and strong base of supplier that enables the company to maintain its supply chain.
  • It possesses a highly skilled workforce with more than 153,027 employees (Boeing.com, 2017)
  • The CRM department delivers high-end customer satisfaction whereas the dedicated R&D department emphasizes on product line expansion

Weaknesses

  • Not completely successful at integrating mergers with companies that possess different work culture
  • The financial planning showcases that Boeing can use its cash more effectively than what it is doing at present
  • Almost 38% of the total workforce is a part of the labour union

Opportunities

  • Reducing their shipping charges can bring down the price of Boeing’s products resulting in gaining market share
  • New trends in the targeted consumer behaviour can provide opportunities to diversify revenue streams in addition to new product categories

Threats

  • Lack of skilled workforce in global market stand as threat in steady growth of profits as compared to its major competitors Airbus, United Technologies and Lockheed Martin
  • Rising price of raw materials can affect Boeing’s profitability

Analysis

As per the case study of Boeing Corporation it can be stated that though the company does possess a reliable chain of raw material suppliers still the rising price of raw materials may affect its all over supply as well as its profit ratio. The workforce the company is highly skilled, trained and qualified to achieve the goals of the company. The case study of Boeing further highlights the factor that the workers are motivated in a way to even achieve more. The company faces issues while collaborating with other respect of work culture with which they fail to adjust (Zullo and Liu, 2017).

The case study of Boeing Corporation highlights the issue of incompetency among its global workers who lack proper training. As opined by Turkina et al. (2016), the company has established a reliable CRM department that offers high quality satisfaction to its present customers and helps to build brand name among the potential customers. The case study of Boeing Corporation further highlights the issues regarding its financial management which showcases that the company is unable to use its present efficiently which is affecting its current assets ratio and liquid assets ratio. The issue related to a large section of the workforce being a part of the labour union became significant due to work stoppage. As a result, productivity of Boeing decreased by 5.5% in 2017 with significant impact on on-time delivery of aircrafts (Boeing.com, 2017). The case study of Boeing Corporation shows a significant opportunity of enhancing its market share through reducing its shipping charges in the long run that will lower the cost of its products, as new entrants are rising up as efficient threats to the company.

Boeing Corporation PESTLE Analysis

Political

  • The US Government is one of the significant buyers of aerospace technologies influence the R&D department tremendously.
  • The Aviation Law 2019 governs aircraft trading, dispute resolution as well as liaising related to the aerospace industry

Economic

  • GDP of US is currently accounts to 19.39 lakh cores
  • Unemployment rate of US has decreased to 3.7% as of July 2019, revealing scopes for aerospace industry to expand 

Social

  • 2.4 million jobs is supported by the US aerospace and Defence industry
  • The aerospace and defence industry has paid approximately $220 billion as wages as of 2017

Technological

  • Technologies like automatic structural design software and internet-based navigation tools are currently in huge demand
  • 3-D printing technology is another significant technology with use of which, various parts of aircrafts are manufactured

Legal

  • The Fair Labour Standards Act 1938 has set minimum wage to $7.25
  • This legislation furthermore, discourages working for more than 40 hours per week

Environmental

  • Frequent changes in climatic condition seemed to be prevalent all across US depicting obstacles for aircraft manufacturers
  • CSR is highly prevalent in the US Airline industry with the fact that this depicts about competitive edge

Analysis

The case study of Boeing Corporation portrays that the US Government is one of the significant buyers of aerospace technologies. This in turn affects the Research and Development department to a great extent and redirecting its workings. Aerospace industry is now governed by the Aviation Law 2019 that governs the dispute resolution and aircraft trading. The total GDP of the US is currently 19.39 lakhs where in total 2.4 million jobs are supported by the aerospace and defence industry (Landoni, 2019). The case study of Boeing Corporation showcases that aerospace industry itself is responsible for providing $220 billion wages that is responsible for reducing unemployment by 3.7% in July 2019.

Presently automatic structural design technology is in high demand that ensures progressive aerospace industry (Schwab, 2017). Case study of Boeing further revealed about Occupational Safety and Health Act is also applicable in the concerned industry with which, health conditions workers or employees are assessed. Aerospace has also inculcated 3-D printing into its manufacturing unit for various parts. The case study of Boeing Corporation also showcases that the Fair Labour Standards Act 1938 has set minimum wage to $7.25 which helps in overall growth of GDP in US. As a result, instances of unemployment among the wagers have been reduced (Joseph et al. 2019). This legislation has further ensured that working hours does not exceed 40 hours per week. Climatic conditions are subject to change frequently thus creating problems with the manufacturing of aerospace industry where the manufacturing unit is affected by many external factors.

Need Full Solution?

Request a FREE quote now!

Ask Now

Reference

Boeing.com, (2017). Boeing in Brief. Available at: https://www.boeing.com/company/general-info/ [Accessed on 14 August 2019]

Boeing.com, (2017). The Boeing Company 2017 Annual Report. Available at: https://s2.q4cdn.com/661678649/files/doc_financials/annual/2017/2017-Annual-Report.pdf [Accessed on 14 August 2019]

Joseph, J., Sriram, K.V., Mathew, A.O. and Kanoor, A., (2019). The failure mode effects analysis to prevent Delays for development projects in Aerospace industry-a case study. International Journal of Mechanical and Production, 9(2), pp.123-136.

Landoni, M., (2019). Convergence of innovation policies in the European aerospace industry (1960–2000). Technological Forecasting and Social Change, 147, pp.174-184.

Schwab, K., (2017). The fourth industrial revolution. Australia: Currency.

Turkina, E., Van Assche, A. and Kali, R., (2016). Structure and evolution of global cluster networks: evidence from the aerospace industry. Journal of Economic Geography, 16(6), pp.1211-1234.

Zullo, R. and Liu, Y., (2017). Contending With Defense Industry Reallocations: A Literature Review of Relevant Factors. Economic Development Quarterly, 31(4), pp.360-372.

GET 20% OFF On your first Boeing Corporation Case Study Order Now

whatsApp
whatsApp