Airbus A380 and Company Airbus Company

i Ministry of Higher Education Colleges of Applied Sciences (Salalah) subdi imagination of world-wide Business Administration International Business environment (BUSN 3401) reflect SEMESTER 7 (2012 2013) BOEING COMPANY Name Mohammed Ahmed Salim al-moqimi ID number 2008399331 TABLE OF CONTENTS circumscribe TABLE OF CONTENTS2 INTRODCTION4 BACKGROUND OF BOEING COMPANY5 Mission6 Vision6 Objective6 enemy psychoanalysis7 SWOT9 Strengths10 Weaknesses11 Threats Implications11 Opportunities12 THE dodge13The problems that the comp all baptistryd ar13 The causes of problems ar13 Action planning13 Alternative schema14 PEST ENVIRONMENT14 Politics, Legislation15 Economy, Business purlieu15 Socio-Cultural and demographic forces15 engineering science16 Competitive forces16 Physical and natural forces16 CONCLUSION18 RECOMMENDATION19 REFERENCES20 INTRODCTION Nowadays, headache is vitally affected by the economical, affectionate, legal, technological and government activityal factors . These factors collectively form transaction environment.Business environment is the total of all immaterial forces, which affect the physical composition and operations of telephone line. The environment of an organization has got home(a), operational and ordinary lives managers must be aware of these three environmental levels and their relationship and importance. Therefore, I pass on talk about Boeing political party as an example. Boeing keep accompany is Ameri basin accompany. It was founded in 1916. Boeing consider as the worlds greatst aerospace wingowship and leading manufacturer of mercenary jetliners and defense, space and security systems.The company aim and make rotorcrafts, electronics, defense systems, missiles, satellites, constitute vehicles and information and communication system. The biggest competitors of this company atmbus association. Airbus is one of the worlds leading aircraft manufacturers and it consistently captures some half or muc h of all orders. In the coming lines, I impart talk about the mentioning points which are the background of Boeing Company, mission, vision and its objective SOWT analysis, competitor analysis, action planning, strategies, and the effect of the PEST environment forces on that company.BACKGROUND OF BOEING COMPANY Boeing consider as the worlds largest aerospace company and leading manufacturer of commercialized jetliners and defense, space and security systems. A top American exporter, the company dungeons airlines and American. and allied government customers in more than ninety countries. The Boeing overlaps and tailored serve let in commercials and array aircrafts, satellites, appliances, electronics and defense systems, launch systems, advanced information and communication systems, and erformance-based logistics and training. Boeing Company has a long tradition of aerospace leadership and innovation. Company continues to expand its product line and function to meet emer ging customer needs. Its broad epitome of capabilities includes creating modern and more efficient members of its commercial airplane family integrating military platforms, defense systems and the warfighter through with(predicate) net organise-enabled solutions, creating advanced engineering solutions and arranging innovative customer-financing options.With bodied offices in Chicago, the company employs more than 159,000 people across the United States and in 70 countries. This represents one of the most diverse, talented and innovative workforces anywhere. More than 123,000 employees take conquer college degrees, including nearly 32,000 advanced degrees and in virtually e very business and skilful field from approximately 2,700 colleges and universities worldwide. Our enterprise leverages the talents of hundreds of thousands more skilled people works for Boeing suppliers worldwide.Boeing is classified into devil business units Boeing Commercial Airplanes and Boeing Defens e, Space and Security. takeing this units are Boeing Capital Corporation, a global provider of financing solutions the Shared operate Group, which provides a broad range of services to the company worldwide and Boeing Engineering, operations & Technology, which economic aids aim, acquire, apply and protect innovative technologies and processes. Mission The mission of the company is to maximise the number of services and opportunities while establishing Boeings leadership in NMA activities.Functions that control Boeing are business dampenment and scheme, communications, engineering, operations and technology, finance/shared services group/Boeing capital corporation, human resources administration, orthogonal, law and offices of internal governance and mankind policy. So Boeing Company has umpteen values work to achieve it. First, leading is the world class leader in every aspect of our business and in developing our team leadership skills at every level, in our management performance in the expression it design and build certify our products and in our financial results.Secondly, Integrity is always takes the mellow road by practicing the highest ethical standards and by honoring our commitments. It takes personal responsibility for our actions and treats everyone fairly and with practice and respect Third, the Quality of striving for continuous amelioratement. So that it take be among the worlds premier industrial firms in customer employee and participation satisfaction. Finally, Customer satisfactions are essential to our success. Vision It seeks redressing from the former(a) for unfair government subsidies in the victimisation of new airplanes.Also, it is important for people to work as a global enterprise for aerospace leadership People Working unneurotic as One Global Company for Aerospace Leadership. Also, it works hard to develop the education for her employees. Objective 1. Improve Performance Sponsor outstanding dinner party mee tings and special events. Exploit multi-media member communications. Provide effective NMA metrics and reporting. lead direct support of Boeings business goals. 1. Spearhead Expansion aggroup with current chapters. Maintain and increase membership. 2. Implement Training Provide fifty-fifty increase seminar Apply NMA training tools and courses. 3. Support education and community plunder high school scholarships. Speech Contest. Hold Explore Engineering Programs. Support volunteer activities. 4. Ensure Recognition Acknowledge Boeing leaders. Reward chapter contributors. COMPETITOR ANALYSIS Airbus is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blanca, France, near Toulouse and with epochal activity across Europe, the company produces around half of the worlds jet airliners.Airbus pains began as a consortium of European aviation firms to compete with American companies such as Boeing. Airbus Industries were formally established on 18 celestial latitude 1970. It had been formed by a government initiative between France, Germany and the UK that originated in 1967. In the commercial airline business Boeing operates in a duopoly with Airbus. Airbus has been the largest manufacturing business of large commercial jetliners for many years, but Boeing has been gaining ground since recent problems at Airbus, especially the 2005-6 massive production delay for the A380.The delay gave Boeing a large advantage in the merchandise for wide body aircrafts which include Boeings productive 747, 777, and 787 models. Although the Boeing has pushed back the first flight and delivery of the 787, the Airbus 380 delays bemuse been far more substantial. Still, even with Airbus problems, the race is far from over and competition remains anxious between the two companies. In February 2007, the U. S. Air Force awarded a controversial $35 billion air refueling tanker contract to tinct Northrop Grumman (NOG) that was widely expec ted to go to Boeing.During March of 2007, Boeing had filed a formal pull in against the chew with the Government Account baron Office. In June of 2008, the GAO sustained Boeings appeal against the Air Force and effectively reopened the contract for bidding. As of August, Boeing is currently requesting an extension quondam(prenominal) the October 1st deadline in order to alter its design to meet the governments new specifications. Airbus employs around 52,000 people at sixteen sites in four European Union countries Germany, France, the United Kingdom and Spain. In this table I go away show you some statistic about Boeing and Airbus Industrie Company 1994 Sales in $m 1994 Earnings in $m Market Share % Boeing 16,851 1,022 62 Airbus Industrie 8,000 N/A 24 Company Gross orders Cancellations Net orders Boeing 120 46 74 Airbus Industrie 125 54 71 SWOT SWOT abbreviation of Boeing Company is defined as a framework used extensively for an judging of the internal as well as external business environment as a part of the strategical or corporate planning process. The framework is including the firms strengths & weaknesses as part of internal environment assessment and opportunities & threats as part of the external environment assessment that aids strategic decision making which may include macroeconomic matters, technological change, legislation, and socio-cultural Changes, as well as changes in the marketplace or competitive office. Strengths Weaknesses Workforces and planning Loss Innovation Lack of technological innovations Management system Threats of transmute Products or function Leadership Competition of trains Knowledge Affect of technology development Highly Skilled Managers Provide global customer support Outsourcing High quality of products good services Threats Opportunities Competitor Market developments backing Barriers Competitors vulnerabilities deregulating of Airlines Industry or lifestyle trends Threats o f Substitute Products or Services Technology development and innovation Global influences threat of the Airbus Information and look into Lack of planning New aircraft to gain market share adjoin demand for point to point routes Strengths 1- Workforces and planning Boing has trimmed its workforce to the nominal and it has plans to further cut 7000 jobs and has completed family of planes from the small 737 to the worlds largest carrier the 747 which allows it to serve any airline in any category. 2- Innovations boing has innovated in many areas and has a very strong technological position it is well established. 3- Management system It has alter its inventory management systems. 4- Leadership It still has a leadership position in the industry. 5- Highly Skilled Manager The operation of the company will run smoothly.The performance of the company will improve and would lead the company to be successful. 6- Provide global customer support it would serve the customers split a nd it would be very convenient to those customers in some other countries to ask for help. This would help the company to gain a better image due to the provided services to help the customers. 7- Outsourcing It can save time for the company to manufacture or assembly its products. 8- High quality of products Emphasizing the product quality to suss out that the durability of the company is lasting for long period of time. 9- Provide keen services. . Weaknesses 1. Loss balance sheet and income statement point to some weaknesses.R spend of $1,661 million, around 8% of sales is rather low for this industry. Its long bourne debt is also increasing and its overall return on common justness is around 8. 9%, below the average industry rate which is 13. 1%. This, associated with its declining defense revenues, may restrict its access to additional capital in times of crisis. 2. Threats of Substitute Products or Services for example people entert use planes to travel they will use tra in and other way. 3. Competition of trains Customers run away from aircraft to trains because of its services. Threats Implications 1. Competitor The competitor might vote down them and the threat is increasing the competitors market share. 2.Trade Barriers They may opposition difficulties in the regulation regarding aircraft imposed by the country to which they export their products to. 3. Deregulation of Airlines The regulation of the company for its customers would compromise in order to gain party favor of the customers. 4. Threat of the Airbus because Airbus is the big competitor for Boeing Company. 5. Lack of planning. Opportunities New aircraft to gain market share with the impressive show of Airbus A380 recently, Boeing also plans to release its powerful weapon in the competition with Airbus. The new version Boeing 787 which inherits the most advanced technologies and advantages of the old models is hoped to be a big hit to the airline industries.At the moment, Boeing has received a number of orders for Boeing 787- Dream liner and this opportunity actually shows that Boeing still insists on its successful business strategy to build longer-range, more capable, smaller aircraft that could go point-to-point and therefore, serve city pairs directly rather than having to hook them up through a hub. The new 787 is the proof that Boeing does not lag behind the competition. THE STRATEGY The problems that the company faced are 1. Unwinnable competition, which is wasteful. 2. Design and engineering problem. 3. Poor personify control. The causes of problems are 1. Poor engineering expertise. 2. Poor marketing research. 3. Using aggrieve strategies. Action planning 1. Merge to companies 2. overhear good engineer (work with university). 3. Get good marketers. 4. Do comprehensive. 5. Marketing research. 6. Restructure. 7. Use reconciling strategies. 8. Improve design and R. 9. Make the justly aircraft. 10. Cost leadership.There are many problems that come fr om the utilise of wrong strategies, brusque engineering expertise and poor marketing research. The grassroots problems are unwinnable competition which is wasteful, design and engineering problem and poor exist control. Boeing Company uses poor engineering and poor design that actually will affect the nature of the working of company. Boeing Company is unwinnable competition because their competitors have high quality management and good services better than them so, customers prefer to deal with their competitors. It has also problem with marketing research. However, good marketing research can help company to know strength and weakness of their competitors and to know how to improve their works and to be able to face new technologies.Boeing Company has poor cost control that will lead to lose their money and the network will be low. There are many actions that the company should follow to overcome any problems such as get good engineers who gradatory from university and have high qualification and experience. Boeing Company has to restructure its strategies and use cooperative strategy. Also, if it merges with companies, get good marketers, do comprehensive, marketing research, improve design and R and make the right aircraft, it will achieve competitive advantage and maximize the profit. Alternative strategy Cost leadership, it focuses in decreasing the cost and price.It is a good strategy for the company, if it follows this strategy, it will be more successful and it will reduce its economic costs. Also, this strategy will help company to develop and grow very fast. PEST ENVIRONMENT Political, Economic and financial, Social, physical and natural, competitive, demographic, proficient forces (PEST) analysis is concerned with the environmental effects on a business. The verge PEST stands for the Political, Economic and financial, Social, physical and natural, competitive, demographic, Technological issues that could affect the strategic development of a business. New I will explain the forces that effect Boeing Company in Us Politics, Legislation Political forces refer to countrys political system.The ability to support or disrupt business operations of domestic & supranational firms that rigorous Influence of politics & political interests. Also, Governmental topics, taxation issues, environmental controls and dependencies, subsidies and quotas regulations, employment and labor laws, consumer legislations and regulations, competition issues, health & safety concerns and issues. Economy, Business Environment The economic environment refers to differences between countries economic systems in the country which the organization operates. Therefore, when we talk about condition of economic system I mean the economic growth, inflation and unemployment.As we know, the economic crisis affects all the businesses around the world. Boeing Company cause by this crisis so what happened in the economy will have a big effect on the compan y. Despite Boeings 2008 revenue has declined to 8. 25% and that because of the economic crisis. In particular, revenue in the Commercial Airline division trim back by 15. 34%, as a strike by the International Association of Machinists in 2008 resulted in 104 fewer airplane deliveries than planned. Furthermore, net income fell 34% and contractual backlog expanded to a record level of $279 billion. Net income declined by 22. 1% over the first half of fiscal year 2009. Socio-Cultural and demographic forcesThe social dimension or environment of a nation determines the value system of the society which affects the functioning of the business and identify to way shared beliefs, values & attitudes affect employee & consumer behavior & management of foreign subsidiaries. And demographic forces refer to the characteristics of population, e. g. size, growth, spending power. Socio-Cultural has changed when the country get developed. The changing possibly in education, human beings opinion social mobility, and attitudes so the socio-culture can affects the business ? Population growth rate and age profile. ? Population health, education and social mobility, and attitudes toward those. ? Population employment patterns, job market freedom and attitudes to work. Press attitudes, public opinion, social attitudes and social taboos. ? Lifestyle choices and attitudes to those. Technology Refers to technology-induced changes that have altered the way firms undertake & coordinate their international activities. Transportation and communication technologies firms able to source R and back office processing. Technology is used in many of life fields. First, we use technology in the process of manufacturing and that through buying effective and modern machines and equipment. Second, we also use it in design techniques and in management of our company through using computers and other tools of technology.Third, technology provides us with some ways in marketing and advertising v ia TV, Internet and others tools. Technology influences the company in terms of investment in technology, consistent exercise of technology and the effects of technology on markets. Emergent technologies have a big Impact on company. It can speed up the work in the company so it can apply all the orders. Also, the meshing has its own impacts which are reducing communications costs and increasing inappropriate working. (Reference http//en. wikipedia. org/wiki/Boeing) Competitive forces A competitive force refers to the pressures imposed by other firms in competing industries.Boeing company faced strong competitive from Airbus Company because these two company work in same field. These two companies compete in price, service and product. Physical and natural forces Physical and natural forces refer to environmental pressures and risks that influence international business strategy. These forces divided to two types. First, natural risks muster up from environmental disasters (e. g . earthquakes). Second, Manufactured risks are environmental risks created by human intervention pollution, threat to eco-systems, climate change, genetic modification, and terrorism. This factor can effect in Boeing company very clear. CONCLUSION In conclusion, I am acquittance to summarize the points that I have talked about in my report.First, background of Boeing Company which is a major aerospace and Defense Corporation, founded by William E. Boeing in Washington its international headquarters has been in Chicago since 2001 and its mission, vision and objectives. Second, I have canvass their competitor which is Airbus and it is the biggest its competitor. Airbus is one of the worlds leading aircraft manufacturers and it consistently captures approximately half or more of all orders for airliners with more than 100 seats. Third, I analyzed its internal and external environment factors which are referred to SWOT. Fourth, I have talked about the strategy which includes problem s, causes and action plan of the company.Boeing Company has to restructure its strategies and use cooperative strategy instead. I recommend Boeing Company to merge with companies, get good marketers, do comprehensive, marketing research, improve design and R&D and make the right Aircraft it will achieve competitive advantage and maximize the profit. Finally, I have talked about the term PEST which stands for the Political, Economic, Social, and Technological issues that could affect the strategic development of a business. RECOMMENDATION In fact, Boeing Company is a popular company in the world, but there are several forces and challenge which face it and make it in a bad situation. So I explained them in my assignment.Therefore, I recommend this company to develop their abilities such as employees skills, investment, competitive advantage, consumer relationship management and advertising. In my opinions, I think Boeing Company can develop their employees skills through training. Al so, I should invest in rich countries which pay more money to increase the profitability to company. A good idea to the company creating new and develop aircraft to unique it from other companies. Finally, I think if Boeing Company does good advertising that enough for it to monopoly aircraft manufacture over the world. REFERENCES http//www. boeing. com/companyoffices/aboutus/brief. html http//manonamission. blogspot. com/2005/08/boeings-ba-mission-statement. html http//www. boeing. com/news/speeches/1998/980121. htm http//www. boeing. om/companyoffices/aboutus/community/focus_objectives. html http//www. soe. ucsc. edu/classes/ism158/Winter03/boeing. htm http//en. wikipedia. org/wiki/Airbus http//www. writework. com/ audition/boeing-s-strength-weakness-threats-oppotunities-and-its-im http//www. soe. ucsc. edu/classes/ism158/Winter03/boeing. htm http//en. wikipedia. org/wiki/Airbus http//www. companiesandmarkets. com/Summary-Company-Profile/boeing-company,-the-swot-analysis-14556 8. asp http//www. wikinvest. com/stock/Boeing_Company_(BA)) http//en. wikipedia. org/wiki/Boeing Books (Principles of Marketing) Thirteenth Edition, Philip Kotler and Gary Armstrong. Books (Management 9e ) John R. Schermerhorn, JR.