The Boeing Example
Photo by Jo Szczepanska on Unsplash
No matter what type a business is involved; the management team’s most crucial task is always planning. In the planning stage, all jobs to be delegated within an organization are identified. Standards also need to be set in the planning stage. With offices in nearly 90 countries, Boeing Corporation is considered a multination organization. There are approximately 157,100 people employed with the company worldwide (Datamonitor, 2010). There is no reason to discuss why the company needs a very well-planned set of functions to delegate to the workforce to follow, due to it’s considerable size. In the paper, different planning functions and it’s reflection on the Boeing Corporation will be discussed. Also, the main factors that relate to the company’s tactics, strategies, and other contingency plans will be identified and explored. Boeing Company is an organization that has all of the levels of management represented.
Boeing Company manufactures commercial jetliners and military equipment and is considered the top aerospace company in the world, according to Datamonitor (2010). The company also manufactures many other products, such as: missiles, launch vehicles, satellites, electronic systems, defense systems, and rotorcrafts. They mainly produce advanced information and communication technology equipment. The planning strategy of the Boeing Company is a large factor that has led them to be an industry leader. Due to this fact, it can be said that the Boeing Company prefers to use all four of the functions of management to promote their products, even in the very first step of the planning process. The Boeing Company understands the importance of thorough planning and good decision-making and how these steps affect their professional success.
Ethical, Legal, and Social Responsibility
The Boeing Company still endures ethical issues that threaten its public image. One of ethical situation concerns the public with regard to the ethical use of its products (Mcnerney, 2006). This is difficult situation in that the company is constantly scrutinized for its product usages. As well as ethical use these products need to be tested thoroughly before sale otherwise the company could look unethical in the event of injuries.
As well as ethical concerns there are legal responsibilities and ramifications. Boeing cannot simply sell its products to the highest bidder it is bound by the laws of the United States and must have government approval for sales to foreign countries (Boeing, 2010). This represents a social responsibility that Boeing upholds with the citizens of the United States in that it would not sell weapons systems to countries that threaten the US or its allies. This social responsibility extends to the US military and to the commercial markets of the allies of the US. This is heavy burden considering that the company must also remain firm in its resolve to proper product classification to avoid confusions with consumers.
Strategic, Tactical, Operational, and Contingency Planning
Planning for the Boeing Company is an intricate and complex process. Unlike many companies that measure its goods through supply and demand, Boeing must give a great deal of thought to strategic planning. Questions such as what hardware might be needed in the future or what commercial planes will be the next wave of travel? In a technologically driven field such as aviation, making plans based upon past efforts is often futile. This is where tactical planning must take shape in which trends are studied and new technologies are contemplated. Once a plan has been decided upon the operational planning will take effect.
In the operational planning phase, the concern of the company is factors such as pricing, labor cost, and the expenses needed for the fabrication of products. Operations’ planning is critical because of the necessity to have fabrication processes correct. Small design flaws can translate into billions of dollars in loss. For example, a cargo door electrical flaw cost Boeing millions of dollars in aftermarket repairs. The fault was caused by door locking mechanisms being improperly installed (Smith, 2010). As well these accidents hurt Boeing’s reputation because the fault has been considered a contributing factor in the crashes of TWA Flight 800, Pan Am Flight 103, and Air India Flight 182 (Smith, 2010).
For companies like Boeing, contingency planning typically entails loss of product lines through contract cancellations. Typically, this type of planning might entail less expensive alternative products that can be offered in the event of cancellation. Typically these products are also inferior to the original product planned. However they can be enticing to customers with budget constraints. An example of this type of contingency planning is when Boeing had several contracts cancelled by the Air Force due to budget cuts. Boeing entered the cyber warfare market earlier than expected by purchasing Argon ST Inc. This placed Boeing back in the position to gain more military contracts. This was a great fallback position for Boeing and placed the company into a new market that would build value for many years (Boeing, 2010).
The contingency plan takes into account as many outcomes as possible and creates alternatives. Contingency planning is not however an act of desperation it must stay in line with the ethical and social responsibilities entailed in the original planning phase (Spindler, 2010). Tactical, operational, and contingency planning is a set of intertwined processes that create a direction for a company. Ultimately they allow a company to actualize its goals and complete its mission.
The Boeing Company exemplifies the method of management planning by being a leader in its field and remaining a multibillion dollar aerospace company that has continuously provided for the defense of the United States while preserving its core values. Boeing represents quality management planning and a commitment to social and values as the company not only supplies to the US military but to the many commercial aviation companies that fly the world daily.
Boeing. (2010). Culture and Values. http://boeing.mediaroom.com/index.php?s=43&item=1365 Boeing: Boeing Successfully Completes Acquisition of Argon ST
Boeing. (1995–2010). Culture and Values http://www.boeing.com/aboutus/culture/index.html
Datamonitor. (2010). Boeing Company, The. Boeing Company SWOTT Analysis. 1–11.
Mcnerney, J. W. (2006, August). Boeing Global Settlement. FDCH Congressional Testimony.
Spindler, M. J. (2010). Dragonparadox.com. Management Planning — Boeing’s Future On Track. http://www.dragonparadox.com/online-education/onlinedegree- onlineeducation-onlinecollege-onlineschool/future-management-planning- boeings-future-on-track/
John Barry Smith 1996, 1997, 1998, 1999, 2000. 2001, 2002, 2003, 2004 through 2010 PDF files
Vincent Triola. Tue, Jan 12, 2021. Management Planning Function Retrieved from https://vincenttriola.com/blogs/ten-years-of-academic-writing/management-planning-function