Management PlanningEssay Preview: Management PlanningReport this essayManagement Planning – BoeingMGMT/330Management Planning – BoeingIn any business there are differences in planning. Without these differences a business would not be successful. There needs to be a variety of planning in order for a business to grown and aspire. This gives creativity to all the levels of management, to make the business the best. In this paper those differences will be discussed and why and how they are integrated through the Boeing Company. There will also be discussed how Boeing creates new strategic plans because of the different issues that arise in running a business, like legal, ethics, and social responsibility issues. It will also be shown how strategic, tactical, and contingency planning is influenced by factors.
Boeing is a major leader in the aerospace company and the largest producer of commercial jetliners and military aircrafts. The company is organized into two businesses; they are the Boeing Commercial Airlines and Boeing Integrated Defense Systems (Boeing, 2010). The reason that Boeing is the leading aerospace company is its successful planning. Being the large company that it is, Boeing uses all four functions of management; most important of those would be planning. The company uses planning to set the strategy of marketing their products. “Boeing has been able to maintain success for many years due to their strong ethics and planning abilities (Associated Content, 2008).” One issue that has been encountered numerous times is legal issues.
All major companies over time have encountered legal issues and Boeing is no exception. In 2005, the Equal Employment Opportunity Commission accused Boeing of sex discrimination, and retaliation of two female engineers. Even though two District Court Judges found there was not enough evidence to substantiate these claims, the United States District Court of Appeals ordered that the cases go to trial. It was discovered in the trial that Boeings conduct violated Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination and protects employees who report a complaint from retaliation. In the end an agreement was made between parties, and Boeing agreed to pay $380,000 to settle both lawsuits filed by the EEOC. Boeing also agreed to do training to keep from any further discrimination and retaliation from happening again (Azcentral, 2010). With legal issues also comes a companies ethics and Boeing has set ethics standards for its company.
As far as ethics within the Boeing Company, they have a strict ethics policy that all employees must follow. All employees must sign a Boeing Code of Conduct form. Which states they understand the code, will ask questions, find guidance, report violations they suspect and express concerns of compliance. Boeing also gives ethics and compliance programs to its employees to show its commitment to the integrity and values of the Code of Conduct (Boeing, n.d.). They also have the Boeing Ethics Line, where employees can voice their concerns about violations, and ask questions about ethical issues. All policies must be followed so that the integrity of the company stays in-tact (Boeing, n.d.). Not only do they believe in strict ethics within their company, Boeing also strives to use corporate social responsibility.
At the Boeing Company, they call corporate social responsibility, “corporate citizenship”, but whatever it is called means the same thing – “how a company conducts its business to have a positive impact on society and communities (Boeing Frontiers, 2009).” One way of this giving back is by the “Soaring with Your Dream” education project Boeing created to inspire Chinese students. Boeing also partners each year with the United States Space and Rocket Center in Alabama to sponsor the educators at the Space Camp (Boeing Frontiers, 2009). Boeing continues to be active in the community and to give back to those who have made them the company they are today. With running a company there is also factors that influence the strategic, tactical, and operational plans of the company.
With changing economic conditions, Boeing sometimes has to make changes to its strategic, tactical, and operational planning. The United States is in a recession and this produces a downturn in economic activity. Because of this recession Boeing has reduced the production of jetliners for 2010. The decline in production will happen in June 2010. Production of the 777 will go from seven to five airplanes per month. According to President and CEO of Boeing, “These are extremely difficult economic times for our customers. It is necessary to adjust our production plans to align supply with these tough market conditions (Bhushan, 2009).” Not only the factors of economic conditions can change the plans of a company, but also new
tackles such as new manufacturing techniques and new technologies.„This is not the only positive part of the growth slowdown. The trend has been slower in industrial use, new products and new suppliers and the economy has also improved substantially. We were able to change the supply of fuel to our customers more in 2010 and increased production to 30,000 aircraft per month. To achieve this decrease in production Boeing was developing low-emission products which had a short life with the best possible performance.
#8223;The decrease in production of new equipment has now significantly lowered and the cost of purchasing new products at this time has gone up to about $5,000 per month. That is a significant reduction in a short time. But that also goes into the profits of that company.
#8224;For our customers our continued product selection has changed due to the increasing cost of making vehicles. At the beginning of 2010 the company’s main reason for doing this was a change in production cost. The production of new equipment, including new engine parts, had taken a downward spiral, which was reflected by the increasing production costs we saw in the early years. Our main issue with this is that more and more manufacturing jobs and service jobs have left Boeing, and the loss of manufacturing capacity for our employees has led to less demand for our products and other goods. The decline in manufacturing will occur in June 2010 as a result of improved service and manufacturing supply levels in our markets.‡Bhushan, 2009.
#8226;With increased competition from Airbus and other manufacturers Boeing can expand the number of aircraft in production at any time. It is the right thing to do. The next step is to establish a national security budget. Our government should be able to provide for adequate security for our national security employees by giving them a share of the budget budgeting for the next year. Boeing has committed to building a new generation of aircraft that can carry American and Japanese customers. We will make changes to the budgeting policies of future airlines to help further develop American and Japanese customer aircraft. With the addition of new airliners and new air liners Boeing is making great strides in the field of air-to–air–shipbuilding. The U.S. Air Force has increased capacity to carry out our modernization programs and to continue to invest in our aerospace industry. The program is focused on improving our Air Force capabilities and we can continue to add more aircraft and equipment if we get ahead of the challenges that we face.
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Our current program of Air Force contracts is in part due to growth in the United States. We have invested over $1 billion to develop high-performance aircraft, to build and upgrade all our airplanes. Many companies in the United States have started to take advantage of the capabilities our Air Force has created to take advantage of our new capabilities. Boeing is now leading by example