Signature Assignment: Challenges of Expansion to a Foreign Location

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Purpose of Assignment

This week students will review and revise their Week 3 Research Analysis for Business Signature Assignment based on economic analysis and the feedback provided by their facilitator. Students will also expand their Week 3 analyses to evaluate the challenges of expanding their chosen company's production to a foreign market.

About Your Signature Assignment

This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments might be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.

Assignment Steps

Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Revise your Week 3 assignment, Research Analysis for Business, using the feedback provided by your facilitator. This Week 6 report should only include one conclusion, so you will need to rewrite the conclusion you included in your Week 3 assignment, Research Analysis for Business.

Select a foreign market in which to expand your chosen product. If you wish, you may use one of the countries your team analyzed in their Week 5 Comparative and Absolute Advantage Assignment.

Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor's Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce's Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should:

  • Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.
  • Evaluate any competitors' existing production in the chosen country.
  • Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library.
  • Categorize the type of economy that exists in your selected country as closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?
  • Assess how your chosen country's current credit market conditions, especially interest rates and the availability of financing, affect demand for your product or service and your planning or operating decision for your production in that country.
  • Analyze the role of the selected country's central bank on that country's economy.
  • Compare the availability, education, and job skills of the work force in the selected country. Discuss any additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks.
  • Explain any additional supply chain challenges you anticipate if attempting to make your product in your chosen country and selling the product in other countries.
  • Based on the data gathered and analysis performed for this report write a conclusion in which you:
    • Create business strategies, including price and non-price strategies, based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in a dynamic business environment and provide recommendations.
    • Develop a recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented.
    • Propose how the firm's position within the market and among its competitors will allow it to take your recommended action.
    • Recommend strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government.
    • Recommend any comparative advantages your company will have over competitors currently operating in that country, and defend your position, either for or against, expanding your company's production into your chosen country based on your research.

Integrate with the Week 3 Individual Assignment, and incorporate corrections and suggestions from the instructor's feedback. The final report should be a minimum of 2,800 words.

Cite a minimum of three peer reviewed sources not including the textbook.

Include all peer-reviewed references and government economic data sources/references from Week 3.

Format your assignment consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

Running Head: ANALYSIS OF BOEING Analysis of Boeing Hadasaw A. Price University Of Phoenix 1 BOEING 2 Introduction Boeing is among the biggest airliner companies in the world with extensive operations across the United States and in other locations as well. Boeing's dominance in North America is as a result of the offering quality, and its dedication to research and product development. Market Structure Boeing operates in a market with very few and substantial competitors in the American space and across the world. By comparing the size of the firms involved, Boeing is believed to be able to in a duopoly with Airbus as the two have the largest market share and influence globally. Including the other smaller firms like Bombardier, China's COMAC and Irkut Corporation, the market changes from a duopoly to an oligopoly. The five companies all brought together constitute the global market for the manufacture of aircraft. The current market share for Boeing is currently at 43% slightly behind the market leaders Airbus who have a market leadership of 45% (Al-Najjar et al., 2017). Local competitors for Boeing include Lockheed Martin in Maryland, Raytheon Corporation in Massachusetts, GE Aviation in Ohio and General Dynamics in Virginia. Global competitors include the likes of Airbus headquartered in Europe, Safran which is based in France, Rolls Royce in London, and the Irkut Corporation in Russia and COMAC in China among other companies (O’Connor, & Fuellhart, 2015). Entry into the market is challenging not mostly because of government regulations but because of the initial investment and substantial capital required to start production, conduct research and comply with all set standards. Setting up the production units, purchase of the materials, the hiring of professionals and the considerable risks associated with the subsector are among the significant challenges into the entry of the market (Borenstein, 2017). The huge BOEING 3 barriers set by the industrial needs discourage competitors from getting into the market. The threat to the survival of Boeing, in this case, is not because of new entrants but because of those already in the industry, as newcomers have almost zero impact on the future of the company Macroeconomic Indicators The economy of the United States is currently in its expansionary phase with inflation and unemployment rates going up. The real gross domestic product as of October 2018 is $20.66 trillion, while the inflation is at 2.5% as by the end of October 2018. The unemployment rate for the year ending October 2018, is at 3.7% (Blinder & Watson,2016). The federal funds rate is currently at 2.25%, with the current rates for borrowing funds being at 5.25% an increase from last year's 4.25%. In 2016, the gross domestic product was at $18,624 trillion and the inflation rate at 1.3%, while the unemployment rate for the same year was at 4.9%. In 2017, the gross domestic product was at $19,390 trillion and the unemployment and inflation rates at 4.4% and 2.1% (Blinder & Watson, 2016). Trends in Demand The demand for airplanes, other parts, and services associated has been on the rise in the past New Year’s. Boeing itself has been having a lot of orders that wait to be worked on. The continuous growth of demand over the past few years has played a significant role in boosting the fortunes of the industry in general (Borenstein, 2017). In the last quarter, Boeing made sales of 184 commercial deliveries an increase from last year's 169 in the same period. In the second quarter, Boeing managed to sell 194 commercial planes as compared to the same period in 2017. In the third quarter, sales hit a low of 190 as compared to 202 in 2017. During the last year, the company made sales of $93.4 billion. In regards to this, it is clear that Boeing has not been able BOEING 4 to match the demand and this outstripping is lagging its growth pace. It is therefore sensible for the company to increase its capacity so that it can be able to handle more demands as they arise. Expanding their production will also enable them to outdo Airbus as the global market for airplanes is still high and the supply is meager (Drury, 2015). Graph showing Boeing Sales for Q1, Q2 and Q3 2018 210 200 190 Quarter 1 180 Quarter 2 Quarter 3 170 160 150 2018 2017 Variable and Fixed Costs Boeing is required to apply smart techniques that can outsmart its competitors. One such is by improving their financial records and cutting down on variable costs like utilities, wages, and others. In the case of fixed costs, it would be challenging to down fixed costs as they are not affected by the number of units produced. However, finding alternative suppliers for the BOEING 5 materials used could help in cutting down the cost of operations. Reduction of labor expenses by adopting technology could also be significant in the whole process of cutting down costs. Operating at minimal costs could serve the company a great deal in their financial records and the overall profitability while the vice versa could weaken them and give their greatest rival an easy time (Blinder & Watson, 2016). In the decision-making process, costs make an important decision and even advise a company on even how to market, promote their brands and many other factors like which among the many units is not healthy and which other areas can have new units. Lastly, variable and fixed costing is also another factor to consider regarding setting competitive pricing for its products. Conclusion Positioning Boeing to be the market leader will require a consolidated approach that aims to include all strategies especially those on the pricing and at the same time other economic factors like the forces of demand and supply. The influential American currency itself can be used to enable Boeing to become more stable and strong soon. The rate of inflation is manageable, and thus it can help spur more growth to the airliner. The availability of resources in all spheres and the influencing position of the company globally are set to ensure the company can adapt to changes with ease. To improve its competitive advantage, Boeing should use the robust American economy and the predictability of its operating environment. Lastly, Boeing should consider expanding to other regions where they currently are not in like Africa, Asia, and South America all with the intention of upscaling their operations and reducing the costs of manufacturing aircraft. Among the strategies going forward is cost cutting measures, setting up a BOEING new manufacturing and assembling units and reducing their operational costs while still upholding value. 6 BOEING 7 References Al-Najjar, N., Aoyagi, I., Goldstein, G., Korupp, T., Liu, B., & Singh, S. (2017). Boeing and Airbus: Competitive Strategy in the Very-Large-Aircraft Market. Kellogg School of Management Cases, 1-16. Blinder, A. S., & Watson, M. W. (2016). Presidents and the US economy: An econometric exploration. American Economic Review, 106(4), 1015-45. Borenstein, S. (2017). The evolution of US airline competition. In Low-Cost Carriers (pp. 1-31). Routledge. Drury, C. G. (2015). 19. Aerospace manufacturing: past, present, and future. Handbook of Manufacturing Industries in the World Economy, 294. O’Connor, K., & Fuellhart, K. (2015). The fortunes of air transport gateways. Journal of Transport Geography, 46, 164-172.
Hadasaw Price-Week 3 Assignment You earned 8 points of 10 possible points Content Identified the market structure your chosen firm operates in, analyze your chosen firm's current market share, and identify the firm's local/global competitors. Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm's future in the market. Hints: Be sure you review the barriers to entry discussed in the course text. You might consider presenting the data graphically. Met Partly Met ✔ Identified/ explained trends in current macroeconomic indicators for last three years including: • Current stage of the business cycle. • Real gross domestic product (GDP). • Inflation as measured by the consumer price index (CPI). • Unemployment rate. • Federal funds rate. • Current rate for borrowing funds such as the so-called “prime rate.” You gave only some of the required data and not for all of the required macroeconomic indicators. Students were expected to discuss three years of data for real gross domestic product (GDP), CPI, the unemployment rate, the Federal funds rate and the prime rate. You only gave the current figures for October 2018. ✔ Evaluated trends in demand over last three years and explained their impact on the industry and the firm. Included quarterly (last two quarters) and annual sales (last three years) figures for the product student’s firm sells. Created business strategies by analyzing information and data related to the demand for and supply of firm’s product(s) to support student’s recommendation for the firm’s actions. Included a graphical representation of the data used in your analysis. You did not give the annual sales for three years as required. ✔ Examined available, current information, such as pricing and the availability of substitutes, and explained the price elasticity of demand for firm’s product can be determined. Assessed how price elasticity of demand affects the firm’s pricing decisions and revenue growth. You did not identify the company’s products as either elastic or inelastic. This is important since lowering the price has different results if the product is elastic than if it is inelastic. Lowering the price of an inelastic product will result in reduced revenue while lowering the price of an elastic product will result in increased revenue. Applied how the concepts of variable and fixed costs affect the firm's output decisions. Analyzed how different costs (labor, R&D, raw materials) affect the firm’s level of output. ✔ ✔ Based on the data gathered and analysis performed student’s conclusion included: • Business strategies, including price and non-price strategies, based on market structure to ensure the market share and potential market expansions. Also included exploration of global opportunities for student’s business in a dynamic business environment and provided recommendations. • A recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented. • Proposal for how the firm’s position within the market and among its competitors will allow it to take your recommended action. • Recommended strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government policies. You should have discussed these items in greater detail. Cited a minimum of three peer-reviewed references and a minimum of two government economic data sources/references. The analysis is a minimum of 1,050 words in length. Writing Guidelines Not Met ✔ ✔ ✔ Possible 7 points Earned 5 ./7 Met Partly Met Not Met The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. ✔ Intellectual property is recognized with in-text citations and a reference page. ✔ Paragraph and sentence transitions are logical, and maintain the flow throughout the paper. ✔ Sentences are complete, clear, and concise. ✔ Content Rules of grammar and usage are followed including spelling and punctuation. Met Partly Met Not Met Possible 3 points Earned 3./3 ✔

Tutor Answer

Tutor_Booth
School: UIUC

Hey! There you go. All the best

Running Head: ANALYSIS OF BOEING

Analysis of Boeing
Hadasaw A. Price
University Of Phoenix

1

BOEING

2
Introduction

Boeing is among the biggest airliner companies in the world with extensive operations
across the United States and in other locations as well. Boeing's dominance in North America is
as a result of the offering quality, and its dedication to research and product development.
Market Structure
Boeing operates in a market with very few and substantial competitors in the American
space and across the world. By comparing the size of the firms involved, Boeing is believed to
be able to in a duopoly with Airbus as the two have the largest market share and influence
globally. Including the other smaller firms like Bombardier, China's COMAC and Irkut
Corporation, the market changes from a duopoly to an oligopoly. The five companies all brought
together constitute the global market for the manufacture of aircraft. The current market share for
Boeing is currently at 43% slightly behind the market leaders Airbus who have a market
leadership of 45% (Al-Najjar et al., 2017). Local competitors for Boeing include Lockheed
Martin in Maryland, Raytheon Corporation in Massachusetts, GE Aviation in Ohio and General
Dynamics in Virginia. Global competitors include the likes of Airbus headquartered in Europe,
Safran which is based in France, Rolls Royce in London, and the Irkut Corporation in Russia and
COMAC in China among other companies (O’Connor, & Fuellhart, 2015).
Entry into the market is challenging not mostly because of government regulations but
because of the initial investment and substantial capital required to start production, conduct
research and comply with all set standards. Setting up the production units, purchase of the
materials, the hiring of professionals and the considerable risks associated with the subsector are
among the significant challenges into the entry of the market (Borenstein, 2017). The huge

BOEING

3

barriers set by the industrial needs discourage competitors from getting into the market. The
threat to the survival of Boeing, in this case, is not because of new entrants but because of those
already in the industry, as newcomers have almost zero impact on the future of the company
Macroeconomic Indicators
The economy of the United States is currently in its expansionary phase with inflation
and unemployment rates going up. The real gross domestic product as of October 2018 is $20.66
trillion, while the inflation is at 2.5% as by the end of October 2018. The unemployment rate for
the year ending October 2018, is at 3.7% (Blinder & Watson,2016). The federal funds rate is
currently at 2.25%, with the current rates for borrowing funds being at 5.25% an increase from
last year's 4.25%. In 2016, the gross domestic product was at $18,624 trillion and the inflation
rate at 1.3%, while the unemployment rate for the same year was at 4.9%. In 2017, the gross
domestic product was at $19,390 trillion and the unemployment and inflation rates at 4.4% and
2.1% (Blinder & Watson, 2016).
Trends in Demand
The demand for airplanes, other parts, and services associated has been on the rise in the
past New Year’s. Boeing itself has been having a lot of orders that wait to be worked on. The
continuous growth of demand over the past few years has played a significant role in boosting
the fortunes of the industry in general (Borenstein, 2017). In the last quarter, Boeing made sales
of 184 commercial deliveries an increase from last year's 169 in the same period. In the second
quarter, Boeing managed to sell 194 commercial planes as compared to the same period in 2017.
In the third quarter, sales hit a low of 190 as compared to 202 in 2017. During the las...

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Anonymous
Thanks, good work

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