Description
Purpose of Assignment
The Week 4 individual assignment is the second part of a three part strategic management plan for the Boeing Company. The purpose of the assignment is for students to establish long-term goals and objectives; indicate, specify and discuss strategies; and investigate, consider and describe specific business strategies including vertical integration and strategic alliances, to achieve competitive advantage in the industry. The student also generates an appropriate organizational chart in alignment with the stated strategies.
Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 2 of the three part Strategic Management Plan.
Assignment Steps
Write a 1,050-word report on the Boeing Company, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:
- Establish Long-term Goals and Objectives
- Strategy Formulation.
- Indicate the markets that the company will pursue.
- Specify the unique value the company will offer in the selected markets.
- Discuss the resources and capabilities that are required.
- Analyze how the company will capture value and sustain competitive advantage over time.
- Business Management Strategy
- Consider Cost and Differentiation Advantages.
- Describe the Corporate Strategy.
- Investigate Vertical Integration.
- Describe Strategic Alliances.
- Detail the Company Competitive Advantage.
- Generate an Organizational Chart of the company you selected.
Cite at least 4 scholarly references
Format your paper consistent with APA guidelines.
Explanation & Answer
Attached.
Running Head: STRATEGY FORMULATION
Strategy Formulation
Boeing Company
Name
Instructor
Institutional Affiliation
Date
1
2
STRATEGY FORMULATION
Company introduction
Boeing is an American multinational aircraft manufacturing company specialized in
designing and manufacturing commercial airlines, aerospace engines, rotorcrafts, rockets, fighter
jets and satellites and other prototypes of aerospace products. Boeing also engages in leasing
aircraft services to its esteemed customers. The company is the number one producer of the most
trusted aircraft and airbuses in the world. William Boeing founded Boeing Company on July
15th, 1916. Since then, the company has expanded to become the world’s largest aircraft
manufacturer and the most recognized and trusted aircraft body and engine manufacturer and
designer (Pritchard, 2016). The company also manufactures space security systems and defense
products, and it is the largest supplier of airbuses to more than 150 countries across the globe.
One of the unique characteristics of the company is that the design and manufacturing of its
products are tailors made to fit the changing needs of the market. This is one of the reasons why
Boeing has been to survive design the turbulence in the global commercial aircraft
manufacturing industry (Pritchard, 2016).
Long term goals and objectives
Boeing Company commands a greater market share in the commercial line within the
global market. In the United States Boeing enjoys about 99% of the market share both for civil
aircraft and commercial jetliners. Although the company is considered number one in the
commercial aircraft manufacturing industry, the company continues to expand its global
presence, especially in the Asian countries. The increasing demand for military aircraft and
aerospace products especially in the emerging Asian and African market provides a greater
STRATEGY FORMULATION
3
advantage for the company (Khan, 2015). In this regard, the company will establish the
following key long term goals and objectives in these two important emerging markets.
1.
To become a market leader in the aircraft supply market by maintaining a minimum of 90%
market share in both the two emerging markets.
2.
Achieve 50% unit cost reduction by proving production efficiency and supply efficiency in
the two emerging markets.
3.
Promote economic growth in the two developing economies by providing efficient and
reliable aircraft that can sustain the increasing demand for flight services in the developing
economies.
Markets the company will pursue
There is a growing demand for aircraft in the Asian and African countries that provide a
great opportunity for Boeing to capitalize on. Since the company has a more significant market
reputation, pursuing the emerging Asian and African markets will be a great opportunity for the
company to increase its global market share in the industry. There is a growing demand for
military aircraft in many African and Asians countries due to the rise in economic growth in
these markets. The increase in economic growth in these markets thus presents an excellent
opportunity for the Boeing Company and takes advantage of the rise in these markets. The rapid
expansion in economic growth in the emerging markets has enabled many of the countries in the
Asian and African markets to increase their spending on defense including the procurement of
aircraft, spacecraft, and missiles. Countries such as Russia and China will, therefore, be an ideal
market for the company since the two has tremendously increased their spending on military
aircraft and spacecraft (Khan, 2015).
STRATEGY FORMULATION
4
Value Boeing adds to this market
Boeing Company will add significant value to the two emerging markets in many ways.
One of the most considerable advantages the company will add to the two markets is spurring
economic development. Aircraft industry contributes heavily to the economic development.
Many countries that invest heavily in the aviation industry can create place mobility. In this case,
the tourism and trade industry of the two countries will be enhanced as the time and place
mobility is created through increased air travel. The aviation industry supports about $ 2.7
trillion which is about 3.5% of the world’s gross domestic produ...
