Boeing is a leadership organization with many divisions and smaller acquisitions, which provide many internal and external factors, like ethics, corporate social responsibility, and legal factors, which influence the company’s strategic, tactical, operational, and contingency planning processes. Planning Functions In 1995 Boeing looked Into restructuring the company to move into other aspects of alarm travel and communications, determining that to stay on top, the company needed to plan for the future and a time when the aerospace Industry alone would not sustain the company (Proctor, 2002 (pep)).
This strategic and sustainable planning resulted in a merger with McDonnell Douglas of SST. Louis, Missouri; the merger made the present Boeing Company the leader and largest aerospace company and a major market power (Proctor, 2002 (pep)), and led to smaller mergers or acquisitions like Hughes Electronic Corporation, Continental Graphics Corporation, and Expense Sanderson. The new acquisitions will expand the company’s markets, produce new jobs, and help launch the company globally (Proctor, 2002).
In today’s business an executive adapts to changes and applies the management principles of planning, organizing, leading, and controlling (Bateman & Snell, 2009), Boeing’s CEO and Harriman, Phil Conduit sums up the company’s planning process as “What has carried us this far, I believe, Is what all great companies have In common: strong, robust strategies, and superb execution (Proctor, 2002).
” Boeing has had many legal issues and retains a legal team to handle the legalities of mergers, acquisitions, ethical issues, lawsuits, and copy-write issues.
In 2005, Boeing lawyers had two cases, one for copy-write infringements and usage in which Boeing employees copied and used plans from Lockheed Martin Corporation and found the Boeing Company suspended from government contacts for 20 months (Virgin, 2005).
The second occurring Just after the contract ban was lifted was a new scandal occurred that put SCOFF Mike Sears in prison for four months and cost the company $250,000 in fines, the scandal centered around an Air Force procurement officer that Boeing hired while in negotiations with the Air Force for the lease of Boeing 767′ s to be used for tankers (Virgin, 2005).
Ethics Boeing believes all executives, managers, and employees are leaders in ethics. The leaders in-conjunction with their teams should solve problems, work-related challenges, and any ethical decisions that may arise in business by communicating ND discussing ethics related matters on a regular basis (Coercion, 2009). Boeing uses open communication, partnering/teams, role models, accountability, and inclusion to foster ethics.
Leland Adams a customer service manager in fabrication at Boeing also includes these tips to his team: “The right decision is usually not the easy one, Just because it is legal does not make it right, if it doesn’t feel right, it probably isn’t. Ethics is your integrity; once it is compromised, it’s difficult to regain it (Coercion, 2009). ” Corporate Social Responsibilities Corporate social responsibilities of a company are the obligations the company as to society, whether or not it is ethical, legal, economic, or philanthropic (Bateman & Snell, 2009).
Boeing takes corporate social responsibility seriously, the company works to save fuel and lower emissions from their products, use bio-fuels, recycle, create a safer workplace, and volunteer in local communities and projects. Boeing has set aggressive goals to improve safety; by 2013 the company’s goal is to improve safety performance by 25% (Cream, 2010).
Planning Process Boeing’s strategic, tactical, and operational planning is influenced by the economic conditions, the lower economic conditions have forced Boeing to consider ailing in other countries like Saudi Arabia in 1995 increasing profits and sales (Boeing, 2001), so that the company can avoid as many lay-offs as possible and expand globally. This is also the year that Boeing decided on a strategic change to make Boeing into “a more agile, geographically diverse, more broadly based company less dependent on the highly cyclical commercial Jetliner market (Proctor, 2002). Boeing needed to become a more knowledgeable and resource oriented company transition meant the company needed to excel in design, manufacturing and support, requiring tactical and operational planning. Boeing needed to come up with a contingency plan since the strategic, tactical and operational plans were in place, to decide in which direction the company was headed and how long it would take to reach the goal (Proctor, 2002). The company also needed to be sure that the financial and global aspects of the plan were secure and that the company could meet new markets and goals in the future (Proctor, 2002). With a newly modeled company and an expanded front office, Conduit (Boeing CEO) is convinced that strong corporate and divisional strategies, buttressed by great execution and an involved, engaged Rockford, will give Boeing the chance to dramatically outperform the market in the next couple of years (Proctor, 2002). ” Conclusion Boeing, being one of the largest aerospace technology firms internationally has had some financial, legal, and product related problems, which led to the newly remodeled planning and strategies.
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