Type: Business
Pages: 8 | Words: 2396
Reading Time: 10 Minutes

Boeing is an American multinational leader in aerospace industry in manufacturing of commercial airplanes, military aircrafts, security systems, satellites and defense systems. It was founded in 1916 and was leading supplier of military airplanes used in the world wars by USA. The company success is attributed to its long history of manufacturing products that meets the customer needs responsibly. It has been able to integrate modern technology and facilitating customers in their financing options. The success of the company has also been due to its capability of leveraging talents in employment of highly skilled workforce in all the departments. The company employs more than 170,000 employees across United States. Boeing has been able to embrace diversity and talent in its workforce, to enhance innovation. The organization of the company is divided into two business units, which are Boeing commercial airplanes and Boeing defense, space and security. Other multinational department in the company like Boeing Capital Corporation and Boeing Engineering, Operations and technology supplements the two business units (Yenne, 2005).

Boeing Leadership and Organization Structure

The president and the Chief Executive Officer (CEO) represent the top leadership of the company. They oversee the strategic direction of the company and ensure the company formulates policies that will enhance its competitive advantage. Moreover, they facilitate the process of making long-term decisions for the whole company by integrating the operations of the two business units and the various departments. Communication is essential in decision-making and achievement objectives of any organization. Essentiality of Communication in dissemination of information in any organization cannot be downplayed since the employees will need to communicate to their managers on the various issues arising from the working environment. Similarly, the managers need to communicate the various policies that affect the workers in their working environment. The shareholders of the company need constant and consistent information on the performance of the company. To ensure timely and consistency dissemination of information in Boeing, the senior vice presidents have been given the duties of enhancing strategic dissemination of information to various stakeholders globally. The various stakeholders include the government, global partners, employees, shareholders, customers and communities (Hill & Jones, 2012).

The organization has been divided into two business units; Boeing Commercial Airplanes and Boeing Defense, space and security. In addition, global and internal departments supplement these business units. The global departments include the Boeing capital corporation, which provide finance to Boeing internationally. Boeing Engineering, Operations and Technology is another international department. It defines and implements corporate strategies to enhance functional and technical efficiency, through adoption of modern technology. This department enhances maintenance of health and safety, management of environment and ensuring quality assurance. Development of information technology systems in the global operations of the company are also maintained by this department. The Shared Group Services is a department that allows the business units to focus on profitability by provision of infrastructural services to enhance their global activities. The group offers a variety of services to the business units, which include transport, site preparation and construction. It offers comprehensive travel services and facilitates management, sale and acquisition of property in the global operations.

Boeing policy of promoting the people has enhanced development of leaders; this was developed from the policy of enhancing employee growth and development of employees skills. Boeing’s management has embraced transformational leadership, which will enhance the followers’ confidence in the company business plans. The development of the employees has been carried out through various capacity building forums, trainings and development opportunities. This increases the performance and job satisfaction of the employees. Transformational leadership embraced by Boeing has increased employees motivation, which has led to improved performance of the employees and improved efficiency of the organization. This policy adopted by Boeing on its employees has attracted more talented workforce, which has improved the company’s performance and competitiveness, through innovations (Harris, 2005).

Boeing’s Business Environment

As the leader of aerospace in the world, Boeing’s business environment is developed from the urge to remain competitive and provide products that will meet the needs of the customers. The company has a policy of developing models that will respond to the current needs of the aerospace and ensure safety and security of the air transport. The growth of technology is a major area that presents potential for growth for any company. Therefore, Boeing through its global department of Engineering, operations and technology has facilitated adoption of sustainable modern technology to enhance its competitiveness. The company has also received support from USA government, the support of the government has created myriad of opportunities for the company. The creation of a political goodwill between the company and government has facilitated the company with information on the current needs in the defense and space security. The issue of security in air travel has been a current trend especially the increased terrorist activities that have affected air travel have led the company to initiate innovations that will enhance improvement of security in air travel. The increased use of the satellite by countries and companies in information and technology has led the company to rethink of new development to the satellite and information systems development (Havaldar, 2005).

The global business environment is a major concern to the company, since it is a multinational company. The company has to predict future growth of the sales and potential areas upon which it can gain a competitive advantage. The prediction of future business environment of the company depends upon the evaluation of current data on global economic environment. The company has to evaluate various data relating to global freight demand and demand of the company’s products and services.

Decision-Making and Communication Networks in Boeing

The dynamic business environment facing organizations in the globalizing economies has led organizations to rethink their decision-making processes and information management. For any organization to make decisions that will enhance competitive advantage, it has to gather data and information. Therefore, management of information and the process of decision-making, collaborate to create a competitive advantage to the organization. Organizations facilitate adoption of modern management information system, which will enhance management of information and availability of timely and consistent information for the process of decision-making. There is a variety of decision that an organization needs to make to enhance its competitiveness. Such decisions include programmed decisions, non-programmed decisions, strategic decisions, tactical decisions, and operational decisions. Boeing has enhanced adoption of modern strategic management information system, which provide information on the current trends in the global business, and performance of the company in the global market.

The company has also developed an inclusive decision making process, which involve the employees to enhance the acceptance of the company’s business plan. This has led to improved employee performance and increased productivity, which has improved efficiency of the organization operations. Employees are mostly involved in the operational, tactical, and programmed decisions. However, each department is involved in different decision making depending on their operations. The transformational leadership approach adopted by Boeing facilitates employees’ development through decision-making. Example, in the production of the Dream liner, which has been one of the largest airplanes in the commercial travel, at the launch, the Chief Executive Officer, acknowledged the participation of all stakeholders including the workers. Information technology development has facilitated the decision making process significantly (Mun, 2006).

The Chief Executive Officer, president and the senior managers are involved in strategic decision-making. Most of these decisions affect the long-term performance of the organization in the global market. The strategic decision involves, decision relating to introduction of new product in the market, acquisition of foreign branches and global long-term marketing strategy to be deployed by the company. However, these decisions are made based on decisions that have continuously been made in the normal operations of the organization. The flow of information in the organization has been both vertical and horizontal. The horizontal information is where the employees in the same department of different department but on the same rank communicate to facilitate smooth running of the operations. Vertical flow of information involves communication that flow from the executive officers to the employees for example a change in policy. It can also involve workers communicating to the managers’ on factors affecting the operations or the employees in the working environment. Boeing has established global partnerships and branches, which provide strategic information on the global business environment trends. The external environment especially in the global market faced by globalization and internationalization, is crucial in formulation of strategic decisions and policies. To survive in the competitive global business environment, the company should identify its critical success factors to achieve a competitive advantage in the global market. The success of internal operations at Boeing can be attributed to the transformational approach of leadership that has been adopted by the company. This has translated to success in the external environment and Boeing has been able to maintain it global competitiveness in the aerospace industry.

Risk management, Innovation and Technology in Boeing

Globalization and internationalization have increased competition in the business environment. This has prompted multinational organization to improve research in the global market and identify sustainable modern technology and innovations that can increase organization competitiveness in the global market. Boeing has improved its adoption of innovation and technology in manufacturing of both military aircraft, security systems and commercial airplanes. This has led to introduction of the Boeing 787 Dreamliner, which has improved security system surveillance, computer intelligence, and reconnaissance capabilities. This was developed after the increased urge to improve security and safety in the air travel after the 9/11 terrorist attack. This has increased the company competitiveness in the global market since the demand of the Dreamliner 787 has increased globally. This will improve the company competitiveness in the global market, since through innovation the company has produced the product that is meeting the needs of the customer (Van Der Linden, 1991).

The company’s military security systems constructed using high technology and innovations. The satellites and integrated submarine communications receiving system provides provide intelligence on both land and marine attacks. These integrated systems are made through integration of innovation and technology that has facilitated military operations. The use of the satellites has enhanced space based surveillance since they enhance round the clock security in the space. The government’s contribution to the development of technology and innovations has been significant. It has offered modern laboratories where numerous experiments are conducted to test new technologies to be transferred for commercial use. The company has also adopted the practice of subcontracting where large integrated systems are involved. This facilitates the company to diversify risks among the subcontractors and different suppliers where the company integrates the various components. On occurrence of risk, the company shares the loss with the different suppliers. The subcontracting has also enabled the company to find linkages with other firms who have technology that the company can utilize (Office Of Technology Assessment Washington Dc, 1995).

Boeing Culture and Core Values

The success of multinational Boeing has been culminated under strong cultures and core values that the organization has been able to uphold. The aerospace industry, which the company operates in, is built on cultures of technology, innovation, aspirations and imaginations. As a world leader in the aerospace, the company has defined leadership as one of the core values. Leadership will include all aspects of business and manufacturing. Boeing has also been built on basis of high integrity, through upholding high ethical standards, honoring their commitments and ensuring fairness and respect in the working environment. It has also been committed to quality assurance on its products. The development of quality employees through employees training has been a value highly respected by Boeing. Commitment towards customer satisfaction has been an essential cultural value. This has led to introduction of new products by the company through innovation and use of technology. The company embraces diversity and building of strong teamwork spirit to increase participation of all employees in achievement of organization objectives. The shareholders are of great concern to the organization’s management. The management ensures increase of shareholders value by improving profitability of the company. This will enhance payments of high returns to the shareholders (Mayer, 2008).

The vision of Boeing is cooperation of people in the company to facilitate global leadership in aerospace industry. This will be achieved through running health business, leveraging of the critical success factors and exploiting new markets. Boeing recognizes the importance of customers in achievement of their objectives; the company has a duty to ensure the needs of the customer are understood and met responsibly. The company has achieved competitive advantage through use of large-scale integrated systems. Therefore, the company has realized that development of advanced integrated systems will create competitive advantage in the global market.

Objectives and Strategies of the Company

The objectives of Boeing are targeted on all round development of the society and are guided by the company’s mission. The company is committed to continuous improvement of product quality through design and manufacturing. This can be achieved through maintenance of highly skilled human resource and technical efficiency managed by a focused management. The company is committed to ensuring integrity and high ethical standards and improving efficiency in the operations of the company.

The company has been strategizing on venturing into new markets in the global market. This will enhance their competitiveness in the global market and improve its performance. It aims at running health business to enhance competitiveness. Cooperation of people in the global enterprise is essential to enhance performance of the company as the leader of the aerospace industry. The company also aims at capitalizing on critical success factors to introduce new products in the market that will increase customer satisfaction (Hill & Jones, 2012).


Boeing is a global market leader in aerospace industry. It’s major products include the commercial airplanes, defense aircrafts and security systems. The company was founded in 1916 and was one of the major suppliers of military jetfighters used in the world wars. The company has centralized organization structure where most of the decision-making are made by the top management. The company has been divided into business units, which are Boeing commercial airplane and Boeing defense, space and security. They are supplemented by various departments in the organization structure that unsure provision of capital and other services.

The company’s management and decision making facilitates development of the employee through inclusive leadership. The development of employees has been enhanced through trainings and various leadership forums. The company’s core values create a responsibility of the organization to development of all stakeholders in the organization.

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