jennifer dang daniel lee an lien charles nguyen tuan nguyen

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Jennifer Dang Jennifer Dang Daniel Lee Daniel Lee An Lien An Lien Charles Nguyen Charles Nguyen Tuan Nguyen Tuan Nguyen

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Jennifer DangJennifer DangDaniel LeeDaniel Lee

An LienAn LienCharles NguyenCharles Nguyen

Tuan NguyenTuan Nguyen

Produces military aircraftsProduces military aircrafts

Manufacture Commercial AirplanesManufacture Commercial Airplanes

Creates satellites and launch vehicles

1910 Failing to get a ride 1910 Failing to get a ride on an airplaneon an airplane

1916 Boeing airplane 1916 Boeing airplane companycompany

1917 World War I1917 World War I

1944 Jet airplane 1944 Jet airplane development development

1969 Apollo program1969 Apollo program

1996 Mergers1996 Mergers

MissionMission

Help the airlines fill the airplanesHelp the airlines fill the airplanes

DreamlinerDreamliner

-Harry C Stonecipher -Harry C Stonecipher CEOCEO

-Located in Chicago-Located in Chicago

-Boeing employees -Boeing employees 165,000 people165,000 people

-Ranked number two in -Ranked number two in passenger aircraft passenger aircraft manufacture.manufacture.

SuppliersSuppliers- Nearly 6,450 suppliers in Nearly 6,450 suppliers in

over 100 countries over 100 countries

CustomersCustomers- The U.S. department of The U.S. department of

defensedefense- N.A.S.A.N.A.S.A.- Major U.S. and Major U.S. and

international airlinesinternational airlines- U.S. Army, U.S. Navy, and U.S. Army, U.S. Navy, and

the U.S. Marine the U.S. Marine

Competitors Competitors 1.1. AirbusAirbus2.2. Lockheed MartinLockheed Martin3.3. Northrop GrumannNorthrop Grumann

Sales & RevenuesSales & Revenues

- $50.5 billion revenue in - $50.5 billion revenue in

2003 from 145 countries2003 from 145 countries

The Office of The Office of TechnologyTechnology

The Mathematics and The Mathematics and Computing Computing Technology Technology OrganizationOrganization

Software that Boeing Software that Boeing UsesUses

JavaJava PythonPython

C++C++ VC++VC++

CORBACORBA OracleOracle

CATIACATIA DB2DB2

Visual BasicVisual Basic PerlPerl

PrologProlog LispLisp

SQL ServerSQL Server

THREAT OF NEW ENTRANTSTHREAT OF NEW ENTRANTS––Japan-MitsubishiJapan-Mitsubishi––Russian TopolevRussian Topolev––LockheedLockheed

BARGAINING POWER OF BARGAINING POWER OF BUYERSBUYERS

- Airlines- Airlines- Leasing Companies- Leasing Companies

THREAT OF SUBSTITUTESTHREAT OF SUBSTITUTES––Fast Bullet TrainFast Bullet Train––CarsCars

BARGAINING POWER OF BARGAINING POWER OF SUPPLIERSSUPPLIERS

- Metalmart Inc.Metalmart Inc.- Goodrich Corp.Goodrich Corp.- Mitsubishi Electric Corp.Mitsubishi Electric Corp.

RIVALRY OF COMPETITORSRIVALRY OF COMPETITORS- Lockheed MartinLockheed Martin- AirbusAirbus

- Northrop GrummanNorthrop Grumman

Boeing’s principal business-level strategy is Boeing’s principal business-level strategy is differentiation because their organization differentiation because their organization produces high-prices, and quality products aimed produces high-prices, and quality products aimed at particular market segments at particular market segments

Strengthen their global competitive advantageStrengthen their global competitive advantage

Trying to take back their position as number one in Trying to take back their position as number one in commercial aircraft manufactures commercial aircraft manufactures

Boeing lost at least a billion dollar worth of rocket Boeing lost at least a billion dollar worth of rocket contractscontracts

Dealing with contractsDealing with contracts

Detailed customer knowledge and focus Detailed customer knowledge and focus We will seek to understand, anticipate and be responsive to our We will seek to understand, anticipate and be responsive to our

customers' needs. customers' needs. Large-scale systems integration We will continuously develop, Large-scale systems integration We will continuously develop,

advance, and protect the technical excellence that allows us to advance, and protect the technical excellence that allows us to integrate effectively the systems we design and produce. integrate effectively the systems we design and produce.

Lean enterprise Lean enterprise Our entire enterprise will be a lean operation, characterized by the Our entire enterprise will be a lean operation, characterized by the

efficient use of assets, high inventory turns, excellent supplier efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction management, short cycle times, high quality and low transaction costs. costs.

Customer satisfaction Customer satisfaction Satisfied customers are essential to our success. We will achieve total Satisfied customers are essential to our success. We will achieve total

customer satisfaction by understanding what the customer wants customer satisfaction by understanding what the customer wants and delivering it flawlessly. and delivering it flawlessly.

People working together People working together We recognize that our strength and our competitive advantage is - and We recognize that our strength and our competitive advantage is - and

always will be - people. We will continually learn, and share ideas always will be - people. We will continually learn, and share ideas and knowledge. We will encourage cooperative efforts at every level and knowledge. We will encourage cooperative efforts at every level and across all activities in our company. and across all activities in our company.

While Boeing is trimming its workforce and becoming lean and mean, it may While Boeing is trimming its workforce and becoming lean and mean, it may also jeopardize its ability to attract and maintain skilled workers in the also jeopardize its ability to attract and maintain skilled workers in the future when the market conditions improve, if the general perception is future when the market conditions improve, if the general perception is that Boeing will lay off as soon as the market deteriorates. that Boeing will lay off as soon as the market deteriorates.

Its balance sheet and income statement point to some weaknesses; R&D Its balance sheet and income statement point to some weaknesses; R&D spending of $1,661 million, around 8% of sales is rather low. Its long term spending of $1,661 million, around 8% of sales is rather low. Its long term debt is increasing and its overall return on common equity is around 8.9%, debt is increasing and its overall return on common equity is around 8.9%, below the average industry rate which is 13.1%. That, associated with its below the average industry rate which is 13.1%. That, associated with its declining defense revenues may restrict its access to additional capital in declining defense revenues may restrict its access to additional capital in times of crisis. times of crisis.

Boeing is late in adopting some of the technological innovations that its rival Boeing is late in adopting some of the technological innovations that its rival Airbus has implemented such as getting family approval for different Airbus has implemented such as getting family approval for different planes, thus allowing pilots to move from one model of plane to another planes, thus allowing pilots to move from one model of plane to another without requiring a certification. without requiring a certification.

Boeing is also behind Airbus in getting a financing and leasing operation to Boeing is also behind Airbus in getting a financing and leasing operation to support its sales. support its sales.

Finally, Boeing should not hope that in the foreseeable future the European Finally, Boeing should not hope that in the foreseeable future the European Union will cut its subsidies to Airbus and let it compete without any Union will cut its subsidies to Airbus and let it compete without any protection in the world markets and that at that moment, thanks to its protection in the world markets and that at that moment, thanks to its much higher productivity, Boeing will outperform its rival. On the contrary, much higher productivity, Boeing will outperform its rival. On the contrary, Boeing should plan on a much longer competition period, and should seek Boeing should plan on a much longer competition period, and should seek alliances that could enhance its financial position and open new markets. alliances that could enhance its financial position and open new markets.