Boeing Company, Case Study Example

Strategic Analysis (Avc+Vrin)

Various elements play a role in a company’s success. VRIN, or valuable, rare, imperfectly imitated, and non-substitutable encompasses, is one of the crucial elements determining an achievement. (Boeing et al., 2021). Boeing Company has to have a good strategy formulated by an able and competent board of directors who decide on the things to be done in the company. Boeing Company’s goal is to make a profit and therefore has to come up with and devise ways to compete with the rest of the companies in the industry. The industry is full of many people dealing with similar and different products that the company could be dealing with. Therefore, the management has to devise ways to dominate the industry.

The factors are split between internal and external factors that influence business operations. The internal factors are the ones that relate to the things that are done in the company internally. Some of the internal factors affecting how the Boeing Company operates are the customers, management, suppliers, and other entities influencing the business’s internal operations (Finley, 2022). The Boeing Company has been influenced to success by various factors, some of them caused by the good decisions made by the management and the board of directors. The main leading factor to the success of the Boeing Company is the excellent management of the company. The management of the company is the one that decides on behalf of all the people doing all their operations and any other activities in the company. The table below shows that the firm’s ability to raise much capital gives much competitive advantage compared to other firms.

AVC (Adapted Value Chain) of the Boeing Company

Boeing has a better chance of establishing a competitive advantage over other firms because it has much access to such areas and the materials needed for its operation to kick off. The resources, professional workers, and the transport network are some of the things that the Boeing Company’s management is keen on. Boeing has better chances of discovering new markets to expand its businesses than its rivals, such as Toshiba. The discovery can only be enhanced by applying the value chain analysis, which has been used to plot the table below. The value chain model and Porter’s broad strategies are the two main factors that have laid a strong foundation for the competitive advantage of the Boeing Company.

Boeing Company’s management is the one that devises the strategies to carry out and the direction to take when all the other people are busy carrying out their activities in the business. The management is the one that decides on the routes the flights take and the charges that will apply, and the people take charge of all the activities in the company. The other factor is that the customers in the company are loyal and have gained confidence in the activities and services offered (Bechai, 2022). Some customers also influence beginners and other new people in the business to carry out their activities in the best way possible, which increases the profits of the business hence leading to the company’s success.

The other internal factor that leads to the company’s success is that the people who partner with the company present the company with good deals that make it, and the management reaps many profits from their activities (Salas, 2022). When the combination of the management, the customers, and the investors in the company is in line with the goals and the objectives of the company, the company can achieve its objectives within a specified period and hence achieve its success from inside the company.

VRIN analysis of Boeing and its relationship with AVC

The VRIN strategic tool enables the Boeing Company to exploit all the opportunities that might come the way of the company. It also enables the company to gain a competitive advantage over the other businesses as it can dominate the small and the large firms. The company has well-defined goals, so controlling the micro and macro environment becomes easy.

Some Candidate factors in the Boeing Company

• Knowledge and experience
• Thinking about availability
• Recommendations and references
• Considering the growth potential
• Salary requirements

Leadership Contribution

Boeing’s Company leadership has been top-notch, starting from the innovator of the aircraft industry who made sure that all the operations of the company went in line with the best strategies that ought to have been done by the firm. The firm’s prior administration established the standard for the incoming leaders, which has always made it simple for them to manage their operations. Several things are incorporated in the leadership styles, and the top management in the company applies the formula of leading that.

Among the factors taken into account by the board of directors of the Boeing Company when choosing their employees and business partners is one of the variables that determine whether the company will succeed or fail (Kaplan & Norton, 2005). Therefore, the leadership style and the decision-making process of the board in the company determine a lot of the company’s success. It should be noted that the initial leaders of the company who have been there in the past have been making the best decisions ever regarding the running and operation of the company, and that is why the company has been in existence for all those years.

The company’s organizational culture also dictates that there should be self-driven among the people employed in the organization. It states that the leaders and all the other people in the organization should follow a set of rules drafted by the company’s management for the efficient flow of activities. The management that proceeded with the current one is the one that came up with the rules and guidelines of what is supposed to be done, bearing in mind that so many people operate and invest their money in the company (Statist, 2022). There is a relationship between all the people who are the company’s stakeholders. Therefore, they handle all their issues in unison which contributes to the excellent leadership of the company and a smooth transition to the management that will lead the company in the future.

Strategy Focus

The main strategic factor that needs scrutiny in the company is sustainability issues and how the company can build a good relationship with the larger society. However, there are so many things that a company and its management do to enhance the company’s success in addition to the everyday tasks that the workers carry out on regular days. One thing the management of the company should focus their energy on is the sustainability issues of the company (Boeing, 2022). There is a way for the business to quickly attract customers who support the firm’s sustainability initiatives rather than simply because they enjoy the quality of the goods sold to them.

The board of directors is supposed to delegate several activities that align with acting for the less fortunate in society, enabling the company to gain more people who support them in various parts of the world. When the people who see the kinds of things the company does in contemporary society can pot all the issues, they can distinguish between the types of companies where they can invest their funds or even get products from.

Strategic Recommendation

The company can do several things to compete favorably with other companies. A company’s management can enhance good customer relations by planning activities such as shows to sensitize their customers. Such things are rare and can attract many people simultaneously. In such places, the customers of the company’s products will get a chance to get a one-on-one interview with the sellers of the products, which will increase their knowledge of the products offered.

When the customers are informed about the things they can do with the products offered by the company, they can get additional information that they could not have obtained were it not for the road shows (Johnston, 2022). Other things can be done so the company can influence more people to purchase their products which the competitors need to do. Such things include being involved in charity work which will enable the company to get a good name and improve its image among the people purchasing its products.

The people who get assistance from the company can tell others who might not know the products’ existence how best they can get services from the company offering humanitarian assistance (Y chart, 2022). There are other instances when there are nominations of companies that assist the less fortunate in society. This enables them to have a good name when they are nominated as the best-performing company in terms of assistance to the larger society. Such things increase the number of customers of the company, which in turn increases the business’s profits.

References

Air Transport (2022). Boeing forecasts demand for 41,000 new aircraft by 2041 – Times Aerospace. Available at: https://www.timesaerospace.aero/news/air-transport/boeing-forecasts-demand-for-41000-new-aircraft-by-2041#:~:text=In%20addition%2C%20Boeing%20Global%20Services,to%20enable%20the%20supply%20of

Bechai, D. (2022). Boeing & Airbus In Russia: An Airplane Market Analysis (NYSE: BA) – SeekingAlpha. Available at: https://seekingalpha.com/article/4495421-boeing-and-airbus-in-russia-a-data-driven-analysis-of-the-airplane-market

Boeing (2022), Boeing Reports Third-Quarter Results – Q3 2022 Performance Review. Available at: https://s2.q4cdn.com/661678649/files/doc_financials/2022/q3/3Q22_Presentation.pdf

Boeing (n.d.). Committed to the community – Community Engagement. Available at: https://www.boeing.com/principles/community-engagement.page#:~:text=%2413Minvested%20in%20organizations,through%20Boeing%20investments%20in%202021.

Finlay, M. (2022). How has aviation safety improved over the years? – Simple Flying. Available at: https://simpleflying.com/how-has-aviation-safety-improved-over-the-years/#:~:text=Despite%20the%20two%20fatal%20accidents,and%20safety%20at%20all%20levels.

Johnston, M. (2022). How Boeing Makes Money – Investopedia. Available at: https://www.investopedia.com/articles/markets/032715/how-boeing-makes-its-money.asp#:~:text=The%20Defense%2C%20Space%20and%20Security,one%20of%20Boeing’s%20largest%20customers.

Kaplan, R. S., & Norton, D. P. (2005). The balanced scorecard: measures that drive performance. Harvard business review, 83(7), 172.

Open Access Government (2022). What Boeing’s new research center means for sustainable aviation. Available at: https://www.openaccessgovernment.org/what-boeings-new-research-center-means-for-sustainable-aviation/143237/#:~:text=To%20aid%20in%20this%20quest,for%20and%20future%2Dproof%20operations.

Salas, E (2022). Boeing’s worldwide revenue from FY 2007 to FY 2021 – Statista. Available at: https://www.statista.com/statistics/264374/boeings-worldwide-revenue/

Statista (2022). Boeing – number of employees 2002-2021 – Statista. Available at: https://www.statista.com/statistics/268992/change-in-employment-figures-from-boeing/

YCharts (2022). Boeing Gross Profit Margin (Quarterly) – Boeing Co (BA). Available at: https://ycharts.com/companies/BA/gross_profit_margin#:~:text=Boeing%20Gross%20Profit%20Margin%20(Quarterly)%3A%20%2D5.15%25%20for%20Sept,30%2C%202022

YCharts (2022). Boeing Profit Margin (Quarterly) – Boeing Co (BA). Available at: https://ycharts.com/companies/BA/profit_margin#:~:text=Boeing%20Profit%20Margin%20(Quarterly)%3A,30%2C%202022