In order to highlight the planning function of the management, this paper will look at the company's future direction as stated in its 2007 Annual Report.
Boeing clearly recognizes the importance of the leadership of its workforce in the success of the business organization. CEO Jim Nerney states that "Without incremental improvements generated by thousands upon thousands of Boeing employees last year, we would not have met what was-to be sure-a very challenging business plan" (Annual Report 2007). The mention of the company's business plan highlights the company's commitment in making decisions for the company in advance which they implement through the members of its team.
The launch of Boeing 787 Dreamliner has been precendented by careful planning of the structure, components, and how it will be marketed in the market. With its phenomenal success in the market Boeing had taken steps by planning the release of new variants in the market.
Recognizing that its operation is shaped by various factors in its business environment, Boeing strives to keep up its success and performance in the market by taking note of how stakeholders are affected. With the rapid development in the market, legal, ethical and corporate social responsibility issues are taken care of as customers look beyond price and product quality as the bases in making a purchase. Studies show that customers are willing to pay a premium to purchase a product which is a produced by a business organization who gives back to the society they operate in (Kotler 2005). This is recognized by Boeing indicated by its passion and commitment in creating an image of a socially, ethically, and legally responsible entity.
In the future, Boeing's main plan is to strengthen its position in the industry by keeping abreast with technological advancement. In its Annual Report, it states: "Our greatest contribution will come through pioneering new technologies with improved environmental performance" (Annual Report 2007). The company's commitment of operating profitably is now coupled with its aim of being an ethical organization by being concerned of how its processes and aircrafts affect the environment.
Boeing identifies itself as socially responsible business organization by funding programs and activities which improves the plight of the society where it operates in. This commitment of becoming socially responsible is highlighted in the management planning. According to its 2007 Philanthropy report, "our communities are included among our company's key stakeholders in the management model that guides how we do business around the world." This statement supports that the company's plans are being aligned at how it helps to address pressing and compelling social issues. Thus, Boeing actively seeks to help communities in five core areas namely, education, environment, health and human services, arts and culture, and civics.
Analyze at least three factors that influence the company's strategic, tactical, operational, and contingency planning.
Operating in a capital intensive business environment, technological change becomes one of the most