Реферат: Boeing Case Analysis Essay Research Paper On

Recommendations

1) Subcontract as much of the component assembly as possible, within the limits of union contracts. Subcontracting should be done for all those components whose technologies are not crucial to Boeing?s product differentiation, i.e. standardized products and services. Subcontracting should be done as long-term relationships in order to provide greater value added in the production chain. Boeing should stress a commitment to purchasing from its subcontractors, at a price that offer value to both parties, as long as several criteria such as product quality, delivery and flexibility are met. These long-term relationships will create greater value to Boeing, compared to bidding contracts, due to the long and pronounced business cycles since there are usually considerable investments by the subcontractor into specialized assets.

2) Increase R&D spending to regain technological leadership. Although Boeing commercial aircraft group will benefit from R&D spent in the defense group, it should at least match its pre-merger commitments to R&D because regaining technological leadership is more expensive than maintaining it.

3) Embark on new, riskier projects that will revolutionize the commercial aircraft industry, such as its aborted supersonic commercial jet. Besides sparking new demand and creating a new market, this project would also be a competitive weapon against Airbus?s entry into the jumbo jet market.

4) Although Boeing?s next CEO should be someone who has been created within the organization, the company should still strive to have more directors from the outside. The CEO should be and engineer who has grown to best understand the industry. Directors brought in from other companies and industries will give Boeing the proper business discipline by bringing in new ideas and break groupthink.

Bibliography

from Textbook “strategic management an integrated approach” Charles W. Hill, Garreth R. Jones. fifth edition