Boeing 767 Case Study Questions 1. Explain Boeing’s approach to project management identifying strengths and weaknesses. The approach of Boeing project is definition (program definition and cost definition), supplier management and production management The defining process includes program definition and cost definition. During the period of program definition, Boeing worked on market, technology and cost. Firstly, market analysts began by talking directly with major airlines to get their estimates of future needs and then they combined this information with econometric models to generate forecasts.
In addition, assess the Company’s commitment to strong corporate governance and diversity within its leadership structure and make any recommendations you would have as to the composition of the executive leadership team or the Board of Directors. 3. Risk assessment also occurs at the financial statement level. Identify what you consider to be critical (significant) accounting policy areas for Southwest Airlines Co. 4. For the critical (significant) accounting issue of “Revenue Recognition” (a.)
Systems-Boeing adopted the principles of creating more value for customers with fewer resources. 4. Style-the decision was made to diversify from the traditional commercial airline industry and that many acquisitions that were made create integration issues for the company. They were trying to add more stability to the business by entering the space industry and information services. The Six-Box Organizational Model key factors focus on six variable- purpose, structure, rewards, helpful mechanisms, relationship and leadership.
Week 3 – Boeing Case Study Questions 1 & 2 The purpose of a diagnostic model is to give an organization an area in which to improve and help them to meet goals. The most logical choice for Boeing to use in this case is the 7-2 framework. Boeing was facing strong competition and they had made plans to implement a change in order to improve the company structure so they could become more competitive. Boeing also faced several issues in this case. They were not living up to the demand for their services, and had technology systems that were outdated.
To solve this problem Air Canada outsourced the whole IT department to IBM and other vendors, except the core IT group to monitor the company’s IT standards and policies. The second major changes took place in 2011, when they decided to restructure their functional units to achieve new strategic objectives that will increase operational excellence and customer satisfaction. In order to expand, Air Canada needs to launch new low cost airlines and start an aggressive global advertisement campaign to establish Air Canada as a new brand in the airline industry. Even though Air Canada’s decision to outsource the part of IT department was to reduce cost and focus on core business activities, but the main motivation behind it was to open new opportunities for innovation. In 2003, this airline company began to implement a multiple-vendor strategy in order to benefit from best and experienced vendors and their products.
Exploitable- JetBlue could design the interior of the aircraft to improve passenger comfort and use E190 as an useful tool to expand market and attract new customers. Implication: The E190 provided a unique opportunity for the growth of JetBlue. However, this plane did not completely match the company’s current capabilities and costed a lot. Thus the CEO of Jetblue must change their strategic strategy to either keep E190 as a VRINE resource or sell it. Capability 1: High level of service (Bill of Rights) Valuable-
Boeing may see De Havilland as a competitor and may work towards dissuading Marton form supplying to De Havilland. This internal purchasing cycle of De Havilland can pose a hurdle in the decision as Marton has clearly indicated 120 days for accepting its bid. The purchasing cycle is long and can impact the decision of choosing a Marton as a supplier within the indicated time. Environmental and Root Cause Analysis Marton has been recommended as a supplier as its bid against the RFQ has been the most competitive and is directly aligned with De Havilland’s recent policy on savings. Marton has done it by sticking to what was asked of in the RFQ.
In the hopes of becoming the leader in the airlines industry, the Investor Relations team hopes to raise capital in the form of a stock issuance. To do this, we aim to prove to institutional investors that this is a frugal opportunity that will yield positive returns in the long run. This capital will be used to retrofit the company’s aircraft to make them more energy and fuel-efficient in order to lower costs, to increase comfort for customers, and to provide more amenities than what is currently offered, all in order to enhance the customer experience. To get this project underway, our overall goal is to show institutional investors, which currently hold 96.4% of the company’s stock, that we are a low-risk company that has essentially doubled our share price in the last 12 months. This will be done through an NPV analysis, which will prove that this project is worth undertaking.
Course Project Final Horizontal & Vertical Analysis Jane Doe Finance 382 1/08/2011 I. General information about the Industry and companies. For my course project I chose to compare Boeing Company (ticker symbol, BA) and its competitor Lockheed Martin Corporation (ticker symbol, LMT) from the Aerospace/Defense Products and Services Industry. “The aerospace and defense industry consists of several component segments: aircraft and aircraft parts manufacturers, weapons and intelligence systems manufacturers, satellite manufacturers and launch vehicle manufacturers” (Aerospace, 2009). This industry requires strong lead times as negotiations are complex, designing of new products is complicated, and technology changes are frequent.
The objectives for appointing new CMO can be given as: • Enhance the brand and strengthen its position in multiple product categories. • Expand into new categories • Determine the category best suited for Priceline service • Grow the revenues to over $1 billion Problem Analysis Here, the CMO had to come up with strategies to outwit its competitors. Expedia was a leading online travel service. Priceline had direct competition in the “name your own prices” service with Expedia. Expedia provided extensive destination information and strong editorial content with multiple booking options and focused on – flights, hotels, cars, vacations and cruises.