Presentation By:Robert Brinkmann, Justin Weden, Courtney Karcasinas, Stephen Gonzalez, & Adam Hall
INDUSTRY & COMPETITIVE ANALYSISAEROSPACE & DEFENSE WITH A FOCUS ON BOEING
Overview of Boeing
Welcome to Boeing! The worlds leading aircraft manufacturer
“Making the world better tomorrow, then it is today!”
Mission & Vision Mission:
“Boeing is a company of amazing people working in one of the most exciting industries in the world. When you consider our many accomplishments -- from designing and building the earliest biplanes to creating and supporting today's supersonic aircraft and spacecraft -- you might think we would be content with how far we've come. But a company of our size and scope doesn't succeed by resting on its laurels; we are constantly re-examining our capabilities and processes to ensure that our company is as strong and vital as our heritage. In fact, our culture mirrors the heritage of aviation itself, built on a foundation of innovation, aspiration and imagination.”
Vision: “The Boeing Vision is: People working together as a global enterprise for
aerospace leadership.”
Background Beginning
March 10th 1910 Departments
Consumer Government/Military
Operating Principles Employs over 165,000 people across the world Located in 70 countries More than 140,000 employees hold College Degrees Organized into two business units
Boeing Commercial Airplanes Boeing Defense, Space & Security
Culture & Work Environment
Mirrors back from principles carried out throughout the history of the company Set core values:
Leadership Integrity Quality Customer Satisfaction People working together A diverse involved team Good corporate citizenship Enhancing shareholder value
Strategies effect on culture: Building Trust Further Penetration Into Market “Our culture mirrors the heritage of aviation itself, built on a foundation
of innovation, aspiration and imagination.”
Research & Development The company contiues to expand its product line and
service to meet emerging customer needs. Strategies effect on R&D
Establishing internation Research Centers Aiding to find new solutions to problems in the Asian Enviroment
Global Warming/Pollution value Issues that the R&D department could face by
implementing this strategy? Keeping up with technology and consumer trends High amount of spending
Marketing Re-evalute target audience Invest in Market Research Marketing in the U.S. vs. Asia Market Geographically: Population Density
and Lifestyle
Operations & Productions Benefits of expanding into the Asian Market
Increase in potential revenue Increase in market share
Issues Related to Operations Importing/Exporting Issues Manufacturing Domestically
Human Resources & Structure
Relationship to most Asian countries aged 60 years or more
Employs domestic personal to mange foreign operations
Core Value: Mutual benfit to company and society
Financials and Statistics
Company Name Revenue Gross Profit Net Income Cash Debt Employees
Boeing $86.62 B $13.36 B $4.58 B $15.21 B $9.64 B 168,400
General Dynamics $31.22 B $5.76 B $2.49 B $5.30 B $3.91 B 96,000
Lockheed Martin $45.36 B $4.19 B $2.95 B $2.62 B $6.15 B 115,000
Northrop Grumman $24.66 B $5.38 B $1.95 B $5.15 B $5.93 B 65,300
Raytheon $23.71 B $5.17 B $1.89 B $4.30 B $4.73 B 63,000
Financials and Statistics
Company NameRevenue
2009Revenue
2010Revenue
2011Revenue
2012Revenue
2013
Boeing $68.28 B $64.31 B $68.74 B $81.70 B $86.62 B
General Dynamics $31.98 B $32.47 B $32.70 B $31.50 B $31.22 B
Lockheed Martin $43.87 B $45.67 B $46.50 B $47.18 B $45.36 B
Northrop Grumman $27.65 B $28.14 B $26.41 B $25.22 B $24.66 B
Raytheon $24.88 B $25.15 B $24.79 B $24.41 B $23.71 B
Financials and Statistics
2009 2010 2011 2012 20130.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00 Revenue Trailing 5 Years
Boeing General Dynamics Lockheed MartinNorthrop Grumman Raytheon Industry Average
Year
Reve
nue
in B
illio
ns
Financials and Statistics
Company NameRevenue
2014Revenue
2015Revenue
2016Revenue
2017Revenue
2018
Boeing $90.15 B $95.56 B $100.97 B $106.37 B $111.78 B
General Dynamics $31.23 B $30.98 B $30.73 B $30.48 B $30.23 B
Lockheed Martin $47.06 B $47.51 B $47.96 B $48.41 B $48.86B
Northrop Grumman $23.75 B $22.86 B $21.97 B $21.08 B $20.19 B
Raytheon $23.66 B $23.36 B $23.05 B $22.74 B $22.43 B
Financials and Statistics
2014 2015 2016 2017 20180.00
20.00
40.00
60.00
80.00
100.00
120.00Projected Revenue 5 Years
Boeing General Dynamics Lockheed MartinNorthrop Grumman Raytheon Industry Average
Year
Reve
nue
in B
illio
ns
S.W.O.T
Strengths- Good Finances
- Several Business Segments- Focus on R&D
Weaknesses- High R&D Costs
- Execution- Lots of Government Contracts
Opportunities- Increased Defense Spending
- Recovering Industry- Diversification
Threats- Competition
-Uncertainty of Gov't Contracts-Lower Defense Spending
SWOT
S.W.O.T
Strengths Finances Diverse Business Segments R&D Focus
S.W.O.T
Weaknesses High R&D Cost Execution of Contracts Many of Government Contracts
S.W.O.T
Opportunities Increased Defense Spending Upward Trending Industry Further Diversification
S.W.O.T
Threat Competition Uncertainty of Government Contracts Lower Defense Spending
Key Success Factors
P.E.S.T Political factors
Government Laws Regulations Policies
Tariff free large commercial jetliners since 1979 Certifications Restrictions
Iran, Iraq, Afghanistan, and Pakistan
P.E.S.T Economic Factors:
Increase in Fuel costs Enviromental restrictions Insurance Cost High security equipment due to terrorism threat
P.E.S.T Social:
Cultural Factors for Multinational environments Changing needs of demand of the customer
Due to population growth rates EPA regulations
Carbon emmision reduction Increase Black Box capabilties
30 day battery life
P.E.S.T Technological:
Computer based cost effective technology Creates faster production of commercial airplans
Light weight Material Composit Material
Innovation Unmanned aircraft
Strategy Market Development
Our strategy is to further expand into Asian markets in order to become the market leader by increasing mutually beneficial relationships with global customers.
Boeing International 28,000 suppliers and partners
internationally More than 50 international research
centers in 35 nations “More than 8,500 of Boeing’s
168,000 employees work outside the United States”
Why China? Demand for 4,500 additional aircraft Growth of 6.4% GDP for 20 years Plans to build 56 new airports Relocate 16 airports Renovate 91 airports
Total of 220 airports Focus on top 3 major cities
76% of Total Passengers
Financial Information Chinese Market
$780 Billion
Projected new aircraft value $670 Billion
Conclusion Boeing should serve as the primary vehicle
for achieving economic growth by actively developing aviation services, the establishment of Boeing through innovative operating, Boeing and China will be able to improve infrastructure, air traffic control and pertinent legislation. Through China’s opening-up to international air transportation development, Boeing and China will be able to foster a win-win situation.
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