Boeing Essay

1446 Words Aug 29th, 2010 6 Pages
Management Planning Paper University of Phoenix

Management: Theory, Practice and Application

Albert Lapierre

Planning, an imperative part of any business environment, is a daily focus at Boeing Corporation. The organization faces daily challenges to produce products to fit the consumer wants for air travel, comfort, and efficiency. While Boeing deals with a constant need for innovative ideas it also deal with the challenges of its main competitor airbus whom has historically been subsidized by many of the European nations to compete with Boeing for a larger share of the market. Boeing management, through excellent
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While Boeing has spent many resources planning what to build, Boeing is now faced with the problems of how to meet customer demands of the new aircraft.

Boeing Corporation is at an all time high for sales. "For the first time, its commercial-airplane unit earned more than its defense side."(Masters, 2007) "Boeing's backlog of orders increased 47% to a record 208 Billion, more than seven times the units 2006 revenues."(Masters, 2007) This has presented a separate problem for the organization. While Boeing has global operations Boeing is not prepared to produce the number of orders currently on the books. "Boeing's nightmare scenario is a repeat of the 1980s, when the industry poured cash into building more production capacity only to witness market demand crash a few years later." Management is at this point outsourcing 20% more of the work then they have historically to keep up with the current industry demand. Boeing management has developed strategic alliances with suppliers and contractors to keep up with the current demand. In fact, Boeing has 17 companies from 10 different countries helping to build the Dreamliner. Of course, Boeing's new Dreamliner is not the only product in production. Management is also responsible for keeping up with the demand for

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