Sequestration began 1 March 2013 when the Budget Control Act slated for $54.6 billon cuts to defense accounts. The American Taxpayer Relief Act with other adjustments to the defense sequester …show more content…
With such a sensitive sales pitch Boeing would benefit from using PEST to continue with the transition. When dealing with a foreign country like Iran there will be many issues they will have to go through to see the deal through. Political issues start by Iran not being part of the United Nations. The order cannot be finalized until it has the United States governments approval. The government makes their policies which can have an impact on giving demand of aircraft and their nature of use. United States and British intelligence agencies orchestrated a coup in 1953 to oust democratically elected Prime Minister, Mohammad Mossadeq. In 1979 The U.S.-backed Shah of Iran was forced to leave office and the country. Iran held 52 hostages and finally freed them after 444 days. In 1988 a U.S. warship shot down an Iran commercial plane killing all 290 passengers on board, as the plane was mistaken for a fighter jet (BBC.com, 2014). There is still a lot of tensions between to the two governments of Iran and the United States. The deal is projected to be the largest deal with Iran by a U.S. firm since the sanctions were …show more content…
In January, Boeing stated they will cut 777 production rate as the demand for the Boeing 777 hasn’t been strong enough to continue as they prepare to transition onto the next version (Gross, 2016). This will cause a cut in employment to the people working with the current program. The deal would allow Boeing to provide a boost to the 777 program as they need more orders to sustain production as they transition the new 777X jetliner later this decade (Ostrower & Cameron, 2016). For Iran this is a way to replace and rebuild their outdated airliner fleet that have all exceeded their retirement age. Lawmakers in the House of Representatives moved quickly to raise the cost of any Boeing deal with Iran. One bill was proposed to double taxes companies owe on a deal in which the end user is based in a country designated by the U.S. as a state sponsor of terrorism, such as Iran