Key Factors and Unvarying Issues of Boeing 787

In: Business and Management

Submitted By PangTong
Words 1697
Pages 7
TC2Gr1

Strategy

Contents

Introduction ..................................................................................... 2 
Key factors about strategy ............................................................... 3 o Rare........................................................................................ 3 o Long ....................................................................................... 3 o Comprehensive ...................................................................... 4 o Ill structured ........................................................................... 4 
Unvarying issues............................................................................... 5 o Competition ........................................................................... 5 o Constraints .............................................................................6 o Unpredictability ..................................................................... 6 
Conclusion........................................................................................ 7 
Sources............................................................................................. 8

1

TC2Gr1

Strategy

The Boeing 787 (or DreamLiner) is a long range haul developed by Boeing Commercial Airplanes. It was called firstly 7E7 “E” for efficiency) but it was changed to 787 in January 2005. Actually there are 4 existing variants of this plane, proposing different sizes, length, seats (from 210 to 330 seats according to Wikipedia), etc… It is still in development, flight testing and early production. According to Boeing itself, it launched this plane to respond to the overwhelming preference of airlines around the world. Boeing doesn’t hesitate to highlight the new technologies developed by Boeing and…...

Similar Documents

Case on Boeing 787

...“multiplexing” or “pooling”), does not reduce the number of licenses you need. b. Font Components. While the software is running, you may use its fonts to display and print content. You may only · embed fonts in content as permitted by the embedding restrictions in the fonts; and · temporarily download them to a printer or other output device to print content. c. Icons, images and sounds. While the software is running, you may use but not share its icons, images, sounds, and media. 4. MANDATORY ACTIVATION. Activation associates the use of the software with a specific device. During activation, the software will send information about the software and the device to Microsoft. This information includes the version, language and product key of the software, the Internet protocol address of the device, and information derived from the hardware configuration of the device. For more information, see http://go.microsoft.com/fwlink/?Linkid=96549. By using the software, you consent to the transmission of this information. If properly licensed, you have the right to use the version of the software installed during the installation process up to the time permitted for activation. Unless the software is activated, you have no right to use the software after the time permitted for activation. This is to prevent its unlicensed use. You are not permitted to bypass or circumvent activation. If the device is connected to the Internet, the software may automatically connect to......

Words: 6174 - Pages: 25

Building the Boeing 787

...processes. Also the creation of the “big box” retailers such as Wal-Mart and Tesco were causing the competitive factors driven by purchasing power to put pressures on lowering P&G’s prices even further. Q3C. What strategy does P&G appear to be moving toward? What are the benefits of this strategy? What are the potential risks associated with it? I would think that Due to the increase in competition and the various market conditions P&G had to close some of their local plants and asked their subsidiaries to exploit as much economies of scale as they could in their production lines. They also asked their local centers to create and use global brands whenever necessary to try and reduce marketing costs. While these cost savings were effective, they were still not enough and P&G then reorganized the company to be a pure Transnational Strategy, with more control occurring in the regional centers than ever before and using as less local responsiveness as they could to reach their customers so they could compete on price as much as they could. The benefits of the transnational strategy include: 1. Creating global brands 2. Cost reduction 3. Reducing duplication of assets 4. Increase market share by beating your competitors’ prices 5. Manufacturing in places that have a comparative advantage in the production of that product The Risks 1. Culture issues 2. Confusion over corporate goals 3. Very difficult to implement & manage 4. Performance ambiguity 5. High...

Words: 653 - Pages: 3

Building the Boeing 787

...Building the Boeing 787 Boeing's newest commercial jet aircraft, the wide-bodied 787 jet, is a bold bet on the future of both airline travel and plane making. Designed to fly long haul point-to-point routes, the 250-seat 787 is made largely out of composite materials suchas carbon fibers, rather than traditional materials such as aluminum. Some 80 percent of the 787 by volume is composite    materials, making the plane 20 percent lighter than a traditional aircraft of the same size, which translates into a big saving in let fuel consumption and costs.  The 787 is also packed full of other design innovations including larger windows, greater headroom and state-of-the-art electronics on the flight deck and in the passenger compartment. To reduce the risks associated with this technological gamble, Boeing outsourced an unprecedented 70 percent of the content of the 787 to other manufacturers, most of them based in other nations.  In contrast 50 percent of the Boeing 777 was outsourced, 30 percent of the 767, and only 5 percent of the 707. The idea was that in return for a share of the work, partners would contribute toward the estimated $8 billion in development costs for the 787. In addition, by outsourcing,  Boeing believed it could tap into the expertise of the most efficient producers wherever they might be located, thereby driving down the costs of making the plane. Furthermore, Boeing believed that outsourcing some work to foreign countries would help it garner sales in......

Words: 3048 - Pages: 13

Boeing 787: Dream Liner

...Analysis of Boeing 787: The Dreamliner Boeing announced the launch of a new jetliner called the Dreamliner (Boeing 787) and hoped to regain its leadership role in the commercial airline industry. I will apply the theories of competitive forces model and the macro-environment to analyze the Boeing case in the following exploration, and then give my suggestions. According to the competitive force model, the first point of the risk of entry by potential competitors is neither high nor low because a new company produces on a small scale even can’t cover the multiple-billions R&D, and Boeing already have accumulated experience, patents, or trade secrets that they are more effective than new companies (Hill & Jones, 2012); while the new“global systems integrator” strategy tends to create potential competitors such as China and Japan. Secondly, the commercial airline industry is a consolidated industry that the launch of A380 from Airbus directly affect the market share of Boeing in 2003, and the fixed costs in this industry is very high; thus, the rivalry among established companies is intensive. Thirdly, A380, A350 etc. are the substitutes with similar basic needs, which are threats to Boeing 787 and leads to the operation risk. On the macro-environment, the economy of developing countries grows very fast that both Boeing and Airbus believed “the passenger traffic in China would surge over 8.0% annually” (Nolan & Kotha, 2005), which tends to ease competitive......

Words: 573 - Pages: 3

The Boeing 787 Experiment

...The Boeing 787 Experiment Joe Appleby Saint Leo University The Boeing 787 Experiment Many of the normality’s of our everyday are often go unthought-of of about what it took to make them a reality. Take flying for instances. Many of us, myself included step on or use an airplane to travel for leisure, to conduct day-to-day business, use for supply chain movement and never even think twice about what goes into making an aircraft. One of what is considered an elite aircraft manufacturing company; Boeing knows all too well what it takes to deliver a premier aircraft to service. Boeing did not arrive at this point easy as they found out when trying to launch their Boeing 787 aircraft. This essay will give a brief company profile of the Boeing Company and in addition the major problem the company experienced when launching its Boeing 787 aircraft and recommended solutions. The problematic area that will be highlighted is Boeings supply chain management, which caused Boeing to rethink its 787 strategy. The History of Boeing The history of Boeing began essentially with the vision of five men. William Edward Boeing, born in 1881 in Detroit, Mich., began building floatplanes near Seattle, Wash. Donald Wills Douglas, born in 1892 in New York, began building bombers and passenger transports in Santa Monica, Calif. James Smith McDonnell, born in 1899 in Denver, Colo., began building jet fighters in St. Louis, Mo. James Howard "Dutch" Kindelberger, born in 1895 in......

Words: 2242 - Pages: 9

Boeing Outsourcing Issue

...Boeing 787’s problems blamed on outsourcing, lack of oversight Issue Boeing 787’s problems including the battery issue blamed on excessive outsourcing and a lack of oversight which introduced the quality issue. Boeing contracted with 50 top tier-1 suppliers, which is a totally different approach than it used in the past. Rule When a company outsources most of its operations, they need to have a proper oversight in place to monitor their partners. In Boeing’s case they needed to vet their tier-2 and 3 subcontractors from quality and capability perspective. The oversight team should have been composed of multidisciplinary experts, especially the supply chain manager. Also when you outsource, you need to work with your internal employees proactively to assure their job security. Finally, be open and transparent with your customers and discuss the impact of the outsourcing. Analysis Boeing took very different approach with 787 program than its 737 program. They almost doubled the outsourcing strategy with 787 program. Supplier relationship was purely contract based in 737 program while in 787 program they made them strategic partners with tier-1 suppliers and their responsibility was to develop and produced a section of airplane while in 737 program they developed only parts. In 787 program they have only 50 tier-1 suppliers while in 737 program they have around thousand. Also the supplier contract is fixed price and penalty for delays in 737 program and in 787 it is......

Words: 486 - Pages: 2

Potential Successes of the Boeing 787

...How would you evaluate what are the potential successes of the Boeing 787 for the American aviation industry in the next five years? In particular, what data would you need? You may wish to focus on one aspect in particular (e.g., market share); however, you need to ensure your answer covers the wider issues too. Before we begin the analysis we must first understand the industry. If not a practitioner it would be reasonable to research by asking questions targeted at Industry leaders, friends in the business, etc. Locating and reading books, articles, and journals on the U.S. Airline industry’s rivals, consumer preferences, air carrier route dominance, threat of substitutes, and threat of new entrants into the market. Understanding the Boeing Company and its 787 Dreamliner would be next on the agenda, all done with the goal of becoming as fully informed as possible. In researching the Boeing Company, I would need to know their strengths and weaknesses. What other business ventures are they associated with, e.g., aerospace, defense, or exporter? I would also want to know the funding method for research and development (R&D). An over reliance on Internal Research and Development (IRAD) could cause stress on any planned modifications or on the normal manufacturing process itself. It would make sound financial sense to acquire funds from the requesting customer or investors prior to beginning any R&D efforts. Researching Boeing’s R&D funding methodology would be...

Words: 626 - Pages: 3

Boeing 787 Dreamliner

...Executive summary Boeing was founded in 1916 in Seattle, Washington and became one of the World’s largest and leading manufacturers in making commercial and military aircrafts. The company has been involved in acquiring international firms and making strategic alliances with many aerospace pioneers in the past. Some of the big acquired and merged aerospace companies are Hughes Space and Communications, North American Aviation, McDonnell Douglas, Rockwell International and Jappesen (Boeing, 2012). The purpose of this report is twofold and accordingly the report is divided into two parts. The first part consists of a critical evaluation of the internal and external business environments of Boeing to find out to at what extent Boeing is strategically fit with its current business environment. In the second part, an improvement strategy will be recommended to the company to effectively manage its supply chain practices after critically reviewing the feasibility, acceptability and suitability of the strategy. Contents Executive summary 1 Introduction to Boeing 787 Dreamliner 3 (PART A) 4 S.W.O.T analysis of Boeing 787 Dreamliner 4 Strengths: 4 Weaknesses: 5 Opportunities: 6 Threats: 6 Boeing 787 Dreamliner competitiveness 7 Business model of Boeing Dreamliner 787 9 B787 SYSTEMS AND EQUIPMENT: 9 MANUFACTURING/QUALITY: 9 Design and features of Boeing 787 Dreamliner: 10 Strategic alliance of Boeing 787 Dreamliner 12 Challenges posed by the......

Words: 4253 - Pages: 18

Boeing 787 Dreamliner

...Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary This chapter explores the issues associated with global......

Words: 6454 - Pages: 26

Boeing 787

...THE BOEING 787: FLYING AS IT WAS MEANT TO BE by Angelo Antonio Fresco Term Paper Submitted to the Extended Campus in Partial Fulfillment of the Requirements of ASCI 611 Embry-Riddle Aeronautical University Worldwide Online June 2010 ABSTRACT Researcher: Angelo Antonio Fresco Title: The Boeing 787: Flying as it was meant to be Institution: Embry-Riddle Aeronautical University Degree: Master of Aeronautical Science Year: 2010 Meant to be aviations next Sonic Cruiser, airline customers and Boeing has unveiled a new airliner for the 21st century, the Boeing 787 Dreamliner. Some of the safety systems the 787 will feature will be: ultra modern safety advances in cockpit automation, dramatic improvements in engine reliability, a new and more accurate global positioning system, new integrated surveillance systems, the latest version of nose-mounted weather radar, and a fuel tank inerting system. The 787 will use 20 percent less fuel than today's airplanes of comparable size and provide passengers with innovations that include a new interior environment with cleaner air, larger windows, more stowage space, improved lighting and other passenger-preferred conveniences that no other airliner can offer today. Introduction of the 787 The Boeing 787 traces back its roots to the Boeing Sonic Cruiser, a fast subsonic aircraft first introduced by the Boeing Company in 2001. The main selling point of the Sonic......

Words: 5056 - Pages: 21

The Boeing 787 Dreamliner Story

...Global Partnering: The Boeing 787 Dreamliner Story? VERSION 1.2 This case was prepared using publicly available information by Sveinn Vidar Gudmundsson, Professor, Toulouse Business School, France. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 2015 S V Gudmundsson, Toulouse, France. Global Partnering: The Boeing 787 Dreamliner Story? C28-1-2015-1.1 "In retrospect, our 787 game plan may have been overly ambitious, incorporating too many firsts all at once -- in the application of new technologies, in revolutionary design-and-build processes, and in increased global sourcing of engineering and manufacturing content." Boeing CEO, Jim McNerney Speech in the Wings Club of New York on November 11, 2014 When giants learn to dance The world's second-largest commercial aircraft-maker, Boeing a Chicago-based aerospace giant, was founded in 1916 in Seattle by William Boeing. In 2013 the company earned $86.623 billion in combined sales for defense and commercial aircraft divisions. The U.S. aerospace industry achieved $273 billion in sales in 2013.1 All told, Boeing and its subsidiaries employ 168,000 (160.000 in 2009) people. Boeing is the 24th largest U.S. employer, including private companies and government. Boeing, with almost half of its workforce located in Seattle, was adamant that modern economics dictate a new strategic model for the company,...

Words: 9682 - Pages: 39

Boeing 787

...The Pennsylvania State University Department of Industrial & Manufacturing Engineering IE466: Concurrent Engineering Individual Homework #1 – Boeing 787: The Dreamliner Boeing 787: The Dreamliner Case Study (download from Angel) During the past decade, Boeing watched as their competitor, Airbus, launched several new and very successful aircraft. In 2004, Airbus surpassed Boeing in commercial airplanes delivered and future orders placed. This is the first time that Boeing has ever lost its leading market share. The 787 is the first new airplane that Boeing has introduced to the market in a decade. This case study examines how the 787 is strategically transforming Boeing’s approach to aircraft design and development, and Boeing itself. Questions for Boeing 787 Dreamliner Case Study 1. Is the 787 appropriately positioned in the marketplace with a high likelihood of success? Why or why not? The Boeing 787 is in fact positioned in the marketplace with a high likelihood of success. The 787 has a good design, and the aircraft is designed in a way that is tailored to its customer. Composed of a new material composite, the aircraft has a lighter weight and higher fuel efficiency than any other aircraft. The aircraft also made sure the composite materials are non-corroding so that the aircraft lasts longer. It has a unique feature both for cargo and passengers. The seats/cabins are bigger, and new technology is installed for the...

Words: 1645 - Pages: 7

Dreamliner Boeing 787

...As per your request, this memo provides an analysis of the Boeing 787 project and recommendations for the Boeing Company overcoming their challenges. The Boeing 787 is positioned to target airlines which wish to provide nonstop service on routes that required long range but did not justify larger airplanes. Since the 787 would be the first of its kind, it creates a potential market for the Boeing Company and avoids direct competition with its major competitor, the Airbus Company. Besides, with the supply of non-renewable sources of energy remained a major concern for the new generations, aircraft like the 787 that is more fuel-efficient may become a leading trend in the near future. Exchange rate in recent years also creates advantage for Boeing 787 orders as the US currency has been weak since the 2008 economic downturn in the US. In order to achieve its goal of minimizing cost, the Boeing Company has outsourced most of the components to its structural suppliers for the 787 project. By outsourcing, the company can avoid incurring unnecessary expenses such as stock up cost, wages for workers and the need of having a larger plant. Nevertheless, outsourcing would also create problems to the company. One of the major problems faced by the Boeing Company is the difficulty of ensuring the project could be completed on schedule as Boeing do not have as much control as before they outsourced. More technical problems may arise as the final assembly takes place as different......

Words: 500 - Pages: 2

Building the Boeing 787

...STUDY BUILDING THE BOEING 787 PREPARED BY: PERCIVAL IGNATIUS V. SIVANANDAN Q1. What are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers?What are the potential risks?Do the benefits outweigh the risk? Benefits :- A. Outsourcing reduces the risks associated with technological gamble i.e. always abreast with latest design innovations. B. In return for a share of the work the partners would contribute towards the estimated $8 billion in development costs. C. Able to tap expertise of most efficient producers worldwide, hence driving downcost of making plane. D. Outsourcing some work to foreign countries will help to garner sales in those Countries E. Outsourcing the design of so many components could cut down time to develop aircraft to four years from six years. Potential risks:- A. Not being able to meet Boeing delivery schedules B. Possibility of paying millions in penalty clause for late delivery. C. Parts not assembled as required D. Assembly instruction not available in English E. Partners may outsource mission critical design work to other company F. Other company might find it hard to meet Boeing quality standards G. Since other company reporting to partners and not Boeing, it takes times for Boeing to know the......

Words: 1030 - Pages: 5

Boeing 787

...insurance company to pay the sum insured stating that he had an insurable interest to the extent of what he was contractually entitled. Note: 1. 4,200 was recoverable because he was contractually entitled to this amount and he stood to suffer by virtue of the loss of a legal right. 2. The fact that the assured was promised that the debt would not be called in was immaterial as no consideration had been provided and it was not legally enforceable. 3. It follows that the right to a salary is a legal right arising from the contract and that such contract gained for personal services would expire on the death of either party. Furthermore, the employer has an insurable interest in the life of the employee. (Key man insurance-companies insure their key personnel) Note: 1. There is a divergence between theory and practice. For example, group insurance policies where the nature and value employee has an impact on the premiums paid and the assured sum. See the cases of Green v Russell and Marcel Bella Ltd v Haden where the sum insured bore no relationship to the pecuniary interest of the employer. Note also JA s96 which expressly states that sub-s1, which requires an insurable interest and which outlines the ambit of the act, does not apply to group insurance. T&T 124 Debtor creditor relationship A creditor assurity has an insurable interest in the life of the debtor. If the debt is to be paid by two or more persons jointly, it will also support “good”......

Words: 3487 - Pages: 14

Alexander the Great | 14.12.1801:44 Uhr Best of House 2018 The Radio Collection House320 kbit/s 0 / 0700 Hits VID P2P DDL 0 Kommentare | مسلسل من نظرة حب الحلقة 35 مدبلجة