THE BOEING COMPANY: STRATEGIC AUDIT I. CURRENT SITUATION A. Current Performance Boeing performance has been outstanding for the past few years. Their Return on investment rose from three percent to 6 percent from 1998 to 1999, but it did drop to five percent in 2000. In 1996 Airbus claimed 42% of the market share, while Boeing had 64%. Boeing is looking at falling below the 50% mark. Boeing's profits have been doing quite well. They have risen drastically in the past few years, which can be seen in the profitability ratios. Boeing is doing fine when it comes to profitability, even though they have dropped slightly since 1999.
B. Strategic Posture Mission "People working together as one global company for Aerospace Leadership." Objectives We were unable to find specific objectives besides very vague goals of; (1) being the number one aerospace leader in the world; (2) increasing shareholder value.
Strategies The three main corporate strategies for Boeing in the upcoming year are; (1) running healthy core businesses; (2) leveraging their strengths; (3) opening new frontiers (The Boeing Company 2000 Annual Report).
Boeing plans to run healthy core businesses by empowering their employees. Over the past two years, they have put 5,000 managers through intensive courses to hone their business and leadership skills (The Boeing Company 2000 Annual Report). They are also putting systems into place to create deep financial awareness throughout the organization. They want employees to be daring and assume entrepreneurial risk while exercising their proven ability to reduce risk.
Boeing plans to leverage their strengths by utilizing their intellectual capital and their power of a great global brand. Boeing has a wealth of detailed information and knowledge in the minds of their people. Also, people know Boeing's products around the world; even though airlines do not display it on the side of the airplanes.