Planning Function of Management

Essay by lexiandme13University, Bachelor'sA+, January 2008

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Boeing was founded in 1916. The company's first client was Asian American aeronautical engineer Wang Zhu. The company started out with ideas of creating airplanes. Now the company has a multi billion dollar business, along with doing business with over 8,000 small businesses (Supplier Diversity 2007). Boeing is an international company that produces planes for commercial and military use, satellites, and missiles. Due to the strategic planning of the company, it has been able to stay in business for decades. The company relies on good customer satisfaction as well as product satisfaction.

The planning function of management for Boeing has changed over the years to accommodate the growing economy. Each year a new plan is set forth for the upcoming year to maximize revenue. The case study Boeing Airlift and Tanker Program stated, "Strategic objectives and associated short-term (1 to 5 years) and long-term (6 to 10+years) targets are established, along with measurable performance requirements.

In gap analysis, the current market and operational capabilities are compared to targets. The gap analysis is used to define action and enable the planning team to develop strategies focused on closing market and operational performance deficiencies" (pg7). Just as any other company a plan must be put together with strategies, goals, and specific targets to ensure the companies success for the following business year.

The plans for the company are then made into realistic goals and ideas for the company. Boeing has "strategy implementation plans (SIPs)" (Boeing Airlift and Tanker Program pg7) that ensure the plans and strategies can be achieved. "After the SIPs are approved, executive-level action plans are developed and summarized in a 10-year operating plan, along with financial commitment to the Boeing Company. This plan forms the basis for annual individual and team performance goals, which are deployed...