Corporate Governance:

Since the stakeholders of the Boeing Company are influenced by the activities of the

company, they must be allowed in the decision-making of the major functions of the

company. The primary stakeholders of Boeing company are the executive managers, their

employees, the board of directors who invested in the company, the suppliers, and the
community; whereas, the external stakeholders of the company include the government,

consumer groups and suppliers, local community, business contenders, trade unions
business partners, and the common people. Besides, it gives support to many of the airlines

all around the globe. So, Boeing is obliged to generate revenues for its stakeholders. It also
needs to ensure that all the decisions taken in the company are in favor of its stakeholders.

For the next five, the senior managers of Boeing will be kept under the monitoring of the
directors in order to achieve the objectives of the company. The company should focus

more on horizontal and vertical integration. It should keep on buying new businesses in
order to increase the size of the company through diversification. As the corporate strategy

of Boeing is of diversification, it would indicate that the company is growing. It needs to hire
agents to ensure the relationship between the stakeholders and the senior managers.

In order to ensure that the goals of the company are in track, the company needs to hire
outside directors for it. They will provide objectivity to the monitoring of the goals. They

need to evaluate the actions carried on by the executives and the employees. However both
the inside and outside directors together will ensure the corporate strategy of the company

and monitor the working procedures of the officers and employees. They will act in favor of
the stakeholders. They will ensure the management of the sanction. If needed, they will hire

or fire the CEO of the company. Moreover, they need to ensure that the public financial
statements of the company are truthful.

The CEO of the company has to be an expertise in the field of integrating mechanism. He
should be broad-minded as the company aims of diversification. He should maintain proper

communication with the directors and coordinate in the activities of the company. He
should lead himself to ensure the management of the corporate and business strategies of

the company. The company should emphasize on strategic control system of the
employees. It should establish standards and targets for the employees, ensure its

management, and Create opportunity to receive feedback from the employees. Besides, it
should create a system for measuring and monitoring performance of the employees on a

regular basis, compare their actual performances against established targets, evaluate the
results and take actions accordingly. Another governance mechanism that Boeing could

take is to motivate their employees such that they work towards the goal of achieving
maximum profit for their company. To ensure their best participation in the interest of the

company, the company should emphasize on employee stock ownership plan; and provide
stock option grants to the employees. Moreover, they can also provide bonus pay to the

employees whose performances are good.