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Mikael Julian Irsa - 1501203431 - IMPLEMENTATION OF STRATEGIC MANAGEMENT AT THE BOEING COMPANY
Mikael Julian Irsa - 1501203431 - IMPLEMENTATION OF STRATEGIC MANAGEMENT AT THE BOEING COMPANY
Arranged by :
Mikael Julian Irsa
1501203431
Lecturer :
Leonardus Wasono Wahyu
TELKOM UNIVERSITY
BANDUNG
2022
TABLE OF CONTENTS
TABLE OF CONTENTS
CHAPTER I - PRELIMINARY
1.1. BACKGROUND
2.1.1. AVIATION
CHAPTER IV - CONCLUSION
4.1. SUMMARY
REFERENCES
CHAPTER I
PRELIMINARY
1.1. BACKGROUND
The aviation industry is one of the industries engaged in the service sector. The
aviation industry is developing very rapidly, this is evidenced by the increasing
number of passengers and airlines since the regulation of the aviation industry. It
can be said, the development of competition in the aviation industry is currently
experiencing very rapid development. Of course, with the development of the
aviation industry, many aircraft are needed which are the most important part of
this industry. The Boeing Company, better known as Boeing is an American
multinational corporation that designs, manufactures, and sells aircraft,
rotorcraft, rockets, and satellites. This of course makes Boeing the world's
leading aircraft manufacturer. This is further reinforced by the opinion of many
aviation observers who say, "When Boeing releases its newest plane, the world
will buy it." This is also further reinforced by the term, "Otherwise my Boeing
will not leave." As the world's leading aircraft manufacturer, Boeing always
conducts research and development in order to improve safety quality and adapt
to the latest market interests. This is inseparable from the company's risk
analysis, which analyzes the company and Boeing products. This risk analysis is
carried out in order to maintain Boeing's quality value so that it can attract
consumer interest in this case airlines and in order to remain competitive with
other aircraft manufacturing companies such as Bombardier, McDonnell
Douglas, and Airbus. , especially now that Boeing is and has one of the toughest
competitors and one of its toughest competitors, namely Airbus.
1.2. PROBLEM FORMULATIONS
The problem formulation is a research formulation that aims to ask for a causal
relationship (Sugiyono, 2017:36). Based on the background described
previously, Boeing is an aircraft manufacturing company that always conducts
research and development as well as conducts risk analysis to ensure safety
quality and adapt to the latest developments. Therefore, research is needed that
aims to explain and prove the effect of risk analysis on Boeing on Boeing itself,
on consumers, and on business competition between Boeing and Airbus.
Based on the explanation above, the following questions can be formulated:
1. How does a Boeing Company’s Brief Profile?;
2. How does The Boeing Company process in formulating strategy,
implementation, and evaluation?;
3. How is the external analysis and what is the opportunity and threat of macro
and micro analysis of The Boeing Company?;
4. How is the Internal analysis and what are the strengths and weaknesses of
Boeing Company?;
5. How is SWOT analysis of The Boeing Company?; and
6. What is the competitive Generic strategy of The Boeing Company?
1.3. RESEARCH OBJECTIVES
The purpose of the research is part of the written work that aims to obtain
knowledge and answers from the formulation of the problem that has been
formulated. In addition, the purpose of the research can be seen as proof of the
research. Based on the research formulation above, the research objectives are
formulated as follows:
1. To know about The Boeing Company’s Brief Profile;
2. To know about the process in formulating strategy, implementation, and
evaluation of The Boeing Company;
3. To know about the external analysis and what is the opportunity and threat
of macro and micro analysis of The Boeing Company;
4. To know about the Internal analysis and what are the strengths and
weaknesses of Boeing Company;
5. To know about the SWOT analysis of The Boeing Company; and
6. To know about the competitive Generic strategy of The Boeing Company.
Passanger Cargo
Based on table 2.1. The above shows that there has been a significant increase
in volume, both in terms of commercial flights and cargo flights in Indonesia
(2021 : 214).
The Wright brothers also worked together to solve the current issue of
controlled, powered flight. They solved the control problem by creating
wing warping for yaw control, roll control, and a steerable rudder. On
December 17th, 1903, the two brothers successfully built and launched the
first crewed heavier-than-air flight. This is also the universally recognized
date that launched modern aviation. On that day, they made a total of four
flights in their simple aircraft, with the longest one piloted by Wilbur,
covering 852 feet in 49 seconds.
In 1906, Alberto Santos-Dumont set the world record by flying his aircraft,
“14-bis,” 220 meters (about twice the length of a football field) in 21.5
seconds over Paris. He also advanced the design by incorporating
moveable parts to the wings to gain lateral stability. Later, in 1908, he
started working with Clement-Bayard company to build the first
mass-produced aircraft, the Demoiselle No. 19.
Aircraft became militarized as soon as it was invented. Italy was the first
country to employ aircraft for military operations. They used airships and
monoplanes to bomb, shell, and transportation during the Turkish-Italian
War in Libya.
In 1914, Roland Garros attached a machine gun to his aircraft, making him
the first “ace.” And the following year, Kurt Wintgens secured his first
aerial victory using a fighter plane designed with a machine gun.
Aircraft were first used in active combat on a large scale in World War I.
This played a decisive role in the First World War. France became the
leading aircraft manufacturer during the war, producing over 68,000
airplanes between 1914 and 1918. During World War II, nearly all nations
increased their production and development of aircraft and flight-based
systems. The military used fighter bombers, strategic bombers, dive
bombers, and ground-attack aircraft.
The invention of radar technology led to more precise, coordinated, and
controlled deployment. In 1942, Arado Ar 234, the first jet-powered
bomber, was launched. The Second World War also led to the rapid
development of helicopters. By the end of the Second World War, there
were airports or landing strips in many cities and towns. During this
period, civil aviation experienced tremendous growth because military
aircraft were repurposed as personal or airliner planes.
Revolutionary aircraft designs, for instance, the Douglas DC-3, a reliable
all-metal passenger airplane with rubberized seats to reduce vibrations and
noise-deadening plastic insulation, helped make flying more comfortable
and accessible for new travelers. To standardize the safety, consistency,
and efficiency of civil flights, the Convention on International Civil
Aviation was established in 1944. Standardization of civil flights led to
safer, more affordable airliners run by major carriers.
Digital adoption and technology techniques in the modern era have seen a
massive advancement in the aviation industry. The release of
computer-aided design and computer-aided manufacturing software in the
1970s facilitated the development of enhanced aircraft designs. Newer
technologies like computer simulations have aided in producing lighter yet
more robust materials for building airplanes.
Also, the introduction of composite materials like the one used for building
Boeing 787 Dreamliner has significantly cut down the weight of aircraft,
leading to improved fuel efficiency. Advanced composite has also led to
the development of sweeping wing tips that reduce component weight and
improves aerodynamics of an aircraft. (source :
https://www.spartan.edu/news/history-of-aviation/)
In 2003 Boeing began taking orders for the 787 Dreamliner, a mid-range
jet with speeds (Mach 0.85) that would match the fastest wide-body
long-range planes but with vastly improved fuel efficiency, thanks to new
high-bypass turbofan engines built by Pratt & Whitney and Rolls-Royce
and a radically innovative body design. Roughly half of the primary
structure of the 787, including the fuselage section and the wings, was
made of carbon-fiber and plastic composite materials, lighter than the
aluminum alloys used in most aircraft. Many airlines, faced with rising
fuel costs, saw the 787 as key to upgrading their fleets in the following
decade and ordered hundreds of the new planes. Originally scheduled to be
delivered for commercial service starting in 2008, the 787 was beset with
several production problems, not the least of which was failure of the
crucial fuselage section in stress tests. Consequently, Boeing did not make
initial delivery until 2011. In January 2013, following an airworthiness
directive issued by the U.S. Federal Aviation Administration (FAA) that
was subsequently taken up by regulators worldwide, all 787s in operation
globally were temporarily grounded until a potential risk for battery fire
was corrected.
3.1.3. PRODUCTS AND SERVICES OF THE BOEING COMPANY
Based on its official website, Boeing sells several products and services
which are shown in the following table:
No PRODUCTS SERVICES
6 777X -
7 787 -
8 Freighters -
source : https://www.boeing.com/commercial/
Boeing can avail of this opportunity to use social media for its marketing
campaign to get feedback from its customers. This is a very effective
marketing strategy and helps increase Boeing's revenue.
3.5.2. WEAKNESSES
Besides its strengths, it is also crucial for a company to know its
weakness. Once they identify the reasons affecting their growth, they can
take the necessary steps to negate their impact:
● The company's most unsafe design is 737 Max, which has
crashed two times in the Java sea in 2019. The design is unsafe and
has lots of defaults. It works as a significant weakness of this
company;
● The company highly relies on the manufacturers' heavy
outsourcing;
● The company has a massive dependency on contracts from
the USA government. Around 27% of the company's revenue
depends on the US government. Thus the political undulations
affect the company a lot.
3.5.3. OPPORTUNITIES
The company's performance assessment shows how they can use the
available opportunities in their favor. The company can concentrate on
the ones that align with their strengths. As a top-rated brand, Boeing has
several strengths which allow them to use many of the opportunities to
ensure their growth:
● The company has become the prime contractor of the USA
government. Thus they got an offer of launching the US Space
Force, which works as a massive opportunity for the company;
● To supply the aircraft with well-established technologies,
the company has to explore its new and innovative skills. It works
as an effective means to get hold of the market share;
● The technology of satellite demands helps them increase
services very quickly. It works as a scope to upgrade their position.
The aircraft is eco-friendly and pollution-free as well.
3.5.4. THREATS
With time goes by, more and more technological companies know how to
make aircrafts, and even revolved their technique to make more
eco-friendly airplanes, thus how to keep growth become a difficulty for
Boeing company:
● The default in 737Max becomes fixed to the customer's
mind. Their perception has changed in the company. They have a
fear of crash and lacks safety in their aircraft;
● The 9/11 terrorist attack has a devastating impact on the
public's mind. The decline of air travel has incurred much loss;
● The intense competition between Airbus (EU) and Boeing
(USA) has become bitter and complex. A single loss of customer
may incur a huge loss for the company.
(https://www.edrawmax.com/article/boeing-swot-analysis.html )
4.1. SUMMARY
The Boeing Company is an aircraft manufacturing company that is a parameter
for aircraft manufacturers in the world because of its technological prowess and
sales strategy, however, there are still many shortcomings in terms of sales
strategies and others that make the Boeing Company have to improve so as not
to be left behind by its business competitors.
REFERENCES
https://pdfs.semanticscholar.org/8b1f/9d2ae415587c22b1333980221a5bccacd8a
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http://eprints.stta.ac.id/45/1/%28Penelitian%202016%29%20Analiis%20Kecela
kaan%20Penerbangan%20Full.pdf
file:///C:/Users/HP/Downloads/1901-Article%20Text-7997-1-10-20211201%20(
1).pdf
file:///C:/Users/HP/Downloads/32458-85343-1-SM.pdf
https://usatoday30.usatoday.com/money/industries/manufacturing/2009-03-25-b
oeing-recession_N.htm
https://www.infrontanalytics.com/fe-EN/30022NU/The-Boeing-Company/gprv-r
isk#:~:text=Risk%20Analysis%20of%20The%20Boeing%20Company%20(%20
BA%20%7C%20USA)&text=The%20Boeing%20Company%20shows%20a,to
%20a%20very%20low%20risk.%22
https://www.edrawmax.com/article/boeing-swot-analysis.html