1.1 Introduction
Incorporated as The Boeing Company in 1916 in Illinois, Chicago, the Boeing Company operates as an aerospace company. Its operations include the design and production of commercial airplanes, aircraft and weapon Systems, network systems, support systems, and launch and orbital Systems. Boeing's core focus has been on the production of commercial aircraft for passenger and cargo requirements of domestic and foreign airlines. The company also offers two-way data communications service for global travelers; and Boeing Technology, an advanced research and development organization. Boeing has been a pioneer in the aerospace industry as the first company to have set up its line for commercial aerospace engineering. Given the notion that it has long been the first mover in the industry for product development for commercial aircrafts, Boeing has had a long tradition in producing high quality airlines to facilitate the growing needs of the airline industry. In terms of the industry Boeing has been a strong leader in terms of operations and its major competitors are European Aeronautic Defense and Space Company (EADS), Lockheed Martin Corp. and Northorp Grumann Corp.
1.2 Issues
The theme of the case revolves around several factors; the environmental uncertainty regarding economic cycles, product development problems and production process flaws and also the power of competitions to influence industry conditions. Thus, the main issue can simply be stated as "How can Boeing streamline its production process to overcome production lags and product flaws and attain a degree of sustainable competitive advantage to maintain industry leadership in terms of operations and growth."
1.3 Financial Analysis
Avg P/E Price/ Sale ...