Control Mechanisms
By almost any standard, aerospace is one of the longest term businesses there is. When Boeing makes a decision to go forward with a new commercial airplane, launch vehicle or a new communication system, they are making a decision on a product that will likely be in service for at least half a century. And for this to be successful, it has to fit markets over that entire time period.
Boeing’s market strategies have long-term focus. They believe very strongly in network-centric operation (NCO) is the key to the future of the military. They marketing people are involved in understanding the markets, customers, and where they’re going.
Boeing believes the reality is, if it is possible to be more efficient and if it’s possible to make an airplane or satellite that is more economical, somebody is going to do it and it’s far better if they do it before somebody else. But no matter how well though out their strategies are, Boeing won’t be around to see the future unless they run a healthy core businesses and perform excellently.
On April 17, 2006, Boeing announced a restructuring of the company’s Wichita operation and approximately 900 additional layoffs for 2006 due to defense budget cuts, program delays and contract completions. As a result of this, 360 employees received a 60 day layoff notice on April 18th and their last day will be June 19th.
As you can see, when there are budget cutbacks from the main consumer, Boeing will also have to make cut back which unfortunately the first thing any major company will first do, lay employees off. Although this is very unfortunate, it was necessary to meet the challenges of the busin ...