Documente Academic
Documente Profesional
Documente Cultură
Communication Strategy of
Boeing
Table of Contents
1. Introduction & Background.................................................................................................2
2. Analysis of Segments......................................................................................................... 2
2.1 SWOT Analysis.............................................................................................................3
3. Boeings Communication Strategy......................................................................................4
4. Recommendations to improve communication...................................................................5
5. Conclusions........................................................................................................................ 6
References............................................................................................................................. 7
Appendices............................................................................................................................ 9
Appendix A......................................................................................................................... 9
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2. Analysis of Segments
Boeing basically has five primary segments including:
o
o
o
o
o
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As the name mentions, the commercial airplanes and defense segment produces aircrafts for
commercial and military use. This segment represents the 70 percent operations of the company and
largely covers both the local and global markets. On the other hand, the BDS unit primarily entails
research and development activities. Furthermore, it produces security and space systems which
include surveillance equipment, defense systems, intelligence systems, network and tactical systems,
anti-submarine aircrafts, reconnaissance aircraft, and space exploration etc. (Aerospace & Defense
Intelligence Report, 2013). The BMA segment conducts research and develops military systems for
observation, safety, and security. In addition, this segment produces manually operated and automatic
weapons for global strike. The N&SS unit produces communication and space products such as
space information and intelligence systems, computers with artificial intelligence abilities, command
and control equipments, communication equipment, strategic missile and defense information
systems, and other cyber and space exploration equipment. Finally, GS&S segment is responsible for
providing support and services against products. It also includes logistic operations, upgrades,
training, and other operations supporting military operations and platforms (CSI Market, 2013).
Appendix A provides an overview of each segments financial performance.
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reasons (Sanders and Cameron, 2011). In this regard, an ineffective internal and external
communication, lack of control over the suppliers activities, and taking the engineering services from
third parties are prominent reasons (Data Monitor, 2011). Due to the delay problem the key competitor
of Boeing, Airbus is taking control over the market share of Boeing. This is the reason that the
financial performance of Boeing has affected in 2010 when the commercial segment faced a 6.5
percent decline in profit level (Boeing Annual Report, 2012). The profitability level of other segments
also turned down by 13.1 percent in the similar year. However, in the following year Boeing recovered
sharply. Boeing has also faced several legal penalties as a result of certain happenings and events
including intellectual property disputes, environmental responsibilities, employment issues, and
disputes related to the commercial contracts (Data Monitor, 2009).
The revolution in travel and tourism sector and changing needs and demands of customers are
creating many opportunities for aircraft manufacturers. Boeings commercial aircraft are in high
demand in the travel sector and the demand is increasing on annual basis (Boeing, 2013d). The new
emerging Asian markets such as India and China have great potential for Boeings products. In this
regard, the commercial aircrafts are popular for travel and tourism purpose and security and defense
systems are required by them for making their defense system unbeatable (Miller, 2012). Although the
financial distress and the economic downturn have brought difficult time for the airline sector, but to
some extent some acquisition/merger opportunities are also available to Boeing to make their supply
and logistics system effective. The strategic alliance of Boeing with British Airways and Global Airline
Inventory Network are the upshots of these prospects (Trotman and Simnett, 2001).
Boeing also has several threats where its competitors, environment, and employees are prominent.
Airbus is the core competitor and key threat to Boeing particularly in the commercial aircraft division.
Additionally, the Chinese commercial airplanes sector is the emerging threat to Boeing as the Chinese
government announced the launch of properly commercial aircraft in 2020 (The New York Times,
2007). In the past, Boeing has faced several labor strikes and these strikes challenged the goodwill of
Boeing to great extent in the global market. The company also faced the delay issue due to this
problem (Data Monitor, 2011). Further the rapid changes in the environmental laws and rising
frequency of earthquakes in Japan are the genuine threats because most of the suppliers of Boeing
are in Japan.
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employment acts, rewards, deductions, and other necessary announcements are transmitted to
employees through the intranet (Hutt and Speh, 2009).
Aside from communicating internally with employees, Boeing also broadcasts information externally to
existing and potential customers electronically through the website. A specific section of the website
focuses on updating latest news about the company. It also contains many articles that interest to
external stakeholders such as customers and shareholders (Boeing Investor Relations, 2013).
Another source of electronic communication is extranet which is often used by the company to
correspond to suppliers. Boeing uses extranet widely for effective monitoring and controlling as well
as for targeting potential suppliers (Hutt and Speh, 2009).
Boeing also uses institutional communication through which the company is able to endorse its ideas
and opinions. Some examples of such advertisements are: A single note can change the world in
support of music; command the network, control the battle space an encouraging advertisement for
supporting US Army; our world is built on partnership for praising business partners and other
stakeholders; and made with Japan for giving value to Japanese suppliers are the best examples of
communicating Boeings policies and values to its community partners (Boeing, 2005).
Although Boeings internal and external communications are very effective and controlled but from the
past decade the company is constantly facing some issues due to lack of communication particularly
with the suppliers. In this regard, some prominent issues are supply chain problems, delay in
delivering commercial planes to customers, and material related problems (Data Monitor, 2009; 2011).
Cohan (2011) found that Boeing has less control over managing and controlling suppliers because of
too many outsourced suppliers. Boeing is dealing with several high tech manufacturers of plant and
machinery for aircrafts all over the globe. The inadequate efforts of Boeing for communicating with
suppliers have resulted in certain delays in the Boeing Dreamliner 787 (Cohan, 2011). In the mid
2010, Boeing consulted with a company to reform its organisational culture of commercial aircraft
division to address the delay issue. This effort was also unsuccessful because of certain gaps in
external and internal communication patterns (Sanders, 2010).
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equipments. The Enterprise Resource Planning (ERP) is the most reasonable software that provides
an effective way of communication in managing organisational resources and other activities. The
software has many features where supply chain management is of its key characteristics. Although
Boeing is already using an ERP system for managing resources and supply chain but there is an
urgent need to use it to address communication issues with the suppliers (Moad, 2007)
5. Conclusions
The critical SWOT analysis of Boeing uncovers the fact that the organisation is passing through some
weaknesses due to lack of communication with stakeholders particularly with suppliers. Although
Boeings communication strategy is sound and the company is using digital technology to transmit
information internally and externally but to overcome existing issues, the company really need to
employ modern technology that will allow it to enhance communication with suppliers. For this reason,
it is recommended to Boeing to enhance the use of ERP software to overcome supply chain
problems.
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References
Aerospace & Defense Intelligence Report (2013). Boeings products and business segments. [online].
Retrieved from: http://www.bga-aeroweb.com/Boeing.html [Accessed: 15 November, 2013]
Boeing Annual Report (2010). Available online retrieved from:
http://www.boeing.com/assets/pdf/companyoffices/financial/finreports/annual/2011/annual_report.pdf
[Accessed: 15 November, 2013]
Boeing Annual Report (2012). Available online from:
http://www.boeing.com/assets/pdf/companyoffices/financial/finreports/annual/2012/annual_report.pdf
[Accessed: 14 November, 2013]
Boeing (2005). Boeing Advertisements. Boeing Frontiers, 3(9), [online]. Retrieved from:
http://www.boeing.com/news/frontiers/archive/2005/february/qt_ba.html [Accessed: 15 November,
2013]
Boeing
(2013a).
The
Boeing
Company
The
giants
merge.
[online].
Retrieved
from:
Market
(2013).
Boeings
Business
Segments
Description.
[online].
Retrieved
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from:
Greeff, G. and Ghoshal, R. (2004). Practical E-manufacturing and supply chain management. Elsevier
Ferrell, O.C. (2012). Marketing strategy text and cases. 6th edition, Cengage Learning
Hutt, M.D. and Speh, T.W. (2009). Business Marketing Management: B2B: B2B. Cengage Learning,
(pp: 308-309).
Lan, Y-C. and Unhelkar, B. (2006). Global Integrated Supply Chain Systems. Idea Group Inc (IGI)
Miller, S. (2012). Boeing Projects High Demand for Aviation Personnel in Asia Pacific. Flight Services
Communications, Singapore
Moad, J. (2007). Boeings big supply chain wager. Managing Automation Magazine, 23 July 2007
Sanders, P., (2010). Boeing has new delay for Dreamliner, Wall Street Journal, [online]. Retrieved
from:
http://online.wsj.com/article/SB10001424052748703959704575454582232255168.html
http://www.stock-analysis-on.net/NYSE/Company/Boeing-Co/Financial-Statement/Income-
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Appendices
Appendix A
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