Boeing Internal Analysis

Boeing Internal Analysis Purpose This report discussed the components of internal analysis, competitive advantage, and strategic competitiveness of Boeing Company. This is done by analyzing the tangible & intangible resources, capabilities, and core competencies in order to clarify Boeing’s strengths and weaknesses. Resources Exhibit 1 Tangible| Intangible| Manufacturing plants| Boeing’s digital design software| Composite and metal materials| Dynamic assembly line| Headquarters building| â€Å"Moonshine teams† strategy|Machinery used for lean production| Boeing’s brand name| Financing/ Launch aid from NASA | | Boeing’s newest jet, the 787, is made out of composite plastics and carbon fiber in order to be more efficient and comfortable. The new materials allow the plane to be pressurized at a lower elevation, which results in less jet lag. Also, the cabin humidity can be raised to around 20% because these materials do not corrode like metals. Through the use of lean productions, Boeing significantly reduced the cost of machinery used for manufacturing, along with inventory costs.For financial resources, Boeing received $12 billion from NASA to develop technology. They also received $1 billion in loans from Mitsubishi, Kawasaki, and Fuji for the development of the 787. Furthermore, Boeing had received launch aid from U. S. Government subsidies. Boeing has a reputation as one of the best manufacturers of commercial and military jets. Its strong brand and name represents the position in the aerospace industry. Boeing has encountered some scandals in upper management, however they are trying to restructure its reputation and make a comeback.Capabilities Exhibit 2 Capability| Valuable| Rare| Costly to imitate| Non-substitutable| Dynamic Assembly| Yes| Yes| Yes| Yes| Lean Production| Yes| Yes| Yes| Yes| Composite Materials| Yes| Yes| Yes| Yes| Lean production at Boeing was a very important and effective decision. They were able to de sign equipment that cost amazingly less and was much more efficient than the machines they were using at the time. A router was built for 0. 2% cost of their larger one and a drill machine was built for 5% cost of the previous model.They used a hay loader to put the seats into the planes, rather than using a crane, which reduced production time from twelve hours down to only two hours. Production of landing gear components took 32 moves over 10 months, but with the lean production strategy it only took 3 moves and the time span was reduced to 25 days. Dynamic assembly was an important change at Boeing as well. Before, planes had to be jacked into position at one station, worked on, down-jacked from the station, and moved with a power cart to the next station.This process could take up to two, ten hour shifts. By using a sled that drags the plane two inches per minute, Boeing reduced production time in half. Core Competencies One of Boeing’s core competencies would be utilizin g composite plastics in the manufacturing of their jets. This is valuable because it allows them to build a jet that can travel faster, farther, and with more comfort than on previous jets. It can be considered costly to imitate because when Airbus built a model to compete, the A350, its performance was unable to compare to that of Boeing’s 787.The composite materials are non-substitutable because it is currently the highest grade technology jet manufacturing industry. It is rare because only Boeing and Airbus are in the commercial jet industry, and Airbus’s model cannot compare. Another core competency would be Boeing’s ability to use lean production. This is valuable because it allowed Boeing to free up 1. 3 million square feet of space and sell seven buildings by switching to a â€Å"just-in-time† inventory. Also, they were able to reduce costs of equipment and speed up the manufacturing process drastically.It is socially complex because it uses numero us different strategies to create one finished product. There are no substitutes that compare to lean production as far as time and money savings, and it is rare because Airbus and Boeing are the commercial jet companies to use it. The third core competency is Boeing’s dynamic assembly line. This was a valuable change to Boeing because it reduced assembly time by 50%, or from 22 days down to 11 days. The planes move 80 feet every shift and lights determine the status of the assembly line.Dynamic assembly lines are costly to imitate and rare due to the size of the plant and the components used in order to pull such a large craft throughout the building. The only substitute of a dynamic assembly line is a static assembly line, and the dynamic one performs much more efficiently. Weaknesses * Ineffective top management Boeing was recently faced with the scandals which hurt the reputation of Boeing. The top management recognized the problem and tried to figure it out by effective management strategies. * Outsourcing In 1997, Boeing lost $1. billion against their earnings due to problems with the supply of critical components. They had to halt the production of the 737 and the 747. In 2006, suppliers for Boeing’s 787 fell behind schedule which resulted in a delay of production. Value Chain Analysis The industry value chain is the process from the suppliers of the raw material to the end customers who demand the service of transportation. Boeing found itself in the crucial situation of having lost market share to Airbus. Boeing had to act in response by enhancing customer benefits to recapture an advantage over its competitors.The fundamental idea was an innovative renovation in the supply chain process, which would redefine Boeing’s role as a coordinator and integrator rather than simply the manufacturer. At the heart of the supply chain transformation process was the strategy to outsource more than 70% of the 787’s production. Boeing int roduced new project management techniques by sharing risk with partners. The companies sharing risk transformed the entire 787 program. The risk shared by partners in investing their own capital in the 787 program cut approximately 55% of Boeing’s development cost required for the program, which was $6 billion.Boeing’s outsourcing process has dramatically reduced the manufacturing time from roughly two weeks to as little as three days. Saving such significant time greatly decreases labor and inventory costs for the company as outsourced components reach the assembly site with pre-fitted sub-systems. This approach streamlines and adds efficiencies to the assembly process. (Boeing value chain report, 2010) Competitive Advantage * Works more with both its customers and suppliers to design and build the best aircrafts on the market. R&D departments which are able to design and implement better aircrafts which reduce the costs and make more efficiency. * Flexible work sched ules for the employees. * Boeing’s name and brand bring a strong competitive advantage between Boeing and Airbus. Exhibit 3 Profitability ratios| Boeing| Airbus| Net profit margin| 3. 6%| 0. 3%| Gross profit margin| 18. 02%| 11. 95%| Asset turnover| 1. 1| 0. 55| Return on assets| 6. 16%| 1. 07%| The profitability ratios show that Boeing had a moderate and good profitability compare with other company (such as Airbus).The return of assets of over 6 % shows an overall strong earning power of Boeing’s total assets. Strategic Competitiveness Boeing has implemented outsourcing to build better and more efficient airplanes by using portions of other companies’ knowledge and research with their own. This has helped them produce airplanes at a much lower cost. Boeing's strategy was to develop the 787 at a very low cost. By doing this, Boeing believes it can compete with Airbus' new Super Jumbo project. Boeing focused on medium capacity aircraft which can hold 250 people, whereas Airbus focused on super jumbo jets, which contain 550 people.Overall Boeing has achieved higher quality and efficiency. Boeing pins its hope on a different strategy and does not take the hub-and-spoke concept as a given. The Boeing 787 is the solution for non-stop, point-to-point flights between secondary cities. Conclusion Boeing’s ability to develop lean production, use of composite materials, and dynamic assembly methods are their strengths. Their weaknesses include poor upper management and unreliable outsourcing. In the future, Boeing needs to find higher quality upper management and more reliable suppliers.

Internet Exercises Appendix Chapter 1

INTERNET EXERCISES APPENDIX Chapter 1: Marketing's Role in the Global Economy Internet Exercise: Wal-Mart You can check out the on-line shopping experience of Wal-Mart on the Web by going to www. wal-mart. com and clicking on â€Å"Go Shopping. † For related discussion in the Basic Marketing text, see page 8. Internet Exercise: ONSALE Auction Supersite The ONSALE Auction Supersite features a number of on-line auctions in which different sellers auction off computer, consumer electronics, and other products to buyers. Visit the web site at www. onsale. com and review an open auction for a consumer electronics product.What are the advantages and disadvantages of this market for sellers? For buyers? For related discussion in the Basic Marketing text, see page 17. Internet Exercise: World Trade Organization The World Trade Organization is a very important force behind the global move toward free trade, but sometimes there are still disputes. Go to the WTO web site at www. wto. org and find out how the WTO settles disputes. Do you think that this procedure favors the developed nations, the less-developed nations, or neither? Give your thinking. For related discussion in the Basic Marketing text, see page 22.Chapter 2: Marketing's Role within the Firm or Nonprofit Organization Internet Exercise: L. L. Bean The L. L. Bean web site (www. llbean. com) offers consumers a lot of information, including information about national parks. Do you think that this helps Bean to build relationships with its target customers? For related discussion in the Basic Marketing text, see page 40. Internet Exercise: Lilly Lilly, the pharmaceutical company, makes the effort to be socially responsible. To find out more about Lilly’s corporate citizenship, go to the Lilly home page (www. lilly. om) and click on company information and then click on corporate citizenship. For related discussion in the Basic Marketing text, see page 42. Chapter 3: Focusing Marketing Strategy with Segmentation and Positioning Internet Exercise: McDonald’s McDonald’s has about 22,000 restaurants in 109 countries. Go to its web site, www. mcdonalds. com, and determine what country is its largest market outside the U. S. Do you think it offers more or less opportunity for future growth than the U. S.? For related discussion in the Basic Marketing text, see page 67. Internet Exercise: MarriottCourtyard by Marriott targets business travelers. Visit the Marriott web site, www. marriott. com, and write down what you think are the qualifying and determining dimensions for a businessperson choosing Courtyard over Marriott’s other hotel options. For related discussion in the Basic Marketing text, see page 81. Chapter 4: Evaluating Opportunities in the Changing Marketing Environment Internet Exercise: Tupperware If you were a new marketing manager at Rubbermaid, you might be interested in finding out more about Tupperware, an important competitor in some markets.Wh at type of relevant information could you get by going to the Tupperware web site, (www. tupperware. com)? For related discussion in the Basic Marketing text, see page 101. Internet Exercise: Consumer Reports The Consumer Product Safety Commission sometimes requires auto makers to issue recalls. However, not all consumers learn about the recalls. Go to the Consumer Reports web site (www. consumerreports. com/recalls) and check to see if there has been a recall on a year and model of car or truck that is of interest to you (say, one owned by your family). For related discussion in the Basic Marketing text, see page 110.Chapter 5: Demographic Dimensions of Global Consumer Markets Internet Exercise: CIA’s World Factbook Visit the web site for the CIA’s World Factbook (www. odci. gov/cia/publications/factbook) and compare the profile data for Canada and Australia. How are they similar and how are they different? For related discussion in the Basic Marketing text, see page 133. Internet Exercise: JNCO Revatex grew rapidly when its wide-leg JNCO brand jeans became a hit with teens. Do you think that its web site (www. jnco. com) does a good job appealing to teens? Why? For related discussion in the Basic Marketing text, see page 138.Chapter 6: Behavioral Dimensions of the Consumer Market Internet Exercise: SRI’s VALS Go to the SRI Internet site (http://future. sri. com), click on VALS, and then click on â€Å"direct to the survey† to review the VALS questionnaire. If you wish, complete the short questionnaire on-line. SRI will provide you with your VALS profile. For related discussion in the Basic Marketing text, see page 164. Internet Exercise: GAP To make it easier for consumers to visualize how certain fashions will look together, the GAP’s web site (www. gap. com) has a â€Å"get dressed interactive† feature.Go the GAP web site and check out this feature. Do you think that it makes it easier to evaluate a potential purch ase? For related discussion in the Basic Marketing text, see page 173. Chapter 7: Business and Organizational Customers and Their Buying Behavior Internet Exercise: Computer Discount Warehouse At the Computer Discount Warehouse web site (www. cdw. com) a buyer can easily compare the features and prices of competing products. Click on desktop computers and then on the CDW Compare feature to do a comparison of two â€Å"high end† computers from two different manufacturers.How helpful would this analysis be if you were a computer buyer? For related discussion in the Basic Marketing text, see page 187. Internet Exercise: Thomas Register The Thomas Register has a very comprehensive database of firms at its web site (www. thomasregister. com). Click on search and it will prompt you to register. After you register (it’s free), search by product/service on the keyword welding. How could the information provided by your search help you if you sold a product that was used by fir ms in the welding industry? How could it help you if you were a buyer looking for a supplier of welding products?For related discussion in the Basic Marketing text, see page 199. Chapter 8: Improving Decisions with Marketing Information Internet Exercise: Yahoo Assume that your boss has asked you to do a customer satisfaction survey. As part of a situation analysis, you want to get ideas about what others have done in this area. Go to the web site for the Yahoo search engine (www. yahoo. com). In the dialogue box type â€Å"customer satisfaction survey† (include the quote marks) and click on search. Look at some of the web sites identified. How helpful is this ?How could it be improved? For related discussion in the Basic Marketing text, see page 222. Internet Exercise: Perseus Perseus Development Corporation sells software that allows a user to create on-line questionnaires that can be distributed by e-mail or used on the Internet. To see samples of on-line questions, go to the Perseus web site (www. perseus. com) and then click on Survey Samples. Do you think that it’s more convenient for a consumer to complete a survey on-line or with pencil and paper? For related discussion in the Basic Marketing text, see page 227.Chapter 9: Elements of Product Planning for Goods and Services Internet Exercise: Procter & Gamble Go to the Procter & Gamble web site (www. pg. com) and click on P&G Products. Find out the brand names of the different shampoos that P&G makes. How are the different brands positioned and what target markets do they appeal too? For related discussion in the Basic Marketing text, see page 259. Internet Exercise: FDA The FDA’s web site has a page on the new food label requirements that proclaims â€Å"grocery store aisles have become avenues to greater nutritional knowledge. Go to that page at Internet address (www. fda. gov/opacom/backgrounders/foodlabel/newlabel. html) and review the actual label requirements. Do you use this information in deciding what products to buy? For related discussion in the Basic Marketing text, see page 262. Chapter 10: Product Management and New-Product Development Internet Exercise: WebTV A number of software, hardware, and programming firms are working on products that deliver Internet information via TV. Explore the WebTV web site (www. webtv. com) to find out about one aspect of this idea.Do you think that many people will be interested in quickly adopting WebTV? How does it stack up when you consider the characteristics of an innovation reviewed above? For related discussion in the Basic Marketing text, see page 275. Internet Exercise: Marketing Intelligence Service Marketing Intelligence Service, Ltd. is a U. S. -based firm that tracks new consumer packaged goods–both successes and failures. Go to its web site (ourworld. compuserve. com/homepages/mktgintelsvc) and click on the What’s New button and then review its selections for new product innovations of the year.Do you think that these products offer customers superior value, or are they just me-too imitations? For related discussion in the Basic Marketing text, see page 283. Chapter 11: Place and Development of Channel Systems Internet Exercise: Gateway Gateway is a computer company that uses direct distribution to its customers in the U. S. Go to the Gateway web site (www. gateway. com) and think about how it is organized. Given that Gateway doesn’t use different channels of distribution to reach different types of customers, how does it segment the market?For related discussion in the Basic Marketing text, see page 301. Internet Exercise: Avon Avon sells cosmetics and other products through independent sales representatives (agents) and also though a catalog (both on-line and printed). Review the Avon web site (www. avon. com). Do you think that Avon’s independent sales representatives would view the web site as competing for their customers’ purchases and a source of conflict or would they think that it helps them promote the product and identify new prospects? Explain your thinking. For related discussion in the Basic Marketing text, see page 317.Chapter 12: Distribution Customer Service and Logistics Internet Exercise: Virtual Logistics Directory Large corporations often turn to other firms that specialize in logistics–transportation and warehousing services, consultants, developers of computer systems, and the like–to help implement the physical distribution aspects of their marketing strategies. The web site of the Virtual Logistics Directory (www. logisticdirectory. com) lists many logistics specialists and what they do. Go to the web site and select the Integrated Logistics category.Review the descriptions of some of the firms listed, and then pick one. Explain why a large corporation with a logistics problem might seek its help rather than just trying to tackle the problem internally. For related discussion in th e Basic Marketing text, see page 329. Internet Exercise: North Carolina Ports Authority A firm that is just starting to export to international markets may want help figuring out what shipping services are available. The North Carolina Ports Authority’s web site (www. ncports. com) helps provide such information.Go to the web site, select Port Services, and review the different firms and agencies that might be able to provide you with help if you had to ship a large quantity of furniture to the Middle East. Identify an organization from those listed that you might want to contact first, and indicate why. For related discussion in the Basic Marketing text, see page 334. Chapter 13: Retailers, Wholesalers, and Their Strategy Planning Internet Exercise: INTERSHOP INTERSHOP Communications develops and sells software that companies use to create â€Å"virtual stores† for Internet retailing.For example, it allows a seller to create an on-line catalog that is easy for consume rs to use and it has tools for analyzing sales and keeping track of customers. Go to the firm’s web site (www. intershop. com) and select Products. Review the information provided. (If your computer is equipped to view RealVideo video, you might also want to watch the demo. ) Do you think it would be easier for consumers if all Internet sellers used a common system, such as this one, rather than coming up with many different arrangements? Briefly explain your thinking. For related discussion in the Basic Marketing text, see page 359.Internet Exercise: Fastenal Visit the Fastenal web site (www. fastenal. com). Check out the different aspects of the Fastenal web site. Give examples of ways that the web site is intended to help Fastenal’s customers and suppliers. For related discussion in the Basic Marketing text, see page 370. Chapter 14: Promotion–Introduction to Integrated Marketing Communications Internet Exercise: Sony Sony produces a very wide variety of prod ucts. Does the information available on the web site (www. sony. com) appear to be part of an integrated marketing communications effort? Explain your thinking.For related discussion in the Basic Marketing text, see page 386. Internet Exercise: Campbell’s Soup Visit the Campbell’s Soup web site (www. campbellsoup. com). Does the web site make it easy for you to get information? Does it make you want to spend more time and get more information? Explain your answer. For related discussion in the Basic Marketing text, see page 395. Chapter 15: Personal Selling Internet Exercise: Motivating Tape Company The Motivating Tape Company sells various sales training videos. Go to the firm’s web site at www. achievement. com and then scroll down and select Sales Training.Review the list of sales training videos offered. If a sales manager were going to rely on some of these tapes for training people just moving into a sales career, what key areas of sales training would he have to cover by some other approach? For related discussion in the Basic Marketing text, see page 427. Internet Exercise: Symantec Symantec is the maker of various software products, including ACT! personal management software that is used by many salespeople to organize information about their customers, sales calls, and tasks they need to do. Visit the ACT! web site (www. ymantec. com/act) for information about this product. Give a few specific examples of ways that a salesperson could use ACT! to build better relationships with customers. For related discussion in the Basic Marketing text, see page 431. Chapter 16: Advertising and Sales Promotion Internet Exercise: NarrowCast Media NarrowCast Media is an Internet firm that provides services for firms that want to advertise on the Internet and also for web sites that host Internet advertising. Go to its web site (www. narrowcastmedia. com) and read about NarrowCast Media’s various services.Briefly describe the main benefit s it provides for advertisers and the main benefits it provides for host sites. For related discussion in the Basic Marketing text, see page 455. Internet Exercise: Catalina Marketing Catalina Marketing Corporation is a supplier of in store, electronic scanner activated consumer promotions. Go to the Catalina web site (www. catalinamktg. com) and select Manufacturer Solutions, then review information about its Sampling Programs. Briefly describe, in your own words, how the sampling program works and describe a situation in which a manufacturer might find it useful.For related discussion in the Basic Marketing text, see page 468. Chapter 17: Pricing Objectives and Policies Internet Exercise: International Currency Converter Xenon Laboratories has set up a web site with a system that uses current exchanges rates to convert one country’s currency to another. Go to the web site (www. ausmall. com. au), scroll down to the reference section, and click on International Currency Conv erter. How much is a $100 U. S. worth now in Thai bhats, British pounds, and German marks? How do those number compare with June of 1998 (See Exhibit 17-6)?For related discussion in the Basic Marketing text, see page 486. Internet Exercise: ValuPage Catalina, a firm that specializes in targeted sales promotions, set up an on-line system called â€Å"ValuPage. † Consumers can print out a sheet with a list of discounts that sponsoring supermarkets redeem with â€Å"web bucks†Ã¢â‚¬â€œwhich the consumer can then use for any future purchase at the store. Go to the web site (www. supermarkets. com), enter your zip code, and review the system. Do you think this system will be more or less susceptible to fraud than regular coupons? Explain your thinking.For related discussion in the Basic Marketing text, see page 492. Chapter 18: Price Setting in the Business World Internet Exercise: Sporting Auction Evergreen Information Technology launched an Internet auction site for many d ifferent categories of sporting goods. Go to the auction web site (www. sportingauction. com) and review the activities in two auction categories, one for a sport that is in season and another sport that is not. For example, you might compare snowboarding and golfing. Do you think that season makes a difference in the bidding activity? Explain your thinking.For related discussion in the Basic Marketing text, see page 524. Internet Exercise: Tiffany Tiffany & Co. is widely recognized as one of the world’s premiere jewelers. It commands high prices for what it offers. Go the Tiffany web site (www. tiffany. com) and review the different sections. Do you think that the web site communicates superior customer value to the Tiffany target market? Explain your opinion and point to specific aspects of the web site that support your view. For related discussion in the Basic Marketing text, see page 528. Chapter 19: Implementing and Controlling Marketing Plans: Evolution and RevolutionI nternet Exercise: BaRaN Systems BaRaN Systems Ltd. has developed a software product called SQC for Excel that works with the Microsoft Excel spreadsheet program and makes it easy to do the types of analysis that are useful for quality management. Go to its web site (www. baran-systems. com) and click on the link for SQC for Excel and then at that web page scroll down and look at the â€Å"quick tour† section. What is it about the graphs that makes it easy to see which areas need special attention? For related discussion in the Basic Marketing text, see page 544. Internet Exercise: CopernicusCopernicus: The Marketing Investment Strategy Group has developed a comprehensive procedure, The Copernican Decision Navigator, that its consultants have used as the basis for performing marketing audits for many major corporations. The procedure determines if the firm is using â€Å"best practices† in planning and implementing its strategies. Go the Copernicus web site (www. copern icusmarketing. com), scroll down to the items under â€Å"about Copernicus,† and select the link for Marketing Best Practices. Review what is involved in the Copernicus procedure. What are the advantages of having outside experts do this sort of audit?For related discussion in the Basic Marketing text, see page 562. Chapter 20: Managing Marketing's Link with Other Functional Areas Internet Exercise: Cductive CDuctive offers an on-line service in which the customer selects certain tracts of music and, for a fee, CDuctive will create a custom CD of those selections. Explore the CDuctive web site (www. cductive. com), and then list what you think are the major (1) strengths and (2) weaknesses of its approach. For related discussion in the Basic Marketing text, see page 578. Internet Exercise: ITW ITW, Inc. has a variety of different businesses that produce different products.Go to the ITW web site (www. itwinc. com) and then select the list of other ITW web sites. After you brie fly review the descriptions of ITW’s different web sites, select ITW Brands and study it in more detail. From a cost standpoint, does it make sense to have a unit like ITW Brands? Why or why not? For related discussion in the Basic Marketing text, see page 581. Chapter 21: Developing Innovative Marketing Plans Internet Exercise: Survey of Buying Power The Survey of Buying Power has an on-line site that is available on a pay-for-use basis. However, a sample section is available without charge.Go to the web site (www. sbponline. com) and select Samples and then select Samples of Site97. Look at the Income Trend Report (and others if you wish). How would this information be helpful to a retail chain that is considering a new facility for this sample market? For related discussion in the Basic Marketing text, see page 604. Internet Exercise: Maytag Go to the Maytag web site (www. maytag. com) and review the information about the Neptune line. Do you see any indication that the st rategy for Neptune is changing from what is described in the case that introduces this chapter? Explain your point of view.For related discussion in the Basic Marketing text, see page 614. Chapter 22: Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges Internet Exercise: Ikea Ikea is an innovative furniture company that is using its web site to refine its strategy. It has always relied on information technology to keep costs low by tracking sales at individual stores and using the information to control inventory and reduce shipping costs between the factory, distribution centers, and its massive retail stores. Go to the Ikea web site (www. ikea. com). What else does the web site tell you about Ikea’s strategy?Will the web site help Ikea offer superior value? Explain your answer. For related discussion in the Basic Marketing text, see page 629. Internet Exercise: Obvious Implementations Obvious Implementations Corp. is a small consulting and manufacturing firm. Go to its web page (www. obviously. com) and then select How to stop junk mail, e-mail and phone calls. Read through the information and, if you wish, follow some of the links to other sites listed. Should it be easier to avoid mail, e-mail, and calls you don’t want? Explain your thinking. For related discussion in the Basic Marketing text, see page 636.