Industry & Competitive Analysis Aerospace & Defense with a Focus on Boeing

Industry & Competitive AnalysisAerospace & Defense with a Focus on Boeing Presentation By: Robert Brinkmann, Justin Weden, Courtney Karcasinas, Stephen Gonzalez, & Adam Hall

Overviewof Boeing • Welcome to Boeing! • The worlds leading aircraft manufacturer • “Making the world better tomorrow, then it is today!”

Mission & Vision • Mission: • “Boeing is a company of amazing people working in one of the most exciting industries in the world. When you consider our many accomplishments -- from designing and building the earliest biplanes to creating and supporting today's supersonic aircraft and spacecraft -- you might think we would be content with how far we've come. But a company of our size and scope doesn't succeed by resting on its laurels; we are constantly re-examining our capabilities and processes to ensure that our company is as strong and vital as our heritage. In fact, our culture mirrors the heritage of aviation itself, built on a foundation of innovation, aspiration and imagination.” • Vision: • “The Boeing Vision is: People working together as a global enterprise for aerospace leadership.”

Background • Beginning • March 10th 1910 • Departments • Consumer • Government/Military

Operating Principles • Employs over 165,000 people across the world • Located in 70 countries • More than 140,000 employees hold College Degrees • Organized into two business units • Boeing Commercial Airplanes • Boeing Defense, Space & Security

Culture & Work Environment • Mirrors back from principles carried out throughout the history of the company • Set core values: • Leadership • Integrity • Quality • Customer Satisfaction • People working together • A diverse involved team • Good corporate citizenship • Enhancing shareholder value • Strategies effect on culture: • Building Trust • Further Penetration Into Market • “Our culture mirrors the heritage of aviation itself, built on a foundation of innovation, aspiration and imagination.”

Research & Development • The company contiues to expand its product line and service to meet emerging customer needs. • Strategies effect on R&D • Establishing internation Research Centers • Aiding to find new solutions to problems in the Asian Enviroment • Global Warming/Pollution value • Issues that the R&D department could face by implementing this strategy? • Keeping up with technology and consumer trends • High amount of spending

Marketing • Re-evalute target audience • Invest in Market Research • Marketing in the U.S. vs. Asia • Market Geographically: Population Density and Lifestyle

Operations & Productions • Benefits of expanding into the Asian Market • Increase in potential revenue • Increase in market share • Issues Related to Operations • Importing/Exporting Issues • Manufacturing Domestically

Human Resources & Structure • Relationship to most Asian countries aged 60 years or more • Employs domestic personal to mange foreign operations • Core Value: Mutual benfit to company and society

Financials and Statistics

S.W.O.T

S.W.O.T • Strengths • Finances • Diverse Business Segments • R&D Focus

S.W.O.T • Weaknesses • High R&D Cost • Execution of Contracts • Many of Government Contracts

S.W.O.T • Opportunities • Increased Defense Spending • Upward Trending Industry • Further Diversification

S.W.O.T • Threat • Competition • Uncertainty of Government Contracts • Lower Defense Spending

Key Success Factors

P.E.S.T • Political factors • Government Laws • Regulations • Policies • Tariff free large commercial jetliners since 1979 • Certifications • Restrictions • Iran, Iraq, Afghanistan, and Pakistan

P.E.S.T • Economic Factors: • Increase in Fuel costs • Enviromental restrictions • Insurance Cost • High security equipment due to terrorism threat

P.E.S.T • Social: • Cultural Factors for Multinational environments • Changing needs of demand of the customer • Due to population growth rates • EPA regulations • Carbon emmision reduction • Increase Black Box capabilties • 30 day battery life

P.E.S.T • Technological: • Computer based cost effective technology • Creates faster production of commercial airplans • Light weight Material • Composit Material • Innovation • Unmanned aircraft

Strategy • Market Development • Our strategy is to further expand into Asian markets in order to become the market leader by increasing mutually beneficial relationships with global customers.

Boeing International • 28,000 suppliers and partners internationally • More than 50 international research centers in 35 nations • “More than 8,500 of Boeing’s 168,000 employees work outside the United States”

Why China? • Demand for 4,500 additional aircraft • Growth of 6.4% GDP for 20 years • Plans to build 56 new airports • Relocate 16 airports • Renovate 91 airports • Total of 220 airports • Focus on top 3 major cities • 76% of Total Passengers

Financial Information • Chinese Market • $780 Billion • Projected new aircraft value • $670 Billion

Conclusion • Boeing should serve as the primary vehicle for achieving economic growth by actively developing aviation services, the establishment of Boeing through innovative operating, Boeing and China will be able to improve infrastructure, air traffic control and pertinent legislation. Through China’s opening-up to international air transportation development, Boeing and China will be able to foster a win-win situation.

Industry & Competitive Analysis Aerospace & Defense with a Focus on Boeing