Boeing Corporation Essay

From Boeing Corporate Structure (Chart 1), it shows Chairman, Executive President and Chief Executive Officer, which is represented by one individual to be responsible for Executive Vice President who also acts as Chief Financial Officer and is responsible for finance department while the president is responsible for International matter. Executive Vice President is also responsible and in charge of six other Senior Vice- Principals who in turn in charge of different departments such as law, business development and strategy, human resources and administration, communication, and internal governance. From the production management side, Boeing’s Business Development and Strategy is operating under two units, which are Boeing Commercial Airplanes and Boeing Integrated Defense Systems. Supporting these two units are Boeing Capital Corporation, Boeing Shared Services Group, and Engineering, Operations & Technology, Aircraft Financial Services and Space & Defense Financial Services. From Boeing Corporate Organizational Structure, it describes that the Aircraft Financial Services â€Å"assists commercial aircraft customers by arranging and structuring asset-based financing, managing technical assets, and providing a broad range of efficient financing solutions for Boeing Commercial Airplanes products and services†¦ provides expertise and product offerings include backstop commitments, operating leases, financing leases, sale/leasebacks, freighter conversion financing, long- and short-term financing, and senior and subordinated secured loans. Under the charge of its vice president and general manager, again the structure describes â€Å"Aircraft Financial Services works closely with Boeing Commercial Airplanes customers to develop aircraft financing solutions. Working with commercial financial institutions, the group is proactively engaged with the U. S. Export-Import Bank and other export credit agencies to ensure availability of adequate and reasonably priced financing for developing customers and regions. Aircraft Financial Services is playing an integral role, along with the Aviation Working Group, in improving the global aircraft financing infrastructure and ratifying the Cape Town Treaty, which will improve the legal framework for international asset-based aircraft financing. The group also is actively engaged to enhance and expand the capital markets. † The Space & Defense Financial Services, on the contrary, arranges and structures financing solutions for government and commercial customers around the world. Vice President of the financial corporation â€Å"and his group work closely with Boeing’s Integrated Defense Systems business unit to help arrange funding for satellites, military transports, tankers and rotorcraft. Specialized projects and programs include military-related products, international defense financing, private-public partnerships, project financing, launch vehicles, satellites and related space systems. † The value creation in the company’s capital business unit is based upon â€Å"discriminating financing solution† with a primary mission is to arrange, structure, and provide financial assistance for the sale and delivery of Boeing products and services to other business units. It also aggressively solicits and arranges third party financing for its customers as well as manages its finance and financial risk properly. Boeing recognizes the diverse and highly skilled workforces who have great contribution to its success and has led the company to lead the world as the â€Å"world’s second largest† commercial and defense aircrafts. The people culture represents a lifelong learning experience. The diversity of the people also determines the culture of the company, which is for some, it is refreshing. From human development perspective, Boeing provides an opportunity for its employees to improve their skills through company-paid tuition program, through Boeing Leadership Center, and a continuous learning through other programs outside the company so that employees can â€Å"pursue studies in unlimited fields and environments† According to Boeing, its success is driven by its â€Å"ability to provide our customers with the right solutions at the right time and the right cost,† more effective in addressing â€Å"future evolving requirements for capability-driven solutions,† and is able to further â€Å"improve execution, reduce organizational complexity, and improve competitiveness† for its customers. In its Philanthropy Report, Boeing claims its â€Å"commitment to being a good corporate citizen. In fact, good corporate citizenship is a core value of our company and is integral to the way we conduct business around the globe. In addition to this being a social imperative for us, we see improving the quality of life in communities where we live and work as a key element to remaining viable and vital in today’s global marketplace† (2). Executive members are engaging in the activity of several nonprofit organizations including in college and university while employees are engaging in volunteer activities and other community programs. The company continues expanding as it generates new innovations. With expansion, its capabilities and capacity also increase, from human resources development to â€Å"more efficient members of its commercial airplane family; integrating military platforms, defense systems and the war fighter through network-centric operations; creating advanced technology solutions; providing broadband connectivity on moving platforms including airplanes; and arranging innovative customer-financing solutions. † The company boasts of its management and leadership success in the field of commercial aircraft and integrated defense system. Its strategy is to provide â€Å"the right people for the right job, technologies, processes and performance at the right time and in the right place across the company worldwide. † And to take a leadership role by creating a primary supports to its business units through several organizational groups such as Phantom Works, Intellectual Property Management, and Information Technology, as well as in the Engineering, Operations, Quality, and Information Technology process councils. According to Boeing, â€Å"through all its activities, Engineering, Operations & Technology helps ensure the future success of Boeing by winning strategic new programs, providing innovative technology and process solutions, transforming Boeing into a global network-centric enterprise, enhancing and protecting the company’s intellectual capital, and fostering a culture of innovation. † Looking at its success, Boeing has had great strategies but the recent strategy of cost management has impacted the company, especially employees downsizing. This will eventually affected the company’s future performance as the second of the world’s leaders in aircraft industry. Expansion increases cost but one best thing is to keep its specialty. The only strategy I would suggest for Boeing to maintain its healthy organizational is to reduce its expansive activity, such as investor’s outreach program or realty activity, while maintaining its human resources. Corporate executives’ compensation should also be taken into consideration because no executives are successful without the employees.