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Boeing Company

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Boeing is an airline company that deals with the manufacturing, designing, developing, and selling the commercial jetliners, satellites, human space flights, missile defense, military aircrafts, and launch services. The company was established in 1992, following the merger between Boeing and EADS airbus parents. The company opted for diversification of its business and strategies, in order to maximize on the returns and spread the risks. Besides, the revenue diversification is essential in hedging its incomes against the fluctuation, in the demand in the airline transport sector. However, Boeing has reported a decline in the profit margins and returns because of inflationary pressure on the raw materials used in the manufacturing process.

Analysis of Internal Environmental

Internal environmental analysis plays a significant role in an organization. This process entails evaluating the operations and activities of the organization that are conducted internally. In evaluating the internal factors of Boeing’s, the Company must review its policies and operations, including the missions and policy frameworks. Other aspects of micro environmental analysis include leadership, marketing strategies, and production capacity of the organization. The purpose of why it is important for an organization (including Boeing) is to evaluate and analyze its internal operations to help the firm in the identification of the opportunities and risky areas within the organization that need to be re-examined. This process is very exhaustive that allows Boeing to identify and amend/correct the internal factors and forces that to limit the growth potential of the company.

Boeing Co. has the capacity to get access to resources for the management and running of the organization. The company has both tangible and intangible resources, for instance, Boeing has adequate R&D facilities, highly trained and technically experienced staffs, and the access to raw materials required in the manufacturing process. In terms of intangible resources, Boeing engines have a strong brand image that gained popularity during the American Dream and Industrial Revolution. The core competence of Boeing is the strength of engineering and technical capacities. On the other hand, Boeing has invested into adequate resources in research and innovation. In terms of market dominance, Boeing has an edge over the competitors because of the strong brand portfolio and global marketing and distribution networks. Financial stability is another internal factor that affects the micro-performance of Boeing. Boeing boasts of sustainable financial stability.

SWOT Analysis

SWOT Analysis represents analyzing an organization in terms of strengths, weaknesses, opportunities and threats that have the potential or ability to affect the operations of Boeing Co. in particular. Through the SWOT analysis, the managers of Boeing Co. create an overview of Boeing’s strategic situation. The SWOT analysis technique is founded on the assumption that the effectiveness of the strategy is derived from the internal (weaknesses and strengths) and external factors (opportunities and threats) that are off the control of the firm. Boeing uses the “fit” theory that emphasizes on the maximization of the firm’s opportunities and strengths, as well as minimizes the threats and weaknesses posed to the firm.

Factor Location

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Type of Factor





  • Strong and sound financial policies and performance
  • Technically and professionally skilled workforce
  • Brand image and loyalty among the customers


  • A decline in the performance of the integrated defense and military department
  • Fall in the productivity of the labor force following industrial weaknesses


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  • The rise in the demand for commercial airlines globally especially in India and China
  • The industrial growth potential
  • The rise in defense and military spending from the super power countries such as U.S and Russia
  • Technological advancement and integration


  • The rise in the cost of production and raw materials
  • Stiff and intense competition from other manufacturers
  • Over reliance on the leading military and defense spending nations like U.S. and Russia government contracts
  • Strict government regulations and legislations and taxation policy

International Strategies

The main international strategy that Boeing applies in its operations is outsourcing. Although outsourcing has been a successful strategy that has worked for Boeing, there is a number of controversies, political drama, and complications that surround this international strategy, especially when the giant aircrafts are involved. The company outsources labor and human resources from Russia and India because of the cheap wages and high technical skills of the Russians. Besides, Boeing seeks foreign supplies of the best manufacturing skills and aerospace technologies, regardless of the economic factors incurred. The company also enters into the offset agreement contracts with the other euro plane manufacturing and designing countries, such as India and China, through a swap manufacturing and designing the agreements. These international collaboration and strategies have enhanced the success of Boeing amid the stiff competition in the industry.

Organization Structure

Boeing prefers a matrix organization structure, where each department is headed by a senior vice president, development officers, communication engineers, operations and technical heads, human resources, and public/legal officer.  This organization has a wider span of control of approximately 164,000, covering more than 70 countries, but the decision is centralized at the executive level down to the lower levels. Boeing therefore practices the vertical hierarchy organization structure, where the key decisions, regarding the management and operations of the company, are made by the top management organ. Horizontally, Boeing is departmentalized with each department charged with the responsibility of coordinating all the activities that fall within the jurisdiction of the department. However, the head of the departments is answerable to the top supervisors. The top most personality at Boeing is the CEO.

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