Lecture 7: Managing Organisations; Integration session Chapter 3, 5, 10
Key Focuses of this lecture:
- Managing organisation; The Boeing Corporation: purpose, motivation, strategy, structure,
opportunities & threats from the external environment, operations management, ethical
practice by organisations
1. The Boeing Corporation: What others dream, we do
opportunities& 1. Purpose &
Boeing (1881- motivation
1956) 2. Strategy–
3. 5. Operations
Organisational 4. Leadership management
“Connect and protect people globally”
Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners
and defence, space and security systems.
- Design, assemble and support commercial (passenger and freight carriers)
- Design, assemble and support defence systems (government customers worldwide)
- Design and assemble satellites and launch vehicles
- Develop networking technology and network-centric solutions
- Provide financing solutions
- Develop advanced systems and technology (future needs)
Private Sector: for profit
- 1916 Boeing incorporates company for $100,000; buys 998 of 1,000 shares
- No. shareholders 1996 = 73,060.
- 2012: 171,700 employees; revenue USD 81.70 billion, profit USD3.90billion, total assets
USD88.90 billion, total equity USD5.96 billion 2. Strategy
Vision + profit focus = “People Working together as one global company for aerospace leadership”
* Company Over-view: Boeing is the world's largest aerospace company and leading manufacturer
of commercial jetliners and defence, space and security systems. A top U.S. exporter, the
company supports airlines and U.S. and allied government customers in 150 countries. Boeing
products and tailored services include commercial and military aircraft, satellites, weapons,
electronic and defence systems, launch systems, advanced information and communication
systems, and performance-based logistics and training.
* Corporate-level strategy
- E.g. Design, environmental concerns “Designed for the Environment” Boeing (Jul 10, 2012)
- Cost: Lean enterprise, global out-sourcing
* Business-level strategy
- E.g. Commercial Airplanes
- Differentiation: Dreamliner 787 (Long-range, Fuel efficient)
- Cost: global out-sourcing, lower price
Opportunities and threats from the external organisation environment: We can also look at the
external environment as
general and task
E.g. Financial Times: Boeing
Dreamliner grounding; Kylie
Peterson’s article - A Wing
and a Prayer: Outsourcing
Where do the
from for Boeing? 3. Structure
- Boeing Commercial Airplanes
- Boeing Defence, space & security
- Boeing Capital Corporation
2. Functional support across divisions
- Engineering, operations & technology
- Shared Services group (Boeing website, n.d.)
* Parts: 50 supplier contracts; 28 international
- Other companies e.g. doors (Latecoere, France + Saab, Sweden)
- Boeing subsidiaries: e.g. wing flaps (Boeing Canada) (Borchardt, 2011)
- Inter-organisational relationships: e.g. The University of Sheffield, Advanced manufacturing
Research Centre; Engine & parts technology (Sharpe 2012) 4. Leadership
The six Boeing leadership attributes; a Boeing leader: confidence first, then desire
- Charts the course.
- Sets high expectations.
- Inspires others.
- Finds a way.
- Lives the Boeing values.
- Delivers results.
“Boeing people have been the source of our innovation and success for nearly 100 years - they
are our leaders. Their creativity, passion, and desire to develop the next great innovation have
made Boeing the world's aerospace leader -- from the 1916 B & W Seaplane and the aerial
refueling KC-135 jet tanker, to today's revolutionary 787 Dreamliner and combat-proven F/A-18
Hornet. Everyone is a leader. And as our people grow as leaders, our company grows.
Leadership development is the foundation for our continued success at Boeing. Through our
disciplined approach to leadership development, guided by leaders at every level of the company,
we improve the skills of our people.
We really want our leaders to share their experiences, and practices, and to teach others. Spend
their time mentoring, teaching and developing people.” 5. Operations
OM model draws together four key decision areas; operations strategy, design, planning and
control and improvement.
* Process types defined by:
- The volume and variety of ‘items’ they process
- Process tasks: nature of activity
- Process flow: the ‘tempo’
Where does Boeing sit? Why? What