Vision Statement
To become a market leader in research and development, focusing on achieving sustainability in all organizational processes and creating a diverse workplace with the capacity to achieve Boeing’s core values.
Organizational Structure
The Boeing Company uses a divisional organizational structure. The organizational structure is based on the organization’s three business units, Boeing Global Services, Defense, Space & Security, and Commercial Airplanes (Boeing, 2022). Boeing uses the Boeing Capital Corporation to support the three business units and provide financial solutions globally. The structure allows each business unit to have a leader who ensures the achievement of organizational goals and enhances decision-making by providing one leader who oversees all operations in the business unit. The executives of the business units report to the company’s CEO, a member of the organization’s board.
Diversification of Economies of Scope
The strategic plan will positively impact the diversification of economies of scope. Each strategic objective works to achieve economies of scope by encouraging further diversification to achieve specific goals that the organization has established. Sustainable manufacturing will work to enhance cost reduction and support the company’s efforts to reduce its negative impacts on the environment. The strategic goal will support Boeing’s goal of achieving greater manufacturing efficiencies. Research and market leadership are strategic goals that will ensure that Boeing continues to achieve economies of scope through innovations that enhance the production of better products at lower costs and lesser impacts on the environment. Having a diverse workplace will allow the company to tap into the available talent in the workforce and expand its access to new innovative ideas.
Training Gaps
The existing training gaps are in the organization in the maintenance, repair, and operations departments. Training younger employees in the role does not meet the expectations, and there may be a shortage if the organization does not work to ensure that the existing gap is addressed, which can hinder the strategic plan. The issue can be addressed by creating greater awareness about the opportunities in the department among students from middle school to spur interest in the division. The organization should also offer free training programs or incentives for younger people to join the division.
Human Capital Resource Needs and Development Plans
Presently, 18% of the workforce at the corporation is eligible to retire. In five years, an additional 19 percent will become eligible. Additionally, 60 percent of the existing Boeing workforce will be eligible for retirement in 10 years. To address the looming staff shortages, Boeing provides its workers with a comprehensive range of benefits that are both affordable and reflective of the organization’s values as incentives to attract and retain top talent (Woo et al., 2021). These benefits include initiatives that help employees, their families, and communities, market-leading health care, and significant tuition assistance. Programs are also offered for working parents and flexible work arrangements for all workers. Their Total Rewards portfolio includes perks, including gender transition support, subsidized backup child and elder care, 12 weeks of paid maternity leave, adoption help, and domestic partnership benefits. In the US, the Return Flight Program gives professionals in various jobs a way to resume their careers after a break.
Internal and External Environment and Monitoring Change
Boeing monitors its internal and external environment changes through SWOT analysis. Boeing’s internal strengths and weaknesses, as well as its exterior opportunities and dangers, are revealed via a SWOT analysis. For instance, Boeing’s primary rival Airbus poses the most danger. Airbus’s aim of meeting the need to transport vast numbers of people utilizing the hub system is one challenge. To accommodate this need, it created the A-380 (Woo et al., 2021). The Asian markets are expanding, and with it, so is the need for the ability to carry large numbers of people, even if Boeing’s approach of playing off the need for long-range capabilities and direct linkages has been initially practical. Shortly, Boeing could have to put some strategic countermeasures in place in reaction to the Airbus A380. The implementation plan will be adjusted to accommodate the changes through resource and effort re-direction. More resources will be channeled to rival Airbus through research and development and consider the sustainability goals.
References
Boeing. (2022). Boeing: Sustainability: Environmental, social & governance (ESG). Boeing: The Boeing Company Official Website. Web.
Woo, A., Park, B., Sung, H., Yong, H., Chae, J., & Choi, S. (2021). An analysis of the competitive actions of Boeing and Airbus in the aerospace industry based on the competitive dynamics model. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 192. Web.