Examination of Success of Boeing The Boeing Company is the world's la

The Boeing Company is the world's largest manufacturer of commercial jets; it also produces military aircraft and missiles. It developed a large backlog in the early 1990s built on the strength of its commercial transport orders. It had particular success with its 737 jet introduced in the 1960s, and the industry is anxiously awaiting the introduction of the 777 jet, expected in the mid-1990s. The 777 is a joint project with Mitsubishi.

Boeing's success is due in part to the industry itself: the commercial airplane industry has recently experienced large growth. However, Boeing's primary American competitor, McDonnell Douglas, has not enjoyed the same financial success that Boeing has during the same period, and so Boeing's success must also be attributed to its organization and management. This research examines Boeing's success in terms of its organization.

Boeing Corporation uses a hybrid organizational structure with some of its functions centralized and others decentralized. Manufacturing takes place in Seattle, where the company headquarters is also located. This geographic arrangement means that the company is able to avoid some of the problems that decentralization introduces into organizations. For example, although accounting, payroll and other administrative tasks are handled centrally, the fact that the bulk of the company's operations are based in the same area means that there are fewer delays than might be encountered in o

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n profit from 1989 to 1990 (an increase from 3.3 percent to 4.8 percent in profit margin) and 1990 to 1991 (an increase in profit margin from 4.8 percent to 5.3 percent) (Siegel, October 8, 1993, p. 554). By successfully combining human resource effectiveness with ongoing profits, Boeing meets the criteria of organizational success by most commonly used standards. Strategic Planning Boeing's wide family of planes also allowed it to be selective when considering new aircraft projects. The company can be derivative in its design of new aircraft, building on the success of other aircraft in its product family. Thus it could begin developing a new aircraft (the 777) while continuing to focus attention on problematic areas, such as the 747-400, because the new aircraft is not of entirely new design, but is based on the earlier successful 767. But Boeing does not rely entirely on its aircraft for its marketing mix. The company was named as the primary contractor for NASA's space station in August 1993, a coveted contract that should give the company lucrative returns over the life of the contract (Siegel, October 8, 1993, p. 554). This contract demonstrates the corporate strategy that Boeing pursues in its overall business portf

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