BOEING CORPORATION

Boeing Corporation

Boeing Corporation

Introduction

Boeing Corporation, more commonly known as Boeing, is among the biggest companies in the field of aerospace and is one of the biggest producers of commercial airplanes and military aero planes. They are also operating in the area of manufacturing electronic defense systems, rocket engines, and missiles, vehicles for launching satellite and modern systems for information communication. They have their operations in more than one hundred and forty five countries all over the globe, with their headquarters in Chicago, and have more than one hundred and fifty thousand employees (Sutter and Spenser, 2007).

They showed revenues of around fifty four billion dollars during 2009, which was around four percent higher than the previous fiscal year. The operating profit of the company was around 2.8 billion dollars, and the net profit was around 2.5 billion dollars (Kemp, 2010).

Boeing is among the major organizations in the global industry of aerospace. They are one of the major contractors of Defense department of USA and NASA. Boeing has also undertaken operations in the US Air force on a number of occasions. The United Space Alliance also undertakes operations like modification, testing, and analysis of the final operations of the space fleet before its launch. Boeing has also entered in the Sea Launch venture and has a share of about forty percent in that venture.

Discussion

Balanced Score Card Approach (BSC)

Balanced Scorecard, which is also referred to as BSC, according to the business organization's strategy requires a carefully designed index system. According to Kaplan and Norton, the Balanced Scorecard is a performance management tool. It incorporates strategic layer decomposition into specific balance for a variety of performance evaluation. This index system implements the status of these indicators in different times of assessment, so as to establish a reliable basis for implementation of the completion of the corporate strategic objectives.

Since Boeing has implemented the balanced scorecard Approach in the firm, it has identified the two main characteristics, which are as follows;

Performance Measurement Tool

Balanced Scorecard is used as a strategy by Boeing into operational objectives from four different angles. These four angles are designed for accurate performance measurement. Therefore, it does not only provide Boeing with all the information necessary for effective operation, to overcome the complexity of the information and the asymmetry of the interference but these indicators also provide quantifiable and measurable assessment, which is more conducive to the comprehensive system for monitoring, and promoting corporate strategy for Boeing's success.

Communication Tool

The Balanced Scorecard also works as a communication tool. A well-designed clear and effective balance scorecard enables an effective communication within the Corporation of Boeing. It clearly describes the strategy. According to the survey, the before the implementation of the Balanced Scorecard, less than 50% of people say that they know and understand the Boeing's vision and strategy. However, after the implementation of the balanced scorecard the ratio rose to 87%.

Critical Success Factors

According to the information provided with the help of Balanced scorecard, it is evident that outsourcing has been a major factor in the success ...