MANAGEMENT PLANNING

Planning Functions of Management

Planning Functions of Management

Introduction

The purpose of this paper is to explain the planning functions of management for the organization known as Boeing. Boeing is an aerospace company; they build passenger airplanes, military aircraft, satellites, and missiles. Boeing's planning functions of management is influenced by internal and external factors. These factors such as the economy and competition directly influence the strategic, tactical, operational, and contingency planning. Boeing is the largest manufacturer of satellites, commercial jetliners, and military aircraft in the world. The company is also a global market leader in missile defence, human space flight, and launch services. Chicago-based Boeing has an extensive global reach with customers in 145 countries. Boeing operates under the strictest principles of corporate governance. With 152,091 employees, Boeing posted 2004 revenues of $52.45 Billion. (FCSR, 2008)

The Boeing Corporation has a unique organizational structure which consists of essentially two business solutions that are tied together via nine levels of corporate functions. The two businesses are Commercial Airlines and Integrated Defence Systems. From the top to bottom, the corporate functions that govern this corporate machine are, Business Development and Strategy, Communications, Engineering, Operations and Technology, Finance/Shared Services Group/Boeing Capital Corporation, Human Resources/Administration, International, Law, Office internal Governance, and Public Policy. That is a lot for a company that employs over 160,000 over 70 countries. Managing a business this large can be a challenge. That is why it is important to have qualified people working to ensure correct planning and strategizing is carried out.

The driving force behind the Boeing Corporation is of course the stakeholders, which include: Customers, Employees, Shareholders, and Communities. The management model used to direct the company's planning and focus is simple but effective method for planning, acting, analyzing, and reinforcing methods that produce results. These are driven by Boeings aptitude to encourage growth and leadership from within the organization. By making employees share in both the successes and failures of the company, Boeing in turn receives: committed, performance-driven management at all levels. This is achieved primarily by preparing employees through education throughout the organization and to apply knowledge as defined by the following model.

The state of the economy is a huge external factor of how the Boeing organization operates both, strategically and tactically. In 2001, the economy was hit hard and along with many other companies, Boeing was suffering financially. Boeing was saved when they were offered a contract with U.S. Air force worth $49.2 billion (Advantage Business Media, 2007). Boeing also teamed up with Saudi Arabia Airlines in 1995 (Boeing, 2001).

Company's Strategic, Tactical, Operational, and Contingency Planning

Boeing's competition is another external factor that influences the organization both tactically and strategically. The company known as Airbus is Boeing's biggest competition. Airbus is the leading manufacturer of commercial jets (Yahoo, 2008). Recently Boeing has been having internal issues affecting their assembly line and has cause a shortage in production which in turn has been affecting deadlines. With Boeing experiencing problems clients have been turning to Airbus to fulfil their ...