Strategic Concept of Aviation Company

Strategic Concept of Aviation Company

Introduction

Strategic management is the methodical examination of the aspects related with clientele and competitors (the external settings) and the corporation (the internal settings) to give the foundation for nurturing optimal management and organizational practices. The goal of strategic management is to accomplish enhanced arrangement of corporate policies and strategic policies. Strategic management is employed to establish mission, goals, standards, vision, organization schemes, principles, roles, objectives, functions, responsibilities, and timelines. Strategic management comprises the specifications about the mission, operations, vision, values, objectives, growth plans and strategies of the corporation. It includes the organization's specific mission, vision and objectives, policies and development plans, often in terms of projects and programs that are designed to achieve those objectives, and resources to implement policies and implement plans, projects and programs. Strategic management is an area which deals with the key projected and growing initiatives adopted by the managers in support of the owner of a company, regarding the exploitation of resources, to optimize the functional operations of companies within their external environment. Strategic Management is regarding the recognition and depiction of the approaches that business professionals can perform so that their company can attain enhanced functional operations and a competitive advantage. The development of plans and strategies for both predictable as well as unachievable contingencies is included in the strategic management. An important function of strategic management is the integration of different functional areas of the whole organization, and to ensure that these functional areas synchronize. The second function of strategic management is to constantly keep an eye on the organization's goals, mission, values, and objectives.

Discussion

In this paper, it is intended to study, analyze, and discuss about the concepts of strategic management of The Boeing Company. The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis The Boeing Company will be covered in this paper.

Analyzing the Aviation Industry

Every time the rapid growth of the economy of the US has led to continued elevated costs of oil and fuel. From 2003 to 2007, the prices of jet fuel have inflated radically from 15 percent to 30 percent of operating price. Due to this reason, most of the airlines have demanded the aircrafts which are fuel efficient, so that the airlines can diminish their operating costs. The present drift of rising prices of fuel renders a major role in raising the recent demand for new commercial aircrafts which are more fuel saving. Moreover, the increasing prices of fuel have greatly affected the economy.

As the global economy has slowly entered into the recession due to highly increasing prices of fuel, most of the airlines are striving to obtain the fuel effective airplanes, so as to reduce their operating costs. It further ads to the needs of fuel effective airplanes. With the mission to reduce the costs, Boeing and its archrival, Airbus, both have moved towards outsourcing. The Boeing Company has been able to be more competitive and strategic due to the outsourcing. The outsourcing of processes has enabled Boeing to reduce the ...