Strategic Management Analysis on B-777 Aircraft Term Paper

Strategic Management Analysis on B-777 Aircraft - Term Paper Example Boeing 777 business development under Philip Condit is a clear demonstration of a well thought strategic management analysis of the company that helped the Boeing 777 to be an industry leader through large market share. The company through its leadership identified key weaknesses that threatened to collapse the company that included production inefficiencies, high cost of production, delays in delivery among others. This discussion looks at the strategic management of the business in detail. SWOT Analysis SWOT analysis involves strategic analysis of both internal and external business environment. Internal business environment is analyzed by looking at the strengths and weakness of a firm while external environment is analyzed through opportunities and threats brought about by forces without the organization. The strengths of the Boeing 777 Aircraft mentioned in the case study are discussed below as follows. One, the company’s decision to involve airline operators across the g lobe who operated earlier versions of Boeing airlines to generate ideas on the new design and customer preferences helped to develop an aircraft that met the needs of the target customers. Decision to outsource key services through subcontracting internationally and within US helped to spread risk reduce time taken to break even. This meant that the company would benefit from comparative advantage of each partner it was working with. In addition, working with various companies across the ground created an opportunity and easy market penetration (Hill and Jones 2009). Strong relationship developed between Philip Condit and the employees (engineers) helped to end the secretive management style. This allowed free flow of information and sharing of new ideas. Acquisition of McDonell Douglas Company in 1997 helped Boeing to become the world’s largest manufacturer and supplier of military aircraft thus expanding this market segment as well as eliminating one of its competitors. In fact its main rival was now Airbus Industries which trailed it by sales. The acquisition helped the Boeing to ride on the skills and networks developed by the acquired company. Ability to develop flexible design from the Boeing 777 helped the company to meet orders for cargo, long, medium and short distance travel aircraft without necessarily incurring high design and development costs. Use of the Digital Designs helped to identify errors and overlaps thus improving on efficiency and reducing time taken to deliver an aircraft. In terms of weaknesses that characterized the company, huge development cost initially threatened the survival of the business. It made returns low and the company would take a long time to break even not to mention creation problem of cash flow. Rising costs, declining productivity and delays in delivers in the early 1990s when the Boeing 777 project was being developed was not a positive aspect towards the project. Highly structured management style just bef ore Philip Condit to the scenes would have easily affected idea generation, product development and production. Huge labor force and large capital outlay required to develop the aircraft almost exhausted the company’s income streams. Managing such a large workforce and imparting the necessary skills was going to be a big challenge especially with the then management structure. The fact that Boeing 777 projec