Strategic Management Analysis on B-777 Aircraft Term Paper

Strategic Management Analysis on B-777 Aircraft - Term Paper ExampleBoeing 777 bloodline development under Philip Condit is a clear demonstration of a well thought strategic focus analysis of the come with that helped the Boeing 777 to be an industry attraction through large market share. The company through its leadership identified chance upon 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 postulates strategic analysis of some(prenominal) internal and outer 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 discus sed below as follows. One, the companys decision to involve airline operators across the globe 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 clip taken to break even. This meant that the company would benefit from comparative gain 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 real 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 worlds largest manufacturer and supplier of military aircraft thus expan ding this market segment as well as eliminating one of its competitors. In fact its main rival was at once 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 length 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 mid-nineties when the Boeing 777 project was being developed was n ot a positive aspect towards the project. Highly structured management style just before Philip Condit to the scenes would have tardily affected idea generation, product development and production. Huge labor force and large capital outlay required to develop the aircraft almost exhausted the companys 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