Boeing Capital Company Analysis
Introduction
The importance that is associated with air travel cannot be undermined in any manner since provides a fast means of traveling and ensuring that business is conducted in an efficient manner by availing people where they are needed to be within a very short time. Additionally, it creates diversity by taking people to different places where they can interact with individuals from various cultures which eventually helps to enhance the spread of diverse cultural practices to the entire world. Through air travel, many economies of the world have been transformed in a manner that cannot even be comprehended, and this has helped a lot in building some of the largest economies in the world. People are provided with a chance to experience new things in life. For instance, this has helped to diversify the manner in which education is being carried out since students can now travel all over the world in search of knowledge.
The Aerospace space industry continues to grow each and every other day, and this is made possible by more than 8 million individuals undertake air travel daily. On top of that, defense and security have been further enhanced by air travel since it is possible to avail safety where it is required in a matter of minutes.
Description of the Company or Agency (Basically what business are you in)
Boeing is one of the largest aerospace companies in the world. It does not only specialize in the manufacture of commercial jetliners, but it is also involved in the production of various other products such as space security systems and defense systems such as the fighter jets. Boeing is the largest exporter company that is located in the United States. Apart from supporting most of the airlines in the country by providing commercial airplanes, it also provides its products to other customers who are mostly government organizations in over on hundred and fifty countries. Some of the products that are designed by Boeing are customized while others are only mass produced and sold to customers why don’t need to specifications to be associated with the products that they intend to buy. Most of the tailored products include satellites machines, weapons, defense systems that are electronic in nature, military aircraft, commercial aircraft, launch systems, advanced communication systems, performance-based handling and training systems and even simulator machines.
The company has been involved in the production of aerospace equipment for many years, and it is considered to be a leading company in this field due to the experience and the reputation that is associated with the organization. With time, it continually strives to tap into sections of the market that other aerospace companies have failed to explore. It is through the provision of a variety of services and products that can help to meet the needs of the clients in the most accurate manner. Some of the capabilities associated with Boeing Company include the ability to develop more advanced and better types of commercial airplanes because it is continually undertaking research into the market so as to understand the level of customers satisfaction based on the products that it has already availed to the market. Additionally, it can integrate the available defense systems and the military platforms, develop technology solutions that are more advanced than the ones that were already availed in the market thanks to the team of researchers in the company that is continually looking for ways of improving the available systems. Finally, it is capable of coming up with financing options for the potential customers so as to enable more clients to gain access to its products since they normally are very expensive.
Operation Description
The company has an extensive knowledge about its clients, and this is enabled by an in-depth research of the market. Therefore, the company is able to understand the type of equipment’s that are needed by its customers. Boeings Capital Corporation (BCC) also has a collection of financial professionals why have been practicing the skill for an extended period hence they understand precisely how the market operates.
BCC is one of the best financial corporations that provides support to clients who have subscribed to its services. The business is closely associated with the production of commercial planes, and Security & Space Defense. The Corporation helps its customers to raise the required finance that will enable them to purchase and transfer Boeings products to their promises successfully. By the end of 2015, the company had earned a value of about four billion dollars. BCC has managed to achieve its success basically by incorporating its power of finance and its extensive network, therefore, enabling it to reach customers who are not only located in the United States but all over the World.
Equipment or Aircraft
For very many years, Boeing has been one of the major companies involved in the manufacture of commercial airplanes that are used in most countries. Its line of products is usually preferred by many clients simply because they are of high quality. Currently, the company can manufacture many commercial airplane versions which include Boeing 747, 743, 777,767 and finally the 787. These are in the range of the biggest commercial airplanes produced by Boeing. Other products that are still in the production line include the Boeing 777X, 737 Max, and the 787-10 Dreamliner. With each version of him Boeing, various characteristics are continually changed, and one of the most important aspects is the size which is steadily increasing for each version. Since the company started production of the Boeing line of products, it has managed to avail into the market about ten thousand commercial jets in the whole world which make about half of the fleet of the total airplanes that have ever been produced by any company. Additionally, the company provides cargo-carrying airplanes, which make up ninety percent of the total cargo planes in the world.
The company offers its client with Commercial Aviation Services. By doing this, the company can provide unmatched all year support services to its customers which enable most of the airline companies and also the leasing companies that have subscribed to the company services to achieve operational efficiency. The Commercial Aviation Services department helps to provide aftermarket parts, modification, information’s & logistics services, engineering, and customer care support services. Other services provided include overhauled services, repair, and maintenance labor (Wen, 2003).
Maintenance Requirements
The Shared Services Corporation provides Boeing business units associated with a common pool of services so as to help in supporting the worldwide operations of the company. The shared services are of a wide variety, and they range from the maintenance and protection of Boeings international sites, Sales management, and acquisition of any property that may have been leased. The corporation is also involved in the purchasing of products that are not necessarily used in the production process and other office equipment supplies. Various human resource services which also include the recruitment of new employees are some of the services that are offered by this corporation to Boeing. Finally, Shared Services Corporation Actively participates in the management of Boeings financial matters, any expenses that may be incurred by the company as a result of travels to and from various destinations, and in availing communication services that have been customized (Holsapple, 2000). The Site Services Corporation also offers Boeing with the maintenance and repairs services, real’s estate management, planning of the manner in which property will be acquired, and finally the process of implementing projects that involve the construction of structures (Saraph et al 1989).
Manager’s Roles and Responsibilities
All the activities that are typically undertaken in Boeing’s offices are finalized by the company employees, corporation officers, and managers with the help and guidance of the Board of Directors together with Chief Executive Officers. The organization’s corporate governance policies and practices are typically reviewed continuously by the organization committee.
The Board of directors and the corporation’s officers have a long-term interest in the company. Therefore, it is important to ensure that the corporation clients, public officials, employees, suppliers, surrounding communities, and shareholders gain positively out of the operations of the organization. On top of that, the Board has managed to develop its own Code of Ethics that helps in the conducting the daily activities of the corporation so that they are in line with the various legal stipulations (Zahra, 1989). Having these regulations helps the company to continually stay on the right track as they deal with the different ethical issues that arise within the business premises as a result of the operations being carried out by various employees. Through the use of the code of ethics, the company is also able to enhance the mechanisms that already exist within the organizations and can help in reporting cases of unethical behavior occurring as this plays a crucial role in ensuring that a culture of accountability and honesty is enforced within the company premises (Pronovost et al, 2009).
Staff Qualifications, Certifications, and Responsibilities
Within the Shared Services Corporation, Boeing constitutes has a percentage of shares since it has employed approximately forty thousand employees who are responsible for availing about forty types of unique services all day long throughout the year. The Sites services have a bee assigned a budget of about three billion dollars which is specifically meant for the operations services. By doing this, the company can leverage scale economies so as to enable the delivery of value-added services to clients and it’s business partners who are involved in the manufacture and provision of defense and security and additionally the commercial airplanes that need to be availed to the company (Waldron, 2006).
The company has it corporate offices located in Chicago, and it has managed to employ over one hundred and fifty employees within the United States and sixty-five more countries. The company’s continued existence is a reflection of its diversity and ease in adapting to the changing market conditions such that it can last for a very long time. Additionally, one important factor that supports the continuous positive progress of the company is the fact that it has a very innovative and hardworking workforce. Our business continues to outsource more of the talented youth in the world so that they can join its workforce and continue to make it rise higher. The company does not necessarily look for academic qualification so that it can employ an individual, but rather, it explores the various ways that it can use the talent of individuals to encourage innovation in the society.
Regulations and Laws
The various operations of the company are guided by different by-laws that regulate the manner in which meetings will be carried out by the board of directors and various stakeholders to ensure inclusive of all parties that are interested in the operations and management of the company (Berkes, 2000). According to the laws of the company, the Annual General Meeting is supposed to be held on a particular date and time that is precisely determined by the board of directors. During such meetings, the leaders will be elected, and any other significant business transactions that need to be addressed also have to be discussed during such meetings.
The board of directors has the power to call a meeting with all the stakeholders at any time that it wishes to do so. Also, in case the Secretary makes a special request for a meeting, then the board of directors is supposed to summon all the stakeholders for the meeting. The secretary can only write a special request for a meeting when there is a need to undertake an election so as to dispose of about 25% of shares held by the company. For such a request, each of the stakeholders provides a signature stating the number of shares that they own. Any business that is transacted in the course of a particular meeting is only supposed to be limited to the purpose for which the meeting was called upon, and it should not deviate to any other general matters.
Any meetings that are held together with the stakeholders shall be conducted within specified premises as directed by the board of directors or as it is indicated in notices. However, there is a default location in which the meetings should be held. Notice of any meeting that should be held will be availed to stakeholders through any suitable methods but most specifically mail or an electronic transmission option. All Stakeholders have the right to vote at any meeting called forth. They also have the right to express any form of dissatisfaction towards any actions that may have been taken by the board of directors without the need of having to wait until a meeting is held (Delmas & Toffel, 2004).
Safety & Security
The shared services organization provides Boeing with various specialized services. For instance, it is responsible for offering the company with international insurance services that cover the company in case of the occurrence of a risk factor. The Shared Services is responsible for ensuring that the Security maintenance at all Boeing premises is at the highest level possible. Any premise associated with Boeing should be fully protected and most importantly the information that helps to support the continuous operation of the business. Any other risk mitigation measures should be fully installed to prevent an occurrence of damage to the company property (Tipton, 2012).
The Defense, Security and Space Corporation is very diverse since it avails most advanced solutions to the market which can be used in the designing, production process, customization and offering support to clients who purchase rotorcrafts, satellite systems, weapons and fixed wings military aircraft. The organization is involved in providing clients with solutions to some of the major customer requirements by availing a full range portfolio which incorporates the 702 model of satellites. Some other defense products include the AH-64 helicopter, EA-18G aircraft that is electronics and is mostly used to attack enemies, KC-46 refueling planes, P-8 anti-aircraft/ submarine atropine (derived from the 737 commercial airliners). This organization is motivated by its capability to offer clients custom-made solutions that can address customers’ needs adequately and promptly and at the most suitable cost.
Apart from producing products that are designed to be used by clients, this unit is responsible for the general management of security within all branches associated with Boeing. This is an operation cost reduction method since the company managers decided that it would be wise to use the services its own business units in the provision of security rather than make use of a different business organization that would only end up increasing the operation costs (Kaplan & Norton, 1996).
Environmental Responsibilities
Working with stakeholders is important since it helps to ensure that activities that enhance environmental conservation are promoted. Due to its growth, Boeing targets to be a leader in promoting a sustainable environment as it also strives to provide its employees with the best services that can be availed in the industry. The three top tenets that Boeing aims to address are; encouraging worldwide collaboration in environmental conservation, design the future in a sustainable manner and finally coming up with sustainable innovations (Selin, 1995).
The company intends to avail the best and most fuel-efficient planes in the industry. Also, it plans to provide highest quality services to its customers. All this will be achieved through; ensuring that it complies with various environmental regulations as it conducts its daily operations. Boeing has also come up with its policies and procedures that can help to ensure that environmental conservation is enhanced. Preventing environmental pollution through conservation of energy resources as this will contribute to the reduction of the levels of waste that gets disposed of by researching on the various mitigation measures. The company has managed to develop a management system that will help in improving the state of the environment both for the current and future generation through the reduction of waste that is normally released into the environment (Born, 1995).
Other Management Factors Considered
The Company is organized into three major business units. They are; Defense, outer space & security department, and the Commercial production and supply unit. The whole company is majorly supported by a corporation known as Boeing Capital which is the primary provider of financial solutions to all the company branches worldwide (Probst, 2004). This financial firm also helps to finance other businesses that may have subscribed to its services. Other Corporations involved in supporting the major units at the company include Shared Services Organization (it avails some services to all the company branches), Boeing Engineering, Operations and Technology (this organization helps to create, purchase, implement and provide protection to the various innovations that are developed at Boeings premises) (Council, 2007). The business and finance organization is responsible for offering shared services in accounting, cost management, and financial management. The agency is responsible for providing account payroll/payable functions to all business units associated with Boeing (Jensen, 1997).
References
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Born, S. M., & Sonzogni, W. C. (1995). Integrated environmental management: strengthening the conceptualization. Environmental management, 19(2), 167-181.
Council, A. C. G. (2007). Corporate governance principles and recommendations. “Boeing: Shared Services”. Boeing.Com, 2017, http://www.boeing.com/company/key-orgs/ssg.page.
Delmas, M., & Toffel, M. W. (2004). Stakeholders and environmental management practices: an institutional framework. Business strategy and the Environment, 13(4), 209-222.
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Jensen, R. S. (1997). The boundaries of aviation psychology, human factors, aeronautical decision making, situation awareness, and crew resource management. The international journal of aviation psychology, 7(4), 259-267.
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