What is "supporting evidence strategy" and howwould you relate this to Boeing?
STRATEGIC EVOLUTION
           Boeing has been able to capitalize on continuous innovation as theworld’s largest aerospace company. The organization has thrived inthe marketplace as “building something better” that has contributedto its success. Boeing recognizes the marketplace of thetwenty-first century will contain many new competitors formed frommergers and alliances that are currently taking place. There arethree strategic groups that has evolved over time due to changingshifts for market demand:
Large Commercial Jet Aviation Market
Regional Aviation Market
General Aviation Companies
Intended Strategy
The company’s strategic planning and guidance is to address andfocus what will keep the business from reaching the next level ofsuccess. This involves overall operations and challenges, andplanning to overcome goals of achievement. The organization looksat workplace conflicts, resolutions, organizational design and teambuilding, workplace training and training for new changeimplementation and client survey, and group building. Boeingrecognizes that implementing a workforce planning process toprepare the organization through stakeholder engagement,organizational readiness assessment, team selection, analytics andtraining. The foundational success must be prepared and supportedto execute the process. Executive sponsorship (strategic workforceplanning), scoping for success (scope workforce planning utilizingchange approach), stakeholder planning (understanding who isinvolved in planning, and strategies to address concerns and enlistsupport), socialization (engaging leaders in the process to reviewthe concept and address concerns before implementation), riskassessment (outlined risks associated with the initiative anddeveloped actions to mitigate risk).
Boeing’s major competitor in the large commercial aircraftindustry would be Airbus Industries. Boeing was the first to be inthe large commercial aircrafts industry until Airbus came along.Airbus capitalized the market by making planes that addressed theneeds of their buyers, which were midsize cost-efficient planes.This plane was the A-320, which competed with the Boeing 737; bothare the best-selling planes for each company in the samecategory.
Boeing has become aware of building the most effective planes tomeet their customer’s supply and demand. In order to do so, thecompany has thought to reshape their strategy and with theirsuppliers. Boeing’s strategy in 2004 was to move up the valuechain, meaning that they are going to focus less on details andmore on their core competence, integration and assembly. Toaccomplish this was to streamline their list of suppliers to aselect few and to those that provide quality products with the bestvalue. One strategic plan to outsource the assembly of parts of theairplane to reduce cost and control capacity at its main plant.They have outsourced to countries where labor is much cheaper. Inreturn, they have obtained aircraft sales from these countries,which is also two of the largest and fastest growing airplanemarkets in the world. This has become the “offset agreement.”Developing strategic partnerships is the ability to distribute someof the risk associated with large investments required in buildingan aircraft. Boeing has reassured its inhouse engineers theagreement is not to downsize employees however to competeefficiently in a global industry and is required for success in thefuture. The business model adaptation gives Boeing moreflexibility, control, and a better flow of cash (Kahn, 2018).
IT evolution investment in the 20th century supportedan increasingly decentralized hierarchical functional corporateorganization structure and shifted during the early decades of the21st century toward an IT-enabled global networkorganization structure. Boeing shift to an ecosystem focus changedfrom inward to an outward IT strategy. This network organizationencompasses IT breakthrough in products, manufacturing, and supplychain management. Strategic IT shifts from systems to IT orderingand integration architecture, Ubiquitous IT enables creation ofbold corporate strategies and operation, and bold IT strategy andexecution require CEO leadership and broad oversight (Nolan,2012).
Emergent Strategy
Boeing has many strong competitive advantages, and internalresources that help define its core values. The main source ofBoeing’s competitive advantages is its core competencies, whichhelp develop Boeing’s resources into strong competitive advantagesin the airline manufacturing industry. Boeing also has operationalstrength internally, which allow them to better manage and sustaintheir competitive advantage in the market. Boeing has a strong setof competitive advantages at which it uses to market share and theairline industry. The company’s unique business strategy is todesign the product according to customer wants, and on time.
Boeing’s core competencies are to repeat business to meet thecustomer demands and needs – understanding and responding to whatits customers would like in an aircraft; and designing andimplementing specific needs or demands.
Developing effective control system to manage supplierrelationships to overcome delay problems.
To fill competency gap between Boeing’s vision andstrategies.
To improve service delivery efficiency.
To improve internal and external communication
Resources | Competences |
Threshold Resources | Threshold Competencies |
Strong financial position International customers Acquisitions, strategic alliances, and subsidiaries Addition services (see unique resources below) | Research and development activities Ability to manage multiple divisions at the same time Strong order backlog Provision of financing facilities Strong association with US government and other governmentinstitutions like NASA and US Air Force |
Unique Resources | Core Competencies |
Airport technology Boeing Capital Corporation Commercial Aviation Services Fuel conservative services Training and flight service | Lean manufacturing policy Large scale system integration Latest technology-based commercial aircrafts Global Airline Inventory Network |
