Boeing Executive Summary

Boeing is a market leader in aviation manufacturing in the U.S. and abroad. Its structure not only revolves around manufacturing, the company is a leader in defense, space and security development. These multitude of industries are all tied and synched together by their shared services group which responsible for human resources, staffing, wellness, recruitment programs, construction, virtual workplace and various implementations to connect all these industries into a world-wide operation. Boeing has established itself as a differentiator in the aerospace manufacturing industry. An industry that is driven by innovative ideas of flight since the early 1900s when William Boeing start this company by building the first sea-plane. A century later Boeing's immediate future is hinged on the success of a super lightweight aircraft that it hopes to revolutionize the industry and retain its position as the market leader.
Currently the company has revenues of $81, 698 million during the fiscal year ended 2012, a 16% increase over $68,735 million FY 2011 and a 21% increase over $64,306 million FY 2010, respectively.
Operating income was $6,311 million during FY 2012 compared to operating income of $5,844 million in FY 2011 as compared to operating income of $4,971 million in FY 2010. The net profit was $3,900 million for FY 2012 as compared to net profit $4,018 million FY 2011 and $3,307million for FY 2010. The core product for Boeing is the manufacturing of commercial aircraft. There are currently approx Boeing 13,000 aircraft transporting passengers and freight around the world. Its main innovative product currently is the 787 Dreamliner. An aircraft made of a new composite that brings the weight of the aircraft down by considerably by design. Allowing for unprecedented significant decrease in fuel cost and decrease in operating cost. Aircraft manufacturing accounts for approx fifty percent of their sales
revenue. Boeing also provides many innovative products for the US government. Everything from jet fighters to cargo planes. Providing many strike fighters, from the AH-apache to the F-15 strike eagle. This company is instrumental in providing services for the Department of Defense and is a key partner for our national defense. Boeing has been designated the U.S. Governments authorized satellite provider for communication services to its agencies and organization. The aircraft manufacturing industry has been dubbed an duopoly between Boeing and Airbus. With the recent threat of Commercial Aircraft Corporation of China(Comac), it is believed the barriers of entry are attainable considering it would be funded by, but mainly on the Chinese government being able to maintain protectionist policies in place. It is found that Comac will mainly rely on generic strategy cost, while the incumbents counteract by adopting mainly generic strategy differentiation and focus. However, Boeing has a strong position in the aerospace and defense market. In 2010, the company won 530 net orders for commercial airplanes. In addition, Boeing delivered 462 commercial airplanes in 2010. Moreover, Boeing's order backlog was 3,443 airplanes at the end of 2010 valued at $256 billion. Further, the company delivered 115 production military aircrafts, two launch vehicles and four satellites, and increased backlog at defense, space and security to $65 billion. The company is continuing to capture market share thru key acquisitions and throwing the dice with the innovative 787 Dreamliner, although of the approximate 3, 000 ordered since 2004, only 14 have been delivered. The company has corporate governance principles that essentially outlay the structure of hierarchy and how decisions are made. These principles seems to spell out a majority of situations the corporation may incur. The website indicates the Board believes these Principles should be an evolving set of corporate governance guidelines, subject to review and modification by the Board from time to time in its discretion. This document effectively outlines the board , the executive officers and their roles and responsibilities. From there, the principles address the communication expectations which are designated to management to communicate , including shareholders, employees, customers, suppliers, communities, governments, creditors and corporate partners The board has a Governance Organization and Nominating committee that deals with finance, audit, compensation and special programs. They nominate new board members with a detailed list of criteria that primarily looks for the best qualified objective candidate. The website indicates 75% of the Board shall satisfy the New York Stock Exchange criteria for independence. The oversight the board has is to (1) evaluating the CEO’s performance and reviewing the Company’s succession plan for the CEO and senior management; (2) reviewing the long-range business plans of the Company and monitoring performance relative to achievement of those plans; (3) considering long-range strategic issues and risks facing the Company; and (4) approving policies of corporate conduct that continue to promote and maintain the integrity of the Company. Plus they should a firm grasp of Boeings ethics and compliance program and 'shall exercise oversight with respect to the program’s implementation and effectiveness.