Has Fitness Plus Reached Its Capacity Commerce Essay

Has Fitness Plus Reached Its Capacity Commerce Essay Fitness Initial stands out as the most substantial independently owned or operated fitness center business across the world with much more than 540 branches globally achieving much more than 1.4 million normal members throughout 19 nations. Within the united kingdom solely youll discover 161 clubs of Fitness Initial with much more than 425,000 members. Within the year of 2005, organization ended up being bought by Partners of BC Partners, an EU non-public equity group of businesses. Within the country like Australia, Fitness Initial acquired much more than a wide selection of Residing Well Lady locations really owned and operated by Hilton Group. Additionally, It made the acquisition of chain of healthclubes, 11-gym Healthland and right now possess in excess of eighty fitness centers throughout Australia. Its behind the worldwide International Fitness Week campaign to encourage much more individuals to discover what fitness regime works for them. The campaign uses former Spice Girl Mel B as the face of International Fitness Week Subsequent consist of the unique routines supplied by Fitness Plus, within their own possible : Fitness Routines à ¢Ã¢â€š ¬Ã‚ ¢ Exercise region à ¢Ã¢â€š ¬Ã‚ ¢ Free excercise weights à ¢Ã¢â€š ¬Ã‚ ¢ Training region à ¢Ã¢â€š ¬Ã‚ ¢ Cardiovascular workout room (9 stair steppers, 6 treadmills, 6 life-cycle bikes, three airdyne bikes, 2 cross-aerobics machines, 2 rowing machines, and 1 climber) Recreation Activities à ¢Ã¢â€š ¬Ã‚ ¢ Racquetball (8 courts) à ¢Ã¢â€š ¬Ã‚ ¢ Tennis (6 courts) à ¢Ã¢â€š ¬Ã‚ ¢ Outdoor pool à ¢Ã¢â€š ¬Ã‚ ¢ City sports teams (softball, volleyball, and swim teams) Relaxation Activities à ¢Ã¢â€š ¬Ã‚ ¢ Yoga classes (2/week in aerobics room) à ¢Ã¢â€š ¬Ã‚ ¢ Whirlpool tubs (1/locker room) à ¢Ã¢â€š ¬Ã‚ ¢ Trained massage therapist Hours of Operation Monday via Thursday 6:30 a.m. to 11:00 p.m. Friday and Saturday 6:30 a.m. to 8:00 p.m. Sunday 12:00 p.m. to 8:00 p.m. Capacity Presumptions Concentrate to the possible choice will most likely be about a couple of aspects of client issues: exercise, cardio exercise, also as nautilus areas. Restrictions ought to be positioned on utilisation on these locations simply because of maximum customer desire, as represented here. This provides a way of measuring in number of members utilizing the health club per hour with regard to capacity scheduling. A essential component of total capacity organising for this case would be to observe that the maximum demand is really about 3 hours each day. Furthermore, a issue that creates capacity organizing much more complex tends to be that a single member will use all of these region which are extremely demanded, and could make use of an region much more frequently than once. Maximum Demand The maximum demand details are supplied on the purpose of looking at trouble spots also as maximum usage of particular precise regions of this facility. à ¢Ã¢â€š ¬Ã‚ ¢ Exercise = 35 members per hour in a 1 class. We tend to believe that hardly any members is going to finish a number of exercises class. à ¢Ã¢â€š ¬Ã‚ ¢ Cardio exercise = 58 members per hour in which the machines are tied to half an hour for every member simply because you will find 29 machines. Nevertheless, observe that a single member could use a number of machine, which tends to make the maximum demand capacity organizing much more complex. à ¢Ã¢â€š ¬Ã‚ ¢ Nautilus = 48 member per hour, lets assume that region is not unfilled at the begin of the maximum demand, the users of the health club move at stable rate and in pattern, 24 machine are utilized by members which is in timeframe is use of 1 minute per machine, a couple of hanging around and activity among areas. We have to make supposition that generally completely no member uses any piece of machines ; on the other hand, a member may make use of a handful of pieces and come correct out of the sequence. Assessment So it appears apparant that club areas of aerobics, cardiovascular, and nautilus could effortlessly accommodate peak demand, if the room limitations are adhered-to utilizing employee monitoring. But you will find complaints. The suspected reason for this is that members use much more than 1 region of the club. Moreover, its likely that members visiting much more than 1 region throughout their workout heavily use the aerobics, cardiovascular, and nautilus areas. Numerous members might also workout for much more than 1 hour. Measurement Technique The issue identified is capacity, and being that Fitness Plus is really a flexible flow procedure, i.e., members select their own workouts, input measures are being utilized. At the present time and with the present flow of members, Fitness Plus has big periods of operating near peak capacity in multiple areas. This is causing flow problems, such as bottlenecking within the much more well-liked workout areas. Members are utilizing much more than 1 region of the fitness center throughout every go to, but theres a lack of information to depict actual usage of these areas. For instance, we know that approximately 80 mph enter the fitness center throughout our 3 peak hours, but we dont know which areas the members go to specifically. As a result, the fitness center intends to measure use of the 3 issue areas (aerobics, cardio, nautilus) throughout the peak three-hour period. Members will utilize their membership card to enter and leave all areas of the center. The average utilization of every region will probably be computed and also the outcomes will probably be depicted in a chart, like the attached example Figure three. This will show actual usage throughout peak hours of the fitness center. Measurement ought to be over a fairly short time period since member complaints have recently increased. Some action is required within the short-term. Key Indicators Particular key indicators have been identified based on case info, which outcomes in a capacity forecast approach. Indicators consist of: à ¢Ã¢â€š ¬Ã‚ ¢ External Leading Indicators à ¢Ã¢â€š ¬Ã‚ ¢ Coincident Indicators à ¢Ã¢â€š ¬Ã‚ ¢ Lagging Indicators The measurement technique for the key indicators offers a technique for every also as other choices for analysis. The measurement methods for every key indicator consist of: à ¢Ã¢â€š ¬Ã‚ ¢ External Leading Indicators = Causal Forecasting à ¢Ã¢â€š ¬Ã‚ ¢ Coincident Indicators = Time-Series Analysis à ¢Ã¢â€š ¬Ã‚ ¢ Lagging Indicators = Time-Series Analysis The key indicator information and measurement methods are also depicted in Figure 4. 2. Which capacity technique would be suitable for Fitness Plus? Justify your answer. In a short time period, fitness initial has to ascertain the requirements and requirements of the possible clients, and endeavour to satisfy mismatch between those requirements and present offerings. To improve the existing dealings and accomplishment of todays requirements, directed study will probably be finalized. This will take account of: gathering real control information of equipment and rooms, bringing on innovation and ideas from operatives, market study, service plan study, effectual time table, and enhanced defensive upholding of equipment and also the service facility as a entire. 1. PROBLEM: The capacity of the fitness club, mostly within the Nautilus, cardiovascular, and aerobics fitness areas, is insufficient to meet demand. 2. RECOMMENDED Answer: Construct an extra facility. three. ANALYSIS OF Feasible SOLULTIONS: (A) Do nothing. Growth has increased the average number of members checking in at the existing fitness club to 25 members per hour in 2000. Nevertheless, complaints from members about overcrowding and unavailability of equipment could lead to dissatisfied members terminating their membership and possibly joining an additional club. If the growth continues, the number of complaints and dissatisfied members ought to improve. Do nothing isnt a great answer. (B) Extend company hours. The club is currently open 101 hours per week. Growing the number of open hours could spread out the number of clients throughout the day. Nevertheless, peak times will still exist and continue to produce complaints. Extending company hours isnt a great answer. (C) Expand the capacity of the facility. (See attached calculation sheet) The average number of members arriving per hour varies a great deal between the slow periods and peak times. The capacity cushion in 1995 was an 83%. Theres no mention of complaining throughout this time. The capacity cushion in 2000 is 72%. Present capacity measured as inputs for the Nautilus, cardiovascular, and aerobics fitness areas is 88 members per hour. To get an 83% capacity cushion like in 1995, with an average flow of 25 members per hour of year 2000, the capacity would need to be increased to 147 members per hour. Unique consideration ought to focus on the cardiovascular region where demand is over capacity at peak times. Simply because of the limited quantity of land at the present facility, expansion from 88 to 147 members per hour is most likely not feasible. (D) Build an extra facility. The resurgence of activity within the downtown region has brought increased population and new companies. Fitness club competition already exists within the downtown market. Nevertheless, members are still coming to Fitness Plus with the overcrowding and unavailability of machines with competing fitness clubs only 10-15 minutes away. Some members should prefer the services of Fitness Plus over the competition. Building an extra facility the exact same size as the present facility would double the capacity of Fitness Plus within the region. Building a new Fitness Plus club downtown will encourage a few of the present members who are closer to downtown to begin utilizing the new location. Building an extra facility will put Fitness Plus in a growing market, take a few of the strain off the present facility by growing capacity and decrease the number of dissatisfied clients. 4. ADDITIONAL CONSIDERATIONS: The perfect capacity cushion for the Fitness Plus facility with a capacity of 88 might not be 83%. The 83% capacity cushion was utilized within the calculations simply because there was no mention of member complaints in 1995. The perfect capacity cushion might be somewhere between the 83% in 1995 and also the 72% in 2000. If the perfect capacity cushion is lower than 83%, the capacity would have to be increased but not as a lot as the 147 within the calculations. Extra info would be required to discover the perfect capacity cushion. Fitness Plus requirements to produce greater value for activities and services which are not being utilized to efficient capacity. Ideas will probably be generated from the employees to make certain that theres buy-in from the top level down. Employees are dealing with clients everyday on a much more personal level. They might be able to assess what the facility is missing to satisfy a greater quantity of clients. Study will probably be carried out to make particular that changing customer requirements are identified. You will find two new competitors that have opened fitness centers within 15 minutes of Fitness Plus, and every facility caters to a various clientele. 1 caters to a young adult crowd, not allowing kids under 16 to access the facilities, and also the other concentrates on weight and cardiovascular training only. Taking this into account, Fitness Plus has the capability to satisfy extra customer requirements with the present facility offerings. Fitness Plus has a waiting line issue thats resulting in bottlenecks. The service system has multiple lines along with a mixed arrangement of facilities involving clients with individual service requirements. The present priority rule is first-come, first-served. Fitness Plus will have to calculate both the arrival and service time distributions. To complete the waiting line analysis, Fitness Plus will also have to think about: 1. Line length both in terms of customer service and capacity 2. Number of clients in system related to efficiency and capacity three. Waiting time in line such as service rate and customer perceptions 4. Total time in system which might indicate issues with service, capacity or customer themselves 5. Service facility utilization keeping in mind total facility operating costs After analyzing the information collected via the monitoring, the outcomes might foster the development of a new layout for the facility. This layout might improve the space, equipment, and peak capacity of some areas, and decrease or eliminate other people. The focus of the facility might change to satisfy much more of the present customer base and to attract new clients which are searching for services which are not accessible at the competing locations. Additionally, Fitness Plus ought to think about alternatives to customer flow, like clients being assigned a designated time to use equipment throughout peak hours. This might be handled upon registration when entering the club. Members would have opportunity to take benefit of other, less-popular areas although they wait. They would then have a ten-minute window, based on their designated time, to return to the Nautilus or cardiovascular equipment for their workout. These members would also have a set time limit for their workouts on this equipment throughout peak times only. Other opportunities might be apparent within the scheduling of employees and aerobics classes. For aerobic class scheduling, a sign-up sheet or reservation system will assist to stop customer disappointments around full classes. A reservation system is also an outstanding tracking tool to figure out what classes are the most well-liked and what times are the most sought after. For employee scheduling, staggering employee shifts ought to be evaluated. Staggering shifts of staff will assist to eliminate excess staff members working at slow times. By concentrating on peak times, the customer will have much more personal interaction and attention from the staff, possibly improving their satisfaction. Creating a normal schedule for equipment maintenance will lower repair costs for Fitness Plus, but most of all, will maximize the availability of the equipment that clients are demanding. This will also have an indirect effect in growing both customer and employee morale and satisfaction (Al-Hassan, 2000). Fitness Plus will employ benchmarking of their competitors in an effort to discover from their successes and failures. Benchmarking is moving much more towards areas that reinforce the role of the employee within the success of the business like customer service, high quality, teamwork, communication and supplier relationships (Simpson, 2000). Analysis of outcomes will probably be completed to permit for adjustments of the objectives and improvement plan. In the long-term, Fitness Plus will have to think about expansion and figure out the optimum economies of scale to spread fixed costs, decrease construction costs, and identify procedure benefits. Present facilities limit the capacity cushion. As region population grows, Fitness Plus will have to expand to improve its capacity cushion. This will permit them to effectively deal with sudden increases in demand by its members. Average utilization rates ought to be maintained at a rate somewhat much less than 100 percent to steer clear of constant operation at peak capacity. The capacity cushions, both existing and required, are measured as 100 percent minus the utilization rate as a percentage: Capacity cushion = 100% Utilization rate (%) Utilization is equal to the average output rate divided by maximum capacity: Utilization = Average output rate x 100% Maximum capacity Simply because Fitness Plus capacity demand can vary considerably, itll have to think about a larger capacity cushion-possibly as a lot as 20%to maintain satisfactory customer service levels and sustain membership sales. Choice Inputs Before making its final choice on expansion, Fitness Plus will have to undertake four actions to arrive at the correct capacity choice. These actions consist of: 1. Estimate Capacity Requirements 2. Address Projected Demand versus Present Capacity three. Identify Capacity Alternative Choices 4. Evaluate Alternatives Identified Initial, estimated capacity requirements will probably be calculated for every region as follows: Number of machines needed = [Forecast # customers/year] x Customer time per machine hrs avail from machine per yr much less desired capacity cushion Setup time isnt a main factor within the customer workout procedure, and wont have to be included within the calculation. Next, Fitness Plus will have to identify gaps between projected demand and present capacity. This will probably be evident per the outcomes of member monitoring and analysis throughout short-term improvement procedure. Those areas with bottlenecks-Nautilus, cardiovascular and aerobics-will be the primary focus since overall capacity cant be expanded unless bottleneck operation is expanded. The third step would be to take a look at alternatives and identify a number of choices. In light of the present scenario, Fitness Plus has 3 long-term alternatives: 1. No expansion of existing facilities and wait to see what the market will bear within the future prior to making a choice on expansion 2. Minor expansion of existing facilities on the limited land accessible at the present website three. Major expansion to a second facility within the downtown region The final step would be to evaluate these alternatives based on both qualitative and quantitative terms, such as capacity technique, market competition, and financial analysis with price estimates and money flows. Simply because clients are already complaining and average capacity is running well above cushion, the initial alternative-no expansion-would most likely be eliminated. Fitness Plus is beyond the wait-and-see phase. Alternate two-minor expansion of the existing facility-is extremely limited because of the lack of land at the present location. Given the steady population improve and Fitness Plus only competition in full range workout services being the YMCA, alternative three-the expansionist strategy-may be the very best option. This capacity technique will maintain Fitness Plus ahead of customer demand. This will also limit the competitions abilities of expanding by growing their risk of overburdening the market with too a lot capacity. Fitness Plus will have to act rapidly to announce its long-term expansion plans to stop giving the competition the opportunity to do the exact same. Additionally, Fitness Plus runs the risk of over expansion, ought to the population improve level off or the fitness craze decrease. Plan Evaluation Fitness Plus implemented short-term improvements will probably be readily measurable by monitoring the number of customer complaints, the continued tracking of member usage of facility services, and also the new membership campaign in January. Assuming that Fitness Plus announces its main expansion plans-the new downtown facility-January membership will also be a gauge for that technique also. Fitness Plus will have to continue to observe population growth trends and region competition as it expands into this new market. Continued analysis of market capacity will probably be needed. three. How would you link the capacity choice being made by Fitness Plus to other kinds of operating decisions? Theres a random demand for the firms capacity in every period: the demand in excess of the capacity is lost, and revenue is generated for the fulfilled demand. At the beginning of every period, the firm may improve its capacity via buying equipment for immediate delivery, which is constrained by a random supply limit, or it may sign a future contract for equipment delivery within the following period. We assume that the firms capacity may partially turn out to be obsolete because of natural deterioration or technology innovation. We aim at characterizing optimal capacity expansion methods and comparing the profit functions also as the optimal control policies of various choices. Specifically, we show that the optimal capacity expansion policy for the present period is determined by a base-stock policy. Compared with the case where no future contracts are accessible, the optimal control parameters of capacity expansion are usually smaller. We further show that when the obsolescence ra te is deterministic, the optimal policy for capacity expansion via future contracts is also a base-stock kind. The outcomes are extended to the instances with stochastically dependent capacity supply limits and stochastically dependent demand processes, which establish the robustness of the optimal policy in numerous market conditions. Investment in capacity expansion remains 1 of the most critical decisions for a manufacturing organisation with global production facilities. Multiple elements have to be considered making the choice procedure extremely complex. The study discovered that theres a substantial quantity of work on development of mathematical multi-factor models for capacity expansion. Despite that, no single work captures all of the various facets of the issue. Since the early 1960s, numerous quantitative studies of capacity expansion issues have been conducted. Manne (1961) offers the initial and simplest models of capacity expansion with deterministic demand, single facility and infinite economic life. His book (Manne, 1967a) offers a description of numerous capacity expansion issues in which optimal location for every expansion is considered explicitly (Erlenkotter, 1967; Manne, 1967b). By the early 1980s, the capacity expansion literature evolved to consist of multiple problems and think about multiple facilities within the decision-making procedure. Luss (1982) points out that the typical objective was to minimise the discounted costs associated with the expansion procedure. Porter (1980), nevertheless, argued that the capacity expansion issue isnt as easy as just carrying out such analysis based on a couple of elements. Estimating the elements that influence a capacity expansion is really a subtle issue in business. Most of the recent work within the region of capacity expansion choice processes has focused on the advancement of computational methods (Syam, 2000) to solve various aspects of the issue based on various constraints and objectives. Some work has been carried out investigating soft elements (OBrien and Smith, 1993; Meijboom and Voordijk, 2003) yet no complete procedure has been put forward. Thus the challenge would be to develop a choice procedure that will capture leading thinking within the region and to expand this to consist of soft problems in capacity expansion in global manufacturing networks. Fitness Plus, Component B, explores alternatives to expanding a new downtown facility and is included within the Instructors Manual. If youre interested in this topic, ask your instructor for a preview.

How Peace Can be Achieved Essay

Peace could possibly be achieved if all people on Earth became non-judgmental towards each other and accepted each other as equals. In addition, everyone’s spiritual beliefs, their faith, should be respected, whether they choose to believe in a higher power, or not. Believing in a higher power, in itself, does not guarantee peace because more people have been murdered in the name of God than for any other reason in all of historyPeace is a state of harmony characterized by the lack of violent conflict and the freedom from fear of violence. Commonly understood as the absence ofhostility, peace also suggests the existence of healthy or newly healed interpersonal or international relationships, prosperity in matters of social or economic welfare, the establishment of equality, and a working political order that serves the true interests of all. In international relations, peacetime is not only the absence of war or violent conflict, but also the presence of positive and respectfu l cultural and economic relationships. Peace is something which is vastly misinterpreted and misrepresented in today’s world. Everyone has their own perceptions about it†¦out of which only a small portion actually come near in addressing ‘peace’. In my personal opinion peace isn’t just a cleaver way of showcasing your imposed superficial friendliness while brewing up violent tendencies from within !As is highlighted by India’s relations with Pakistan†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦in formal terms we are at peace since the kargil war of 1999†¦.but reality rests in a completely different sphere. I believe peace is not just stopping wars†¦its something more†¦.it’s the victory of reality over virtual superiority, the realization that everyone in the world is nothing but equal. It means to give the due share of respect to everyone’s opinion and thinking before putting your ideas into action. It means forgetting all what happened in the past†¦ hoping and believing that a better day, a better future is possible. This world has seen so many of the traumatizing atrocities in its lifetime ,as we become aware of our mistakes in the past it becomes the duty of each of us as individuals and as youth to change all this and create a better place for our succeeding generations †¦and yes we can do it! I would begin this article with a story of an ancient Indian King who was obsessed with the desire to find the meaning of peace. What is peace and how can we get it and when we find it what should we do with it were some of the issues that bothered him. Intellectuals in his kingdom were  invited to answer the King’s questions for a handsome reward. Many tried but none could explain how to find peace and what to do with it. At last someone said the King ought to consult the sage who lived just outside the borders of his Kingdom: â€Å"He is an old man and very wise,† the King was told. â€Å"If anyone can answer your questions he can.† The King went to the sage and posed the eternal question. Without a word the sage went into the kitchen and brought a grain of wheat to the King. â€Å"In this you will find the answer to your question,† the Sage said as he placed the grain of wheat in the King’s outstretched palm. Puzzled but unwilling to admit his ignorance the King clutched the grain of wheat and returned to his palace. He locked the precious grain in a tiny gold box and placed the box in his safe. Each morning, upon waking, the King would open the box and look at the grain to seek an answer but could find nothing. Weeks later another sage, passing through, stopped to meet the King who eagerly invited him to resolve his dilemma. The King explained how he had asked the eternal question and this sage gave him a grain of wheat instead. â€Å"I have been looking for an answer every morning but I find nothing.† The Sage said: â€Å"It is quite simple, your honor. Just as this grain represents nourishment for the body, peace represents nourishment for the soul. Now, if you keep this grain locked up in a gold box it will eventually perish without providing nourishment or multiplying. However, if it is allowed to interact with the elements – light, water, air, soil – it will flourish, multiply and soon you would have a whole field of wheat which will nourish not only you but so many others. This is the meaning of peace. It must nourish your soul and the souls of others, it must multiply by interacting with the elements.† Peace-a small word with a deeper meaning attached to it†¦Ã¢â‚¬ ¦different interpretations, different perspectives and different understandings yet the meaning is one but for one’s own self. Setting a yardstick about what peace means to you is your own way of looking at it. When I hear this pure, magical word the first thing I see is a satisfied soul and not just a quiet that has prevailed. But when quiet prevails, it maybe for mourning a death or even remembering someone great or just a quiet night sleep. And as Oscar Romero says- Peace is not the product of terror or fear. Peace is not the silence of cemeteries. Peace is not the silent result of violent repression. Peace is the generous, tranquil contribution of all to the good of all. So peace implies as something quiet yet good-from within and for something outside†¦.. Stillness is one of the most important attribute of peace and not just it leads to a quiet environment around but makes us quiet from inside. To obtain this peace is not easy. There is a constant fight going on inside you†¦.. White versus Black, Good versus Evil and when we obtain control over our ourselves we can win this war. Consequently, when good prevails over evil within us, can we spread peace to our external elements. Peace comes from living in the moment and looking for the good in others. Peacefulness comes from facing our fears and letting them – trust that things will turn out all right. While it is true that the world has become so complex and so technologically oriented that individuals no longer believe that they count or that they can do anything to affect world events, it is precisely the oppos ite. For only when individuals take total responsibility for their own lives, find within themselves calm and power of ‘good’ and live in peace with their neighbors and environment, only then will forces be set in motion that will eventually bring about world peace. Nations go to war, often quoting peace as the reason. We must realize peace is a journey, not an end. Yet, in our efforts to obtain peace, we often do the most unpeaceful things. Instead of seeking inner peace, we seek to enforce peace on others. And that just doesn’t work. Peace is a gift you can give to others and to yourself. If you seek peace with a sincere heart, you can find it. Peace has the power to move mountains. Mahatma Gandhi had spread peace to the world and this was his power or else how could a frail man like him get India its freedom and Indians their rights. The quality of life depends not upon external development or material progress, but upon the inner development of peace and happiness. We all wish for world peace, but world peace will never be achieved unless we first establish peace within our own minds. Without inner peace, outer peace is impossible. We can send so-called ‘peacekeeping forces’ into areas of conflict, but peace cannot be imposed from the outside with guns. Only by creating peace within our own mind and helping others do the same can we hope to achieve peace in this world. We can see from this that if we want true, lasting happiness we need to develop and maintain a special experience of inner peace. The only way to do this is by gradually  reducing and eliminating our negative, disturbed states of mind and replacing them with positive, peaceful states. Eventually, through continuing to improve our inner peace we will experience permanent inner peace, or ‘nirvana’. Once we have attained nirvana we will be happy throughout our life, and in life after life. When a baby is born, he is innocent and believed to be the purest form of god in this materialistic world and when he dies he ‘Rests in Peace’. The unpeacefulness is in betwee n these two stages of human life as he gets trapped in the materialistic trap of this world†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ So, look for peace in you and not when no two nations are at war, or when you are relaxed because you are your biggest challenge and once you win over the evil inside you, no matter whatever happens outside you, you will surely be peaceful†¦Ã¢â‚¬ ¦. â€Å"There is no way to peace; peace is the way.† – MAHATMA GANDHI Peace is a term that most commonly refers to an absence of aggression, violence or hostility.peace such a beautiful word. A word that makes us feel relaxed thinking about those beautiful white doves.When we come to imagine it we see the best of both worlds.A place close to nature and a place where happiness i sthe environment.But that world seems to remain a dream now! We talk about global peace and hold terrorism as the culprit.But think. when we cannot even keep peace with our ownselves , how can we talk about peace at such huge levels? We fight with people , our loved ones for reasons completely unnecessary. It takes less than a second to burst out in anger, doesn’t it? There the irony lies. What we must learn as the first step towards peace is SELF PEACE.. inner peace refers to a state of mind, body and mostly soul, a peace within ourselves. People that experience inner peace say that the feeling is not dependent on time, people, place, or any external object or situation.When we learn to remain at peace with ourselves we will be at peace with the rest of the world. Now talking about peace at international levels.. We all know how terrorism threatens the very roots of peace. but that does not sem to be the only culprit. since the time nuclear weapons have arrived thw world has not seen peacve and never will unles we make a conscious effort to stop threatening the world with our nuclear power. The most important thing to remember when we talk about peace is love.Love and peace are inseparable.We cannot have one without the other.With love achieving peace becomes a cakewalk. Whether it is inner peace or peace anywhere across the globe, love  is the basis. love yourself and you shall attian inner peace. love others and you shall be at peace with all. To achieve peace at the global level, we also give NOBEL PEACE PRIZE.The prize has often met with controversy, as it is occasionally awarded to people who have formerly sponsored war and violence but who have, through exceptional concessions, helped achieve peace. With the basic ideas of peace in mind and conscious efforts towards achieving it in our daily life ,I hope we achieve our aim of global peace one day. â€Å"When the power of love overcomes the love of power , the world will know peace.† What peace means to me†¦ In a country, Peace is a term that most commonly refers to an absence of aggression, violence or hostility. Peace isn’t the absence of violence but rather the presence of justice. In a society, peace happens when different desires are in one agreement. Peace is based on many things, culture, education, family values, experience, & history (to name a few) but the basis is the same—-to co-exist without war, killing, & overpowering a fellow being. According to me, Peace is the feeling that all’s right with the world. When everyone around me in my family, my friend circle and my neighbourhood is happy, eager to love, accept and relate†¦ I feel at peace. Also, to me it means following what my heart says and sharing mutual trust and respect for people around me. However, in today’s world, peace and harmony face various threats. Terrorism, regional imbalance, economic disparity, and social inequality are some of the factors which threaten peace today. We all are so engrossed in our busy lifestyles and yet want our lives to be peaceful. We expect that peace to be omnipresent but what we need to realize is the fact that if we want peace- we have to live peacefully, love everyone, forgive, forget, etc. . It’s not enough to stand around asking if world peace will ever happen because that won’t do anything. Actions speak louder than any words. If everyone starts living the peaceful, loving way, things will change. But someone has to start and lead by example. Mahatma Gandhi once said â€Å"You must be the change you wish to see in the world.† We can’t rely on anyone else to do this. We have to do these ourselves. Acceptance, compassion, and tolerance are the foundation of peace. Mahatma Gandhi showed that peace ends  suffering and oppression, not by warring against an enemy but by bearing witness to wrongs and allowing sympathy and common humanity to do their patient work. Nelson Mandela and Mother Teresa lived different aspects of peace, which was proven to be a viable way to achieve great things. In the end, I would like to conclude by presenting this touching poem I found on net, which describes that peace takes the form we give it. The preamble to the United Nations Charter sums up the existential dilemma of today: â€Å"Since wars begin in the minds of men, it is in the minds of men that defences of peace must be constructed†. The challenge today is in creating peace, and not in appreciating peace as a concept. And this cannot be done  if we keep concentrating on destruction. It is time now to literally construct peace. But Peace is not just a feeling or a state of being. It is not just something that one would achieve only during long hours of prayers or meditation. And it is certainly not end-of-war alone. Peace is life itself. It is our original religion. Peace, therefore, is a natural instinct and if we wish to construct a peaceful world, then all we’ve got to do, is to let it manifest in our lives. Paradise is called so not just because it is believed to be a place of scenic beauty it is also where the divine virtues of love and peace prevail. To achieve peace, three things have to be borne in mind: that peace is our natural religion; that all that we do affects those around us; and that to recharge our pure energies, we need to connect to the Supreme Source. A life operating on these three laws of peace will tangibly transform everything to a peaceful state and recreate the one culture that we all wish to re-establish in the world – that is, the culture of peace. War and terrorism have cast their shadow on the world. Most world leaders, international organisations and so-called peace summits tend to define peace in the shadow of war, as ‘a situation where there is no war â€Å"between nations. By defining light as the ‘absence of darkness â€Å"or, life as the ‘absence of death†, we assign greater importance to the powers of darkness and death, or in the case of peace, to war, rather than peace. Peace is desirable, as is striving for peace. We agree that peace-marches and war protests have a place in this world, and unfortunately so does war. One man’s war is another man’s peace. To achieve peace, three things have to be borne in mind: that peace is our natural religion; that all that we do affects those who surround us; and that to recharge our pure energies, we need to connect to the Supreme Source. A life operating on these three laws of peace will tangibly transform everything to a peaceful state and recreate the one culture that we all wish to re-establish in the world – that is, the culture of peace. This is the way of peace: Overcome evil with good, falsehood with truth, and hatred with love. The way of peace is the way of love. Love is the greatest power on earth. It conquers all things Messengers of Peace by LAKSHMISRINIVAS We the messengers of peace With a message for peace on earth For peace we pray in distress This virtue we yearn to harness chorus Peace in the human heart Peace on human face Peace as human dress Peace for the human race Hate is strong and peace fragile Is what we often fear That wrong shall fail and right prevail Is our message loud and clear chorus Peace in the human heart Peace on human face Peace as human dress Peace for the human race As Martin Luther King has said â€Å"I have a dream†. So do I, a dream that one day peace prevails on Earth. No person cuts a brother’s or a sister’s head, no violence, no one feels unsafe to walk around, no bombs, no terrorist and there is a sense of understanding and love all around. â€Å"lokah samasta sukhino bhavantu† (May all beings everywhere attain happiness & freedom.) Observe all around. What is the best thing that this creation has ever produced? Mountains, trees, animals, birds no, it’s the human beings. We are the once in the world who have a sense of discrimination or in Hindi â€Å"Vivek† and what use are we making of that wonderful mind which the nature has bestowed upon us. Making a master plan to attack Mumbai or World trade  Centre would certainly not the best use of mind. Come on think of it. What is it that these people want? Are they fighting for religion? Then I would say that these people have not understood the true meanings of the holy books which they pretend to have read. If someone throws a stone at a temple, a mosque or a church, we run after that man like dogs with swords in our hands to kill him. But are these temples, mosques, churches real? Why would God want to reside in places created by human beings for Him. He will live in the best designed creation of all. He lives in us! And we do not think even for a moment to cut another person’s throat just because he insulted a religion. No religion teaches to fight. It’s us who have interpreted these religions as per our convenience that we believe that we are the saviours. That insecurity, which is a result of all these attacks and bombs blast have started to creep in. My mother says, â€Å"do not go to a crowded place on Saturdays or Sundays†. At every moment there is a sense of fear that some where or may be at our place, there will be a nuclear attack and nothing will be left. Just even thinking that what are these morons upto, create a feeling of disgust, horror, anger and at the same time ‘pity’. Yes ‘pity’ is the right word. I pity these people and look down upon them as they do not even know the real purpose of this creation. They have their own concepts of religion, place and living life which are far from the actual meaning. They are no more than a unwanted group of parasites which have their own world and want to conquer our world. An insecticide must be created for these people because in my opinion, they won’t change with talks. Their minds are corrupted till the roots that even sitting in a world summit where we invite all the terrorist leaders to talk and discuss ‘what the hell is there problem ?’ and making settlements won’t do any good. ‘An ostrich dugs its head inside the earth’s surface and thinks that the danger is off because it is not visible.’ We cannot afford all this. I feel sad when I say that all these terrorists must be given a taste of the fear which they have caused on the society ,but what else can we do?†¦.give in to their demands and create a world full of people who do not have any moral or civil sense. When a disease is inflict ed upon ,one needs to take a bitter medicine or the disease won’t go. And after all this I pray in future that I sall never see a war on earth. â€Å"OM dhyauH shaantiH Antariksha shaantiH aapaH shaantiH AushadhayaH shaantiH vanaspatayaH shaantiH visvedevaaH shaantiH shaantireva shaantiH saa maa shaantiredhi OM shaantiH shaantiH shaantiH† (May there be peace in heaven, may there be peace in sky, – may there be peace on the earth, may there be peace in waters – may there be peace in herbs, may there be peace in vegetations – may there be peace in all the Gods, may there be peace in entire Bramha (creation) – may there peace everywhere, may there be peace and only peace, may that peace embrace me. OM !! Peace Peace Peace))) All the world over people crave for peace. The leaders and politicians of the world are trying to achieve world peace. But many difficulties come in the way. There is fear and suspicion among nations. Russia suspects the motives of American. America likewise does not trust Russia. Pakistan says that it is afraid of India. That is way she is aiming herself with latest weapons. Some countries are very much advance in science. Their economic condition is far superior to that of others. Such countries want to dominate weaker countries. They exploit them. This creates tension and other conflicts break out here and there. While peace has been established in Vietnam, the Middle East is still the danger spot of the world. Indian and Pakistan are still not on friendly terms. Local wars in these areas can lead to a world war any day. Narrow patriotism, religion fanaticism and military pacts also come in the way of world peace. Some countries want to capture the markets of the world for their trade. This causes unhealthy competition. The possibilities of World War are thus increased and those of peace minimized. Apart form this, there is the questions of ‘black and white’. The white people hate ‘black’ men. This hatred creates difficulties in the way of the establishment of peace. It is said that voice of the people is the voice of God. Nowhere in the world people want war. They are fed up with it. The desire for peace is supreme in their hearts. So ways and means must be found for persevering world peace. Following ways may be suggested to ensure everlasting peace in the world. First, there must be disarmament. Powerful countries should give up the race of arming themselves and their friendly countries to the teeth. The manufacture of deathly weapons should be  stopped. This will create a feeling of security. There will be faith instead of suspicion among the various countries of the world. Secondly, big counties should not only accept the principles of ‘Panch Sheela’ in theory, but should follow them strictly in practice. These are the five principles of international conduct given to the world by our late Prime Minister Nehru. World peace can be secured only by their observance in practice. Thirdly, peace can be established only of the U.N.O is allowed to work smoothly. All the nations of the world must respect its decisions. Problem should be solved amicably through this agency. The destiny of the world rests in the hands of its leaders. They should unite to achieve this aim. The power of science should be used for human welfare alone. Scientist should put a check on its use for destructive purposes. The people and the politicians should unite and work for world peace. With the disintegration of the Soviet Union, the danger of a third world war gas come to an end. Regional security system are being worked out. These are happy sings which indicate that good sense is drawing on the leaders of the world Terms for Nuclear Ban Treaty are being discussed by the nuclear powers. This is a good sign for world-peace. But the U.S.A has grown all powerful. It is increasingly playing the role of the policeman of the world. This tendency is a dangerous one. It must be crushed in the very beginning .

Mary Rowlandson’s “The Captive” Essay

In the sixteenth, seventeenth, and eighteenth centuries of America, many settlers and colonists were taken captive by the Native Americans, commonly known as Indians. The Native Americans had many reasons and motives for capturing the settlers or colonists. Captives were often taken to be traded, ransomed, or â€Å"adopted,† which Native Americans did to replace tribal members who had passed or who had been killed. Two very famous captivity narratives are those of James Smith and Mary Rowlandson, whose stories are very different due to their captors, gender, and religion. James Smith was 18 years old when he was captured by the Indians just miles above Bedford. Smith was captured by three Indians, one was a Canasatauga and the two others were Delawares. With the exception of being flogged, Smith’s experiences with the Indians were not terrible. He was essentially treated as an Indian. This stems from the fact that he was adopted by the Natives. James Smith was given man y freedoms. Smith was very trusted by the Indians. They allowed him to hunt with them or on his own, they expected him to act as an Indian, and they also trusted him to take care of them when needed. Smith also had the option to leave whenever he pleased. He did not have to remain with the Indians for the four years, 1755-1759, that he did. These experiences are very different compared to those of Mary Rowlandson. Mary Rowlandson’s hometown of Lancaster, Massachusetts was destroyed by the Indians in King Philip’s War and she was taken captive during the destruction. Mary Rowlandson was captured in 1676 and remained a captive for three months before the requested ransom was paid. Rowlandson had very different experiences from James Smith with the Indians. At her capture, she witnessed the Indians killing or harming many in her family. Rowlandson, herself, suffered a gunshot wound. James Smith was also harmed when first captured by the Indians; however, he had been aided by French doctors. Mary Rowlandson dealt with her gunshot wound on her own. She also had to carry her sick child for six days before the child passed away. Rowlandson was not able to read freely in front of the Indians, she was not given a fair share of th e food, and was often forced to find other Indian tribes to spend the night with, or to receive food from. Rowlandson was sometimes allowed to go and meet with family members who were with neighboring tribes. Compared to James Smith’s experiences, Mary Rowlandson had it tough when she was a captive of the Indians. Gender had a major effect on how the captives were treated. Native Americans often captured women because they were easier to capture, could bring in more ransom, and the Indians also believed that the women would be easier to control. Mary Rowlandson had to make clothes for others in order to either trade with them or to get money that she could then use to obtain food with. James Smith, on the other hand, was able to go out and hunt for the food he needed. The food that he and his fellow Indians gathered was evenly divided amongst the tribe. Rowlandson, however, was treated better by some tribes than the one she was being held captive in. Some Indians from other tribes would offer her food or opportunities to get money or goods that she needed. This was likely due to the fact that women had more powers and were more respected in some Indian tribes. Smith was expected to help and fend for himself while Rowlandson was often provided with food, though it was not a fair share and was often not of the same value that Smith’s was. Overall, Mary Rowlandson was treated disrespectfully, unfairly, and as though she was inferior. Rowlandson had to fight harder to live, as her food was often stolen and her religion, her greatest hope and strength, was frowned upon during her captivity. Religiously, Mary Rowlandson was affected more than James Smith. Mary Rowlandson was very religious. Rowlandson was married to a minister of Lancaster. Mary Rowlandson’s faith and religion were the only things that kept her going during her captivity. The only thing she had to look forward to was reading her bible, though she had to do it secretly because once, her mistress caught her reading it, grabbed it out of her hands, and threw it ou tside. Rowlandson recovered her bible, but from then on she read it more secretly. Mary Rowlandson believed that all of the trials that she survived and the blessings that she received were from God. Rowlandson wrote of leaving her captivity, â€Å"I have been in the midst of those roaring lions and savage bears that feared neither God nor man nor the devil, by night and day, alone and in company, sleeping all sorts together, and yet not one of them ever offered the least abuse of unchastity to me in word or action; though some are ready to say I speak it for my own credit; but I speak it in the presence of God, and to His glory. God’s power is as great now as it was to furnace. Especially that I should come away in the midst of so many hundreds of enemies and not a dog move his tongue.† Mary Rowlandson often quoted bible verses, one being Psalsms 27: â€Å"Wait on the Lord.† Rowlandson used this particular verse to persuade another captive against trying to escape and run away. and metaphorically related her experiences to stories of the bible .Mary Rowlandson depended upon her religion to survive her captivity. Without, her faith, religion, and God, Mary Rowlandson would have had no hope, no reason to go on, or no encouragement to persevere through her captivity. James Smith was not extremely religious. Unlike Mary Rowlandson, James Smith did not depend upon religion to survive his captivity with the Indians. The Indians that Smith was with did not mind him practicing his own religion and they did not force their religion upon him. James Smith was, towards the end of his captivity, traveling with an Indian by the name of Tecaughretanego and his son Nunganey. After Smith laughed at Tecaughretanego’s religious ceremonies, Tecaughretanego said to him, â€Å"Brother,–I have somewhat to say to you, and I hope you will not be offended when I tell you of your faults. You know that when you were reading your books in town I would not let the boys or any one disturb you; but now, when I was praying, I saw you laughing. I do not think that you look upon praying as a foolish thing; I believe you pray yourself. But perhaps you may think my mode or manner of praying foolish; if so, you ought in a friendly manner to instruct me, and not make sport of sacred things.† Smith learned a lot about the Indians’ religion through his experiences with them and learned to respect their beliefs. Though the experiences of James Smith and Mary Rowlandson were very different, neither story will ever be forgotten. Perhaps that was their purpose for recording their exploits. The differences in their stories can be attributed to their sex, religion, and captors. Had Mary Rowlandson not been female, religious, or captured by the Indians she was, her story may have been very different. Also, for James Smith, had he not been male or taken by the Indians he was his story would have been completely altered. The qualities, beliefs, and characteristics of Mary Rowlandson and James Smith were essentially what saved their lives.

Boeing Company Analysis - Free Essay Example

Sample details Pages: 29 Words: 8633 Downloads: 6 Date added: 2017/09/21 Category Advertising Essay Type Argumentative essay Level High school Tags: Financial Analysis Essay Did you like this example? Boeing [pic] Presented by: Urvishkumar Patel Amitkumar Patel Bhavikkumar Patel Manojkumar Patel Vishal Patel Jonathan Mayes MG 640 Management Policy Dr. Santanu Borah July 27, 2008 TABLE OF CONTENTS INTRODUCTION5 Company Overview5 Boeing Commercial Airplanes5 Boeing Integrated Defense Systems6 Boeing Capital Corporation6 Background7 Sales/Operations9 Constituent Contributions to Corporate Portfolio and Revenue12 Market Share, Revenues, Income, Expenses and Stock Prices over Previous Five Years14 Current Strategies (Corporate, Business, Functional)15 Core Competencies18 The VRINE Model19 COMPETITION20 Core Competition20 Competitive profiles23 Comparing Core Competencies25 Threats to Boeing’s Competitive Position27 Main Competitors28 Competitive Profile30 FINANCIAL ANALYSIS32 Introduction32 Role of Financial Analysis33 Liquidity/Solvency Ratios34 Profit Ratios35 Leverage Ratios37 Turnover Ratios39 Conclusion41 SWOT ANALYSIS42 Introduction42 Strengths43 Weaknesses45 Conclusion47 Opportunities48 Threats50 Conclusion52 SWOT Matrix53 BUSINESS DEFINITION55 Evolution of Industry Ten Years From Now55 Business Outlook Ten Years From Now56 OBJECTIVES61 ALTERNATIVES62 Measurable Growth62 community Change64 Innovative Business Concept67 RECOMENDATIONS70 Assumptions/Logic Behind Alternatives70 Achieve Objectives70 IMPLEMENTATION72 Setting Unreasonable Expectations72 Elastic Business Definition72 A Cause, Not a Business73 New Voices73 Open Market for Capital and Talent74 Low Risk Experimentation75 Cellular Division75 REFERENCES77 INTRODUCTION Company Overview The Boeing Company is one of the world’s leading aerospace companies and is one of the largest manufacturers of commercial jetliners and military aircraft combined. Boeing also designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Boeing operates the Space Shuttle and International Spa ce Station for NASA as well as numerous military and commercial airline support services. The company employs more than 160,000 people across the U. S. and in 70 countries. Boeing has customers in more than 90 countries world-wide and is one of the largest U. S. exporters in terms of sales. The company values innovation and is ontinually expanding their product line and services to meet emerging customer needs (About Us). Boeing, who generates $66 billion in revenues from their global aerospace and defense markets, conducts business through three operating segments. Boeing Commercial Aircraft (BCA; 50% of revenues and 49% of operating profits in 2007) and EADSs 80%-owned Airbus division are the worlds only makers of 130-plus seat passenger jets. Integrated Defense Systems (IDS; 48%, 48%) is the worlds second largest military contractor behind Lockheed Martin Corp. Boeing Capital Corp. (2%, 3%) primarily finances commercial aircraft for airlines (Business). Boeing Commercial Airpl anes Boeing Commercial Airplanes makes planes that seat from 50 to more than 500 passengers. Models include the BBJ (Boeing Business Jet), 717, 737, 747, 767, 777, and upcoming 787 Dream liner. The unit also provides airplane services, including used aircraft sales and leasing, maintenance, modifications, spare parts sales, and flight support services. Boeing Commercial Airplanes has major facilities in California and Washington (Boeing Commercial). Boeing Integrated Defense Systems Boeing is best known for its commercial planes, but its Integrated Defense Systems (IDS) unit, formed when Boeing combined its Military Aircraft Missile Systems and Space Communications units, is well known in the global defense segment. It includes military aircraft (F/A-18E/F Super Hornet, F-15E Eagle, C-17 Globe master, AH-64 Apache, and V-22 Osprey) as well as missiles (Harpoon and SLAM-ER), airborne lasers, and Unmanned Combat Air Vehicles (UCAV). IDS is also NASAs prime contractor for the I nternational Space Station, supports the Space Shuttle program (a joint venture with Lockheed Martin), and makes information and communications satellite systems. The United States Department of Defense accounts for nearly 85% of IDS sales. Boeing Capital Corporation Boeing Capital provides asset-backed leasing and lending services through two divisions: Aircraft Financial Services offers financing and leasing services for airlines and governmental customers interested in Boeing aircraft; Space Defense Financial Services offers similar services for Boeings Integrated Defense Systems customers. Until 2004 Boeing also provided financial services in non-aerospace areas, but it sold its commercial financing operations to General Electric for about $2 billion. Boeing Capital was founded in 1968 as McDonnell Douglas Finance, and changed its name when Boeing acquired McDonnell Douglas in 1997 (Boeing Capital). Background / Timeline with Facts and Figures Boeing’s origin dates to 1916 when the American timber merchant William E. Boeing founded Aero Products Company shortly after he and U. S. Navy officer Conrad Westervelt developed a single-engine, two-seat seaplane, the BW. Renamed Boeing Airplane Company in 1917, the enterprise built â€Å"flying boats† for the Navy during World War I, and in the 1920s and ’30s it successfully sold its trainers, pursuit planes, observation craft, torpedo planes, and patrol bombers to the U. S. military. In the late 1920s Boeing Airplane expanded into airmail services, and in 1928 William Boeing formed Boeing Airplane Transport Corporation to encompass both manufacturing and airline operations. The next year the company was renamed United Aircraft and Transport Corporation and acquired several aircraft makers, among them Chance Vought, Avion (which became Northrop Aircraft), Stearman Aircraft, Sikorsky Aviation, engine manufacturer Pratt Whitney, and aircraft and propeller maker Hamilton Metal plane. In 1931 it combined four smaller airlines under its ownership into United Airlines. In 1934, under new U. S. antitrust legislation (the Air Mail Act of 1934), aircraft manufacture was required split from air transport, and a newly ncorporated Boeing Airplane Company became one of the three companies to emerge from the dissolution of United Aircraft and Transport. The other two were United Aircraft Corporation (now United Technologies Corporation) and United Airlines (Boeing Company). On a more current note, there are several important dates in Boeing history (Timeline): Sept. 4, 2001 Boeing opens for business at its new downtown headquarters in Chicago, less than six months after announcing its planned move from Seattle. Sept. 11, 2001 Four Boeing-made planes are hijacked by terrorists and crashed in the attacks that kill nearly 3,000 people. Subsequent steep drop in air travel demand sends Boeings commercial airline customers into a deep slump. Boeings stock loses more than 40 percent of value within two weeks. Dec. 20, 2002 Boeing announces it is scrapping plans to build the Sonic Cruiser, a plane that would have traveled near the speed of sound, in favor of a more traditional, fuel-efficient jet. July 24, 2003 Pentagon bans Boeing from bidding on military satellite launching contracts to punish it for stealing trade secrets from rival Lockheed Martin to help win rocket contracts. Sept. 17, 2003 Pentagon opens an investigation into allegations that former Air Force official Darleen Druyun improperly gave Boeing information about a competing bid on a widely criticized military contract to acquire 100 air-refueling tankers. Nov. 24, 2003 Boeing fires Chief Financial Officer Mike Sears and Druyun for unethical conduct, saying Sears negotiated Druyuns hiring while she was still working for the Pentagon and was in position to influence Boeing contracts. Dec. 1, 2003 CEO Phil Condit resigns, hoping to put the distractions and controversies of the p ast year behind us. Retired Boeing executive Harry Stone cipher succeeds him. Dec. 16, 2003 Boeing begins taking orders for the 7E7 Dream liner (now the 787), its first all-new airplane since the 777 in 1990. Jan. 15, 2004 Airbus SA officially overtakes Boeing as the worlds largest commercial jet maker, announcing it delivered 305 airplanes in 2003 to Boeings 281. Oct. , 2004 Druyun is sentenced to nine months in prison for conspiracy to violate federal conflict-of-interest regulations after admitting she helped Boeing on contracts as a parting gift before joining the company. Feb. 18, 2005 Sears sentenced to four months in prison for aiding and abetting illegal employment negotiations. March 4, 2005 Air Force lifts its 20-month ban prohibiting Boeing from bidding on satellite launch contracts. March 7, 2005 Boeing announces that Stone cipher resigned under pressure the previous day as a result of improper conduct related to an affair with a Boeing female executive. July, 2008 – Boeing unveils 777 Dream liners into the commercial market July, 2008 – U. S. government officials plan to rebid the Air Force tanker deal. This gives Boeing another chance to win the $35 billion contract Sales/Operations by Region and Segments The majority of Boeing’s sales and operations result from their U. S. and Asian operations which account for approximately 80 percent of their worldwide sales. Boeing’s core regions and their associated data are illustrated below in Tables 1. Table 1: 2007 Boeing Sales by Region Region |$ mil |% of total | |US |39,336 |59 | |Asia | | | |China |2,853 |4 | |Other countries |11,104 |17 | |Europe |6,296 |10 | |Middle East |1,891 |3 | |Canada |1,653 |2 | |Oceania |1,057 |2 | |Africa |751 |1 | |Latin America, Caribbean other regions |1,446 |2 | |Total |66,387 |100 | Source: Hoovers In addition, Boeing’s commercial airplane segment accounts for about half of Boeing’s global operations. The various se gments and their associated sales data are shown in Table 2 below. Table 2: 2007 Boeing Sales by Segment |Segment |$ mil |% of total | |Commercial airplanes |33,386 |50 | |Integrated defense systems | | |Precision engagement mobility systems |13,685 |21 | |Network space systems |11,696 |18 | |Support systems |6,699 |10 | |Boeing Capital |815 |1 | |Other |280 |- | |Total |66,387 |100 | Source: Hoovers Constituent Contributions to Corporate Portfolio and Revenue Boeing’s generates most of its revenue from their two major segments, Commercial Airplanes and Integrated Defense Systems. Table 2 showed the sales figures for each segment and their associated percentages. Within these sectors, several products contribute to their overall corporate portfolio. They are broken down into commercial airplanes, military aircraft and missile systems, and space communications. In all, these products generate over $66 billion in revenue for Boeing. Commercial airplanes †¢ 737 Next Ge neration (short-to-medium-range two-engine jet) †¢ 747 (long-range four-engine jet) †¢ 767 (medium-to-long-range two-engine jet) †¢ 777 (long-range two-engine jet) †¢ 787 (long-range, super-efficient, 200-250 passenger capacity; due in 2008) Military aircraft and missile systems †¢ AH-64D Apache helicopter †¢ AV-8B Harrier II †¢ C-17 Globe master III †¢ C-40 Clipper †¢ CH-47 Chinook †¢ F/A-15 Eagle †¢ F/A-18E/F Super Hornet †¢ Harpoon Missile †¢ T-45 Flight Training System †¢ V-22 Osprey tilt-rotor aircraft †¢ Various classified projects X-45 (Unmanned Combat Air Vehicle the UCAV is an advanced technology demonstrator) Space and communications †¢ 737 AEWC (Airborne Early Warning and Control) †¢ Global Positioning System satellites (GPS) †¢ International Space Station (contractor to NASA) †¢ National Missile Defense Lead Systems Integrator (NMDD LSI) †¢ Space Shuttle Commercial Airpla nes Boeing’s Commercial Airplanes division accounted for about 50 percent of their total portfolio in 2007 with revenues of about $33 billion. This segment’s revenue stems from commercial aviation orders and is directly affected by worldwide travel demand. Integrated Defense Boeing’s Integrated Defense Systems accounted for around 49 percent of Boeing portfolio. Within this segment, their Precision and Engagement and Mobility Systems made up 21 percent ($13 billion), Network and Space Systems 18 percent ($11 billion), and Support Systems 10 percent ($7 billion). Boeing Capital Boeing’s Capital Corporation manages a $6. 5 billion portfolio of about 350 airplanes. This segment leases older planes to customers but has seen a decline since many customers are opting for newer fuel efficient planes. This segment accounts for about 1-2 percent ($815 million) of Boeing’s revenues (Hoovers). Market Share, Revenues, Income, Expenses and Stock Prices over Five Years Boeing competes primarily with Airbus in the Commercial Airplane segment. The companies share the market almost equally and with fluctuations from year to year. Table 3 shows a summary of their five year financials. Table 3: Boeing Five Year Financial Summary ($ mil. ) |Year |Revenue |Net Income |COGS |Stock Price | |2007 |66,387 |4,074 |53,107 |87. 46 | |2006 |61,530 |2,215 |50,437 |88. 84 | |2005 |54,845 |1,872 |45,849 |70. 24 | |2004 |52,457 |718 |45,025 |51. 7 | |2003 |50,485 |492 |43,862 |42. 14 | Source: Hoovers According to Boeing’s financial numbers, their revenue, net income, and stock prices have increased steadily over the last five years. In addition, Boeing’s profit margin almost doubled from 2006 to 2007. In 2007 it was 6. 1 percent, up from 3. 6 percent in 2006. Current Strategies (Corporate, Business, Functional) The majority of management at Boeing can effectively motivate people and provide guidance and leadership at a high level. Previ ous top management employees were involved in ethical scandals. New management has made ethics and good business practices a core value of the organization. They communicate the larger company vision and provide a link between the different divisions and programs (Howell). Boeing’s strategy can be divided into corporate, business and functional areas. Corporate Boeing competes primarily in the commercial airplane market and defense systems market. Through their commercial airplanes segment and their integrated division segment, Boeing conducts a wide variety of business at the commercial and federal level. Thus, in reality, their corporate strategy is somewhat varied among these segments. Boeing’s official corporate strategy consists of the following elements: †¢ Run healthy core businesses Leverage strengths into new products and services †¢ Open new frontiers Although these are rather generic, Boeing does harness these concepts in order to create a compe titive advantage in their markets. They are able to run healthy operations while leveraging strengths by standardizing many of their standardized manufacturing and development processes. In addition, Boeing is successful at opening new frontiers with their â€Å"Phantom Works† division. This segment of Boeing is charged with developing the latest innovations in defense and aircraft technologies (Phantom). Business Boeing has a very distinct business strategy in the commercial airline industry. It focuses on harnessing the latest technological innovations and applying these concepts to the marketplace. This can be seen in the Dream liner 787 development. Boeing is using the latest technologies in engines and fuel efficiency to put the 787 ahead of Airbus. Airbus relies on the hub and spoke travel method while Boeing is not taking this travel method for granted. They believe travelers will demand more point to point flights over connecting ones (Boeing Versus). These 787 air craft may launch a departure from the traditional hub-and-spoke airline flights system to a more direct point-to-point system. Therefore, they may add considerable value as the market continues to change in Boeing’s favor. Functional The Boeing Company has many generic administrative systems that assist the organization in accomplishing economies of scale thus reducing administrative costs and confusion. The organizational structure of The Boeing Company is a matrix with divisional characteristics as determined by the geographical sites. The functions and programs represent the matrix architecture and the different sites provide the divisional aspect. Boeing uses nine common business functions in order to operate their two major business segments, Commercial Airplanes and Integrated Defense. These functions are (About Us): †¢ Business Development and Strategy †¢ Communications Engineering, Operations and Technology †¢ Finance/Shared Services Group/Boeing Cap ital Corp. †¢ Human Resources/Administration †¢ International †¢ Law †¢ Office of Internal Governance †¢ Public Policy Core Competencies As a predominantly engineering workforce, the ability to recognize problems quickly and to come up with creative solutions is a core competency of the organization. Boeing is able to add considerable value with their human resources and their standardization processes among their large organizational structure. This standardization process allows them to share knowledge among different units. Boeing identifies three main core competencies in their strategy: ) Detailed customer knowledge and focus 2) Large scale systems integration 3) Lean Enterprise Boeing’s lean enterprise practices and systems integration efforts allows for process standardization from division to division. This is a major advantage for Boeing over many of its competitors. VRINE Model Evaluation The VRINE model determines whether or not a resource or capability can help a firm compete and achieve superior performance. The resource or capability must exhibit five basic characteristics 1) value, 2) rarity, 3) inimitability, 4) nonsubstitutability, and 5) exploitability. Boeing’s latest development, the 787 Dream liners is becoming a valuable resource for the company. It was built to meet the market demand for larger and more fuel efficient jets. Boeing has almost 900 orders valued at $144 billion dollars. The 787 uses 20 percent less fuel per passenger, a tremendous innovation that will hedge against rising fuel prices and create more demand from frugal airline companies (Best). The 787 competes directly with Airbus’s A380, a larger and less efficient plane. Boeing and Airbus operate in a duopoly in the industry and have committed large resources to their substantially different programs. Boeing’s innovative 787 design is valuable, rare, inimitable, and nonsubstitutable at the moment. It time Boeing will be able to exploit this design over Airbus in the large commercial jet market. Currently, Boeing is getting more and more 787 orders as consumers are seeing the added value and fuel efficiency of their design. This resource is allowing Boeing to compete and outperform Airbus. COMPETITION: Core competition A Core Competency is a particular skill or technologies that create sole customer value. According to strategic management literature, core competency should provide significant and appreciable value to customers relative to competitor offerings and be difficult for competitors to imitate or procure in the market, thereby creating competitive barriers to entry. Boeing has been identified for its diversified culture of business; so that Boeing is incomparable due its multiple core competence. However, we would like to focus on select few competencies that have a possible to gain uniqueness in short future based on our own study of this business establishment. Boeing classifie s three main core competencies such as detailed customer knowledge and focus, large-scale systems integration, and lean enterprise. Detailed customer knowledge and focus Boeing seeks to understand, anticipate and be responsive to our customers needs. Phil Condit, company’s Chairman and CEO, introduced a concept of Market shaping. According to Condit, Market shaping gives knowledge where your customer is going; employing Boeing creativity, resources and technological expertise to cooperatively help them there; and having the right products and services waiting when they get there Large-scale systems integration Boeing continuously develops, advance, and protect the technical excellence that allows us to integrate effectively the systems we design and produce. This core competency can also be known as Boeing’s RD core competency. Lean enterprise Boeing entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excel lent supplier management, short cycle times, high quality and low transaction costs. The strengths of Boeing are its: †¢ Boeings strength constantly depends on the diversity of its people, products and opportunities. The people working at Boeing do not work on leading-edge technology but use help make tomorrow better. †¢ Boeing’s product line and services are well maintained to develop and to meet talented customer needs. At Boeing their strengths and processes are reexamine to build a company as strong and vital as its tradition. †¢ Boeing success depends on the Satisfaction of customers. By accepting what customers need and providing service perfectly then Boeing accomplishes total customer satisfaction. †¢ Boeing will take directly to our commitment by working the maximum ethical standards and by worshiping our commitments. †¢ Boeing tries hard to improve quality by finest way they can work to rank among the world’s premier industrial firms in customer, employee and community satisfaction †¢ Boeing will offer a safe workplace and protect the environment and also promotes the health and safety of its people and their families. Our future success is based on a three-pronged strategy: †¢ Run healthy core businesses †¢ Leverage our strengths into new products and services †¢ Open new frontiers (www. graduatingengineer. com) †¢ Boeing’s elements at the maximum level are Diversity and inclusion. For the developing superior aerospace product and service for our different customers in the world is essential in having diverse employees, business partners and community relationships. †¢ Boeing knows that diversity gives them a competitive advantage. †¢ Boeing’s commitment to diversity means providing a work environment for all employees, respectful and attracting, with opportunities for personal and professional development. This in turn increases productivity, quality, crea tivity and innovation. †¢ Boeing knows that diversity gives them a competitive advantage. Boeing is a company with nearly 200,000 people, operations in 26 states, and customers in more than 145 countries. Still, they must do more than assume that diversity will simply come to them because of their size and global reach. †¢ Diversity is about each employee. The point is not that there are differences. The point is whether they can learn from those differences †¢ Boeing has a strict diversity strategy, mission and goals, which leads a variety of internal programs and events. Boeing quality reaches new pinnacles every day motorized by Boeing people. In Boeing’s view, the true test of diversity within an organization or across a whole society is whether people build upon their differences or whether they are divided by them (â€Å"Culture†, Boeing). Competitive profiles In Boeing Commercial Airplane sector, the direct competitor is Airbus and in the integrat ed defense systems sector the main competitors are Lockheed Martin and Northrop Grumman. The table provides competitive profiles of Boeing and Airbus in the large commercial airplane industry for year 2007. | |Boeing |Airbus | |Revenues ($  mil. ) |$66,387. 0 |$34,301. 8 | |Net Income ($  mil. ) |$4,074. 0 |$3107. | |Net Profit Margin |6. 1% |5. 7% | |Market Capital |$46,486. 1 |$37,281. 6 | |Number of employees |159,300 |147,450 | |Operating Income |$5,937. 0 |$4,842. 0 | |Revenue Growth |6. 9% |6. 5% | Table: Commercial Airplane Competitive Profile Comparisons Boeing focused on being No. 1 by giving their best efforts helping to secure its future and by looking for innovation across the board: ? Engineers are showing the enterprising spirit that initially made Boeing and its predecessor companies great. ? Factory people are pioneering Lean initiatives that are spreading into the office environment. ? Sales, marketing and business development people are helping understand wh at products and services that customers need now and what solutions they will need in the future. ? Functional and support organizations are working on providing common systems that will make Boeing more efficient and better able to compete in tough, ever-changing markets. ? Boeing has put in place clear and challenging new targets for revenue growth, earnings, asset performance and cash creation in 2005 and 2006 and is working to achieve them. Airbus Airbus is the main competitor in airplane sector, having nearly the same competencies and core objective to make Airbus more efficient and competitive, so as to produce the most advanced and profitable products, and to serve its customers better in the future. Airbus have force it to the front position of the industry through its customer focus, commercial know-how, technological leadership and manufacturing efficiency have force it to the forefront of the industry as it is the leading aircraft manufacturer. With a turnover of aroun d 22= billion Euros in 2005, Airbus today consistently captures about half of all commercial airliner orders. By affecting its expertise to the military market, Airbus expands its scope and the product range. (About us. â€Å"Airbus. com†) For applying power 8 Airbus has the full support of all EADS core shareholders. The EADS and Airbus management has evaluated the programs and predicts measures which will distribute on its economic promises. According to CEOs of EADS Tom Enders and Louis Gallois of Airbus, the core objective of the programs is to make Airbus more efficient and competitive, so as to produce the most advanced and profitable products, and to serve its customers better in the future. Power 8 modules are: †¢ Develop Faster states reduction of cycle time of new aircraft development from 7. 5 to 6 years Lean Manufacturing (further integration of manufacturing and associated engineering, †¢ increase productivity by 16 percent until 2010), †¢ Smart Buying (reduction of the Airbus supply cost base; †¢ building of a network of strong risk-sharing partners, †¢ streamlining the logistics organization), †¢ Maximize Cash (reduction of financial working capital) and †¢ Customer First (serving customers even better, higher levels of services, more reliability and further improved quality) Comparing core competence In the overall view of air transportation industry the competition between Boeing and Airbus is regarding on the decisions of present and future directions of their companies gives close into direction of industry. In their vision of the future of air transportation Boeing and Airbus have recently take apart by their newest models in production, the A380 and the 7E7 respectively. Due to the production of their new planes the view differs: The goal of Boeing’s smaller 7E7 focuses on airplanes flying nonstop between smaller terminals. In compare, the goal of Airbus’ A380 jumbo jet focuses on planes flying from local terminal to international terminal. It is predicted by a by Drs. Irwin and Pavcnik an economic analysis of the Airbus and Boeing competition that the A380 will further reduce the market share of Boeing’s 747 by 14. 8% (Irwin Pavcnik, 223). This analysis shows that Boeing’s will maintain to decline while Airbus’ current market share will maintain to control for the next decade. There is an increase in air traffic of 5 percent every year and the analysts estimate that there will be a purchase of 40,000 planes over the next two decades. Airbus currently has orders for 156 A380s. The A380 has encouraged a number of operations for the larger planes like constructing double-decker passenger ramps and strengthening bridges and roads. Airbus estimates that more than 60 airports will be handling A380 flights by 2010. There is a interruption in corporation as the division created by Airbus and Boeing, their competition may be differentiate as that between the unknown European Union and the United States and also their policies on the future air transportation. Thus, it will provide approaches into the globalization forces determining air transportation and its future due to the comparison of Airbus and Boeing, competition factors, and also plans for the future. In 2001 Airbus addition as single company, has quickly moved from the market beginner to the market leader in air transportation. Airbus has mountaineering between the periods of 1988 to 1996 by 16% to 37% of the market respectively. (Dempsey Gesell, 85). However, Airbus has delivered 305 jets in 2003 soared to more 50% of the market in 2004, and its target was to transport 310 jets in 2004 and 400 jets in 2005 (Reuters, 9/8/2004). There is no revelation that Airbus has had speedy growth though the economic recession of the late 1990’s and early 2000s. Innovative designs and broad based customers focus gives advantage to Airbus. After a sequence o f purchases and merger, Boeing has known as a world leader of aircraft production with such companies as Rockwell International (merger, 12/1996) McDonald Douglas (merger, 8/1/97), Hughes Electronics (purchase, 1/2000), Jeppesen Sanderson (purchase, 9/2000), and Hawker de Havilland (purchase, 10/2000). Boeing connect in a many of business sectors such as air traffic management, commercial airplanes, broadband services to airlines, integrated defense systems, and research and development. In turn, Boeing estimates more orders for Boeing 787 because it uses 20% less fuel than other similar planes operating today. Still in current situation, Boeing’s production facilities are largely booked for the next few years, and the 787 is sold out through 2011 thus limiting Boeing’s ability to accept new orders. However, in the future competition between Airbus and Boeing plays a vital role. Because Boeing versus Airbus is one of the most difficult which strongly observe marketi ng battles elsewhere? Its also one of the most captivating. But one will increase difficulty in management through the networks of national and international policy formation, supplier-airline worker-corporation tensions, passenger demands, technological innovations, market uncertainty, and ever-increasing economies of scale. Due the current oligopoly the market has become overly complex; but if any of these companies develop to take over aircraft production then surely suffers. At the present Airbus is better over Boeing, but if Boeing accomplishes in winning this battle it will amount to one of the great change or the problem of business fortunes. It will moreover provide as evidence of the knowledge of understanding the marketplace well sufficient to direct. According to Marc E. Babej and Tim Pollak, to date, Airbus carriers 159 order of A380s, and roughly twice of Boeing 787s. (elsmar. com/Forums/showthread. php? t=16728 84k) Threats to Boeing’s Competitive Position I n the 1970s, world airplane markets began to transfer from the U. S. to other countries. The main hindrance to the Europeans union was Boeing’s idea of how the work was to be common. In spending amount on RD there is a vast difference between Boeing and Airbus. Airbus is leading with regard to RD spending and capital investment. For example in 2003, Boeing has spent only 3. % of its total revenues towards RD where as Airbus allocated 9. 5 % of its total revenue. In the same year Boeing spent 0. 97 % of its total revenue towards capital investment where as Airbus allocated 9. 1%. This makes Boeing difficult to ‘catch-up’ by the time the A380 of Airbus, 787 of Boeing unfold. More over The British government announced it would finance research into new computer-modeling techniques at several British universities. This could help Airbus speed up product development by as much as 90%. This strategy of Airbus spending more on RD in innovating new technology is a direct threat to the Boeing’s competitive position. Boeing’s Vulnerability Boeing is not on time for the implementation technological innovations that its rival Airbus is accepting as getting family approval for different planes, accordingly without any certification it also permit pilots to move from one model of plane. †¢ It s also true that Airbus gets the aid of finances and leasing operation to maintain it’s sales in which Boeing is back. †¢ Boeing should not expect that It is not that in the future the EADS will reduce its financial assistance to Airbus Boeing should not expect that and compete without any protection in the world market. So that Boeing should search association or agreement for its financial assistance and break its rival. †¢ According to the U. S. Federal Aviation Administration, there is a susceptibility of Boeings new 787 Dream liner which has serious security weakness in its onboard computer networks that could a allow pass engers to access the planes control systems. Main Competitors Lockheed Martin is the world’s number 1 defense contractor which leads Boeing and Northrop Grumman and also the company transport it’s product in times of crisis. Lockheed Martin plays an important role in serving to strengthen the quality of life in our nation. In the world, Lockheed Martin utilizes the most modern in engineering technology. Lockheed Martin Corporation, expands manufactures, integrates, controls, and sustains technology systems, products and varieties of management such as engineering, technical, scientific, logistic, and information services and also expanded in the United States and globally. Lockheed Martin Corporation also uses the most new features production technologies such as laser ultrasonic inspection and laser direct manufacturing. Lockheed Martin have capable professionals and experts in their fields, so that they can contribute good to their customers and their employees al so offers myriad volunteer hours to advance a wide variety of causes. At Lockheed Martin, the diversity and inclusive is not just a short-term trend. It is a business imperative. They are committed in generating an environment that welcomes, respects, creating one company, one team and leverages our individual differences as a competitive strength. Diversity is clear of legal requirements like Affirmative Action and Equal Employment Opportunity. Lockheed Martin is committed to cultural and nationally equality and also identifies the qualities to make people unique which include their beliefs, job experiences, cultural backgrounds and intellectual perspectives (â€Å"ABOUT US, At A Glance†, Lockheed Martin). Northrop Grumman Corporation is a global defense and Technology Company which is the company is the fourth largest defense contractor in the world. Northrop Grumman Corporation’s120, 000 employees provides innovative systems, products, and solutions in informatio n and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide. Northrop Grumman has several business sectors such as Electronic Systems, Information Technology, Integrated Systems, Mission Systems, Newport News, Ship Systems, Space Technology, Northrop Grumman Corporate together comprise Northrop Grumman (â€Å"Northrop Grumman†, about us). Northrop Grumman vision is the trusted provider of systems and technologies that ensure the security and freedom of our nation. Northrop Grumman is technology leader and also to classifies the future of defense from undersea to outer space, and in cyberspace and develops the next generation flying tanker transport, space radar, long-range strike aircraft bomber and the next generation aircraft carrier, destroyer and cruiser. Northrop Grumman has four business areas like Information and service, Electronics, Shipping and Aerospace. And also helps to define globally health-information network arc hitecture and other highly developed information systems. (Northrop Grumman. com) Competitive Profile Supplier diversity is a fundamental business strategy at Boeing. Diversity brings strength, innovation and flexibility to the supply base. Beating the skills and technologies available within the community of small and diverse businesses is an important to sustaining position as the leading aerospace company in the world (â€Å"Supplier Diversity†, Boeing). The competitor’s of Boeing openly Integrated Defense sector are Lockheed Martin and Northrop Grumman. The following table shows the competitive profile of Boeing, Lockheed Martin, and Northrop Grumman for the year 2007. | |Boeing |Lockheed Martin |Northrop Grumman | |Revenues ($  mil. ) |$66,387. |$41,862. 0 |$32,018. 0 | |Net Income ($  mil. ) |$4,074. 0 |$3,033. 0 |$1,790. 0 | |Net Profit Margin |6. 1% |7. 2% |5. 6% | |Market Capital |$46,486. 1 |$40,610. 4 |$23,276. 3 | |Number of employees |159,300 |140,0 00 |122,600 | |Operating Income |$5,937. 0 |$4,324. 0 |3,006. 0 | |Revenue Growth |6. % |7. 3% |6. 9% | Table: Competitive Profile Comparison FINANCIAL ANALYSIS Introduction Financial statement analysis involves comparing a firm’s performance with the performance of other firms in the same industry and evaluating trends in the firm’s financial position over time. Financial analysis aids in understanding why a company is performing as it is and in forecasting where the company is headed. Financial analysis is used by managers to improve performance and by lenders to assess the likelihood of loan collection and also by investors to forecast earnings, dividends, and stock prices (Brigham, p. 71). Financial statement analysis uses ratios computed from absolute financial measures divided by common denominators. Absolute measures from financial statements include net income, gross margin, and other specific measures. These absolute measures are useful for assessing the gr owth of one firm over time, but not for comparing firms of different sizes or in different industries (Brigham, p. 73). Ratios standardize these absolute measures and make comparison possible. Some common ratio measures are return on sales, return on assets, and return on equity. Financial performance measures are probably the most common measures taken. However, performance is a multidimensional concept. Measures other than financial ratios are used to assess performance and the health of the business. For example, stock market performance measures are another important performance measurement. Stock market measures include one- and five-year market returns, earnings per share, and price earnings ratio. Market share, industry-specific measures, cycle time, and time-to-market are also measures of performance (Harvey B. Lermack, Steps to a Basic Company Financial Analysis). Users of financial statement analysis must be aware of extraordinary items and accounting adjustments that c an affect the numbers on the financial statements. It is wise to â€Å"look beyond the numbers† when using financial data to assess competitive advantage. Users must read the â€Å"Notes to Accompany the Financial Statements† and consult a wide variety of resources to assess a firm’s financial position and health (Duhaime, p 57). Financial statement analysis has both strengths and limitations. One advantage of financial analysis is the availability of data. Financial data for publicly held companies is widely available and easily accessible. A second advantage of financial analysis is the use of ratios that makes comparison among companies easy. Limitations of financial analysis include the following: the ratios must be compared with another company, the industry, or that company’s past performance to have any meaning; and financial data reflects activity from the past (Brigham, p 73). This financial analysis is a comparison among competitors in the large commercial aircraft industry. Boeing will be compared with a key competitor, EADS (Airbus’s parent company). The ratios used for this comparative analysis were retrieved from the different website. Any statements regarding a company’s financial position or health are drawn from personal interpretation and are not representative of any formal, professional opinions or statements. Role of Financial Analysis Financial data represent the concrete results of a company’s strategy and structure. Although analyzing financial statements can be quite complex, a general idea of a company’s financial position can be determined through the use of ratio analysis. Financial performance ratios can be calculated from the balance sheet and income statement (Hill, C8). These ratios can be classified into four major subgroups: liquidity/solvency ratios, profitability ratios, leverage ratios, and turnover ratios. The purpose of the following financial analysis is to measure The Boeing Company and their financial performance in 2007. A key competitor, EADS (Airbus’s parent company), will also be shown in the analysis. To fully understand Boeing financial situation, Boeing will be compared to EADS and the industry as a whole. Liquidity/Solvency Ratios A liquid asset is an asset that trades in an active market, which means it can be quickly converted to cash at the going market price. A firm’s liquidity position deals with whether the firm can pay off its debts as they come due over the next year or so. A company’s liquidity or solvency is a measure of its ability to meet short-term obligations. An asset is deemed liquid if it can be readily converted into cash. Liquid assets are the current assets such as cash, marketable securities, accounts receivable, and so on. Several liquidity ratios are commonly used to assess these abilities (Hill, C9). |Ratio |Boeing |EADS |Industry | |Quick Ratio |. 55 |. 57 |. 1 | |Current Rati o |. 86 |1. 13 |1. 29 | Source: Reuters [pic] According to the general rule of having a quick ratio of 1. 0 to be healthy, Boeing, whose ratio is . 55, is not capable of satisfying current liabilities without depending on sales from inventory. EADS has a higher quick ratio and higher current ratio. This indicates that EADS may be in a better position to pay off short-term obligations. Quick ratios below 1 indicate that the company may be more susceptible to bankruptcy due to failures with short term commitments. However, the industry average falls well below the 1 mark, showing that this low quick ratio is common in the industry. Profit Ratios Profit ratios measure the efficiency with which the company uses its resources. The more efficient the company, the greater is its profitability. It is useful to compare a company’s profitability against that of its major competitors in its industry to determine whether the company is operating more or less efficiently that its rival s. In addition, the change in a company’s profit ratios over time tells whether its performance is improving or declining (Hill, C8). A number of different profit ratios can be used, and each of them measures a different aspect of a company’s performance. Ratio |Boeing |EADS |Industry | |Profit Margin |6. 55 |-1. 12 |2. 99 | |Return on Assets |7. 85 |-. 59 |3. 20 | |Return on Equity |59. 84 |-3. 42 |13. 58 | |Return on Capital |17. 3 |-1. 1 |13. 7 | |Price/Sales Ratio |. 72 |. 4 |. 88 | |Price/Cash Flow Ratio |8. 2 |7. 40 |9. 2 | Source: Reuters [pic] Return on assets and return on equity are two of the most commonly used profitability ratios. Return on assets (ROA) is the ratio of net income to total assets. It is calculated by dividing net income available to common stockholders by total assets. The higher the number the better the profitability is. As long as a company’s ROA exceeds its interest rate on borrowing, the company is said to have positive financia l leverage (Brigham, pp. 78). Looking at the data above, Boeing is far more profitable than EADS and they are more profitable than the average competitor in the industry. Boeing’s higher return on equity shows that they are creating a superior value to investors in contrast to EADS and the industry average. Leverage Ratios A company is said to be highly leveraged if it uses more debt than equity, including stock and retained earnings. The balance between debt and equity is called the capital structure. The optimal capital structure is determined by the individual company. Debt has a lower cost because creditors take less risk; they know they will get their interest and principal. However, debt can be risky to the firm because if enough profit is not made to cover the interest and principal payments, bankruptcy can result (Hill, C10). |Ratio |Boeing |EADS |Industry | |Debt to Equity |90. 78 |36. 78 |105. 65 | |Leverage Ratio |6. 7 |5. 8 |4. 8 | |Interest Coverage |705. 3 |N/A |465. | |Book Value/Share |12. 02 |25. 57 |18. 01 | Source: Reuters [pic] Boeing’s debt-to-equity ratio is much higher than EADS but lower than the industry average. This may be the most widely used measure of a company’s leverage. This indicates that Boeing has a higher debt within its capital structure. They have been more aggressive in financing its growth with debt. This can lead to volatile earnings as a result of the additional interest expense of debt, but may also lead to increased growth if the benefits of the debt financing outweigh the interest expense. However, after analyzing Boeings interest coverage ratio, it is evident they generate sufficient revenues to satisfy interest expense. Turnover Ratios Turnover ratios indicate how effectively a company is managing its production. This includes the management of receivables, inventory, and assets. The word velocity describes the idea of speed, turnover, or movement. Think of raw materials moving throu gh a factory and becoming finished products, and think of those finished products moving off the shelf to the customer. That’s velocity. The faster the better products move through a business to the customer. The faster the velocity, the higher the return of turnover is. In fact, return on assets is nothing more than profit margin multiplied by asset velocity (quintsblog. wordpress. com). |Ratio |Boeing |EADS |Industry | |Receivable Turnover |11. 87 |8. 24 |5. 59 | |Inventory Turnover |5. 79 |1. 94 |2. 93 | |Asset Turnover |1. 20 |. 53 |. 45 | Source: Reuters [pic] Boeing’s receivable, inventory, and asset turnover numbers are superior to EADS and the industry average. They are more effective at moving their products than their competitors. This generally implies higher sales figures. Overall, by analyzing this turnover data, Boeing is very successful in their production and sales processes. Conclusion This analysis has been a general overview of ratios used to e valuate a company’s (Boeing) performance and compare that company’s performance with its competitors and the industry as a whole. Liquidity, asset management, debt management, profitability, and market value ratios were evaluated. Also, historical revenue data was reviewed and revenue per employee was evaluated. The following conclusions are drawn based on the comparison of different financial ratios and evaluation of the data discussed: ? Boeing ranked number one in civil aerospace categories ? Boeing’s strengths are quick inventory, strong return on equity, and efficient use of employees ? Boeing increased its sales during past ten years. ? Boeing’s net profit margin declined in past seven years. ? Boeing is gaining as a competitor in this industry relative its competitors. IV. SWOT ANALYSIS Introduction The Boeing is one of the world’s major aerospace manufacturing firms. Boeing is one of the prime contractors for the US Department of Defense (DOD) and NASA and also supplies the commercial jet for private companies. It is one of the largest exporters in the US, serving customers in all over the world. Leveraging its strong market position, Boeing has established its brand image, which gives it a competitive advantage over regional players such as Bombardier and other companies like EADS (Airbus’s parent company). However intensifying competition in all its major segments could reduce the market share of the company (www. datamonitor. com). SWOT is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Particularly, SWOT is an essential, basic model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWO T analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results (Investopedia. com). In this case, the SWOT is (wikipedia. com): ? Strengths: attributes of the organization those are helpful to achieving the objective. ? Weaknesses: attributes of the organization those are harmful to achieving the objective. ? Opportunities: external conditions helpful to achieving the objective. Threats: external conditions harmful to achieving the objective. Strengths Leadership Position In aerospace world, Boeing is one of the world’s leading aerospace companies, being the largest manufacturer and supplier of satellites and military aircraft in the world. The company is also a global market leader in human space flight, missile defense, and launch services. In terms of sales, Boeing is one of the largest US exporters, with revenues and the export. The solid reputation and brand recognition worldwide are great sources of competitive advantage. Boeing enjoys all the benefits of being a large global company such as cost benefits arising through economies of scale. Leveraging its strong market position, Boeing has established its brand image, which gives it a competitive advantage over regional players such as Bombardier and Airbus. (www. datamonitor. com). Steady Defense Business Boeing’s defense business has been increasing continuously in the recent years. Revenues from the company’s integrated defense systems segment grew from 2003 to 2008, representing a CAGR of 6%. The defense business accounts for over 55% of the revenues and strong performance of this division would guard it against any downturn in the commercial aircraft industry (www. datamonitor. com). Strong Growth from Developing Geographic Markets Boeing has registered a strong growth in the developing markets of China, Oceania and Africa. Recently, Boeing lands $10 Billion in emerging market deal with China which is increasing revenues from these markets regions represent the company’s growing market share. Further these regions represent some of the fast growing economies of the world and the company’s growing market share in these regions would boost the revenues in the future (www. datamonitor. com). Strong Global Network The company has strong international operations with customers in around 145 countries, employees in more than 60 countries and operations in 26 states. Worldwide, Boeing and its subsidiaries employ close to 188,000 people with major operations in Washington State; Southern California; Wichita, Kansas; and St. Louis, Missouri. Boeing enjoys the ownership of a brand with good and far reaching awareness on a global scale. Boeing enjoys many strong alliances with many other globally powerful companies. In defense projects Boeing works closely with Northrop Grumman in programs such as the joint common missile program. Boeing is also a partn er with Lockheed Martin in the United Space alliance. Boeing also works with many other organizations such as NASA in close relationships, which strengthen the company’s position in other markets (www. 123helpme. com). Broad Product Line That Covers Most Major Market Niches / RD Development Boeing Company produced a wide range of product. Company main product is commercial product such as aircraft; Boeing has 717, 737, 747, 757, 767, and 777 families of jetliners and the Boeing Business Jet. Boeing is planning to release a new version of aircraft, 787, which is called the Dream liner. This new revolutionary product, takes Boeing into the new millennium by giving airlines and passengers a better, safer, and more comfortable aircraft with less time in the air. The company has more than 14,000 commercial jetliners in service worldwide, which is roughly 75% of the world fleet. Its product line is continuing to expand, creating new versions of its family of commercial airplanes . Because of all these revolutionary technology development helps Boeing to stay a leader in the industry. Weaknesses Losing Market Share to EADS (Airbus’s parent company) Boeing has been losing its market share to its rival EADS in the commercial jetliners market. From the year 2003, EADS has been always selling more jetliners than Boeing in terms of new aircraft orders. As a result, Boeing has lost its leadership position in commercial aviation. Declining market share in the commercial aviation market could affect Boeing’s revenues growth and profit margins (www. datamonitor. com). A Hierarchical, Ridged, and Semi Autocratic Management Style The bureaucracy and hierarchical, semi-autocratic management style in which the employers makes decisions on their own with little or no input from employees. This does not fit in the modern management and for this reason; Boeing has several problems in management when it practices racial discrimination, tussle with its uni on workers, and then lets its executives flee the scene to avoid accountability (www. 123helpme. com). Declining Revenues from the Key Geographic Segments Boeing’s revenues from the key geographic markets have declined in the fiscal 2005. Revenues from Asia, other than China, and Europe segments declined by 8. 5% and 19. 6%, respectively, in the fiscal 2005 over 2004. These two markets together represent more than 17% of the company’s revenues. Declining top lines in these markets indicates that the company has been losing ground to its competitors (www. atamonitor. com). Labor Problems Boeing lacks effective vertical and horizontal communications within the company and has a great deal of unnecessary information. As a result, employees feel divided from management. As a result, production problems delayed delivery, Boeing was forced to increase its work force, working in three shifts, to complete the planes. Because of inexperienced work force created additional probl ems and the cost per plane is increased significantly. Moreover, the inexperienced workforce found the aircraft design too complex to implement. The problems affected other Boeing airplanes and complaints from customers began to increase. The Federal Aviation Administration (FAA) ordered special inspections of all Boeing jetliners produced since 1980 to look for defects that might affect safety. The strains of the forced overtime contributed to a 48-day strike in the fall of 1989 that hurt Boeing financially (www. 123helpme. com). Dependence on US Government and WTO-Incompatible Subsidies Recently, Boeing mainly gains the benefit from the US, which is 65% of the company’s total annual sales. Moreover, Boeing is being criticized by EADS for the subsidy contracts as well as foreign and domestic support all amount to aid for Boeing’s 7E7 model that is double what was available for the new Airbus A380. Whilst this fact is on one hand a great strength of the company w ith many opportunities it could also be construed as a weakness (www. 123helpme. com). Conclusion Boeing should supplement its strengths in the commercial aircraft sector and in the space and defense sectors by developing new technologies. Boeing’s unique technical knowledge and continual learning in these two sectors will complement each other and thereby providing ample opportunities to create sustainable competitive advantages. Boeing should exploit its vast network in the commercial aircraft side to find optimal partners and alliances in order to outsource more responsibilities in the areas of design and manufacturing to gain further comparable cost advantages. At home, Boeing should supplement its technical knowledge on composites and other materials for further reductions in aircraft weight. In areas that Boeing is weak, Boeing should seek out alliances that leverage its capabilities. In aircraft engine development, an area of current intense focus, Boeing should par tner in the development of new technologies that allows the use of alternative fuels such as ethanol. Boeing is in a unique position on the space and defense side to exploit emerging markets in commercial space applications. For example, several private firms are currently developing prototype inflatable space â€Å"hotels† which can be used for a wide variety of applications. Everything from tourism to Scientific Research could be a reality within the next decade. Boeing cannot go at it alone, however. As the commercial industrialization of space becomes a reality, Boeing must seek out complementary alliances in order to reduce risk and gain complementary resources and capabilities for the development of technologies that will be needed in the near future. Opportunities New Aircraft to Gain Market Share With the very impressive show of Airbus A380 recently, Boeing also plans to release its powerful weapon in the competition with Airbus. The new version Boeing 787, which h as the most advanced technologies and advantages of the previous models is hoped to be considered as a big hit to the airline industries. At the moment, Boeing has received a large number of orders (booked through 2013) for Boeing 787- Dream liner which indicates that Boeing still insists on its successful business strategy to build longer-range, more capable, smaller aircraft that could go point-to-point and, therefore, serve city pairs directly rather than having to hook them up through a hub. The new 787 is the proof that Boeing does not lag behind the competition in this competitive era. Expanding Commercial Jetliner Market The commercial jetliner market is not overwhelmingly expected to grow to $2. 1 trillion by 2024. By that year the global commercial airplane fleet is expected to double, in comparision to the existing fleet size. It is projected that the passenger traffic would further grow at 4. % annually till 2024, requiring approximately 25,700 new commercial airplanes to meet the increasing traffic. As single-aisle aircrafts offer more frequencies and increased non-stop trips in domestic service and short-haul international flights, the demand for single-aisle is expected to be more than the larger aircrafts. Out of the total demand for new airplanes, more than 50% would be for the single-aisle aircrafts. Boeing has a strong hold in the single-aisle airplanes segment and is well placed to gain a major share in the growing commercial airplanes market. (www. datamonitor. com). Increase Demand for Point-To-Point Routes This is pertained to the booming market of low-cost airline. In order to reduce the costs substantially, all the low-cost airline companies use a point-to-point route which is suitable with the strategy of Boeing as mentioned in the previous parts. Airbus A380 is still not sure about its future because most of the big airline companies at the moment are not gaining profit (www. 123helpme. com). Increasing Demand for Business Jets The business jet market is growing well as an increasing number of weal Don’t waste time! Our writers will create an original "Boeing Company Analysis" essay for you Create order