Global Business Management of Boeing

Running head: GLOBAL BUSINESS MANAGEMENT
Global business management of Boeing
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GLOBAL BUSINESS MANAGEMENT
Executive Summary
Management is essential in terms of achieving infrastructural development. Evaluation of the
current strategic position makes the personnel aware of the need for additional resources.
This is in terms of improving the standards and quality of the business operations. One of the
typical components of this evaluation is market research, which enhances the awareness
regarding the tactics adopted by the contemporaries in terms of achieving customer
satisfaction. Here, mention can be made of the firm, Gulfstream, which emerged as a leader
in the Chinese market through the adoption of illegal means. The firm indulged in contract
with Menching Financial Leasing for stabilizing the financial parameter. In such a scenario,
competitive rivalry with Airbus and Boeing are high. These firms would encounter losses if
they try to venture into the Chinese market without non-equity based strategies, joint ventures
and cross shareholding policies. Adopting vertical cooperation would improve the
relationship with the manufacturers providing Boeing with competitive advantage in the
Chinese market. For this, marketing mix is important for assessing the demands of het
business in the threshold of China. Training is the need of the hour in terms of preparing the
Boeing staffs for the external pressures. This would be a reasoned action in terms of securing
the market position.

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Table of contents
1. Introduction............................................................................................................................3
2. Case background....................................................................................................................3
3. Problem identification and justification.............................................................................3
3.1 Equity based alliance........................................................................................................4
3.2 Strategic investment.........................................................................................................5
3.3 Vertical cooperation.........................................................................................................6
4.4 Collusion with Gulfstream rather than competing...........................................................7
4.5 Motives behind mergers and acquisitions........................................................................8
4.6 Alliance formation...........................................................................................................9
4.7 Performance of strategic alliance...................................................................................10
4.8 Attack and counterattack strategies................................................................................10
4.9 Combining Product and Geographic Diversifications...................................................10
4.10 Four strategic choices...................................................................................................11
VRIO analysis..................................................................................................................11
4.11 Organizational structure...............................................................................................12
4.12 Corporate governance..................................................................................................12
4.13 Alternative solutions....................................................................................................12
Policies.............................................................................................................................12
Signaling..........................................................................................................................13
4.14 Recommendations........................................................................................................13

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Conclusion................................................................................................................................17
References and bibliography....................................................................................................19

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1. Introduction
Boeing has achieved accolades and glory by emerging as the world’s largest
manufacturer of commercial jet line, defense, space and security systems. Being the top
exporter in US, the company has over 150 government sponsored customers over 150
countries. Presence of 170,000 employees helps in maintaining the tradition of aerospace
leadership and innovation (Boeing.com.au. 2018). At the closing of stock exchange, the
market information of Boeing is as follows:
Figure 1: Market information of Boeing Australia
(Source: Boeing.com.au. 2018)
Downmarket scenario for Boeing reflects the need for strategic alliance, joint ventures
and cross shareholding. This report would attempt to suggest recommendations for Boeing in
terms of acquiring greater share in the Chinese market along with the leaders like Gulfstream.
2. Case background
Collapse of Chinese economy is one of the burning topics in the global business
scenario. This has compelled the foreign firms to forget their dream of strengthening the
customer base to 1 million. Firms dealing in jet planes have high prospective for prospering

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in the Chinese market. Here, mention can be made of Boeing, which takes pride in being
world’s largest aerospace company. The company has achieved accolades and glory by
supplying quality commercial jetliners, defence, and space and security systems
(Boeing.com.au 2018). Flexibility in the Chinese market attracts the firms, who possess high
affordability in terms of purchasing jets. Rise in the aviation business, in a scenario of crisis,
compelled most of the forms to switch brands. This compelled the Chinese aviation firms to
build institutions for upgrading the standards and quality of the services.
3. Problem identification and justification
2008 was the era when China encountered global crisis, which resulted in slow
economic growth. This led the firms to cancel their order and switch over brands. Rise of the
aviation business resulted in institutional control of the operations. In spite of this, some of
the issues were highly noticeable. One of the issues is the limited take off slots per hour to
the jet business. This destroyed the systematic progression of the jet operations (Carroll and
Buchholtz 2014). Addition of luxury tax to the existing tax tariffs aggravated the
complexities in terms of executing the import and export activities. Anti-
corruptioncampaign has compelled most of the native enterprises to switch over brands. This
declined the market share of jet from 15% to 5%.
Gulfstream has emerged as the market leader with an attitude of doing whatever it
needs for reaching to the peak of success. The firm does not hesitate in offending the
prospective buyers. Venturing into the Chinese market would compel Boeing to encounter
severe losses, which would add vulnerability into the market position (Boeing.com.au2018).
This is in spite of the possession of spacious jet planes for accommodating large number of
passengers.