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Boeing's Competitive Advantage Analysis

   

Added on  2020-05-28

22 Pages3288 Words46 Views
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Running head: STRATEGIC MANAGEMENTStrategic Management Name of Student:Name of University:Author’s Note:
Boeing's Competitive Advantage Analysis_1

STRATEGIC MANAGEMENT1Table of ContentsIntroduction......................................................................................................................................21.Financial Analysis...................................................................................................................33.Internal analysis of the firm...................................................................................................144.Identification of the strategic problems that the firm is facing..............................................185.Recommendation...................................................................................................................18Conclusion.....................................................................................................................................19Reference List................................................................................................................................201.
Boeing's Competitive Advantage Analysis_2

STRATEGIC MANAGEMENT2IntroductionBoeing is considered as one of the largest aerospace organization and leader in terms ofmanufacturing of commercial jetliners for defense, security systems and space. The company isfurther identified as one of the top exporters in US for supporting airline and allied governmentcustomers across 150 countries. The products of the airline company are seen to be tailored forservices including “military aircraft, satellites, weapons, electronic appliances, defense systems,launch systems, advanced information and communication systems. The operations of thecompany are based on performance-based logistics and training”1.The report has aimed to discuss the financial analysis, which includes the variations inthe financials and comparison of the same with the closest competitor. The discourse of the studyhas identified the financial health of the firm and compared the same with the closest competitor.The external analysis of the study has been conducted with “Porter’s five forces model” andidentification of the opportunities and threats using the “SWOT analysis”. The “value chainanalysis” of the firm is able to depict the areas of operations which adds to the value of the firm.This is done in terms of understanding the cost position and identification of the multiple meansthat might be used to facilitate implementation of a chosen business-level strategy. The importantdiscussion in the value chain analysis has depicted the primary activities and support activities.The competitor company for Boeing is Airbus. Airbus is considered as a “Europeanmultinational corporation” which “designs, manufactures and sells civil and military aeronauticalproducts worldwide”2.1"Boeing: The Boeing Company: General Information."Boeing.com. N. p., 2018. Web. 30 Jan. 2018.2"About Airbus."Airbus. N. p., 2018. Web. 30 Jan. 2018.
Boeing's Competitive Advantage Analysis_3

STRATEGIC MANAGEMENT31.Financial AnalysisChange in Financials and comparison with the closest competitorComparison of Consolidated Income StatementsParticularsBoeing 2016Boeing 2015Boeing PercentageAirbus 2016Airbus 2015Airbus PercentageRevenues945719611498%6658164450103%Profit for the Period5834744378%1000269837%Boeing PercentageAirbus Percentage0%20%40%60%80%100%120%98%103%78%37%Comparison of Income StatementsRevenuesProfit for the PeriodFinancial health of the firm and comparison with the closest competitor for 2016 and 2015
Boeing's Competitive Advantage Analysis_4

STRATEGIC MANAGEMENT4Comparison of Statement of Financial PositionParticularsBoeing 2016Boeing 2015Boeing PercentageAirbus 2016Airbus 2015Airbus PercentageTotal Assets899979440895%111133105782105%Capital Expenditure26132450107%30602924105%3Boeing PercentageAirbus Percentage88%90%92%94%96%98%100%102%104%106%108%95%105%107%105%Comparison of Statement of Financial PositionTotal AssetsCapital ExpenditureFinancial Ratios for Case firm and closest competitor for 2016 and 2015Profitability Ratio Analysis: -3Vogel, Harold L.Entertainment industry economics: A guide for financial analysis. Cambridge University Press,2014.
Boeing's Competitive Advantage Analysis_5

STRATEGIC MANAGEMENT5Boeing AirbusParticulars2016201520162015Revenue (A)94571961146658164450Net Profit/Loss after Tax (D)5834744310002698Ordinary Equity(H)87706397036525973Total Assets (G)8999794408111133105782Gross Margin (I)137811402652648851Net Profit Margin (D/A)6.17%7.74%1.50%4.19%Return on Equity (A/H))66.52%11.64%27%45%Return on Assets (G/D)6%8%1%3%Gross Profit Margin (I/A)15%15%8%14%20162015201620150%2%4%6%8%10%12%14%16%15%15%8%14%Gross Profit MarginBoeing Airbus
Boeing's Competitive Advantage Analysis_6

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