Impact of US Trade Policies on Boeing's Strategic Operations

This report provides an in-depth analysis of Boeing's strategic resources and operations, focusing on the impact of changes in US trade policies. The introduction highlights the significance of strategic resources like financial strength, enterprise knowledge, and employees in achieving competitive advantage. The overview of Boeing details its global presence, product offerings, and contributions to the US economy. The report then identifies various risks, including business, financial, uncertainty, and revenue risks, associated with trade policy changes. It examines the global government's responses to these changes, particularly how they affect Boeing's operations and supply chain. The report concludes with recommendations for Boeing to mitigate these risks, such as developing backup plans, retaining earnings, and adapting to evolving trade relations. The analysis underscores the importance of strategic adaptation in response to external factors and the dynamic nature of the business environment. This report provides a comprehensive overview of Boeing's strategic positioning and its response to changes in global trade dynamics.

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Managing Strategic Resources and Operations
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Managing Strategic Resources and Operations
Contents
Introduction..........................................................................................................................3
Overview of company..........................................................................................................3
Risks....................................................................................................................................4
Global government’s responses...........................................................................................6
Recommendations................................................................................................................7
Conclusion...........................................................................................................................8
References............................................................................................................................9

Managing Strategic Resources and Operations
Introduction
The building blocks that aid the business corporation in attaining competitive advantage
can be considered as the strategic resources that a business firm can have with it. Majorly
there are three strategic resources that will aid the business corporation in accomplishing
competitive advantage and that our financial strength, its enterprise knowledge, and the
employees. All of the above mentioned three resources play an empirical role in the
prosperity of and growth of a business firm. Trends keep on changing and so as business
practices over time. And after making the optimum utilization of all the available
resources the business entity will be at peak efficiency (Bateman & Radnor, 2017).
Change is inevitable which cannot be ignored by any means through any kind of possible
inactivity’s. There are several factors which influence the change in business and its
functioning and they are classified as internal and external. Hence, a company which is
operating as a business will definitely encounter such changes. Boeing is one such
organization which contributes in huge amounts to US economy. An explanation of how
the change which has occurred in trading policies of US has impacted the business of
Boeing is given in this course of study.
Overview of company
Boeing is a multinational company contributing a huge lot to the economy. The company
is majorly specialized in manufacturing aircraft and its parts and delivers it all around the
world. It is the largest manufacturer and seller of jets, planes, fighter planes and so on.
The best product of the company is jetliners, defense, space and security systems. It
produces tailor-made customized aircraft for its clients which are spread in over 150
countries all over the world (Battagello, Cricelli & Grimaldi, 2016). It is a company
which is operating from a long decade and has a good hold over the market as well as at
manufacturing its products. It is a conviction and lives the example of innovation and
creativity as Boeing has survived these many years of services with best outcomes. It has
its headquarter in Chicago with a force of 140000 employees who are working as the best
innovators and creators of this decade (Renz & Herman, 2016). It has three decisions
under which it works that is the commercial plane, defense, space and security and
Boeing global services. By the sage of best technology and best human resources, the

Managing Strategic Resources and Operations
company is known for the new innovations with diversity in business operations. As an
American multinational company, it designs, manufactures and sell the aircraft all over
the world for the clients who need it. It is the largest exporter of US in terms of revenue
to the company and its value to the economy of US are significant. The company is
placed in the best place for work as well as the best company with the outcomes to the
economy of the country (Närvänen, Koivisto & Kuusela, 2018).
Over the years Boeing has faced many challenges and it has developed many competitors
as of now in the 21st century. So, in order to have an edge over the market all over the
world, it has become more creative and more diverse in terms of operations. The
company is performing exceptionally well over the decades of time. It has contributed to
the country by various political as well as economic contributions. It is very well known
over the world for its tailor-made services which are very authentic and superficial. Being
the best Boeing has always tried to have a room for new ideas and innovation which has
set a pace in its sustainable development and growth (Boon, Eckardt, Lepak & Boselie,
2018). As a manufacturer of the transport which is the fastest and most diverse Boeing
takes its charge for being the best innovate of the decade to ease the travel to most of the
location where people weren’t able to travel. It also supports the militaries and navy’s to
build best possible aircraft and fighter planes for them. In all the company have a very
defined set of mechanism upon which it operates and the contribution of it to the
economy is enormous and in very huge lots (Meyer & Xin, 2017). Hence, any kind of
changes in trade policy or regulations may impact the business of the giant firm.
Risks
As a business operating in an economy, there are several challenges which have to be
encountered and met by the companies so as to be a long-term player. Similarly in the
presidency of Donald Trump Boeing has faced several challenges in a trade as there
multiple countries which are banned by the president and they are the business associates
of Boeing. By this change, a company is encountered a lot of fall in its production and a
huge cost has risen for producing the aircraft (Melville & Zik, 2016). There are several
risks which are associated with the changes in the trade policy and these risks are listed as
follows:

Managing Strategic Resources and Operations
Business Risk
Changes in the trade policy of a company always cause a problem for the businesses
which are working in it. Trade is buying and selling of goods and services in a market.
Likewise the changes in the same affect the businesses largely. Also, there are several
changes which occur and impact the trade of a company (Braysher, 2017). A global trade
change which has been launched by the president has impacted the company imports
most of the parts of aircraft from other nations. Hence, the policy changes will lead the
business risk to the company which will also impact the sales of the company.
Financial Risk
Financial risk has been considered as one of the major concern for any of the business
corporation and the same should be dealt with efficiency. This risk involves all types of
financial loss to the business. This type of risk occurs due to the market movements and
changing trends in the market (Cascio, 2018), The Company will face the heavy losses
due to the shortage in the import of the parts of aircraft from countries. This will create a
huge decline in production as well as in providing the services to the clients and
simultaneously will cause a problem for the finances of a company as the revenue will
decline because of production.
Risk of Uncertainty
There are several business risks and future changes are unpredictable completely so this
will cause a risk of uncertainness for the company which is not defined (Le Roy &
Czakon, 2016). This is an unavoidable risk which cannot be predicted and the solution for
the same is not so easy to find (Chaola, Pratoom & Raksong, 2017). As it was also
unpredictable for the company to have so many changes in the trade policies as Trump
has made which has impacted the business so as these uncertain changes are riskier as
they are not justifiable.
Revenue Risk
If there is the decline in production there will be delayed in sales and so as the revenue of
the company will be affected which is very much oblivious and justified (Lin, Chen &
Lin, 2017). So, the trade policy changes also impact the business of the company as it has
an impact on the revenue in the same way which is not good for the economy of US.

Managing Strategic Resources and Operations
Hence, the company and its supply chain are affected by these trade changes which
impact the operations as well as the shortage of demand because of no proper n time
delivery of products (Gundersen, 2017). Trade policy and its changes always have an
impact on a business whether it’s big or small. A multinational business is impacted from
top to bottom because of trade relations with other countries globally.
Global government’s responses
Boeing has a business which is spread worldwide and it is very much inclined to serve all
over the globe with an access to global trade. Hence, the change in government has
implied huge changes for the company and its operations. As the manufacturer of
aircrafts Boeing has faced problem in the import of the parts which it used to take from
other nations and this has been impacted largely (Cohn, 2016). The governments of
various countries which has been affected by the changes in the US trade policies have
reacted in such a way that has also led to several changes in the business standards. Some
countries are completely demolished from the nation in terms of business and
associations which has impacted several small and big businesses which has an adverse
effect on the economy of the US as well as the country it is associated with. Similarly, the
company and its supply chain demand and operations are impacted in terms of business
and further proceedings (House, 2014). The changes in the response of government are
also very negative from the other countries and it has also impacted the business world in
the US as well as other nations. This external change is huge and very much unavoidable
for the company and its people or whosoever is associated with it.
Similarly, when there are no parts than there is no production which causes a problem for
the company like Boeing to create its products (Weiss, 2016). This will impact the
business of the company and will create a change in revenue for the entity as well as the
economy of the country will be impacted with the same. This is a matter of fact that the
US has changed it is trading policies which has a very huge impact on the supply and
demand the forces by which business is driven so it creates huge changes in business and
operations which are very much crucial for the performance of a country and a nation
(Hill & Hill, 2017). Boeing is a big organization with huge production and some part of
which are imported from various nations which cannot be produced at the location of the

Managing Strategic Resources and Operations
company and has to be imported such that parts are difficult to be produced in such short
period of changes, creating a problem for the company to have smooth operations
(Taylor, Doherty & McGraw, 2015). Also, the governments of several nations are
stunned by these changes of Trump which is also a huge impact on the further relations
which should have to be improved in upcoming time for an efficiency of cost and
production (Kew & Stredwick, 2017).
Recommendations
In order to cope with the risk which is being identified for the operations, supply chain
and demand for the products of Boeing the company has to make optimum changes in its
operations as from the starting of the changes. First, it must have a backup plan for all the
problems which has incurred while the imports of the parts have been declined due to
changes in the globalization of the country. Government has impacted its rules and it is
an external change for the company like Boeing so it has to be taken into account from a
very beginning that it may have a backup for the changes, it may import the products
from other countries which are also manufacturers and suppliers of the same parts and
also may have its own production line for the same. This may lessen the risk of
uncertainness if the company have the backup plan for every possible change which
keeps on rising. There are several other relief's in terms of financial risk to have retained
earning for such times when the profit have chances to decline due to changes which will
help the company to survive in the difficult situation such that trade policy changes. The
impact of relations which has changed with other countries due to this is unavoidable and
adverse and this may impact the functioning of the same.
The company can also have some of its own counterpart relation with the companies it
was having relation with. Many businesses are impacted in both good and bad ways with
these changes and this defines the huge impact on the economy of US. Trump makes its
choices which are unpredictable hence the company have to be very sure and very much
obvious that there would be many other changes which will impact the business of the
company so it must have a backup plan for the same. There are always several plans and
solutions for every risk and this may help the company and businesses to overcome
situations which are uncertain and not defined properly. Likewise, a company can never

Managing Strategic Resources and Operations
fail in its outcome for the plans and it may never face any situation which is difficult for
its growth and development in future and may cause the problem for its business which
may impact its revenue as well as the economy. As an organization Boeing is so powerful
because of its contribution to a nation so it can also talk to the president for several reliefs
on his order which may also help the company to continue its business as it was before.
In this was the company can have a handful of solution to the changes which has
occurred in the economy of US and has impacted its business in huge amount as this is
not a short problem it is a matter of billions and trillions so there must be smartness and
very much reliability upon how the problems would be dealt which is directly impacting
the business of the corporation.
Conclusion
In the limelight of the above-executed analysis it has been it has been inferred that there
are a lot of problems which are external but directly impacts the operation of a business.
So, these problems must be identified and dealt in a proper manner so as to have an
adequate solution for the same. There is the result which a company cannot achieve due
to such problem so a solution to those is a result of this report. The strongest economy in
the world is changing its policies due to which businesses in it are facing huge problems
which are unavoidable. A justification of all the problems and risk associated with the
same as a result of this case of study.

Managing Strategic Resources and Operations
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Managing Strategic Resources and Operations
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