Presentation By:Robert Brinkmann, Justin Weden, Courtney Karcasinas, Stephen Gonzalez, & Adam Hall

INDUSTRY & COMPETITIVE ANALYSISAEROSPACE & DEFENSE WITH A FOCUS ON BOEING

Overview of Boeing

Welcome to Boeing! The worlds leading aircraft manufacturer

“Making the world better tomorrow, then it is today!”

Mission & Vision Mission:

“Boeing is a company of amazing people working in one of the most exciting industries in the world. When you consider our many accomplishments -- from designing and building the earliest biplanes to creating and supporting today's supersonic aircraft and spacecraft -- you might think we would be content with how far we've come. But a company of our size and scope doesn't succeed by resting on its laurels; we are constantly re-examining our capabilities and processes to ensure that our company is as strong and vital as our heritage. In fact, our culture mirrors the heritage of aviation itself, built on a foundation of innovation, aspiration and imagination.”

Vision: “The Boeing Vision is: People working together as a global enterprise for

aerospace leadership.”

Background Beginning

March 10th 1910 Departments

Consumer Government/Military

Operating Principles Employs over 165,000 people across the world Located in 70 countries More than 140,000 employees hold College Degrees Organized into two business units

Boeing Commercial Airplanes Boeing Defense, Space & Security

Culture & Work Environment

Mirrors back from principles carried out throughout the history of the company Set core values:

Leadership Integrity Quality Customer Satisfaction People working together A diverse involved team Good corporate citizenship Enhancing shareholder value

Strategies effect on culture: Building Trust Further Penetration Into Market “Our culture mirrors the heritage of aviation itself, built on a foundation

of innovation, aspiration and imagination.”

Research & Development The company contiues to expand its product line and

service to meet emerging customer needs. Strategies effect on R&D

Establishing internation Research Centers Aiding to find new solutions to problems in the Asian Enviroment

Global Warming/Pollution value Issues that the R&D department could face by

implementing this strategy? Keeping up with technology and consumer trends High amount of spending

Marketing Re-evalute target audience Invest in Market Research Marketing in the U.S. vs. Asia Market Geographically: Population Density

and Lifestyle

Operations & Productions Benefits of expanding into the Asian Market

Increase in potential revenue Increase in market share

Issues Related to Operations Importing/Exporting Issues Manufacturing Domestically

Human Resources & Structure

Relationship to most Asian countries aged 60 years or more

Employs domestic personal to mange foreign operations

Core Value: Mutual benfit to company and society

Financials and Statistics

Company Name Revenue Gross Profit Net Income Cash Debt Employees

Boeing $86.62 B $13.36 B $4.58 B $15.21 B $9.64 B 168,400

General Dynamics $31.22 B $5.76 B $2.49 B $5.30 B $3.91 B 96,000

Lockheed Martin $45.36 B $4.19 B $2.95 B $2.62 B $6.15 B 115,000

Northrop Grumman $24.66 B $5.38 B $1.95 B $5.15 B $5.93 B 65,300

Raytheon $23.71 B $5.17 B $1.89 B $4.30 B $4.73 B 63,000

Financials and Statistics

Company NameRevenue

2009Revenue

2010Revenue

2011Revenue

2012Revenue

2013

Boeing $68.28 B $64.31 B $68.74 B $81.70 B $86.62 B

General Dynamics $31.98 B $32.47 B $32.70 B $31.50 B $31.22 B

Lockheed Martin $43.87 B $45.67 B $46.50 B $47.18 B $45.36 B

Northrop Grumman $27.65 B $28.14 B $26.41 B $25.22 B $24.66 B

Raytheon $24.88 B $25.15 B $24.79 B $24.41 B $23.71 B

Financials and Statistics

2009 2010 2011 2012 20130.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00 Revenue Trailing 5 Years

Boeing General Dynamics Lockheed MartinNorthrop Grumman Raytheon Industry Average

Year

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Financials and Statistics

Company NameRevenue

2014Revenue

2015Revenue

2016Revenue

2017Revenue

2018

Boeing $90.15 B $95.56 B $100.97 B $106.37 B $111.78 B

General Dynamics $31.23 B $30.98 B $30.73 B $30.48 B $30.23 B

Lockheed Martin $47.06 B $47.51 B $47.96 B $48.41 B $48.86B

Northrop Grumman $23.75 B $22.86 B $21.97 B $21.08 B $20.19 B

Raytheon $23.66 B $23.36 B $23.05 B $22.74 B $22.43 B

Financials and Statistics

2014 2015 2016 2017 20180.00

20.00

40.00

60.00

80.00

100.00

120.00Projected Revenue 5 Years

Boeing General Dynamics Lockheed MartinNorthrop Grumman Raytheon Industry Average

Year

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S.W.O.T

Strengths- Good Finances

- Several Business Segments- Focus on R&D

Weaknesses- High R&D Costs

- Execution- Lots of Government Contracts

Opportunities- Increased Defense Spending

- Recovering Industry- Diversification

Threats- Competition

-Uncertainty of Gov't Contracts-Lower Defense Spending

SWOT

S.W.O.T

Strengths Finances Diverse Business Segments R&D Focus

S.W.O.T

Weaknesses High R&D Cost Execution of Contracts Many of Government Contracts

S.W.O.T

Opportunities Increased Defense Spending Upward Trending Industry Further Diversification

S.W.O.T

Threat Competition Uncertainty of Government Contracts Lower Defense Spending

Key Success Factors

P.E.S.T Political factors

Government Laws Regulations Policies

Tariff free large commercial jetliners since 1979 Certifications Restrictions

Iran, Iraq, Afghanistan, and Pakistan

P.E.S.T Economic Factors:

Increase in Fuel costs Enviromental restrictions Insurance Cost High security equipment due to terrorism threat

P.E.S.T Social:

Cultural Factors for Multinational environments Changing needs of demand of the customer

Due to population growth rates EPA regulations

Carbon emmision reduction Increase Black Box capabilties

30 day battery life

P.E.S.T Technological:

Computer based cost effective technology Creates faster production of commercial airplans

Light weight Material Composit Material

Innovation Unmanned aircraft

Strategy Market Development

Our strategy is to further expand into Asian markets in order to become the market leader by increasing mutually beneficial relationships with global customers.

Boeing International 28,000 suppliers and partners

internationally More than 50 international research

centers in 35 nations “More than 8,500 of Boeing’s

168,000 employees work outside the United States”

Why China? Demand for 4,500 additional aircraft Growth of 6.4% GDP for 20 years Plans to build 56 new airports Relocate 16 airports Renovate 91 airports

Total of 220 airports Focus on top 3 major cities

76% of Total Passengers

Financial Information Chinese Market

$780 Billion

Projected new aircraft value $670 Billion

Conclusion Boeing should serve as the primary vehicle

for achieving economic growth by actively developing aviation services, the establishment of Boeing through innovative operating, Boeing and China will be able to improve infrastructure, air traffic control and pertinent legislation. Through China’s opening-up to international air transportation development, Boeing and China will be able to foster a win-win situation.