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Management Planning of Boeing Corporation

Article Notes: MGT/330 Week 3

Management planning is an essential task for a company as massive and complicated as Boeing Corporation. The company operates on a global level and it’s provides products to customers around the world. They produce high end aircraft for both commercial and military organizations. The products manufactured are primarily needed to carry passengers, carry cargo, and perform military operations. Aircraft used for these purposes are strictly regulated due to safety and performance concerns. In the United States, Boeing aircraft are regulated by the Federal Aviation Administration, or FAA. With all these factors in mind, Boeing is required to conduct extensive planning in order to operate an efficient business. Management planning plays a large role in the success of the company and is used at all levels of the corporation’s structure.

The planning function of management is the process of setting goal and objectives for an organization to achieve over a set period of time. A plan will include activities and tasks that need to be completed in order to reach the ultimate goal. Good plans will also take into account variables and unexpected occurrences. By planning for the unexpected an organization can avoid the chaos that is associated with unforeseen challenges or problems. In the case of Boeing, planning is vital within all of its major departments. The company remains efficient by setting goals within its engineering department, sales department, mechanical department, and product testing department, among many others. For each goal, there will be set guidelines that explain how this particular goal will be achieved. The guidelines will outline the events that need to take place by addressing issues such as management, personnel, inventory, etc. The ultimate goal of the plan is to bring efficiency to its highest level within the company.

Management planning includes five basic steps. The first step is to analyze the situation that surrounds the goal. By conducting a thorough analysis, management is able determine which steps need to be taken in order to reach the goal. The next step is to look at alternative goals and plans that may be used. It is a good idea to formulate multiple plans that can be compared and contrasted with one another. This will allow management to see the benefits and errors that each alternative goal or plan offer. The alternative plans and goals will eventually be combined into one single plan. The third step is to evaluate the goals and plans that have been created thus far. A manager can look at the overall plan and determine the benefits and drawbacks of each goal that has been set. As a manager is evaluating the goals, he or she can prioritize the most important steps and delegate roles to members who can most efficiently complete the tasks. The fourth step is for management to select the final plan to be used. The previous three steps have laid the groundwork for this decision to be made. A manager will need to use good judgment and analysis to determine which final plan will be implemented into the system. A manager’s final step is to actually implement the plan that has been created. The plan will need to be explained to all people involved with the plan’s success. It is vital that everybody is on the same page when the plan is put into effect. In the case of Boeing, the plans laid out by each department will need to be linked with other departments within the company. This allows all the separate departments to function as one efficient unit.

There many internal and external factors that can affect the management planning process. Legal issues play a large role with Boeing. Because the company produces a product that has the potential to kill people in an accident, the company must be careful to obey the laws and regulations with aircraft manufacture. For example, Boeing must create a operating manual for both mechanics and pilots for every aircraft that is built. Managers within the company must incorporate this requirement into their planning by ensuring that engineers are able to create detailed plans for every repair issues that may arise with the aircraft (Prichard 2004). Boeing also has ethical issues that affect management planning. The largest ethical concern for Boeing is that they are following guidelines when bidding products to the United States military (Prichard 2004). There are laws established that prevent the company from unfairly enticing military personnel with monetary gifts. Management within the sales department will need to take this into account when making sales and bidding plans for the company. Corporate social responsibility is another concern that Boeing Corporation takes into account. Millions of passengers use Boeing aircraft each year. Managers at company are responsible for ensuring that the products they sell are safe for those who use them. In recent years management has been planning to make the products more fuel efficient in order to protect the environment (Gonzalez 2007). By looking out for the best interests of the customers, employees, and community; Boeing is conducting corporate social responsibility.

Strategic planning is the broadest goals set by the company and is highly important to a company as large as Boeing. The company uses strategic planning to influence communities, airlines, and the military. Reliability and performance are the two greatest concerns for an aircraft manufacturer (Prichard 2004). Strategic planning allows the company to see the big picture and create strategies to create an image of reliability and performance in their products. Most recently environmentally friendly products have been requested by consumers. Boeing has needed to rework its strategic plans to meet this growing need from consumers (Gonzalez 2007) . Tactical planning is used within each separate department within Boeing. By making tactical plans, the company is able to manage each department to its maximum level of efficiency. For example, the manufacturing department will formulate tactical plans that can be used to create assembly stations within the plant. This will allow workers to assemble the aircraft in the quickest and most efficient manner. Operational planning is similar to tactical, but deals with managers at the very bottom of the chain. These managers will be ensuring that tasks are being completed properly by the non-manager employees. These managers are in charge of the quality control of the physical operations of the business. All these functions combine contribute to a solid management plan. Planning is an extremely important tool within Boeing Corporation and will be used to contribute to its success in the future.


Pritchard, D. (2004). Industrial Subsidies and the Politics of World Trade: The Case of the Boeing. The Industrial Geographer.
Retrieved May 29, 2008 from http://igeographer.lib.indstate.edu/pritchard.pdf

Gonzalez, A. (2007) To go green in jet fuel, Boeing looks at algae. Seattle Times.
Retreieved May 29, 2008 from http://seattletimes.nwsource.com/html/boeingaerospace.html

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