Boeing Company Analysis

Outline for Economics Company Analysis

Identify Company and industry in which company competes:

Ticker Symbol: BA

Exchange: NYSE

SIC Code: 3721 (Aircraft)

Paper Outline

Introduction:

Brief company overview

Paragraph 1.

History

Paragraph 2.

Companies industry and product

Paragraph 3.

Companies competition and market type

Paragraph 4.

Companies elasticity and pricing

Paragraph 8.

What separates Boeing from its competition

Paragraph 5.

Costs of production and yearly profits and funding

Paragraph 6.

Stock and stock prices

Paragraph 7.

Investors and current events on the company

Conclusion

Chris Mongelli

Professor Elkes

Microeconomic Principles

December 3, 2016

Boeing Company Analysis

        Boeing (BA) is one of the world’s largest aerospace production companies producing the world’s most cutting-edge and efficient vehicles of flight. From the most elite fighter jets to the most fuel efficient technologically advanced commercial planes, Boeing has established a pinnacle reputation as a world leader in the production of aviation vehicles and technologies.

        What makes Boeing so unique is its diversity as a company. A large attribute to Boeings vast success is the way in which the company is formatted. Boeing is broken up into multiple segments - each having a distinct role in producing a different type of product. The three primary branches of production are separated into commercial airplanes, military aircraft, and networks/space systems. In each category of production, Boeing leads the industry.

“I think we can build a better one.”- William Boeing

        In 1916 Bill Boeing bought an old ship yard in Seattle Washington where he built his first airplane. Surprisingly, “Mr. Aviation” did not initially make his fortune in aircraft but rather Washington timber. Boeing was an aviation fanatic and bought his first sea plane in 1915. When his brand new Martin sea plane became damaged Boeing decided to repair it himself and soon after Pacific Aero Products was born. With the help of Naval officer Conrad Westervelt, Boeing lead a small aircraft company to its transformation into a large scale aviation producer. Bill Boeing was an ambitious visionary who saw the potential in the aircraft field.  WWI sparked the company’s creativity and initiated the creation of the “Model C” airplane. Knowing the importance of planes in Warcraft Boeing began supplying Model C’s to the U.S. military as practice planes. Once World War II came along, Boeing became the twelfth ranked aircraft manufacturer in the United States, supplying the U.S. military with B17 and B29 bombers. While American men were fighting over seas in the heart of Europe and the islands of the pacific, American women flooded the American labor force. American factories sparked to life as a result of the war - Boeing included. Producing an estimated 350 planes a month, it was World War II that brought Boeing to the next level of success. Post World War II, Boeing took its first major economic hit as a company. After World War I, there was an excess inventory of aircraft due to heightened manufacturing as a result of war. However, in that stage of warplane history the demand was not nearly as high as World War II. Post WWII, the excess inventory of bombers was overwhelming to the aircraft market. As a result, the aviation producers took major economic hits Boeing included. Post WWII Boeing was required to let go of 70,000 workers. It was Boeings next move which separated it from its competitors.

        Boeing recovered and took off post WWII as a result of its progression through the aviation field. The company began its revolutionary expansion into commercial aircraft. Boeings 7 Series fleet of aircraft has forever changed the commercial aviation market, putting forth a line of planes which technology, efficiency, and comfort are second-to-none, setting the bar to extremely high standard for its competitors in the production of commercial planes. Although commercial aviation is a prided component of Boeings company, it is Boeings Military aircraft which brings the company the most business. The United States defense department supplies Boeing with 62% of the company’s total revenue.