Evaluate the Planning Function of Management Within Boeing Organization

Evaluate the planning function of management within Boeing Organization

Boeing Organization

1. Social responsibility entails an individual or a group's actions benefiting the society more than oneself or more than the group. Research and development is a social responsibility of every airline company. Boeing benefits from the systematic use of industrial research so as to increase costumers' choices each year as well as to be able to provide a safe and effective service for their costumers. The purpose of research and development, more than being able to raise profits, is to ensure an effective and safe service for the benefit of the customers. These factors became easily recognized ingredients in explaining Boeing's success as one of the world's top airline company.

Business owners and managers as private citizens may assume responsibility for other problems in society, such as the CEO of Boeing providing leadership for a national drive to raise money for medical research to cure childhood leukemia. The distinction between the public responsibility of businesses and the responsibility of the individuals who own and work in businesses is an important one (Besser, 2002). However, the social responsibility of a member of an organization could reflect on the entire organization itself, even if it was done outside the company's intent.

Successful operations and resolution of company- and industry-specific problems depends on forging good relations with the government with which the airline is operating under, using joint ventures and large sized investments and on long-term presence in the country. This is one legal responsibility of Boeing, to follow country or area soecific impositions on the airline industry by different governments. Foreign firms had to conduct normal business operations in a politicized and bureaucratic environment. The safety of their passengers is also a legal responsibility since this would reflect on the capability of the aircraft used. When a plane crashes by accident without any outside manipulation, for example, it is almost always to be taken as a legal responsibility of the airline. Most often, the airline involved would have to pay whatever compensatory damages arise.

The government can influence company's strategy by imposing laws and legal restrictions. Business has never been fond of government's having an activist role in establishing the ground rules under which it operates, but then organizations have no choice. Government regulatory actions can often force significant changes in industry practices and strategic approaches. And it is a company's legal responsibility to follow government regulations. In some instances deregulation has proved to be a potent pre-competitive force in many industries including the airline industry (Sims, 2003).

Ethical issues also abound the airline industry. A basic concept in any system is that the major function of the management of business units is to maximize profits for the benefit of the company and its owners. As long as the actions are legal and not immoral, any decision that might enhance the return of investment would appear to be a proper course of action. An example of an ethical issue that occurred in Boeing and even in many organizations outside the airline industry is the laying off of employees as a result of closing down of offices or moving to new locations. In some instances, ethical rather than profit motives have resulted in some decisions that could not be morally right to other individuals.

The efforts to create a favorable corporate image, while they may eventually prove valuable to Boeing, involve management decisions based on what is right and good rather than the most profitable. Corporate giving to universities and colleges, community chests, and support to civic undertakings is condisered the right thing to do although it is doubtful if such acts make an even indirect contribution to profits. Somehow, one could see that there is an overlapping of what comprises ethical and social responsibilities.

2. Commercial aircraft industry has too many uncertainties, which contain risks and factors that could affect its overall success. Economy, terrorism and globalization are three factors that could significantly affect or influence Boeing's strategic, tactical operational, and contingency planning. The company at present has reins on the pricing, profit margins and a string cash flow. It enjoys a virtual monopoly on planes in the most profitable part of the commercial aircraft market (Crain's Chicago Business), however, given the volatile and fluctuating nature of the industry, Boeing has to take into consideration when making strategies