Management Planning Paper

Management Planning Paper
In this paper I will evaluate Boeing’s Corporation planning function of management. I will also analyze the influence that legal issues, ethics, and corporate social responsibility have had on Boeing’s Corporation management planning. This paper will also contain an analysis of at least three factors influencing Boeing’s Corporation strategic, tactical, operational, and contingency planning.

The planning function is a six step process. These six steps are: 1. Situational Analysis
2. Alternative Goals and Plans
3. Goal and Plan Evaluation
4. Goal and Plan Selection
5. Implementation
6. Monitor and Control
The Situational Analysis focuses on internal and external factors that identify issues or problems. This help planners forecast future trends which allows them to take better decisions. The next three steps are much related to each other. Based on the Situational Planning alternative goals are set. Together with these goals alternative plans are proposed to achieve them in the future. In order to be effective these goals need to be specific, measurable, attainable, relevant and time-bound. These plans and goals are later evaluated by managers by their advantages and disadvantages. After prioritizing all alternative goals managers begin the selection process starting with the most appropriate and feasible ones. Once the selection process has ended the implementation process begins. During this step of the
process managers inform their employees about details of the plan and the goals to be achieved. Once the plan is put into action managers must continually monitor the progress of it. This allows managers to establish control systems and take corrective actions when needed. Many influences can affect management planning at a company or corporation. Among these influences are legal issues, ethics, and corporate social responsibility. The first influence to be analyzed is the legal issue. This involves obeying any local, state, federal laws and international laws and how they affect business. Legal issues range from a wide number of things like taxes, filling forms, employee rights and more. These issues are addressed by the general council of the corporation.

Ethics for example shows us the moral culture and standards of a company. These moral culture and standards reflect the principles and values of the top management level of the company or corporation. Loyalty, integrity, and respect are among the most important values we can find in a corporate moral culture. To establish these values in a corporation and create a moral culture corporations have a code of ethics. This code of ethics serves as guidelines when moral issues or conduct problems arise in the corporation. Boeing is strange to these guidelines. The corporation has established a code of ethics which is used to communicate the corporation’s values and standards on ethical and moral issues to its employees. This code of ethics not only informs Boeing’s employees about the corporation’s conduct policies, it also informs them of the procedures in the case of a moral issue. This code of ethics helps the company to create awareness among employees of which conduct is to be expected and also assist them in obtaining guidance or help in the case of a fault to the standards and policies of the guidelines establish by the company.

Another influence to be analyzed is corporate social responsibility. Corporate Social Responsibility is the obligation towards society of a corporation and it reflects a corporation’s social duties and its results of business success. All the corporation’s policies and practices will reflect the responsibility towards helping society. As an example, Boeing Corporation has developed a program named Global Corporate Citizenship. This program consists of three elements: Products and Services, Business Practices and Community Engagement. This program carries out the corporation’s social responsibility by partnering with environment, health, safety, ethics, government operations and human resources to channel all of the corporation’s available resources for a greater impact in society. Many factors influence Boeing’s strategic, tactical, and operational planning. Strategic planning for example is all about long-term goals and strategies. This goals and strategies are developed by senior executives and have a strong external orientation. Tactical and operational plans come once all strategic goals are set.

These two plans are put in place by middle and front line managers and have a shorter period of time. Tactical plans usually have a one to two year time horizon while operational plans have a time horizon of less than one year. Strategic, tactical and operational plans must be aligned in order to be effective. Our book describes this alignment as “plans must be aligned- that is, they must be consistent, mutually supportive and focus on achieving the common purpose and direction.” S. T. (2011) Boeing Corporation, for example, has a three part strategy that has successfully incorporated to align its levels of goals. This strategy helps Boeing achieve aerospace leadership among other corporations in the industry of aviation. Their strategy is described as: 1. Run healthy core businesses.

2. Leverage strengths into new products and services.
3. Open new frontiers.
Following its strategy, running a healthy core business has required Boeing to do some changes in tactical planning. In the past the corporation made some decisions driven only by sales numbers which resulted in poor operational planning and bad relations with customers and suppliers. Promising rapid delivery and low costs salespeople wrote up orders that operational managers couldn’t fulfill, leaving them with no other choice other than to hire more workers in order to double production levels. This made production costs rise and cut the margin of profit of the corporation. To fix this the corporation adopted a more cautious tactical planning, and it now only expands its production capabilities only when they determine that the need will continue for two more years.

Continuing with its strategy Boeing has developed new products and services which include military and aerospace aircrafts. This is consistent with their second point of their strategy “Leverage strengths into new products and services.” This opens new frontiers for the corporation. At the operational planning level, Boeing now focuses on collaborating with its suppliers by sharing information to ensure the delivery of enough parts, while eliminating the expense of rush orders.

After analyzing the factors that have affected Boeing’s planning, we can comprehend how important strategic, tactical and operational planning is for a company. These plans can determine the future of a company and have a great impact on the way a company do business and even its profits. Based on the examples found in this paper we can see that top level managers need to put in place a great strategic plan. We can also see that middle and frontline managers also need to put in place great tactical and operational plans that align with the strategic plan in order of it to become successful. This together with a great implementation of the six steps process planning function will increase the odds of a company to become successful in its industry.

References

S, T. (2011). Management: Leading and Collaborating in a Competitive World, 9e
McGraw-Hill
The Boeing Company Code of Basic Working Conditions and Human Rights. Retrieve from:
http://www.boeing.com/boeing/aboutus/culture/code.page?