PESTLE Analysis of Boeing

Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defence, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defence systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

Boeing has a long tradition of aerospace leadership and innovation. The company continues to expand its product line and services to meet emerging customer needs. Its broad range of capabilities includes creating new, more efficient members of its commercial airplane family; integrating military platforms, defence systems and the war fighter through network-enabled solutions; creating advanced technology solutions; and arranging innovative customer-financing options.

With corporate offices in Chicago, Boeing employs more than 168,000 people across the United States and in more than 65 countries. This represents one of the most diverse, talented and innovative workforces anywhere. More than 140,000 employees hold college degrees — including nearly 35,000 advanced degrees — in virtually every business and technical field from approximately 2,700 colleges and universities worldwide. Our enterprise also leverages the talents of hundreds of thousands more skilled people working for Boeing suppliers worldwide.

Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defence, Space & Security. Supporting these units are Boeing Capital Corporation, a global provider of financing solutions; the Shared Services Group, which provides a broad range of services to Boeing worldwide; and Boeing Engineering, Operations & Technology, which helps develop, acquire, apply and protect innovative technologies and processes.

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Recent News
Boeing raises forecast for new aircraft demand, single-aisle planes lead the growth projection Boeing is raising its long-term forecast for new airplane demand by more than 4 percent over last year’s outlook and the airplane maker says the Asian-Pacific market is still driving the growth. Boeing gets 2.8billion contract from NASA

Boeing Co (BA.N) said it signed a $2.8 billion contract with NASA to develop the core stage of the Space Launch System

Political
The United States Government and its Federal Aviation Administration (FAA) are particularly influential in this regard since they oversee the largest air transport market in the world. Regulations by the United States and European governments may prove to be a major driving force for orders for new aircraft and engines in the years to come. Similarly, the deregulation of European airlines, already begun in the early 1990s, holds the promise of expanded market prospects for smaller regional jets. Trade in larger commercial jetliners has been virtually tariff-free since 1979 under the General Agreement on Tariffs and Trade (GATT). Economic

Likelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risk of terrorism. The fuel cost is increasing in the future. International Air Transport Association estimated that airlines’ fuel costs would rise by 31% in 2005. IATA, which represents 95% of the world’s airlines, also predicted that the industry would lose $6 billion. Social

Anti-US feeling feelings generated by the events of the past two years had adversely impacted on Boeing’s sales, especially in West Asia, which is a lucrative market for the industry Technological

The biggest and most cost effective technological advancement for the commercial aircraft industry is designing planes faster. The increased production time will save costs on labour and enable better resource usage for each plane made. Boeing has utilized this technological advancement by building a new model, the Boeing 777, by using computer technology to build a prototype. This is tremendously cost effective because the company does not have to absorb the cost of the prototype that they normally would have to build.

Future Plans
Boeing has shown airlines a blueprint for the world’s longest-range passenger jet, adding spice to a long-awaited revamp of its 777 wide-body jet, people familiar with the matter said. Boeing on Wednesday launched a race against Airbus for sales of the newest long-haul jets by announcing it had begun selling an upgraded aircraft family code-named 777X. Boeing has shown airlines a blueprint for the world’s longest-range passenger jet, adding spice to a long-awaited revamp of its 777 wide-body jet, people familiar with the matter said. Boeing on Wednesday launched a race against Airbus for sales of the newest long-haul jets by announcing it had begun selling an upgraded aircraft family code-named 777X.