Boeing is the world's largest aerospace company founded in 1916. It operates commercial and military aircraft and defense systems. Boeing employs over 158,000 people globally and is a leading U.S. exporter. It has two main business sectors, Commercial Airplanes and Integrated Defense Systems, and operates through five principal segments. Boeing faces challenges from the global economic slowdown and changes in defense budgets but maintains a strong order backlog and focus on innovation.

1. Dec 5, 2009
Tae Sung Hyon
Onrudee Silpsamrith

2. Founded in 1916 in Seattle, Washington - HQ in Chicago (2001)
Company overview
 The world’s leading aerospace company
 The largest manufacturer of commercial jetliners and military
aircraft combined
 Provide products and tailored services to airlines and U.S.
and allied armed forces around the world.
Boeing capabilities
 Rotorcraft, electronic and defense systems, missiles
 Satellites launch systems and advanced information and
communication systems.
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3. Company achievement
 Extends to customers in more than 90 countries
 A leading U.S. exporter in terms of sales.
 Employs 158,000+ people across the United States and in
70 countries
 Boeing’s enterprise leverages the talents of hundreds of
thousands more people working for Boeing suppliers
worldwide.
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4. Operate in 5 principal segments based on its products and
services, :
1. Commercial Airplanes;
2. Boeing Military Aircraft (BMA), (2-5) Comprise
3. Network and Space Systems (N&SS) business of
Integrated Defense
4. Global Services and Support (GS&S) Systems (IDS)
5. Boeing Capital Corporation (BCC).
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5.  Two main sectors :
Commercial Airplanes
Integrated Defense Systems
 About 70 percent of Boeing Commercial Airplanes' sales
come from outside the U.S.
The business unit considers the Middle East especially key
 Strategic mergers and acquisitions :
North American Aviation
McDonnell Douglas
Rockwell International (space and defense business)
Hughes Space & Communications
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6.  Total revenue: $60.9 billion
 Commercial Airplanes
 Revenue : $28.3 billion
 Employees : 68,000
 Integrated Defense Systems
 Revenue : $32 billion
 Employees : 70,000
 Boeing Capital Corporation
 2008 Portfolio: $6 billion
 Arrange / provide financing for customers of Boeing products
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8. Strength Opportunities
• Strong fundamentals in • Commercial aviation
products/services Strategies remains growth industry
• Performance balance across • Defense markets’ trend with
defense and commercial bus. threat environment
Weakness Threats
• Slow in adapting to new • Economic crisis in Dubai
technologies quickly
• Lowered U.S. defense budget
• Exposed to economic
slowdown and flu outbreaks • New Competition from
China(AVIC), Brazil(Embraer)
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9. Driving performance through growth and
productivity and leadership development
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10.  Products Innovation
 777 : Nonstop - 22 hr flight, 11k miles
 Can fly between any 2 cities in the world, non stop
 787 : Standard engine interface (GE/Rolls Royce)
 Mach 0.85, one of today's fastest commercial planes, while using less fuel
 Space shuttle design and development with NASA
 Services Innovation
 Shared Services Group(SSG) : provides integrated / lean services for of
aerospace and defense products  competitive design and manufacture
 GoldCare : lifecycle management solution that brings innovation to
maintenance & engineering operations
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11.  Regional office established to
meet rising demand and potential
 Dubai has become a tourist
attraction, shopping hub, and it
hosts the annual Dubai Air show
 Dubai International Airport - a
major transportation hub in the
Middle East
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12.  Projected by 2010, 60 million passengers are expected
to pass through the gates of Dubai
 Middle East residents’ growing demand to travel outside
of the Gulf and doing business in other parts of the world
 Boeing Dubai Service Center is one of eight Boeing
spares distribution facilities worldwide
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13.  Dubai crisis(Nov 26, 2009) has cast a shadow over a
backlog of aircraft orders, worth more than $60 billion,
from Dubai, Inc.
 Defense spending cuts in President Obama’s budget
plan pose risk to Boeing’s Integrated Defense Systems
 Controversy between Boeing and Airbus over “launch
aid” in form of credits from European governments
Airbus argue that Boeing receives illegal subsidies
through military and research contracts and tax breaks
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14.  In Q3 of 2009, the company had a $3.5 billion write-
down and a $1.6 billion loss
 Announced 10,000 layoffs in 2009 (6% of workforce)
 Obama administration plans to cut spending on many of
the high-tech military programs
 Boeing 787 is outsourcing more than 70% of the
airframe and relying on aircraft suppliers for the detail
engineering designs [Exhibit 5]
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15.  Retains over 130,000 high quality jobs in America
 As the largest U.S. exporter, contributes to net exports
 Boeing jobs represent nine of every ten aerospace jobs
in Washington state
 Represent more than 9 percent of the economy and two-
thirds of total state exports of Washington
 Employs nearly 29,000 advanced degrees jobs, in
virtually every business and technical field from
approximately 2,700 colleges and universities worldwide
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16.  Boeing offers the ultimate synergy experience of the
high tech manufacturing industry
 Boeing is Ranked the #1 most preferred employer by
readers of Equal Opportunity Magazine (Spring 2009)
 Strongly encourages innovation in any position
 Labor issues are often play a big role in the workplace
as everyone in the company is affected in some way
 Did not make Fortune’s Best 100 companies to work for
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18. 1. Earned $2.7 billion on revenues of $60.9 billion, both down
from 2007 levels
2. Increased our record order backlog to $352 billion at year
end
3. Returned value to shareholders by increasing a quarterly
dividend by 5% to 42 cents/share
4. Added key new business, including
Order For
484 737
93 787
54 777
NATO & Qatar C-17s, etc.
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19. 5. Reached significant IDS program execution milestones
 Completing the most challenging Ground-based Midcourse
Defense
6. Achieved major program milestones at Boeing Commercial
Airplanes
7. Broadened our environmental leadership (Ex ISO 14001, 2
biofuel demonstration flights )
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20. Financial summary
*source from company Year 2008 annual report
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22. Shareholder Returns
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23. Airplane Families 2008 $ in Millions
737 Family
737-600 51.5 -- 58.5
737-700 58.5 -- 69.5
737-800 72.5 -- 81.0
737-900ER 76.0 -- 87.0
747 Family
747-400/ -400ER 234.0 -- 266.5
747-400/ -400ER Freighter 238.0 -- 268.0
747-8 293.0 -- 308.0
747-8 Freighter 301.5 -- 304.5
767 Family
767-200ER 127.5 -- 139.0
767-300ER 144.5 -- 161.5
767-300 Freighter 155.0 -- 166.0
767-400ER 158.0 -- 173.0
777 Family
777-200ER 205.5 -- 231.0
777-200LR 237.5 -- 263.5
777-300ER 257.0 -- 286.5
777 Freighter 252.5 -- 260.5
787 Family
787-3 150.0 -- 155.5
787-8 161.0 -- 171.5
787-9 194.0 -- 205.5
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24. Return to slide
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25.  Crisis in Dubai threatens Boeing, Airbus
http://www.businessweek.com/globalbiz/blog/europeinsight/archives/2009/11/dubais_crisis_t.html
 Importance of Dubai as a transportation hub
http://www.boeing.com/news/frontiers/archive/2004/december/mainfeature2.html
 Boeing Company 2008 Annual Report
 Tony Capaccio, bloomberg, 4/6/2009,
http://www.bloomberg.com/apps/news?pid=20601103&sid=aVvHsMfAVWr4
 Boeing Economic Contributions / Impact / Employment status
http://www.washace.com/docs/BoeingEconomicContributions.pdf
http://money.cnn.com/2008/09/12/news/economy/boeing_impact/index.htm
http://www.boeing.com/employment/employment_table.html
 Boeing Global Strategy Takes off / Boeing CEO express concern
http://www.businessweek.com/magazine/content/06_05/b3969417.htm
http://online.wsj.com/article/SB10001424052748704328104574514780807384224.html
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