An organization's external environment is usually affected by three main factors: the remote environment, the industry environment, and the operating environment. This paper will perform an environmental analysis on The Boeing Company (TBC) to identify the industry the company is operated in, the macroeconomic variables that affect it, and the challenges and opportunities the company is facing under its operating environment.
TBC operates in the aviation manufacturing industry. TBC started out as the Pacific Aero Products Company which was founded on July 15, 1916. TBC was a rather small company at the time until World War I when the Navy ordered 50 warplanes for the war. TBC continued to prosper since the late 1950s when Boeing President William Allen decided to launch the company into the commercial aviation industry. TBC is currently the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. (Boeing.com, 2008)
As with many other companies in the same industry, TBC's business environment is affected by many key macroeconomic variables such as world's economy, competition, marketing of new products, and societal changes. This paper will concentrate on the two most major impacts to the bottom line of TBC which are the world's economy and the competition.
With respect to the impact of the world's economy on TBC, table 1 below shows the GDP rates and the population growths of China and India. With the explosive growth rates in both GDP and the population, and extremely dynamic markets China's and India's demands for transportation within the countries are phenomenal. According to Boeing, "Boeing forecasts that over the next 20 years the 28,600 new commercial jet aircraft will be needed worldwide; 3400 are forecasted for China. China will be the largest overseas market for Boeing commercial airplanes." (Boeing.com, 2008)