Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Understanding Business Organisations

Candidate Name:Jianhong Yi

NCC ID: 00213714

Centre Name: GCTB College

Word Count: 3084

Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Contents

Task 1................................................................................................. 1
Task 2................................................................................................. 3
Task 3................................................................................................. 4
Task 4................................................................................................. 8
References.........................................................................................11
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Task 1

advantages

Control business risks: Centralized management can effectively prevent risky behavior, reduce

business risks, and ensure the long-term development of enterprises.

Coordinate decision-making between different functional departments: Centralization enables

senior managers to quickly coordinate decisions between different functional departments and

reduce internal conflicts.

Standardize communication between superiors and subordinates: The centralized structure makes

the boundaries between superiors and subordinates clear, the communication route clear, and the

management relatively standardized.

disadvantages

Asymmetric information and organizational rigidity

Difficulty in obtaining sufficient information at the grassroots level and deviation from actual

needs in the execution process;

Weak market adaptability, difficult departmental coordination, and difficulty adapting to complex

competitive environments.

Weakened effectiveness of middle-level management

Excessive management by senior management has led to hollowing out of the middle management

and insufficient ability to implement strategies;

The lack of strategic awareness and management skills in the middle management exacerbates the

disconnect between execution and goals.

Breeding corruption and power imbalance

Excessive concentration of power without constraints can easily lead to corruption problems;

The formation of an inert culture within the organization that relies on high-level decision-making

undermines a healthy management ecosystem.

Boeing's corporate structure adopts a matrix management architecture, which is mainly divided

into four major business departments and supported by segmented market business units for

operation. The specific organizational framework is as follows:

1、 Core business departments

1
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Commercial Aircraft Corporation (BCA)

Leading the civil aviation industry, responsible for designing, producing, and supporting 737, 747,

767, 777, and 787 series aircraft, while also developing new models such as 737 MAX and 777X.

This department covers more than half of the global civilian fleet and undertakes 90% of air cargo

tasks.

Defense, Space and Security Group (BDS)

Covering fields such as military aircraft, missile defense systems, satellites, manned spaceflight,

and autonomous systems. Its product portfolio includes fighter jets, refueling aircraft,

reconnaissance aircraft, and space exploration equipment, and enhances platform capabilities

through technological research and development.

Global Services Group (BGS)

Provide full lifecycle support for hybrid fleets, including maintenance, modification, training,

spare parts supply, and digital analysis services. The service targets of this department include

civil, defense, and aerospace customers, and are not restricted by the original manufacturer.

Boeing Capital (BCC)

Responsible for financial and capital management, supporting the fund operation and strategic

investment of various business departments.

2、 Segmented Market Business Unit

Under the matrix architecture, each core department is further divided into specialized business

units, such as:

Training Systems and Services (TS&S)

Spare Parts and Technical Data (STD)

Adjustment and Update (MU)

These units meet customized customer needs and improve service efficiency through functional

collaboration.

3、 Recent structural adjustments

In November 2024, Boeing dissolved its Global Diversity, Equity, and Inclusion (DEI) division

and merged its functions into its Human Resources team. This move marks the company's

response to financial pressure and optimization of resource allocation by streamlining its structure.

2
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

This architecture combines vertical business lines with horizontal functional support to achieve

full lifecycle management of aircraft, covering stages such as research and development,

production, and maintenance, with a maximum service cycle of 60-70 years.

Mark of Task 1: a) 6 b) 6 sum 12

Comment on Task 1
The candidate does not a good understanding of the requirement of
the questions. Furthermore, in answering the questions, the
candidate has some misunderstanding of some academic concepts
related to business organisation.

Task 2

As a leading enterprise in the global aviation manufacturing industry, Boeing's brand

attractiveness to recruiting employees is mainly reflected in the following aspects:

Technical strength and industry reputation

Boeing, with a century of aviation manufacturing experience and deep cooperation with

multinational enterprises (such as Shanghai Boeing, a joint venture established by Boeing and

Shanghai Airport Group), provides employees with opportunities to access cutting-edge

technology and international platforms. For example, the case of Shanghai Boeing hiring Chinese

fresh graduates demonstrates the attractiveness of its technical standards to professional talents. At

the same time, Boeing's early history of cooperation with Chinese engineers, such as the first

aerospace engineer Wang Zhu, also strengthened its brand image of technological heritage.

Global layout and regional recruitment strategy

Boeing is expanding its talent pool by implementing differentiated recruitment strategies in

different regions. For example, in India, the recruitment scale for engineering positions far

exceeds that of China (by 2024, the number of engineering positions in India will be 19 times that

of China, mainly due to India's vast and low-cost engineering resources (Indian engineer salaries

are only 7% of the same positions in the United States). In addition, Boeing's cooperation with

local Indian companies such as HCL Technologies further strengthens its localization appeal.

Characteristics of Human Resource Management and Employee Benefits

3
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Boeing's recruitment process is efficient (two rounds of interviews can determine employment),

and it provides structured career development paths, paid leave, corporate pensions, and other

benefits. Its summer internship program helps potential employees gain a deeper understanding of

the industry and enhance talent retention. The performance appraisal system and the evaluation

mechanism of multi departmental collaboration also provide employees with clear career growth

space.

Market prospects and career development potential

Boeing's long-term plans for emerging markets such as China, such as the projected need for 8560

new aircraft by 2042 and its continued expansion of enrollment in India, provide employees with

opportunities to participate in the growth of the global aviation industry, further enhancing the

brand's attractiveness to career oriented talents.

The three elements of Boeing's corporate culture include mission, vision, and values.

Mission: Boeing's mission is to become the world's number one airline and a leader in quality,

profitability, and growth within the industry. Specific goals include:

Quality: measured by customer, employee, and community satisfaction.

Profit: The goal is to achieve an average annual profit of 20% of shareholders' equity.

Growth: Aim to increase annual sales by more than 5%.

Vision: Boeing's vision is to set goals for what the company wants to become in the future. The

vision is closely related to the company's own capabilities and is a phased goal that the

organization needs to achieve in the future.

Values: Boeing's core values are based on the organization's shared vision, purpose, and mission,

and are the standard concepts held for the expected future situation. They are the ideological

guidelines that support the daily behavior of the enterprise. Values should be shared by all relevant

personnel and not too vague.

These elements together constitute Boeing's corporate culture, guiding the company's decisions

and actions, ensuring that the company maintains a leading position in a fiercely competitive

market

4
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Mark of Task 2: a) 6 b) 6 sum 12

Comment on Task 2
The candidate does not a good understanding of the requirement of
the questions. Furthermore, in answering the questions, the
candidate has some misunderstanding of some academic concepts
related to business organisation.

Task 3

Five aspects of Boeing's corporate culture (focusing on internal and external communication)

Customer oriented communication mechanism

Boeing regards "quality" as one of its fundamental goals, emphasizing customer satisfaction as the

core measurement standard. Through continuous improvement of product design, manufacturing,

and service processes, establish a two-way feedback channel with customers to ensure accurate

transmission and response of requirements.

Employee participation and internal collaboration

Regard employees as the 'most important resource' and improve internal communication

efficiency through technical training, cross departmental communication, and management

support. Advocate a culture of integrity and mutual respect in communication, encourage

employees to participate in decision-making and propose improvement suggestions, and create a

transparent work environment.

Management and Strategic Communication

Emphasizing 'effective and centralized management', managers are required to ensure consistency

between the company's mission and employee actions through clear strategic goals and regular

communication mechanisms. For example, by decomposing long-term goals into executable short-

term plans, it enhances the synchronization of information between superiors and subordinates.

5
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Technology driven information sharing

Technological innovation is seen as the key to maintaining competitiveness, and Boeing promotes

collaboration between design and manufacturing departments through internal technology

upgrades and production process optimization, forming a culture of knowledge sharing. For

example, utilizing digital tools to enhance cross team communication efficiency.

External communication with stakeholders

In external communication, Boeing emphasizes interaction with stakeholders such as shareholders

and communities. For example, by maintaining robust financial performance and transparent

reporting mechanisms, the long-term value of the company can be conveyed; Simultaneously

focusing on community satisfaction and fulfilling social responsibilities to enhance external trust.

Analysis of the Impact of Boeing's Brand Enhancement Strategy on Financial Status

1、 Optimization of Safety and Quality Control

Strengthen the quality inspection process

By increasing the number of quality inspectors and optimizing production processes, the risk of

accidents caused by quality defects can be reduced, compensation costs can be lowered (such as

compensating $443 million for the grounding of MAX 9 in 2024), and market confidence in the

737 MAX series and other major aircraft models can be restored, driving order growth.

Design defect repair

Systematic improvements for models such as the 737 MAX can help eliminate long-term trust

crises, avoid global grounding and order cancellations caused by accidents, and stabilize revenue

sources.

2、 Supply Chain and Capacity Recovery

Improve delivery efficiency

By addressing supply chain bottlenecks such as engine shortages, gradually increasing 737

monthly production from 83 aircraft in 2024 to the planned 50 aircraft/month in 2025 can

accelerate order digestion and improve cash flow.

Integrate supply chain resources

Re control key component manufacturers (such as acquiring Spirit AeroSystems), reduce quality

loss caused by outsourced production, lower post repair costs, and shorten delivery cycles.

6
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

3、 Financial Structure and Debt Management

Debt Restructuring and New Financing

By issuing bonds or equity financing to repay $4.3 billion of debt due in 2025 and $8 billion in

2026, it is possible to avoid further credit rating downgrades (currently Baa3) and reduce

financing costs.

Restore shareholder return plan

It is expected that dividend payments will resume in 2026, in conjunction with the achievement of

the 2025 target of $10 billion in free cash flow, which can enhance investor confidence and drive

stock prices back up.

4、 Brand reshaping and rebuilding market confidence

Transparency improvement

Proactively disclose quality improvement measures (such as optimizing quality inspection

processes) and establish collaborative mechanisms with airlines and regulatory agencies to reduce

the sustained damage of negative public opinion to brand value.

Long term strategic promotion

By setting a clear target of achieving sales of $100 billion by 2025, demonstrating a recovery path,

stabilizing customer order expectations, and alleviating the pressure of revenue decline (with a

14% year-on-year decrease in revenue in 2024).

5、 Summary

Boeing brand restoration and financial improvement need to form a closed loop: safety and quality

improvement → order delivery growth → cash flow improvement → debt pressure relief →

investor confidence recovery → brand value recovery. If the above measures are effectively

implemented, it may be possible to stop losses by 2025 (with a net loss of 11.8 billion US dollars

in 2024) and gradually achieve a turnaround from losses to profits.

Comparative analysis of Porter's Five Forces model between Boeing and Airbus

1. Strength of existing competitors in the industry

Boeing: Deliver 45 aircraft in January 2025, setting a new high since December 2023, with 737

MAX accounting for nearly 90%. However, in 2024, due to quality accidents and strikes involving

the 737 MAX, the annual delivery volume will only be 45% of Airbus'.

7
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Airbus will deliver 766 aircraft in 2024, which is twice that of Boeing, but will be overtaken by

Boeing in January 2025 (delivering 25 aircraft). Both parties continue to compete for customers in

the narrow body and wide body aircraft markets, forming a duopoly pattern.

2. Potential threat from entrants

The threshold for the aviation manufacturing industry is extremely high, requiring billions of

dollars in R&D investment and long-term technological accumulation. Currently, there is no third

company that can challenge the position of Boeing and Airbus.

3. Threat of substitutes

High speed rail has a certain substitution effect on the aviation industry in the short to medium

distance market, but there is still no alternative solution for long-distance air transportation. The

threat of substitutes in segmented markets such as military aircraft and cargo planes is lower.

4. Supplier bargaining power

Boeing: Supply chain issues are prominent, with production stalled in 2024 due to strikes, and the

Federal Aviation Administration limiting the monthly production of 737 MAX to 38 45s. Some

suppliers have been reported for quality control issues, such as unqualified body components.

Airbus: About 40% of French aviation suppliers are facing financial crisis, coupled with the

Boeing strike affecting the global supply chain, and their bargaining power is relatively limited.

5. Buyer's bargaining power

As a major customer, airlines are price sensitive and have large order volumes (such as United

Airlines and Southwest Airlines bulk purchasing 737 MAX), with strong bargaining power. But

Boeing and Airbus, with their technological monopoly, can still maintain pricing power through

differentiated aircraft models such as the 787 Dreamliner and A380.

Mark of Task 3: a) 6 b) 6 sum 12

Comment on Task 3
The candidate does not a good understanding of the requirement of
the questions. Furthermore, in answering the questions, the
candidate has some misunderstanding of some academic concepts
related to business organisation.

Task 4

8
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

Advantages

Improved governance structure

Shareholder financing is usually accompanied by governance mechanism adjustments (such as

optimizing the board structure), reducing decision-making risks through checks and balances, and

promoting standardized operations.

Introduce strategic investors

Equity financing may introduce strategic investors, bring resources and experience, and do not

require repayment of principal, which can provide long-term stable financial support for

enterprises.

Realizing leapfrog development: Equity financing can help enterprises obtain a large amount of

funds and abundant resources, thereby quickly leading competitors and occupying the high ground

of the industry.

Disadvantages

Decline in performance and weakened profitability: Equity financing dilutes equity capital,

leading to a decrease in return on equity and earnings per share, thereby weakening a company's

profitability and market competitiveness.

Decreased efficiency in fund utilization and distorted resource allocation: Listed companies may

be keen on stock trading and investment, resulting in the failure to meet promised IPO funds and

wastage of resources

Limited financial leverage: Changes in shareholder structure can affect a company's development

strategy, and limited financial leverage may lead to missed opportunities brought by other

financing methods.

The three strengths and two major weaknesses of Boeing's financial performance are as follows:

Three strong indicators

Revenue and cash flow situation: Although Boeing's revenue in the third quarter of fiscal year

2024 was $17.84 billion, slightly lower than the $18.104 billion in the same period last year,

overall, Boeing's revenue in the first three quarters of fiscal year 2024 was $51.275 billion, a

decrease of 8% from the $55.776 billion in the same period last year. Operating cash flow was

9
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

negative $1.345 billion, and free cash flow was negative $1.956 billion.

Financial situation: Boeing's net loss for the first three quarters of fiscal year 2024 increased from

$1.78 billion last year to $8.266 billion, a year-on-year increase of 364.38%. According to GAAP

standards, the third quarter loss per share was $9.97, compared to a loss of $2.70 per share in the

same period last year.

Business restructuring intention: Boeing stated that despite facing challenges, they have shown a

willingness to rebuild their operating system and have taken measures to resume production.

Two weak indicators

Huge losses: Boeing suffered its second largest loss in history in 2024, with a net loss of $11.829

billion, mainly due to production delays and worker strikes caused by quality issues. In addition,

Boeing's total cash expenditure for the whole year of last year reached 14.31 billion US dollars.

Risks faced: Boeing faces three major risks: first, the policy uncertainty that the Trump

administration may bring; The second is the US China trade friction; The third is the cost pressure

that competitors such as Elon Musk's SpaceX may bring.

Mark of Task 4: a) 6 b) 6 sum 12

Comment on Task 4
The candidate does not a good understanding of the requirement of
the questions. Furthermore, in answering the questions, the
candidate has some misunderstanding of some academic concepts
related to business organisation.

Task 5

Boeing utilizes information technology to enhance management through the following three

methods:

Supply Chain Management: Boeing has established strict supplier qualification certification

standards, with strict requirements for the quality, progress, and other aspects of the spare parts

10
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

provided by suppliers. High quality raw materials and various accessories provide the premise and

guarantee for Boeing to manufacture first-class products. In addition, Boeing has utilized high-

tech methods to create a comprehensive and efficient supply chain collaborative management

information platform, closely integrating research and development, procurement, and

manufacturing systems around the world through the network, opening up online sales business,

and becoming the earliest aircraft manufacturer to use e-commerce.

Knowledge Management: Boeing's knowledge management practices include organizing and

sharing data, advocating for learning and accumulating knowledge, and providing employees with

the knowledge information they need anytime and anywhere. Boeing's knowledge management

philosophy can be represented by the "life cycle", which involves the joint participation of the

enterprise and employees in the generation, sharing, and application of knowledge from its

generation to its elimination. Boeing conducts knowledge management through various methods,

such as summary reports, guidance and coaching of fixed targets, job rotations, lectures and

training, program completeness and standardization, selection and training of cutting-edge

technical consultants, new employee onboarding training, etc., to ensure the effective application

and inheritance of knowledge.

Digital transformation: Boeing is rethinking its software approach in the face of massive amounts

of data, fully utilizing all data to improve various functions such as product development and

customer-oriented value-added services. To address the challenges of technological

transformation, Boeing has proposed a "master plan" focused on three E's: engagement,

excellence, and enablement. Participate in ensuring employees' active participation and support in

the transformation process; Excellence is committed to achieving the first pass rate; Support

provides necessary resources and environment for transformation. Through these measures,

Boeing has successfully combined professional knowledge with modern software development

techniques and practices, driving the digital transformation of the enterprise.

Boeing improves information security through the following five methods:

Utilizing artificial intelligence for data analysis and monitoring: Boeing uses artificial intelligence

technology to screen massive amounts of data and identify potential hazards in aircraft and airline

operations. This technology helps Boeing strengthen its safety culture, improve flight safety and

11
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

quality.

Strengthen password management: Boeing requires employees to use a password manager to

generate and store complex passwords, ensuring that each account has a unique password and

reducing the risk of database collisions. In addition, important accounts also enable two factor

authentication or multi factor authentication to increase account security.

Regularly updating software and antivirus software: Boeing regularly updates its operating

system, browser, and office software to fix known security vulnerabilities. At the same time, use

antivirus software to prevent attacks from viruses and malicious software, ensuring the security of

the system.

Using secure network connections: Boeing employees use encrypted network connections such as

HTTPS or VPN in public network environments to ensure the security of data transmission. For

wireless networks, use secure encryption methods such as WPA2 to avoid using insecure WEP

encryption.

Develop a data backup and recovery plan: Boeing regularly backs up important data to prevent

data loss or damage. At the same time, develop a data recovery plan to ensure timely recovery in

case of data loss or damage. Backup data should be stored in a secure location, avoiding being

stored in the same location as the original data.

Mark of Task 5: a) 6 b) 6 sum 12

Comment on Task 5
The candidate does not a good understanding of the requirement of
the questions. Furthermore, in answering the questions, the
candidate has some misunderstanding of some academic concepts
related to business organisation.

References

顾惠忠, 王荣阳, 曹怀根, 白小刚, 周忠义, & 张国刚. (2010). 浅析战略引领下的企业管理与重维——对波音公司、联合技术公司的考察报告.

12
Candidate Name: Jianhong Yi NCC ID: 00213714 Word Count: 3084

中国总会计师.

杨佩. (2012). 国际先进民机制造企业供应商管理模式探析. 今日财富(中旬刊).

王国顺, & 陈原. (2007). 民用航空制造业供应链协调管理的策略研究——以波音公司为例. 中国市场(19), 4.

Mueller, D. C. , & Yurtoglu, B. B. . (2010). Country legal environments and corporate investment

performance. German Economic Review, 1(2), 187-220.

13