The strategy map of Boeing Co is prepared after considering the company’s financial performance, strategy objectives, and plans set out by its management in the annual report of 2016. The important considerations for evaluation and control are provided in the following.
- The company’s net margin declined in 2016 (Boeing Co BA, 2017).
- The company’s operating profit margin declined in 2016 (Boeing Co BA, 2017).
- The company faced increased competition from Airbus.
- The company aimed to increase its sales.
- The company aimed to develop new strategic alliances to improve its business position.
- The company aimed to invest in research and development and improvement of its technology (Boeing Co – Annual Report 2015, 2016).
- The company’s vision statement states, “Connect, Protect, Explore and Inspire the World though Aerospace Innovation,” which implies that it aims to improve customer satisfaction and improve its brand reputation.
Boeing’s strategic map is prepared in the following based on the key highlights of the company’s financial performance and its strategic goals provided in the management’s report.
The balanced scorecard of Boeing is prepared based on the strategy map provided in the previous section. It must be understood that a balanced scorecard is an important tool that companies use as a benchmark to set both financial and non-financial objectives and indicate initiatives that could help them to achieve their objectives. The four perspectives of a balanced scorecard include financial perspective, customer perspective, internal perspective, and learning & growth perspective. Some companies also indicate the budget allocated to each activity. However, it is not possible to allocate budget to different activities highlighted in the balanced scorecard because these numbers are not available and may not be reflective of the company’s current financial position.
|Increase shareholder value||Increase the company’s net profit. |
Increase the company’s return on equity.
Increase the company’s return on capital employees
|Increase ROE by 10% |
Increase ROCE by 10%.
|Increase net margin||Increase the company’s net profit.||Increase NPM by 15%.|| |
|Increase operating profit||Increase the company’s operating profit.||Increase the operating profit margin by 20%|| |
|Improve customer satisfaction||Improve the quality of the aircraft. |
Improve customer satisfaction.
|Improve the value of the quality index by 15%.|| |
|Enhance development and innovation||Improve aircraft quality.||Improvement in Customer satisfaction index level by 10%.|| |
|Improve industry relationship||Achieve a higher satisfaction level of suppliers and increase their participation.||Achieve a 50% growth in the company’s sales by 2025.|| |
|Improve brand reputation||Improve the company’s brand reputation and recognition.||Increase brand acceptance and orders of aircraft by 50%.|| |
|Improve aircraft quality and safety||Better aircraft designs and features. |
New safety features and engine controls
|Improve the quality index by 5 points|| |
|Fulfill client’s orders on time||Time deliveries of aircraft. |
Increase the number of aircraft orders.
|Reduce delays by 10%. |
Increase sales by 20%.
|Enhance innovation and research and development||Development of new features. |
Development of new designs and safety options.
|Reduce the development period by 5%.|| |
|Employee engagement and training||Increase employee satisfaction. |
Increase employee commitment.
|Increase employee motivation by 20%. |
Increase employee productivity by 10%.
|Learning and Growth|
|Increase supply chain effectiveness||Reducing delays. |
Reducing suppliers’ bargaining power.
|Reduction in delays by 10%.|| |
|Improve employee training and relationship||Periodic training sessions.||Improve employee satisfaction by 15%.|| |
|Increase research and development||Integration of different divisions of the company to improve the input in research and development.||Increase the research and development expenditure by 10%.|| |
|Ensure timely deliveries||Reduce delays and ensure timely deliveries of aircraft.||Reduce delays by 10%.|| |
Boeing Co – Annual Report 2015. (2016). Web.
Boeing Co BA. (2017). Web.