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EssayBizLabCompany AnalysisBoeing Company’s Strategic Map and Balanced Scorecard

Boeing Company’s Strategic Map and Balanced Scorecard

Subject: Company Analysis
Pages: 4
Words: 1006
Reading time:
4 min
Study level: College

Strategic Map

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.

  1. The company’s net margin declined in 2016 (Boeing Co BA, 2017).
  2. The company’s operating profit margin declined in 2016 (Boeing Co BA, 2017).
  3. The company faced increased competition from Airbus.
  4. The company aimed to increase its sales.
  5. The company aimed to develop new strategic alliances to improve its business position.
  6. The company aimed to invest in research and development and improvement of its technology (Boeing Co – Annual Report 2015, 2016).
  7. 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.

Boeing’s strategic map
Boeing’s strategic map

Balanced Scorecard

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.

Financial Perspective
Objectives Measures Targets Initiatives
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%.
  • Improve cost controls and reduce the company’s expenses.
  • Increase investment in technology development and new designs.
  • Increase the shareholders’ value and increase the company’s dividend.
Increase net margin Increase the company’s net profit. Increase NPM by 15%.
  • Gain efficiency in technology development and innovation.
  • Achieve better supplier relationships to lower the cost of sales.
  • Increase the innovation process.
  • Secure new orders for aircraft.
  • Reduce the company’s operational costs and expenses.
Increase operating profit Increase the company’s operating profit. Increase the operating profit margin by 20%
  • Control the company’s costs and selling and administrative expenses.
Customers’ Perspective
Objectives Measures Targets Initiatives
Improve customer satisfaction Improve the quality of the aircraft.
Improve customer satisfaction.		 Improve the value of the quality index by 15%.
  • Increase the effectiveness of its CRM to increase communication between the company and its customers.
  • Ensure that aircraft meet all quality and safety standards.
  • Ensure that the company delivers aircraft to customers on time.
Enhance development and innovation Improve aircraft quality. Improvement in Customer satisfaction index level by 10%.
  • Ensure that clients are satisfied and provide positive feedbacks.
  • Implement a feedback system and address the issues and problems faced by the company’s clients in a timely manner.
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.
  • Participate in different trade fairs and engage clients.
  • Implement a strong negotiating system to finalize orders in the shortest period.
Improve brand reputation Improve the company’s brand reputation and recognition. Increase brand acceptance and orders of aircraft by 50%.
  • Implement an effective marketing strategy.
  • Ensure that customers are aware of the company’s business efficiency and effectiveness.
  • Ensure that customers are involved in the design and development process through effective engagement procedures.
Internal Perspective
Objectives Measures Targets Initiatives
Improve aircraft quality and safety Better aircraft designs and features.
New safety features and engine controls		 Improve the quality index by 5 points
  • Invest in technology development and research of new safety features.
  • Developing new safety features and internal options.
  • Enhance team involvement and creativity to develop new features.
  • Bring in new talent and conduct training programs to improve skills and knowledge of the development team.
Fulfill client’s orders on time Time deliveries of aircraft.
Increase the number of aircraft orders.		 Reduce delays by 10%.
Increase sales by 20%.
  • Integration of different business functions Improving technology.
  • Implementation of an effective Enterprise Resource Planning (ERP).
  • Improve operational efficiency and better asset management to ensure that aircraft orders can be completed on time.
  • Enhancing the integration of the company’s IT system with that of its suppliers and also work with multiple suppliers to control the prices of inputs.
Enhance innovation and research and development Development of new features.
Development of new designs and safety options.		 Reduce the development period by 5%.
  • Developing and implementing new production tools and machinery.
  • Reducing human time involvement and increase automation of the manufacturing process.
  • Increase employee involvement in the designing phase.
Employee engagement and training Increase employee satisfaction.
Increase employee commitment.		 Increase employee motivation by 20%.
Increase employee productivity by 10%.
  • Invest in improving employee-management relationships.
  • Carry out regular training of employees.
  • Ensure employees can balance their personal and work life.
  • Involve employees in the designing and development processes.
Learning and Growth
Objectives Measures Targets Initiatives
Increase supply chain effectiveness Reducing delays.
Reducing suppliers’ bargaining power.		 Reduction in delays by 10%.
  • Effective inventory management system to ensure timely delivery of supplies.
  • Integrating the company’s ERP with the suppliers’ systems to ensure timely delivery of supplies according to the required specifications.
  • Increasing the effectiveness of the monitoring and control system.
Improve employee training and relationship Periodic training sessions. Improve employee satisfaction by 15%.
  • Carry out meetings on a regular basis.
  • Conduct training programs for employees working in different departments.
  • Increase team and knowledge diversity to ensure that employees contribute positively to development and innovation in the company.
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%.
  • Increase the size of the research and development team.
  • Promote creativity and innovativeness.
Ensure timely deliveries Reduce delays and ensure timely deliveries of aircraft. Reduce delays by 10%.
  • Increasing the effectiveness and efficiency of different teams of the company.

References

Boeing Co – Annual Report 2015. (2016). Web.

Boeing Co BA. (2017). Web.