Boieng
Strategy and Execution
Boeing is an aerospace company of unrivaled balance and breadth, and our strategy is well known. Most Boeing employees could recite the three main elements of our strategy in their sleep. First, we will run healthy core businesses. Next, we will leverage our strengths and move into adjacent businesses where we have a competitive advantage in technology or in customer knowledge and insight. Last, we will lead, not follow, in opening the new frontiers that are critical to long-term growth and competitiveness within the aerospace industry.
That is our strategy. It is working well, and it is not about to change. What has changed is a return to the fundamentals of executing the business. We took a good, hard look at the business case behind every one of our programs and businesses - reexamining targets, establishing new and more meaningful ones where needed, and really holding people accountable for their performance.
As a result of these thorough reviews, we took corrective action in several areas. We decided, for instance, that, even though our 717 brings tremendous value to the airlines that operate it, the overall market does not support continuing production beyond delivery on our current commitments. We also determined that Boeing Air Traffic Management simply isn?t a business right now. So we scaled back the program and moved it into our Phantom Works research and development group. There, it will be nurtured as an extremely promising technology and business concept until customers are ready to make a financial commitment to radical improvement of the global air traffic control system.
But the biggest payoff came in the improved performance of our primary businesses - Integrated Defense Systems and Commercial Airplanes.
Integrated Defense Systems
Boeing Integrated Defense Systems (IDS) performed extraordinarily well in 2004. Revenues grew by 11...
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