Business and Management
Submitted By tommyrt
The Boeing Company
Established in 1916 in Seattle, Washington, Boeing had grown to become the U.S.’s largestexporter and the world’s largest commercial aircraft manufacturer. Commercial aircraft salesaccounted for two-thirds of Boeing’s revenues. The remaining one-third consisted of sales to the U.S.government for military aircraft and defense equipment. The company was traded principally on theNew York Stock Exchange and had secondary listings on five other worldwide stock exchanges.Stocks of Boeing were widely held by over 100,000 shareholders,
with a market capitalization of$10.1 billion.
Earnings from operations were $1.95 billion, and net earnings were $1.57 billion in1991.
Boeing’s Commercial Aircraft Since the 1960s, one of Boeing’s key aims was to dominate in every segment of commercialaircraft. Boeing strove to offer airlines a comprehensive fleet that would cover their requirements forrange and passenger capacity. As of 1992, Boeing had an existing fleet of 6,600 commercial aircraft.
For the 1992 fiscal year, the company would deliver 342 commercial airplanes. Its order book added500 planes over the next five years.As of 1992, Boeing had four families of airline models: the 737, a short-range plane; the 757 and767, medium-range planes; and its flagship product, the 747 “Jumbo Jet.” (See
Exhibit 2 for a chart ofBoeing’s offerings.) In each family, several variations were available. Boeing had phased outprevious models such as its first commercial jetliner (707) and the 727. In the early 1990s, Boeingscrapped the development of a short-range 150-seat plane called the 7J7, as it could not find sufficientorders to justify its development. The company shifted its development efforts to the 777, a longer-range, medium-sized plane expected for delivery in 1995.
The small plane: 737
The 737 was given the official go-ahead in 1965…...