Sunday, November 13, 2011

• #7 Human Resources and Leadership: “How do companies in this industry tend to structure themselves? What functions represent the majority of their workforce? For example, 75% of the workforce might be hourly manufacturing labor while 25% is admin, sales/marketing, and executives.”


The Defense and Aerospace industry is a very diverse market place and consists of companies that range in size. As company sizes increase, they also tend to diversify their product in order to appeal to a larger customer base. Companies, such as Embraer, are world known and have great reputations within their field, however; they often do not have the capital or desire to diversify and expand.  Being a company focused on producing Aircrafts, a majority of the functions within are aimed towards assembling quality crafts. Boeing, the largest Defense and Aerospace in the world, produces products in a majority of fields within the industry, and needs to have an appropriate amount of their labor force working within each sector. Boeing’s largest subdivision is their production of aircrafts.

Dubai Emirates Airline recently purchased 50 widebody 777-300 aircrafts from Boeing for $18 billion. Dubai Emirates Airline also has an option to add an additional 20 crafts to their order increasing its size to $26 billion. The widebody 777-300 has a flight range of 14,685 kilometers, which aided Boeing in producing the most efficient jet for Emirate’s purposes. This deal was a cornerstone in Boeing’s prestigious history, being their largest order ever. Many countries feel that middle-eastern counties have an unfair advantage in the airline business, as they can often obtain fuel at cheaper prices. Such advantages cause rapid expansions to occur in companies such as Emirates and Qatar Airway. I feel as if every company should specialize in the product or products that suit them best and devote their workforce accordingly. Boeing, a superpower amongst the industry, must dedicate appropriate percentages of their workforce to each individual sector. 

2 comments:

  1. I feel that it is easier for smaller companies to divide their companies into segments based upon function. Larger companies, such as Boeing and Airbus, may be separated into different segments based upon product and further split among areas such as management.

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  2. Boeing and Airbus both have a variety of aircraft families. Whether its Boeing's family of 787's or Airbus's family of A320's, both segment into groups which reach out better to their target market.

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