Month: December 2022

Strategic Key Elements Case

To understand a corporate strategy, you need to understand the different key elements of a corporate strategy.  Most corporate strategies are showcased in the investor’s annual report, usually in the first 10ish pages.  The key elements to a corporate strategy include: Mission, Scope, Competitive Advantage, Action Program, and Decision-making guidance. Below is a case study from Boeing’s 2017 Annual Report, prior to the 737 Max situation.

Strategy key elements:

  • Mission: “Our purpose and mission is to connect, protect, explore and inspire the world through aerospace innovation. We aspire to be the best in aerospace and an enduring global industrial Champion.” (Page 1)
  • Scope: “…manufacturer of commercial airplanes and defense, space and security systems and a major provider of government and commercial aerospace services…. Our products and tailored services include commercial and military aircraft, satellites, weapons, electronic  and defense system, launch systems, digital aviation services, engineering modifications and maintenance, supply chain services and training” (Table of Contents)
  • Competitive Advantage:
    • Supply Chain integration: “leverages the talents of skilled people working for Boeing suppliers worldwide, including 1.3 million people at 13,600 U.S. companies” (Table of Contents)
    • Intellectual property: “We own numerous patents and have licenses for the use of patents owned by others, which relate to our products and their manufacture. In addition to owning a large portfolio of intellectual property, we also license intellectual property to and from third parties.” (Page 2)
  • Action Program:  “The importance of our purpose and mission demands that we work with the utmost integrity and excellence and embrace the enduring values that define who we are today and the company we aspire to be tomorrow. These core values—integrity, quality, safety, diversity and inclusion, trust and respect, corporate citizenship and stakeholder success—remind us all that how we do our work is every bit as important as the work itself. Living these values also means being best-in-class in community and environmental stewardship.” (Page 8)
  • Decision-Making Guidance:
    • “Our ongoing pursuit of improved affordability and productivity, as well as strong performance across our core business areas…have us well positioned to fund our future.” (Page 7)
    • “Succeeding in rapidly changing global markets requires that we think and do things differently. It demands change, a willingness to embrace it and the agility to both drive and respond to external forces.” (Page 7)
    • “… we continue to make meaningful progress toward building a zero-injury workplace, achieving world-class quality and creating the kind of culture that breaks down organizational barriers, eliminates bureaucracy and unleashes the full capabilities of our people.” (Page 8)

 

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