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Please read the instructions carefully.  You will need the Boeing Case and SPSS file to answer some questions. Use the snipping tool or print screen to show your SPSS output. Please email me with questions.
Mid Term Case: Boeing

Taking Flight

The Boeing Company (

www.boeing.com

), together with its subsidiaries, is an aerospace company that operates in six principal segments. The first five are collectively known as Integrated Defense Systems (IDS) and include Commercial Airplanes, Aircraft and Weapon Systems, Network Systems, Support Systems, and Launch and Orbital Systems. The sixth principal segment is Boeing Capital Corporation (BCC). The Commercial Airplanes operations principally involve development, production, and marketing of commercial jet aircraft and providing related support services, primarily to the commercial airline industry worldwide. W. James McNerney, Jr., was the CEO as of 2011, and the company is a leader in the global defense and aerospace market. The company’s revenues in recent years are provided in Table 1.

Table 1 Boeing Revenues, 2000–2010

Year

Revenue in U.S. Dollar Billions

2000

$51.3

2001

58.2

2002

53.8

2003

50.3

2004

51.4

2005

53.6

2006

61.5

2007

66.4

2008

60.9

2009

68.3

2010

64.3

In April 2004, Boeing announced its first new plane in 10 years, the 787 Dreamliner, a powerful but fuel-stingy midsize aircraft. This aircraft is capable of transporting passengers on long-haul routes that now are the province of jumbo jets. With spacious interiors, large luggage cabinets, and huge windows, it promises to be a change maker. The 787 was the result of considerable marketing research, which is an ongoing process at Boeing. Nicole Piasecki, vice president of the Marketing and Business Strategy division, claimed that Boeing had researched the market for more than 40 years. It has studied passengers, airlines, airports, and the dynamics of air travel on a global scale. Internal and external secondary sources of data were analyzed first and then primary research was conducted.
To understand the needs of its customers—airlines—the company went beyond just determining the airlines’ needs; it also tried to comprehend the needs of airline passengers, as well as those of the aircraft’s financiers. Based on its research, Boeing concluded that the declining emphasis on hub-and-spoke travel will generate the greatest growth in smaller mid-market airplanes and lesser growth in jumbo jets. Growth in air travel has been met by an increase in new nonstop markets and by frequency growth instead of an increase in airplane capacity/size. Based on these findings, the company developed the 787 Dreamliner.
On July 18, 2010, the 787 Dreamliner made its international debut, landing at the Farnborough Airport, United Kingdom, in support of the Farnborough International Airshow. Built by an international team, this aircraft provides airlines around the globe with a new level of efficiency in operations, with a 20-percent reduction in fuel use when compared to similar-sized airplanes. It also brings a new level of passenger comfort to travelers, including bigger windows and more personal space as well as an environment designed to help them arrive at their destinations feeling refreshed.
The Dreamliner should revive Boeing’s somewhat tired product line and stem Airbus’s market-share depredations. More than 3,000 midsize aircraft, including the Boeing 757 and 767 and Airbus A300, A310, and A330 models, will be reaching the end of their operating lives by 2025 or so, along with various Lockheed and Douglas models. The sales opportunity is huge. Yet, the Boeing sales force must be more effective than ever before in the company’s history.
Mr. McNerney wants to put a very strong marketing and sales organization in place to take advantage of the opportunities that lie ahead for the 787 Dreamliner. His years of experience have shown him that salesperson loyalty is very important, because of the long-term nature of contracts with the major air carriers of the world. Being driven by fundamentals, McNerney wants to understand what drives a sales-person’s loyalty toward the place of work. He hopes that this research effort will inform him on how to develop his business-to-business sales force in the future through improved selection, training, and leadership of Boeing salespersons. He commissioned TNS, one of the leading custom marketing research firms, to undertake the research. The research firm of TNS adopted the following methodology.

Methodology

The project began with an exploratory phase that involved a thorough analysis of secondary data. Both academic and trade sources were examined. This was followed by eight focus groups with B2B field salespersons from a variety of industries. The findings of the exploratory phase were used to design a descriptive survey. A telephone survey was administered to a cross-section of business-to-business salespersons ages 18 to 65 in the United States and in the Canadian metropolitan areas of Toronto and Montreal using a list obtained from Sales and Marketing Executives International (SMEI). This age qualification enabled the company to reach the population of potential adult workers in the specified regions, avoiding most retirees. The final sample size comprised 1,000 adults in the United States and Canada. This sample size ensured a sampling error of less than 3 percentage points. Expecting a cooperation rate of 33.3 percent, the sample frame consisted of 3,000 people from the SMEI list.
All U.S. telephone interviews were handled from TNS’s office in Atlanta, using trained interviewers and computer-assisted telephone interviewing (CATI). Interviewing of the Montreal and Toronto metropolitan areas was conducted locally by a Canadian affiliate of the company to best facilitate regional French and English dialects.
In terms of the survey duration, TNS’s experience has shown that a 30-minute telephone interview is not desirable. The completion rate suffers, because people judge it to be too long a period of time to cooperate and either refuse to participate or to complete the full interview. Therefore, the duration of the telephone interview was limited to 10 minutes. The questionnaire used is presented at the end of the case. The data obtained were analyzed. A formal report was prepared and presented to Boeing.

Building a Loyal Sales Force

As McNerney pondered the report from TNS, he still wondered what would be the best way to build the loyalty of his current sales force. He would also like to recruit a new breed of loyal salespeople. The potential for the 787 Dreamliner is high. Having a loyal sales force would be a key to realizing it.

SURVEY OF NORTH AMERICAN B2B SALESPERSONS

Hello, I am __________ from TNS, a national public opinion research firm. We are conducting a very important survey about job satisfaction for B2B salespersons. For your help today, we will send you an executive summary of the results of our study. This will allow you to understand how your perspectives compare with other B2B salespersons. This survey should take no more than 10 minutes.

Screener Questions

(CATI Programmer: Please note that all screener questions and responses must be included in the programming so that individual responses can be tabulated for respondents that qualify.)

S1. Are you currently employed full-time, employed part-time, or are you not employed?

a. Full-time

SKIP TO Q.1

b. Part-time

SKIP TO Q.1

c. Employed on a temporary basis

SKIP TO Q.1

d. Employed on a contract basis

SKIP TO Q.1

e. Not employed

CONTINUE

f. Retired

CONTINUE

g. Don’t know/refused

DO NOT READ

S2. Do you plan to enter (or reenter) the workforce within the next year, the next 1 to 5 years, the next 6 to 10 years, longer than 10 years, or not at all?

a. Within the next year

CONTINUE

b. 1 to 5 years

CONTINUE

c. 6 to 10 years

CONTINUE

d. >10 years

CONTINUE

e. Not at all

THANK AND TERMINATE

(ASK EVERYONE)

1. I would like you to think about how work fits into your life personally, whether or not you are currently working. I am going to read you some statements about working and your career. Using a scale from 1 to 7—where 1 means “completely disagree” and 7 means “completely agree,” I’d like you to consider each statement. First (READ STATEMENT). (RANDOMIZE LIST)
a. I am just starting out in the work world.
b. I am moving up the ladder in my work, but I haven’t reached my peak yet.
c. I am at the peak of my working potential.
d. I am in a holding pattern when it comes to work, not really moving ahead but not falling behind.
e. I am now past the peak of my work life and am slowing down.
f. I expect to retire from work in the next 5 years.
g. I am on a break from working at the moment but expect to return to work within the next 12 months.
h. I am not working at the moment and do not expect to return for at least a year.
(ASKED OF THOSE WHO ANSWERED “a,” “b,” “c,” or “d” TO S1.)

2. Please rate each of the following aspects of your work in terms of how satisfied you feel with each. Please use a scale of 1 to 7, with 1 meaning you “disagree very much” with that aspect and 7 meaning you “very much agree” with that aspect of your work. (RANDOMIZE LIST)
a. Management really knows its job.
b. My customers are fair.
c. I’m really doing something worthwhile in my job.
d. My work is challenging.
e. I have plenty of freedom on my job to use my own judgment.
f. I’m satisfied with the way employee benefits are handled around here.
g. My opportunities for advancement are reasonable.
h. I am highly paid.
i. My job is interesting.
j. The workspace given is adequate.
k. Compared with other companies, employee benefits here are good.
l. The people I work with get along well together.
m. I’m allowed to work from home, if I desire.
n. Management here is really interested in the welfare of employees.
(ASKED OF THOSE WHO ANSWERED “a,” “b,” “c,” or “d” TO S1.)

3. We hear a lot these days about company loyalty or the degree to which employees feel loyal and committed to their employer. How loyal would you say that you are personally to the place you work using a scale of 1 to 7, where 1 means “not at all loyal” and 7 means “extremely loyal”?
        1 2 3 4 5 6 7
(ASKED OF THOSE WHO ANSWERED “a,” “b,” “c,” or “d” TO S1.)

4. Now using the same scale where 1 means “not at all loyal” and 7 means “extremely loyal,” how much loyalty would you say the place you work for has to you?
1 2 3 4 5 6 7

Demographics

D1. Gender
a. Male
b. Female

D2. What is the highest level of education you have completed?
a. Some high school or less
b. High school graduate
c. Some college
d. College graduate
e. Post-graduate degree
f. Don’t know/refused DO NOT READ

D3. What is your current marital status?
a. Single
b. Married
c. Living with someone as if married
d. Separated
e. Divorced
f. Widowed
g. Don’t know/refused DO NOT READ

D4. How would you classify yourself?
a. American Indian or Alaskan Native
b. Asian
c. Black or African American
d. White
e. Other [specify: __________ ]
f. Don’t know/refused DO NOT READ

D5. Do you consider yourself to be of Hispanic origin?
a. Yes
b. No
c. Don’t know/refused DO NOT READ

D6. How many children under the age of 6 are currently living at home with you?
a. Under age 6 __________

D7. How long have you been working in your current position?
a. Less than 1 year
b. 1 to less than 5 years
c. 5 to less than 10 years
d. 10 to less than 20 years
e. 20 to less than 30 years
f. 30 years or more
g. Don’t know/refused DO NOT READ

D8. Do you plan to change jobs in the next 5 years?
a. Yes
b. No
c. Don’t know/refused DO NOT READ
(ASK EVERYONE)
D9. How many jobs have you had in the past 5 years?
a. 0
b. 1
c. 2
d. 3
e. 4
f. 5
g. 6 to 9
h. 10 or more
i. Don’t know/refused DO NOT READ

D10. In what year were you born?
a. __________

b. Refused DO NOT READ

D11. How many people in your household contribute their income to the household?
a. 0
b. 1
c. 2
d. 3 or more
e. Don’t know/refused DO NOT READ

D12. I’m going to read to you a list of income categories. Please stop me when I get to the category that best describes the total combined household income before taxes of all members of your household.
a. Under $25,000
b. $25,000 to less than $40,000
c. $40,000 to less than $50,000
d. $50,000 to less than $60,000
e. $60,000 to less than $75,000
f. $75,000 to less than $100,000
g. $100,000 to less than $150,000
h. $150,000 or more
i. Don’t know/refused DO NOT READ

D13. State __________

Thank you for completing The Survey of North American B2B Salespersons. If you would like an e-mail copy of the executive summary, please provide your e-mail address now. You should receive your copy in the next 90 days from TNS.

References
1.

www.boeing.com

, accessed May 19, 2011.
2. “Boeing 787 Dreamliner Makes International Debut,” http://boeing.mediaroom.com/index.php?s=43&item=1317, accessed November 12, 2010.
3. Stanley Holmes, “Boeing Straightens Up and Flies Right,” BusinessWeek (April 27, 2008), http://businessweek.com/bwdaily/dnflash/apr2006/nf20060427_0379_db016.htm?cha, accessed May 11, 2008.

Note: This case was prepared for classroom purposes only and does not represent the views of Boeing or its affiliates. The problem scenario is hypothetical and the name of the actual company has been disguised. However, the data provided are real and were collected in an actual survey by a prominent marketing research firm, whose name is also disguised. Some questions have been deleted, while the data for other questions are not provided because of proprietary reasons.

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