Question

Boeing 2020 PESTEL analyss

Answer 1

PESTEL analysis

It is acronym for p-political, e-economic, s-social, t-technological, e-environmental and l-legal. This is tool used in management analysis of the external macro factors affecting the Organization.

Boeing: is the worlds largest aerospace company and the leading manufacturer of commercial plans, jets, defense and space security services etc.

PESTEL analysis of Boeing 2020

1. Political: the high political involvement in selling of aero planes as it is controlled by the local government partly because, airlines industry is regulated by government and partly because aero plane being expensive, a huge amount is leaving the market. And even the changes in budgeting and taxing policies also have an impact of the business.

2. Economic: Boeing as manufacturer of aero planes are players in a very fluctuating market. Changes in customer preferences, change in exchange rates, local economic conditions all have affect on the company’s business. 2020 with corona pandemic and the worst affect being airlines industry, it is going to be tough for the Boeing as well.

3. Social: focusing on socially developing markets like Asia makes it significant and essential to overcome economic embargo and conflicts in past.

4. Technological: Boeing being one of the lead manufacturers of the best in the industry products, the reason being they are into innovation for more than 100 years. Recent innovations include, first flights of 737 Max 9, 787-10 and T-X and other milestones being the launch of Boeing analytX and Boeing Horizon X. their annual investment in innovation and technology is $billion. To transform aerospace industry with new technology. Thus, any technological factors would not affect Boeing much in 2020.

5. Environmental: regularly up-to-dating restrictions, air and noise pollution authorities, standards are to be met, are the factors which affect largely on the company.

6. Legal: as manufacturers of the aero plane, any accident, incident which leads to investigation would be directed towards company first. And any regulations in state and federal laws with respect to airline industry would directly affect the company.