what are some strengths and weaknesses related to aerospace engineering

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SWOT analysis is a vital strategic planning tool that tin can be used by B/E Aerospace managers to do a situational analysis of the arrangement . It is a useful technique to map out the nowadays Strengths (Due south), Weakness (W), Opportunities (O) & Threats (T) B/Due east Aerospace is facing in its current concern environment.

The B/E Aerospace is one of the leading companies in its industry. B/E Aerospace maintains its prominent position in market past carefully analyzing and reviewing the SWOT analysis. SWOT assay an immensenly interactive process and requires effective coordination among various departments inside the firm such as – marketing, finance, operations, direction information systems and strategic planning.

The SWOT Assay framework enables an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such equally - opportunities and threats. It leads to a 2X2 matrix – too called SWOT Matrix.

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the B/E Aerospace to develop 4 types of strategies:

SO (strengths-opportunities) Strategies
WO (weaknesses-opportunities) Strategies
ST (strengths-threats) Strategies
WT (weaknesses-threats) Strategies

B/E Aerospace swot analysis / matrix

SWOT Matrix Strategies Objective

The main purpose of SWOT matrix is to identify the strategies that a company tin use to exploit external opportunities, counter threats, and build on & protect B/East Aerospace strengths, and eradicate its weaknesses.

Footstep past Footstep Guide to B/Due east Aerospace SWOT Analysis

Strengths of B/Eastward Aerospace – Internal Strategic Factors

Every bit one of the leading organizations in its industry, B/Eastward Aerospace has numerous strengths that enable information technology to thrive in the marketplace place. These strengths non but help it to protect the market share in existing markets simply also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of B/E Aerospace are –

Superb Performance in New Markets – B/East Aerospace has congenital expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle take chances in the markets it operates in.
Stiff dealer customs – It has built a civilisation amongst distributor & dealers where the dealers non only promote company's products but also invest in training the sales team to explicate to the customer how he/she tin can extract the maximum benefits out of the products.
Automation of activities brought consistency of quality to B/E Aerospace products and has enabled the visitor to scale upwardly and scale down based on the demand weather condition in the market.
High level of customer satisfaction – the visitor with its dedicated client relationship management section has able to achieve a high level of customer satisfaction amid present customers and good brand equity among the potential customers.
Strong Costless Cash Menses – B/E Aerospace has strong free cash flows that provide resources in the mitt of the company to aggrandize into new projects.
Highly skilled workforce through successful training and learning programs. B/E Aerospace is investing huge resources in preparation and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
Highly successful at Become To Market strategies for its products.
Good Returns on Upper-case letter Expenditure – B/East Aerospace is relatively successful at execution of new projects and generated expert returns on capital letter expenditure past building new revenue streams.

Weakness of B/East Aerospace – Internal Strategic Factors

Weakness are the areas where B/E Aerospace can improve upon. Strategy is well-nigh making choices and weakness are the areas where a company tin can better using SWOT assay and build on its competitive advantage and strategic positioning.

Financial planning is not washed properly and efficiently. The current asset ratio and liquid asset ratios advise that the visitor tin can use the cash more than efficiently than what it is doing at present.
Investment in Research and Development is below the fastest growing players in the industry. Fifty-fifty though B/E Aerospace is spending above the industry boilerplate on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come up beyond as a mature firm looking forward to bring out products based on tested features in the marketplace.
The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not conspicuously defined which can atomic number 82 to the attacks in this segment from the competitors.
Organization structure is but compatible with present business model thus limiting expansion in side by side product segments.
At that place are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.
Demand more investment in new technologies. Given the calibration of expansion and different geographies the visitor is planning to expand into, B/Eastward Aerospace needs to put more money in technology to integrate the processes across the board. Right at present the investment in technologies is not at par with the vision of the company.
Days inventory is loftier compare to the competitors – making the company heighten more than capital to invest in the channel. This can bear on the long term growth of B/East Aerospace

Opportunities for B/E Aerospace – External Strategic Factors

Decreasing cost of transportation because of lower aircraft prices tin can as well bring downwardly the cost of B/E Aerospace's products thus providing an opportunity to the visitor - either to boost its profitability or pass on the benefits to the customers to gain market share.
Lower aggrandizement rate – The low inflation charge per unit bring more stability in the marketplace, enable credit at lower interest rate to the customers of B/Due east Aerospace.
New ecology policies – The new opportunities will create a level playing field for all the players in the manufacture. It stand for a corking opportunity for B/E Aerospace to bulldoze domicile its advantage in new technology and gain market share in the new product category.
Government green drive too opens an opportunity for procurement of B/E Aerospace products by the country every bit well as federal government contractors.
The new technology provides an opportunity to B/Eastward Aerospace to practices differentiated pricing strategy in the new market. Information technology will enable the firm to maintain its loyal customers with nifty service and lure new customers through other value oriented propositions.
Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies also as in new products segments. This should open a window of opportunity for B/E Aerospace in other production categories.
Organization's core competencies can be a success in like other products field. A comparative example could be - GE healthcare enquiry helped it in developing better Oil drilling machines.
Opening upward of new markets because of authorities agreement – the adoption of new engineering standard and government free merchandise agreement has provided B/E Aerospace an opportunity to enter a new emerging market.

Threats B/E Aerospace Facing - External Strategic Factors

Intense contest – Stable profitability has increased the number of players in the industry over last two years which has put down pressure on non only profitability but also on overall sales.
Increasing tendency toward isolationism in the American economy can lead to like reaction from other authorities thus negatively impacting the international sales.
No regular supply of innovative products – Over the years the visitor has developed numerous products but those are frequently response to the development by other players. Secondly the supply of new products is non regular thus leading to high and low swings in the sales number over catamenia of fourth dimension.
Growing strengths of local distributors also presents a threat in some markets every bit the competition is paying higher margins to the local distributors.
Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for B/East Aerospace in those markets.
The need of the highly assisting products is seasonal in nature and whatever unlikely event during the peak season may touch on the profitability of the visitor in short to medium term.
Ascension raw material can pose a threat to the B/E Aerospace profitability.
New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .

Limitations of SWOT Analysis for B/E Aerospace

Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.

Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations tin can be both a threat to company it can also be an opportunity in a sense that it will enable the visitor to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
SWOT does non show how to attain a competitive advantage, and then it must not exist an end in itself.
The matrix is only a starting point for a give-and-take on how proposed strategies could be implemented. Information technology provided an evaluation window but non an implementation plan based on strategic competitiveness of B/E Aerospace
SWOT is a static cess - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies alter, the dynamics of a competitive environment may not exist revealed in a unmarried matrix.
SWOT analysis may lead the house to overemphasize a single internal or external factor in formulating strategies. In that location are interrelationships among the cardinal internal and external factors that SWOT does not reveal that may be important in devising strategies.

Weighted SWOT Assay of B/Eastward Aerospace

In lite of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. Organizations besides appraise the likelihood of events taking identify in the coming futurity and how stiff their impact could be on company's performance.

This method is chosen Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Assay B/E Aerospace managers can focus on the about disquisitional factors and disbelieve the not-important one. It as well solves the long list problem where organizations ends upward making a long list but none of the factors deemed also critical.

Limitation of Weighted SWOT analysis of B/Due east Aerospace

This approach besides suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and affect the business holistically.

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SWOT Worksheet & Template

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References / Citations & Bibliography

M. East. Porter, Competitive Strategy(New York: Gratis Press, 1980)
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Printing, 1962)
O. Due east. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
Fifty. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business organization School, 1970)
R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)

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