Business Career of William E Boeing

Question: Discuss about the Business Career of William E Boeing? Answer: Introduction Starting an airline industry is a challenge in terms of capital, competition, depletion factors, risks involved, price volatility and government control. These concepts of Managerial Economics are studied through the business career of William E Boeing whose managerial capacity and business foresight made him a leader in the airline industry. Born in 1881, he studied till 1903 and went to Washington to start a logging business. In 1914, he was introduced to the flying of aircraft and made his first plane, a BW Model(Boeing, 2015). Literature Overview McGutgan and Moyer have defined Managerial Economics as the application of economic theory and methodology to decision-making problems faced by both public and private institutions(Trivedi, 2002). Boeing applied policy formulation; future planning and decision-making which made him succeed in his business and won him the Daniel Guggenheim Medal for his aeronautical achievements(Boeing, 2015) . Managerial Economics in the Business Environment: Managerial economics applies the concept of capital management, demand analysis and profit management which Boeing amalgamated into the models of traditional economics. At a young age, he developed an outward correctness in everything even in capital management. Interested in aviation, he took a one-year course in this field. He later bought Model TA plane the first step to study the market. He visualized a good future in aviation and started the aviation business showing his shrewd capacity in demand analysis and forecasting(Boeing, 2015) Managerial Economics and Practical Application External Factors: Boeing formulated plans, programs and policies to handle the business cycles, industrial policies, taxation policy, trends in foreign trade and industrial relations in general(Krau, 1998). His creativity and future planning characteristics helped him to use air-cooled engines on his Model 40A mail plane (instead of the regular water-cooled engines) to capture an airmail route contract from Chicago to San Francisco - the first international airmail in the US(Boeing, 2015). Internal Factors: Boeings unerring business policies helped him face upheavals in his business (Krau, 1998). In April 1917, President Woodrow Wilson declared war on Germany and in May 1917, William Boeing obtained orders for 50 planes from the US Navy. Once the war was over, he concentrated on commercial aircraft and later entered passenger service(Boeing, 2015). Boeing continued his timber business as well as his airplane enterprise. He could specify the quality of timber and its yield from any topography of the land. Techniques of Managerial Economics Boeing was able to categorize his concepts on: The theory of the firm to make a variety of decisions in his businesses; the theory of consumer behavior to help in his decision-making process and the theory of pricing and market structure to describe the character and structure of different market forms under which his firm operated(Boyes, 2012). By 1928, Boeing was able to grow his small company to become a leading aircraft manufacturer employing about 1,000 men Conclusion Managerial economics deals with business decision techniques. Using them, Boeing analyzed the external and internal factors affecting his business. He applied the concept of the theory of the firm, the theory of consumer behavior and theory of pricing and market structure. Boeing was competent at capital management, profit management, decision-making and forecast to make a success of his business. Bibliography Boeing. (2015). Biography of William E. Boeing. Wiliam E Boeing Biography , 1-5. Boyes, W. (2012). Managerial Economics: Markets and the Firm. Mason: Cengage Learning. Krau, E. (1998). Social and Economic Management in the Competititve Society. Tel-Aviv: Springer-Science+Business Media. Trivedi. (2002). Managerial Ecoomics: Theory and Applications. New Delhi: Tata McGraw-Hill Publishing Company.