This website uses cookies to ensure you have the best experience. Learn more

Boeing Essay

1159 words - 5 pages

Case Study: Boeing 42
The long list of Boeing's woes seems to have reached its pinnacle in late 2003 with the scandal surrounding the Pentagon deal that alleged inappropriate behavior and the loss of documents by Boeing officials. After his seven-year reign at the head of the organization, December 2003 saw the eventual resignation of Phil Condit. Many breathed a sigh of relief at the news. The problems at Boeing were reportedly endless. From a stock price that had decreased by 6.5 percent while the company was under his leadership to increasing competitive pressures, the future for Boeing was in doubt and changes were needed.

For many years Boeing graced American corporate news for their ...view middle of the document...

This was to be done by focusing on production and costs, not on “airy vision statements.”43 Their overall strategy was to update their technology systems, downsize their operations, and reestablish relationships with their suppliers—the only feasible way costs could be cut.

Perhaps the first step in recognizing that the cycle of demand for their products caused massive fluctuations in revenue each year and the company needed more stability occurred when Boeing acquired McDonnell Douglas in 1997 to increase its defense contracts. This merger, however, brought with it difficulties in the way of cultural synthesis. McDonnell Douglas had a very strong culture that focused on their dealings with government officials for defense contracts. Combined with Boeing's family-orientated culture, the merger was not without integration issues. The merger also had financial implications when investors accused the organization of trickery in regard to the merger with McDonnell Douglas and a payout of $92.5 million was made to shareholders.
In 2001 Boeing adopted the principles of lean manufacturing and aimed to rejuvenate their reputation by making their production more efficient. The object of the project was to implement an automated system of assembly lines. They also hoped to coordinate and facilitate easier channels of communication between Boeing staff and suppliers. They implemented a Web-based procurement system that allowed suppliers to monitor stock levels and replenish supplies when they dipped below a predetermined minimum.
The process of automating the production line was a struggle for Boeing. Information technology within the organization was decentralized and over 400 systems were being used to meet the needs of various departments. The lack of collaboration in regard to product procurement meant that the same product could be manufactured by Boeing for one aircraft but subcontracted for another. Boeing had recently chosen to implement a technological platform to regulate product life cycles. This was hoped to cut costs and facilitate the more rapid production of the 7E7. It would do this by standardizing the “use of specifications, engineering rules, operational parameters and simulation results across its extended enterprise.”44 It was hoped that this new system would “improve collaboration, innovation, product quality, time-to-market and return-on-investment.”45
The decision was made to diversify from the traditional commercial airline industry and the many acquisitions that were made created integration issues for the company. The aim again was to add more stability to the...

Other Papers Like Boeing

Boeing 7e7 Essay

2384 words - 10 pages Boeing 7E7 It is our understanding that there is a new and better jet to be made. However, with times they way they are, it is extremely risky to embark on an endeavor of this magnitude and not be successful. We have put together a study and recommendation that should assist you in your decision in whether or not to grant final approval to proceed with the project. Although significant investments are required to develop the Boeing 7E7, a

Boeing Al Essay

1421 words - 6 pages BAL may acquire because of the time consuming process. BAL is also geographically disconnected from TBC which could mean inconsistencies in communication. 4)Core business is fairly narrow because it is mostly specialized for ADF so new opportunities with other businesses are very limited. 5)No great relationships with suppliers 6)Top-down management approach and vision from parent The Boeing Company (TBC) is hard to visualize and put into


663 words - 3 pages Week 2 Case; Warren Buffet, 2005 Introduction This case is about Berkshire Hathaway’s bid, through MidAmerican Energy Holdings Company, to acquire PacifiCorp, which is an energy- utilty based company, in order to diversify the activities of Berkshire Hathaway. The ideas of enterprise valuation are portrayed in two methods. These methods are multiple valuation and discount factor. These methods help evaluate the impact that a single

The Boeing Company

702 words - 3 pages The Boeing Company Brennan Stevenson Dr. Bernard Bugg ACC 242 Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing is a top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 90 countries. Boeing products and services include commercial and military aircraft, satellites, weapons, electronic and

Conflict Report: Boeing Strike

5316 words - 22 pages Conflict Assessment Report BC 465: Negotiation and Conflict Management Xxxxxx xxxxxxx Jones International University March 30, 2010 Abstract This paper is an assessment of a conflict that took place between The Boeing Company and one of its unions, The International Association of Machinist and Aerospace Workers in 2008. Conflict Assessment Report Profile The Boeing Company is the world's top aerospace company and the

Boeing Strategic Plan

1382 words - 6 pages leading manufacturer of commercial jetliners and defense, space and security systems. Boeing products & services include commercial and military.Boeing product line is shaped by two principles:Building the right airplane: Understanding how airplane operators use airplanes to earn revenue.Creating firm investment values for aircraft owners: Working together with the investor and financial communities during the design process has resulted in a

Boeing Management Planningpaper

688 words - 3 pages {draw:frame} {draw:frame} Boeing Management Planning Legal issues, ethics and corporate social responsibility Like all other companies, Boeing has had its fair share of legal issues. A few of these legal issues include: Lockheed Martin sued Boeing in June, 2003 by claiming that a former employee passed 25,000 documents to McDonnell Douglas that allowed Boeing to win a majority of military satellite launches. According to Boeing (2010

Boeing E-Enabled Advantages

1788 words - 8 pages Introduction on BOEING Boeing is an American multinational corporation that designs, manufactures and sells fixed-wing aircraft, rotorcraft, rockets and satellites. It also provides leasing and product support services. Boeing is among the largest global aircraft manufacturers, is the second-largest aerospace & defense contractor in the world based on 2012 revenue and is the US' largest exporter by dollar value. Boeing stock is a

Case Boeing X Airbus

546 words - 3 pages Case Air Bus X Boeing Analysis Developing a larger version of 747 AIRCRAFT If Boeing develops a larger version of 747, it would have to disburse a sum of U.S. $ 4 billion. When announced the decision to develop a larger version of 747, its shares fell 1.7% on the same day, giving signals to the company that it would not be accepted by its shareholders. But if Boeing uses it, it would not be worth for Airbus to launch the A3XX

Boeing-Code of Ethics

568 words - 3 pages scandal, responsibility for reinventing the “Ethics and Business Conduct Program” fell to the Ethics and Business Conduct Committee within Boeing. An intricate part of the Revised Ethics and Business Conduct Program is the corporate purpose and commitment: “Purpose / Summary- This procedure provides an overview of the Boeing Ethics and Business Conduct program and employees’ responsibilities. It establishes the company’s ethics

Boeing E-Enabled Advantage

1725 words - 7 pages council. Boeing did not seem to have strategic focus and leadership. • Boeing realized that they could no longer focus on airplane manufacturing to be successful • Boeing realize that they were dependent on a cyclical airline market • Boeing shareholders were it executive leadership, shareholders, employees, customers, suppliers and partners, secondary stakeholders were airline customers • in 1994 Boeing's earnings shrank by nearly half then they

Related Essays

Boeing 787 Essay

1668 words - 7 pages The Pennsylvania State University Department of Industrial & Manufacturing Engineering IE466: Concurrent Engineering Individual Homework #1 – Boeing 787: The Dreamliner Boeing 787: The Dreamliner Case Study (download from Angel) During the past decade, Boeing watched as their competitor, Airbus, launched several new and very successful aircraft. In 2004, Airbus surpassed Boeing in commercial airplanes

Boeing Paper

1112 words - 5 pages Running Head: Week 3Paper Week 3 Paper Rodney Buras MANAGEMENT: THEORY, PRACTICE AND APPLICATION MGT/330 29 December, 2009 – 1 February, 2010 ROBERT BLOOMFIELD Boeing’s Management Social responsibility is an individual or a group’s actions benefiting the society more than oneself or more than one group. Research and development is another avenue the airline companies have. Boeing benefits use of

Boeing Case Essay

625 words - 3 pages Introduction Faced with a downturn in the commercial aircraft business and reduced military spending, The Boeing Company was forced to downsize approximately 55,000 people over a five-year period. The company's management, organized labor, the local community, multiple levels of government, and community colleges collectively worked together to develop Reemployment Centers to assist in the transition of their specialized workforce into

Boeing Industry Essay

740 words - 3 pages II. Industry Level Boeing Company’s main purpose of business is the production of Airplanes for commercial use and cargo delivery. Boeing Company also engages in different sectors of defense, space, engineering and security industry. They are more known for their work in the earlier. They produce aircrafts for numerous commercial airline companies of numerous countries. The Commercial Aircraft Manufacturing Industry is an extremely