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Boeing Case Study - Essay Example

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Study Case Name Institution Course Date Study Case Boeing is an American aircraft company. It has been experiencing different problems all through, but the peak of the company’s issues was in the year 2003. This was a result of different scandals from different individuals in the management of the company…
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Boeing Case Study
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Download file to see previous pages It is evident from the study case, that the problem in Boeing was affecting different processes within the company. The whole company was in doubt; the previous admirable performances were ceasing. The stock had previously risen by 6.7%, and it was beginning to fall drastically. The company later began undergoing a series of changes. This was after the company was unable to meet the prevailing demand. It tried its best by doubling it capability, but all was in vain. It got to the extent that the company had stop producing the 747 for 20 working days. This was to the company as it lost a lot of money. From the arguments from the acting president, this was a result a poor organizational structure. Other activities casing the problem are lack of communication. In reference to the culture of the company, it has been doing well through acquisitions, thus forming integration among different companies. The aim of the strategy was to extend its reach, therefore, making the company stronger that its opponents. These activities made the company lose the culture. It merged with different organizations, such as the McDonnell Douglas in the year 1997. The step made the company change its operations, as well as, its management trends and centre of administration was transferred to Seattle Chicago. Issues in the management of the company began after the merging action as it lost its culture. McDonnell had a complex culture, based on defense contracts. The merge also came with it, financial issues where $92.5 Million were distributed to shareholders. In the same year, the firm designed new strategies to improve their marketing capabilities. It also hoped that the production would increase the level of production. The firm also employed new strategies to for communication within it. Their stock was also keenly supervised through system. This is evidence that the company, was getting back to its previous position. There was also decentralization of information technology within the firm. This enhanced collaboration between different branches of the company. Toward the end of the month of December 2003, the company had recovered the opportunity to manufacture the 7E7 Jets. From analysis from difference economist, the reason behind the under performance of the company was that it had over promised and under-delivered. It is evident that the plans of the company depend on the producing smaller planes; it also plans to expand its productivity to the extent of purchasing large plans in the future. Market pressure There are diverse pressures that triggered Boeing to effect changes on its operational strategies. A crucial pressure for Boeing was mainly market demand. Market demand markedly increased in 1997, in an attempt to meet all its surplus orders, Boeing instantly doubled its production. Unfortunately, this strategy brought about a severe manufacturing crisis. Worse still, Boeing’s reputation was deteriorating and it called for urgent measures to curb the situation. It was then that the manufacturing of 747 was abruptly stopped for up to 20 days. Lack of communication within the organization was the main source of the ongoing crisis. However, Boeing termed it as a win at all cost methodology. There has been a series of endless problems at Boeing. Citing a case of the year 1994, shock prevailed among executive managers when Airbus booked more orders than ...Download file to see next pagesRead More
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