Professor Cathy Ko
Assignment #2: Case Study: Boeing
1-Select one or more diagnostic models that you believe provide a framework that succinctly identifies the key factors at the center of the Boeing situations. Explain your choice of model.
Boeing has had an array of problems since the 1900’s; from the scandal with the Pentagon in 2003, to the manufacturing crisis when Boeing was required to halt production of the 747 aircraft for 20 days. Let’s not forget the financial dilemma the organization had when investors accused of them of trickery in regard to a merger with McDonnell Douglas and a payout of $92.5 million was made to shareholders. Technology seemed to be a big issue when in 2001 they decided to implement an automated system of assembly lines. They also hoped to coordinate and facilitate easier channels of communication between Boeing staff and suppliers. The problem arose when information technology within the organization was decentralized and over 400 systems were being used to meet the needs of various departments. Because of 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. Integration issues came upon because of the many acquisitions which were made; so they decided on diversifying from the traditional commercial airline industry. The goal here was to add more stability to the business by diversifying into information services and the space industry. As time passed it was said by Noel Forgeard, CEO of Airbus, that the process of diversification was “extremely demoralizing for Boeing employees”, but it was argued by Boeing’s VP of marketing that the cause of their morality was that the company was in a down cycle,. Boeing’s main strategy was to update their technology systems, downsize their operations, and reestablished relationships with their suppliers. Because of these specific issues I decided...