In late 2003, the company of Boeing was the worst of its life. However, it was changed some market demand and solved the technology issues, then slowing to improve. According to the case study (Boeing), the six-box organisational model provides a framework that succinctly identifies the key factors at the centre of the Boeing situation. 1.
Strategy – was to update their technology systems, downsize their operations, and re-establish relationships with their suppliers and the only feasible way costs could be cut. 2.
Structure – the problem of 1994 airbus which shocked the management executives and began a series of changes that were implemented to overcome the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that had reportedly changed. 3.
Systems – 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. 4.
Style – 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 business by diversifying into information services and the space industry that providing services with elevated margins that would reflect on Boeing’s bottom line. 5.
Staff – according to the CEO of Airbus Noel Forgeard, the process of diversification was ‘extremely demoralizing for Boeing employees,’ but Boeing’s vice president of marketing, Randy Baseler, claimed that ‘what affects morale right now is that we are in a down cycle.’ Regardless of the reasoning behind it, Boeing’s employee morale was at a low and this issue needed to be addressed. 6.
Skills – Boeing has bet its future on the market developing a partiality for smaller aircraft, like their new 7E7. Airbus. On the other hand, the projects will the airlines to purchase...
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