Midterm Exam : Case Study about Boeing.
I think that there are two diagnostic models that provide a framework that succinctly identifies the key factors at the center of the Boeing situation : the 7-S framework model and the Six-Box organizational model . Based on these two models, we can more easily assess the internal situation of a company.
First of all the 7-S model is based on seven major elements such as: Strategy, Structure,
Systems, Style, Staff, Skills and superordinate goals. Boeing has therefore used this 7-S
Framework in the following manner by using for major elements:
- Strategy: Boeing's strategy was to update its technology systems. Then streamline their operations and improve their relationships with different suppliers and finally the only chance of reducing various operating costs.
- Structure: The trouble of 1994 was the Airbus. This shocked the management executives and began series changes that were implemented to overcome the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that reportedly changed little since World War II.
- Systems: With this element, Boeing decided to create more value for its customers by using the least possible resources.
- Style: They wanted to extend their power in order to differentiate themselves from traditional commerce of aviation and that they have made numerous acquisitions in order to create solutions for the enterprise. They also wanted to create a climate of stability for the company by integrating the space industry.
- Shared Values: This means the shared values among Boeing Staff. Indeed, following their diversification into other markets, Boeing employees become demoralized which causes problems in the culture and performance of the company.
- Skills: This exposes the different strengths of the company. Indeed, before launching on other markets, Boeing had to identify the strengths allow it to be competitive.