In 2004, Boeing was one of the United States' largest manufacturers, with nearly 160,000 employees and a net income of$I.87 billion. It was the world's largest acrospace company, and, for decades, had dominated the world's commercial
Copyright © 2006 President and Fellows of Harvard
College. Harvard Business School Case 807-011.
Professors Lynda M. Applegate and Joseph S. Valacich
(Washington State University) and Research Associates
Mara E. Vatz and Christoph Schneider prepared this case as the basis for class discussion rather than to illustrate effective or ineffective management.
Reprinted by permission of Harvard Business School.
1 Author interview, May 24, 2005. on embedded IT for flight controls and operations, it
was
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Company Background
In 1916, William Boeing founded an aircraft manufacturing company in the Puget Sound region of Washington State. Boeing, who had made his fortune in the timber industry of the
Northeast, had moved to the West Coast in
1903-the same year the Wright Brothers made their famous first flight-and became fascinated with flying after he attended the 1910 Air Meet in Los Angeles. Soon after, he began building plancs as a hobby with Navy engineer Conrad
Westervelt. Their first plane, the B&W, named for their initials, was a 27.5-foot seaplane that had a top speed of 75 mph. Westervelt was relocated to the East Coast before the plane was completed, but Boeing stayed in Washington, launching the Pacific Aero Products Company
(which he renamed, one year later, "the Boeing
Airplane Company"). His first customer was the government of New Zealand, which used the
B&W for airmail and pilot training. Boeing's new company really took flight, however, when the
Navy ordered 53 training sea planes as the United
States prepared to enter World War 1.3
Between World War I and World War fl, Boeing grew to be one of the largest aircraft manufacturers in the United States by supplying the military with training and fighting planes, pioneering airmail planes and routes,
The Boeing Company designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products.
Many consider Boeing’s 787 Dreamliner an example of a failed project. Twenty-six billion dollars over budget, almost four years late, and several quality issues surround the innovative new aircraft (Ausick 2014). This paper explores Boeing’s approach of materializing the Dreamliner from a project management perspective by comparing the company’s undertakings with project management principles.
The manufacturing industry took a big hit after the war, Bugos (2001) found that “total sales by American aircraft firms were $16 billion in 1944; by 1947 they were only $1.2 billion,”. However, finances weren’t the only
The first flight occurred in 1903 when the Wright brothers famously took their airplane for a final test flight in December. In the years after this historic flight many people start to see the potential for airplanes in war, transportation, and shipping. Other builders disregarded previous doubt about flying and began to replicate the ideas of the Wright brothers in creating planes with three axes. In addition, the approach of WWI prompted military personnel to pursue uses of airplanes as a war machine. The airplane influenced many aspects of American culture after it’s invention including civilian life, war technology, and individual possibility.
During World War II, Boeing and its partners worked together to produce a staggering 98,965 aircrafts. Nearly 28% of America total aircraft production, Boeing was a major contributor to the production during the war. Exemplifying the wartime slogan, “We are all in it together!” Boeing took lead in cooperating with other companies, including Douglas Aircraft, McDonnell Aircraft, North American Aviation and the Hughes Aircraft Company, to organize the aviation industry into maximum production. Many of the workers were women whose husbands had gone to war. A large number of B-17 “Flying Fortress” and B-29 bombers were built. Boeing’s production went from 60 B–17s a month in 1942 to 362 in 1944. With so many planes being built, precautions were taken to prevent from being attacked. The manufacturing plants were covered with greenery and farmland items. These planes helped guaranteed the Allies’ victory and
The story of Boeing started in a Seattle, WA shipyard in March 1910, but the company didn’t get its official start until July 1916. Throughout Boeing’s history, it has been closely associated with military aviation, through its early foray into air mail delivery eventually gave birth to United Airlines in 1934 (A Century in the Sky, 2015). Boeing aircraft and support of allied forces during World War II was a key asset in bringing the war to a close and kept the skies in the Korean War clear. Its aviation knowledge and
There were also some unknown variables that needed to be taken into account. Development and per-copy costs were the costs that the board wanted to minimize. The forecast assumes that development costs would be $8 billion. There was great uncertainty surrounding the manufacturing cost of the 7E7. The element that adds the most uncertainty to the manufacturing costs are in the engineering of the aircraft. While the engineering costs could be high, Boeing was hoping that the lower construction costs of using the composite materials would compensate for the elevated engineering costs.
Boeing was recently faced with the scandals which hurt the reputation of Boeing. The top management recognized the problem and tried to figure it out by effective management strategies.
Airbus is a consortium of European aircraft manufacturers formed in 1970; Boeing Company was founded in 1916 as the world's largest private commercial aircraft manufacturer in the USA; and finally McDonnell Douglas, considered the third major manufacturer, began operations since 1920 working essentially for the US government, manufacturing
2.1 Boeing Aircraft Corporation, with a heritage of aircraft design, manufacture and assembly, dates back to July 1916 (Boeing, 2004). Recent aircraft including 737, 747, 767, and 777 are all designed,
The Boeing Company was formed in 1916 by William E. Boeing in Seattle, Washington. The following year they had a twenty eight person payroll which included pilots, carpenters, boat builders and seamstresses. The lowest wage was fourteen cents an hour, while the company's top pilots made two to three hundred dollars a month. When the company was short on money, William Boeing used his own financial resources to guarantee a loan to cover all wages, which was a total of about seven hundred a week. ("Boeing History," n.d)
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
Boeing is the world 's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. (Boeing, 2014). The revenue for Boeing Commercial Airplanes and Defense, Space and Security was a record $86.6 billion; in addition to the record backlog of orders totaling $441 billion. (Boeing, 2014). The Boeing Company realizes that being among other competitive manufacturers of jetliners, defense and security systems, it is important to focus on external as well as internal environmental factors that could increase the company efficiency, productivity and overall operational standards. The management of Boeing understands how essential the social and ethical responsibility and legal of their company. These variables can assist the company with analyzing the performance and available resources of
As the largest aerospace company in the world, the Boeing Company employees more than 153,000 people in some 67 countries. The great dominance of Boeing is due to its 1997 merger with McDonnell Douglas Corporation, an aerospace manufacturer, and its 1996 purchase of the defense and space units of Rockwell International Corporation, an aerospace contractor. The corporation is the world’s number one maker of commercial jetliners and military aircraft with more than 9,000 commercial planes in service worldwide, including the 717 through 777 families of jets
Boeing is the world’s largest aerospace and defense company in the world. The company company employs over 165,000 individuals within the United States and has a wide span of control over 65 countries. Boeing generates over 90.8 billion in revenue with a diverse spectrum of products and services. The organizational behavior within a company such as Boeing is crucial to the company’s success. Therefore, an organizational behavior analysis, theory and applications in aviation are examined within the Boeing Company. More specifically, the aspects of leadership within the company are researched to determine their effectiveness. The organizational design or structure of Boeing is examined to ensure the efficiency and correct fit. Organizational culture and managerial roles are examined to include ethical issues within the company. Boeing on a global scale to include how the company compares to its peers is investigated. Additionally, in today’s world of technology the business concepts and strategies of many organizations must adapt to be successful. Therefore, the E-commerce strategy of Boeing is examined. Each of the aspects of organizational behavior are applied to Boeing and researched to determine if Boeing will continue to prosper as the leading aerospace and defense company in the world.