Description
Organizations rise or fall based on misreading of external signals as well as internal factors – strong or weak management, leadership and governance, proactive or reactive benchmarks of innovation and performance. This Element addresses the commercial aerospace sector the case study of Boeing Corporation. Boeing and Airbus illustrate the dynamics of competitive rivalry, the shifting attention span of senior leaders. Beset by internal dysfunctions, product delays and certification challenges, Boeing has a negative net worth, and perverse executive incentives, financial engineering values, and governance dysfunctions when confronting the changes facing the main customers, the airline industry. Boeing trails its European rival in market share, R&D investments, and diverse product line based on seat size, pricing, and distance. This case study provides an opportunity to suggest new research directions on governance and managing truly complex organizations.
Table of Contents
Preface; 1. Introduction – from the wright brothers to a global duopoly; 2. Theoretical issues in OEM commercial airline sector; 3. The customer model: from domestic to global airlines; 4. OEMs: the Boeing-airbus duopoly; 5. From simple and complex failure to catastrophe: the B-max debacle; 6. Boeing stalls and then declines in sales and market share; 7. Discussion and the new capitalist approach; 8. Conclusion: lessons from Boeing; Appendices; References.
