Chapter 10 Boeing

Boeing: Do you think Boeing should have anticipated the impact of Asian economic difficulties before it did? The internal and external problems brought down the Boeing to the ground in the 90s while giving chance to the Airbus to come up and capture the market shares. The Boeing Company should have anticipated the impact of the Asian economic difficulties long before in order to salvage itself from the problems it experienced. This could have saved them the massive loss of contracts. 2. If it had more quickly anticipated the drying up of the Asian market for planes, could Boeing have prevented most of the problems that confronted it? Discuss. Incase Boeing could have anticipated the drying up of the Asian plane market then they could have managed just to prevent a few of the problems because they had other issues to do with the management malpractices, Arrogance in the work place and the factor of being a complacent, conservative and conceitful company. All these needed to be ironed out before it came back to its feet. 3. Do you think top management at Boeing should have been fired after the disastrous miscalculations in the late 1990s? Why or why not? After the disastrous miscalculations in the late 1990s, the top management at Boeing should have not been laid off since the woes of the company could have just continued by wrecking havoc and long term prospects. Boeing had not reached the point of complete overhaul. Competition on the other hand was still very rife and this could have not changed. 4. A major stockholder grumbles. “Management worries too much about Air-Bus and to hell with the stockholders” Evaluate this statement. Do you think it is valid? “Management worries too much about Airbus and to hell with the stockholders” This is a very valid statement as echoed by one of the shareholders of the company. Indeed the management concentrated on the issues of fighting competition with Airbus that they placed the affairs of the shareholders at the background. They concentrated on the pricing of the planes yet the face values of the shares were depreciating. 5. Do you think at this point, 2008, the superjumbo A380 should be abandoned? Defend your recommendations. According to the current customer needs, the superjumbo A380 should not be abandoned as it fits most of the customer needs. It is light as it is made from glare. Though big, it can land on the runways where 747 lands. It has a wide staircase to curb the problem of claustrophobia with exercise rooms and sleeping quarters fitted with bunk beds. Costs of operating it are also 15% cheap...