MBAA 604 Strategy Boeing Airbus - MBAA 604 February 2016 A...

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MBAA 604 February 2016 A Comparative Analysis of the Organizational Structures of Boeing and Airbus
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1. Introduction In organizing a company’s activities across functional areas and international borders, there are many approaches that may be successful. In this report, we have chosen to study these differences in approach in two large multinational aviation companies, The Boeing Company and Airbus Group. Although the two companies overlap significantly in their products, services, and overarching vision, there are many differences in the way each has chosen to organize its operations worldwide. The structure, organization, and even philosophies of the two companies vary, resulting in a fascinating array of competitive advantages and disadvantages. In the report that follows, we will examine each company’s organizational structure, then analyze the repercussions that this structure holds for each company’s performance in the global market. 2. Boeing’s Organizational Structure Boeing Group was founded in 1910 in Seattle, Washington by William Boeing, and was completely formed in 1916. From its foundation, Boeing has exhibited a long tradition of leadership and innovation in the aerospace industry. During World Wars I and II, Boeing was instrumental in the delivery of airplanes, and towards the end of World War II, it spearheaded the development of jet engines. Over the following decades, Boeing continued to revolutionize the aerospace industry, extending its product lines and services to meet global needs. It has since expanded into commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance- based logistics and training. (Boeing, 2016) Today, Boeing is the world’s largest aerospace company, the leading manufacturer of commercial jetliners and defense, space and security systems, and a major global employer. With 1
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corporate offices in Chicago, Boeing directly employs more than 165,000 people across the United States and in more than 65 countries. This represents one of the most diverse, talented and innovative workforces worldwide. In addition, through its international suppliers, Boeing also indirectly leverages the talent of an enormous pool of skilled workers. (Boeing, 2016) As such and diverse and far-reaching company, Boeing has structured its organization to foster communication, decision-making, and innovation between and within all of its divisions. The overall organization falls into the category of a matrix structure, which incorporates characteristics of both divisional and functional organizational structure. Boeing’s functional structure is molded within its divisional structure, as employees are placed based on the skillsets and type of work required in their position. Functional areas are defined by specialization, and include divisions such as marketing, engineering, and accounting.
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  • Fall '14
  • Airbus, Airbus Group, Boeing International

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