Boeing - Case Study Rucing-ti The long list of Boeing's...

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Case Study Rucing-ti The long list of Boeing's woes seems to have reached its pinnacle in late 2003 with the scandal surrounding the Pentagon deal that alleged inappropriate behavior and the loss of documents by Boeing officials. After his seven-year reign at the head of the organization, December 2003 saw the eventual resignation of Phil Condit. Many breathed a sigh of relief at the news. The problems at Boeing were reportedly end- less. From a stock price that had decreased by 6.5 percent while the company was under his leadership to increasing competi- tive pressures, the future for Boeing was in doubt and changes were needed. For many years Boeing graced American corporate news for their prowess as the leading manufacturer of aircraft. However, in 1994 Airbus-their main rival-booked more orders. This shocked the manage- ment executives and began a series of changes that were implemented to over- come the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that had report- edly changed little since World War II. THE BEGINNING OF CHANGE AT BOEING In 1997 market demand increased dramati- cally and Boeing attempted to meet this surplus of orders by doubling their production capabilities instantaneously. A manufacturing crisis ensued and Boeing's reputation took a dramittic turn for the ... worse when they were required to halt pro- duction of the 747 aircraft for 20 days. The company had "stubbed its toe," according to the then-president of the Commercial Airplane Group, Ron Woodward, who was dismissed not long after the crisis. The Irwin at all costs" approach that Boeing suppos- edly had to its business dealings and a lack of communication within the organization appeared to have been the source of this problem.
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