Boeing Case Study

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The first written case is about one of the largest aerospace firm called Boeing.
The first written case is about one of the largest aerospace firm called Boeing. Boeing the largest firm provided services for the military and its industry buyers all around the world. This company made many goods like the jets, helicopter and other things that are necessary for the military industry. (page 111). Boeing was a very successful company that’s net income was worth 1.5 billion dollars and had about 153,000 people working under this corporation, which was the worlds largest company. The big issue came about with this company was caught doing something wrong more than twice.
The issue for the company Boeing had arose in 2002. This was when it’s CEO named Philip Condit led Boeings issue. The company Boeing in 1997 acquired its competitor McDonnell Douglas, which was also an aircraft manufacturer and shortly after when they combined the two firms Boeing faced problems and took a $2.6 billion dollar loss to the business and was in a lawsuit from angry shareholders. The angry shareholders stated that Boeing had covered its true financial conditions therefore in February 2002 the lawsuit was settles for $92 million dollars.

Later in 2003 another issue for the Boeing Company arose which was that documents that belonged to the Lockheed Martin were in the possession of the Boeing managers. This allowed Bowing to have an advantage of the defense contract with the federal. After this Boeing was stopped by Pentagon form bidding on any federal contracts for 20 months which caused CFO Michael Sears to be fired after this incident. After Michael Sears was fired and was put into jail for hiring officer Darleen Druyum, She had made a purchase ...

... middle of paper ...

...o the job as the other previous CEO’s of this company except he was someone who wanted to focus on employment development.
The actions that McNerney is proposing are in my view likely to change the ethics at Boeing. McNerney doesn’t have previous experience like Condit and Stonecipher did. So McNerney wouldn’t have to be afraid of changing things around since he is not used to things and its very easy to find something he could adjust to work with. It was another thing for Stonecipher and Condit since they were scared of change. McNerney wants to change the environment since he feels that management has gotten carried away and the executives started to hide information. McNerney stated that he will change compensations and to eliminate illegal financial reporting, he will change the way Boeing operates.

Sources:
Management 9th edition Griffin Page 111 - 112.

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