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Boeing vs Airbus
Explain unethical business practices demonstrated in the case study
The background of Boeing
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Boeing and Lockheed, some of the largest airplane manufacturing companies in the world, were involved in a confidential document scandal beginning in 1996. Boeing utilized documents from Lockheed that were illegally obtained in order to gain an advantage in a multibillion dollar government contract. Both companies suffered greatly for Boeing's unethical behavior including multiple legal battles, diminishing public/ professional image, and millions of dollars in fees. Using information from sources such as IEEExplore, this paper will analyze Boeing's unethical behavior in this matter, as well as how this unethical behavior cost Boeing more than just lost profits.
Company History Boeing was founded on July 15th, 1916 by William Boeing in Seattle.
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The idea of air travel was very new at the beginning of the 20th century, making Boeing one of the very first airplane manufactures to exist. By the start of World War 1 Boeing was already beginning to produce and sell their first line of planes, the Model C, to the United States Navy ("A Century in the Sky", 2016). From there Boeing would continue to produce small airplanes designed to help transport small items such as mail across the country. This helped Boeing create a name for his company, as more and more large companies began to grow an interest in air travel. By World War 2, Boeing had begun producing what was then the largest long distance strategic bomber, the B-29, as well as a number of other model planes. (Smil, 2016). These planes provided the United States a huge advantage in both World War 2 and the Korean War, creating a great connection between Boeing and the United States military. Once air travel slowly began as an emerging commercial industry, Boeing had begun shifting their focus to creating commercial airliners for both national and international flight. Questionably one of Boeing's greatest innovations was the Boeing 737, a twin jet airliner
Hughes Microelectronics is a company that were found to have unethical practices during the 1980’s when handling government contracts. This was brought to light by two whistleblowers that worked for the company at the time. The purpose of this is to review four main questions concerning the situation and how it was handled ethically by the whistleblower. The first and second parts will be fairly similar what were the responsibilities of the company itself, what were the responsibilities of the main whistleblower Margaret Goodearl. Next, the conflict between the two parties will be examined and also whether or not the situation was handled ethically. Lastly the question of whether or not whistleblowing is the most ethical solution
By the end of World War I the world was beginning to realize the ability air combat presented. When World War II started planes became much more effective. Though still fabric covered, the aircraft were faster and more agile than the variants used in the Great War. In 1938, the first year of the Second World War, Curtiss unveiled their P-40 Warhawk. This aircraft was one of the best of its time and laid the foundation for modern aircraft engineering. But by 1940 the German Luftwaffe had begun to develop faster, long-ranged fighter-bombers. All current Allied aircraft could not keep up with the long range of the B-17 bombers who needed escort. In 1940, North American Aviation received an order from Britain requesting another shipment of
Following the bi-planes, the bomber design took great change. In a Unites States Army Air Corp or USAAC competition in 1934, they were looking for a new plane that could provide defense and better qualities than the current service plane, the Keystone bi-plane bomber. (Boeing B-17 Flying) Boeing came up with the design and built the B-17 and won the competition. The plane was not a bi-plane, but a single winged, nine cylinder radial engine plane that could carry a normal cargo storage of 25 tons and could fly a distance of 2 thousand miles. (Boeing B-17 Flying) The plane had been described by a German test pilot who flew a captured B-17 who said “the aircraft was easy to fly and land. When one had become accustomed...
Planes have developed immensely through the years. The Wright brothers developed the first plane in 1903.
Strong internal rivalry between the after-merged Boeing and McDonnell Douglas Corp is also contributing to company’s ethical scandals. As competition between each party gets stiffer, employees might tend to resort to ethical breaches to gain competitive advantages so as to outshine each other.
The Boeing Company originally started out as the Pacific Aero Products Co., which was founded on July 15, 1916. The name was changed about a year later to The Boeing Airplane Company. The Boeing Company stayed relatively small until World War I when they were selected by Navy officials to produce an order for 50 model C planes for the war efforts. The company continued to prosper and by the late 1950s, Boeing President William Allen knew that the company had the scientists, the experience and the facilities to lead the company into uncharted territories. He was right, Boeing has emerged as the leading aerospace company in the world today.
The Boeing Corporation is one of the largest manufacturers in the world. Rivaled only by European giant Airbus in the aerospace industry, Boeing is a leader in research, design and manufacture of commercial jet airliners, for commercial, industrial and military customers. Despite enjoying immense success in its market and dominating an industry that solely recognizes engineering excellence, it is crucial for Boeing to ensure continued growth through consistent strategy formulation and execution to avoid falling behind in market share to close and coming rivals.
By 1914 aviation technology was sophisticated enough to make airplanes valuable wartime tools. In 1918, the U.S. government found an important peacetime role for aviation: delivering mail. Entrepreneur Walter T. Varney launched his U.S. "air mail" operation April 6, 1926, marking the birth of commercial aviation in the United States. Because Varney was a predecessor of United, it also marked the birth of the airline.
The 737 was originally created on on May 11 1964, however it wasn’t until November 9th 1964 that production was officially approved. On February 19th 1965 Lufthansa placed its first order for the 737-100, and on the 9th of april 1967 the 737 flew for the first time. In 1970, Boeing had less than 35 orders for the 737 and considered canceling the program. Boeing however ultimately decided to cut from other areas and to continue the 737 program. By deciding to continue the program Boeing paved the way for its future success and formed the backbone of many airlines that exist today that solely fly the 737.
Over the last 50 years, The Boeing Company has shown itself to be an industry leader in the fields of technology and putting their vast physical assets to use. Boeing has been at the forefront of innovation in both commercial aviation, and airplanes used for defense purposes. Whether it was the introduction of the first modern airplane with dual engines when the Boeing 247 was unveiled or introducing new standards of efficiency into their business model, Boeing seems to have always been one step above the competitors. So while Boeing was hurting their competitors on one end, they decided to go and become more efficient on the other end. So not only were they the leader in technological innovation, they improved the productivity of their largest business unit all while decreasing the amount of space they used.
Lyke, B and Jickling, M. (2002). WorldCom: The Accounting Scandal. CRS Report for Congress, p2.
In 1990 Boeing was set to introduce the 777, the world’s largest and longest haul twin-bodied jet at the time. The 777 would serve the medium and long haul markets like the expanding Asian market. Boeing’s main competitors, Airbus Industries and McDonnell Douglas, had already announced plans to produce airliners that would compete directly with the 777. Analysts believed that the intense competition between the manufacturers would serve to depress prices for the airliners. Lower prices for aircraft would mean lower earnings.
United Airlines was the creation of an ex-aviator and pioneer William Boeing. The company was establish in 1916. (A History of United Airlines, Berryman, Marvin, Unknown) The company was named Boeing Airplane Company. The airline first main achievement was to be the first international postal delivery was completed in 1919.
Boeing was created in 1916, inspired by a plane ride in 1914 by By founders William “Bill” Boeing and George Conrad Westervelt. Bill Boeing learned how to fly a plane and got a plane. Unimpressed by the plane both Boeing and Westervelt made a plane called the B&W. Westervelt did not see the plane fly, as he was a Navy Lieutenant for the US on the brink of entering World War 1. With just Bill, a professional lumberman, running the company incorporated it under the banner Pacific Aero Products Co. and was renamed to Boeing the following year. When the company was started there was no starting capital, all the money from the company came out of Boeing’s Lumberjack paycheck.
When Edward Snowden leaked classified information, from the National Security Agency (NSA), to several well-known media outlets, including The Wash-ington Post, he caused some major problems for many people and companies; one in particular is the aerospace company Boeing. Boeing is the world’s largest aerospace company, and the leading manufacturer of commercial jetliners and defense, space and security systems (Boeing, 2015). The company had just made a multibillion-dollar jet contract with Brazil (Prada, Murry, & Royalty, 2013), however when Edward Snowden leaked the classified information Brazilian President Dilma Rousseff learned that the United States had been spying on Brazil as well as other allies (Johson, 2014), and ended the contract. The leak also caused tensions between the United States and other countries. If there had been stricter regulations on what a medium could and could not publish most of these situations could have been avoided.