Boeing Case Study

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Jason Timmonds Boeing Case Study Week #2 Date: December 3rd, 2014 The list of Boeing problems and circumstances seemed endless as it reached it pinnacle in 2003. While many breathed a sigh of relief as Phil Condit, the former CEO of Boeing resigned after a seven-year reign, their problems still had to be resolved. Being surrounded by scandal and their rival company, Airbus was doing well at the time, as Boeing as whole started to demise. These problems caused were a combination of bad strategic decisions that were not properly implemented. They involved improving manufacturing efficiency, information technology, and product line diversity. The results of these decisions were bad and lead to more substantial problems within Boeing. The diagnostic tool I have chosen that would help identify these issues with Boeing is the S-7 framework. McKinsey & Company consultants Robert Waterman Jr., Tom Peters, and Julien Phillips developed this model. This model has seven characteristics, which are: structure, strategy, systems, style, staff, skills and super-ordinated goals. This theory is based on the “propositions that organizational effectiveness comes from the interaction of multiple factors and successful change requires attention to the interconnectedness of the variables.” (Palmer, Dunford, and Akin 2009) Strategy is the first characteristic in the 7S framework. Due to poor leadership, the resignation of Phil Condit, increased competitive pressures, and falling stock prices, Boeing changed their strategy plan in order to overcome their outdated technology, organizational structure, and diminishing production sales, all of which negatively affected the organization. Boeing changed their organization structure, by equipping their organization with new technology, downsizing their company, re-establishing their relationships with their suppliers, and

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