Category: Boeing

Introduction

Boeing is a multinational company that was established way back in 1916 and is based in the United States of America. It specializes in aerospace and defense industries whereby products are sub-divided according to units. For instance, its products include Space and Security, commercial airplanes, capital, and others just to name but a few. It is one of the largest world plane manufacturers. With approximately more than one hundred and sixty-five thousand employees worldwide in different regions and employment sections, the company has continued to grow and still expanding. Its largest divisions include the capital section, commercial airplanes, and state and security space defense. In the recent past, the company has been participating in numerous political contributions such as the 2008 contribution to Obama’s campaign, the largest contribution ever made by the company (Granstrand 27). On the other hand, it has been listed as one of the largest air pollutants by different researchers. In 2002 alone, the company was among the top fifteen pollutants although, by 2008, the company was no longer visible in the list of top pollutants.

Its commercial airplanes have been ranked as one of the largest world carriers. Besides, the company has successfully launched several other services as part of boosting its profitability and competitiveness. In 2007, it successfully launched 787 delivery service carriers which is an implication of continual expansions and widening of employment opportunities and thus vulnerability to legal cases in employment law, labor, and intellectual property. These vulnerabilities have made the company find itself in court battles, especially against employee suits. Like many other airline companies, Boeing has taken a defensive stand against all its accusations and has also accepted liability by settling matters outside courtrooms.

With operations in America, Asia, Europe, and other regions across the globe, Boeing has been greatly exposed to the challenge of handling employees of different origins such as whites, blacks, Hispanic, Asians, and others. It has therefore experienced racial discrimination within its workplaces despite its strict policy on racial discrimination in its employment rights. For example, in 1999, the company had to pay approximately 15 million dollars for discrimination settlement against its employees of black origin.

Similarly, the company has also faced lawsuits from the labor board due to violation of labor law which makes provisions for administrative actions that address legal restrictions and rights of employees. For instance, in April this year, the Labor Board, through its acting general counsel, threatened to sue the company for violation of labor rights. Then, the board, through its lawyer, forced the company to stop its non-unionized intentions by demanding it to remove its non-unionized plant in the Carolina state to one in Washington state. The company, in its defense, responded that it had initiated the move to stop the rate of strikes by workers that were common experiences in Washington state. In its blame, the board said that the company was retaliating by trying to stop or kill employees’ right to strike and thus the move constituted an illegal action that had to be stopped in good time. Likewise in 2006, the company had to part with approximately 30 million US dollars in a compensational settlement for dispute on environmental pollution to immediate neighbors arising from a space science manufacturing plant. This case had been filed eight years earlier (Rudlin 142).

On the same note, the company has experienced some rights acquisition in regards to the intellectual property which entails protection of intangible assets that are owned by a company. For example, the company made acquisitions such as its patent on the dough-nut-shaped hydrogen fuel tank for use in aircraft and another on noise-reduction construction in airports. These present suitable platforms for legal battles with other companies and thus usher in possibilities of future battles regarding any dough-nut-shaped hydrogen fuel tanks for use in aircraft.

The case against employment law

Although Boeing has spent a lot of money in its campaigns against racial discrimination within its employees, it explicitly requires clarification of employee racial background by elucidation in the application process. Among the racial groups identified include black, Hispanic origin, Asian origin, Native American origin, and subcontinental Asian Americans (Dobbin 148). It however does not show direct recognition of the European origins even though they constitute more than 80% of all employees while Native Americans consist of only 1%. The latter is a clear implication that the company provides room for racial discrimination within its employees and subsequently, the company has hitherto fallen victim to lawsuits against this type of discrimination. For instance, the company faced a lawsuit for discrimination against black employees, and consequently, it announced resettlement of more than 15 million dollars for the case. The case caused a big stir in the company since its employment policy on racial discrimination was acting against rights of individual discrimination in the course of employment and duty discharge. The case, as Dobbin (150) argues which had been filed by the District Court of Washington, demanded that the company pay the lump-sum amount in settlement of the violation of rights against discrimination of black company employees. It opened up room for further investigations into the company’s conduct on business matters. Inquiries into the business handling conduct on matters of tendering and supplies were also racially biased (Dobbin 149). The court ordered an investigation into this behavior to find out if the tendering and supplies by contractors and sub-contractors were correctly owned by the right races and genders. The same court also demanded an inquiry into gender discrimination claims within the company to ascertain its compliance to affirmative action established in the United States of America in 1964.

These caused changes in decision-making within the organization. The change in decision making had to, first of all, cater for racial discrimination provisions and then reach final decisions in regards to employment. This hampered the daily and direct operations of the company since most of the decisions based on employment had to be racial discrimination-free, an implication of new environmental adaptations. Since adaptation causes delays in daily operations due to pace acquisition, Boeing was forced to make financial slowdowns in its economic growth in response to the new changes. New hiring application forms will have to change elucidation of racial backgrounds to avoid future possibilities of such occurrences. Awarding of contracts and tendering services will also have to consider the aspect of racial biases. Strict adherence and review of its policy on racial discrimination are inevitable. Additional funding on campaigns against racial discrimination has taken another astounding amount to reduce such cases from recurring. Furthermore, the company made a special request concerning the hiring of the right number of minorities. The company stated in this regard and made a public apology for not being able to follow the racial discrimination law on employment. This was predicted to have caused its reduction of annual revenues since its exposure to racial discrimination tendencies may have sparked public reaction towards the company on the same note. Its public image in regards to the issue may have been influenced by occurrences in the company and thus the public reaction was diverse, given the racial backgrounds of its employees (Dobbin 154). This indicated negative behavior in handling racial differences and thus caused a reduction in annual revenues since a counter-action by the public might have reduced its clientele base following the case.

Its labor case constituted of the file by Labor Board against Boeing which meant to halt its move on the relocation of its plant from Washington to Carolina. This was an attempt by the company to reduce strikes by its workers. The board, through its top lawyer, filed a lawsuit that tried to stop the company’s move to bar employees from their rights to strike. The company was aiming at a strategic move from a state that recognizes employee rights to that which does not recognize employees’ freedom of striking. By doing so, the company had intended to suppress the rights of its employees contrary to its contractual agreements. This hampered its strategic decision-making since the decision had to be reversed by the court. In its defense, the company strategically responded that it was undertaking expansive plans and not a move of the manufacturing plants.

2.2)

Intellectual property and cases

Intellectual property entails the protection of intangible assets owned by a company which includes copyright, ideas, and trademark that a company intends to use or has already used differently. In this regard, Boeing Company received a patent in 2010 for its idea on how to reduce noise in airports and had acquired another patent in 2006 on using a doughnut-shaped hydrogen fuel container in airplanes (Granstrand 90). These patents have created room for potential controversy regarding the shape and use of dough-nut-shaped hydrogen fuel tanks in airplanes. With the shape of the plane, it is obvious that circular cylinders or other shapes might not be appropriate for use in airplanes by considering the space and shapes of airplanes. As such, other manufacturing and flight service companies in the future will have confrontations and permission seeking on this issue. This might end up in courtrooms challenging patenting of the rights (Granstrand 92).

This has positively influenced the strategic decision-making process such that Boeing will be the only company involved in noise reduction in airports on that patent and thus give an increase in its revenue base. This will create more room for further decision-making strategies influencing the whole manufacturing and flight-service industry when other companies will be struggling to embrace the new noise-reduction strategy. With continual patents on intellectual property to strengthen the implementation of its original ideas, Boeing is likely going to experience enormous growth. This will prove to be highly strategic since permission acquisition and technology transfer will be tactically attributed to Boeing as the pioneer of noise reduction projects and hence increased brand recognition. The latter is automatically associated with revenue increase and thus asset-base increment.

Tort Law

Tort laws involve the breach of public duties in general jurisdiction which makes it slightly less equal to criminal law. However, tort strictly refers to such kind of behavior as a breach of duty while in the course of business, which is done with the intent of reducing or gaining businesswise. Classification of tort includes defamation, negligence, nuisance, individual and statutory torts.

Boeing Company experienced a lawsuit in 2006 concerning immediate environmental pollution which was causing various health risks to immediate inhabitants of Santa Susana Field (Rudlin 138). This tort was filed under negligence by the company to observe the likely hazards of its activities on the environment and people living nearby. This ended with a settlement of 30 million dollars as compensation. Arguably, this case was purely a tort case in nature and presented a valid argument thus ended up settling in court. Had Boeing, as a manufacturing company that emits radioactive materials, been proactive in the prevention of immediate environmental pollution and associated hazards, this kind of lawsuit on negligence would not have occurred. This implied that there was a lack of adequate strategic management and thus insufficient strategic decisions on the manufacturing and disposition of radioactive materials.

More strategically, the company should make sound decisions on the disposal and emission of harmful materials to its immediate environment. Regarding disposal habits and the green economy trend in today’s industrialization, Boeing ought to construct emission trapping barriers such that emissions from the plant do not traverse outside boundaries to cause harm to the immediate environment. This decision will affect the company’s annual budget and also prevent further occurrences of such nature. Therefore, strategic management which results in strategic decisions allows the adoption of preventive measures to be put in place as part of avoiding such legal mishaps in the future.

References

Dobbin, Frank. Inventing equal opportunity. Princeton: Princeton University Press, 2011.

Granstrand, Ove. Economics, law, and intellectual property: seeking strategies for research, Boston; Dordrecht, 2003.

Rudlin, Alan. Toxic tort litigation. Chicago: American Bar Association, 2007.

Introduction

Established in 1916 in Seattle, the USA.

Today, the company is the world’s largest manufacturer of both commercial jetliners and military aircraft.

The company also designs and manufactures “defence, electronic equipment, rotorcraft, satellites, missiles, launch vehicles, and advanced communication equipment.

Offers its services and products to clients spread across 150 countries globally.

Boeing has over 170,000 workers (Boeing, 2014).

Long-term Market Outlook 2013 – 20132 Revenues

• World: Delivery units 2013 to 2032 – 35,280.
• World: Value: $4,840 billion Share of fleet. This is a 20-years forecast.

The Current Market Outlook

Long-term forecast of air traffic volumes and airplane demands (Tinseth, 2014).

The Shape of the Market

Boeing forecasts that 14,350 of these new airplanes (41 %) will replace older, less efficient airplanes, reducing the cost of air travel and decreasing carbon emissions.

Other 20,930 airplanes will facilitate fleet growth to drive growths in emerging markets.

Widebody share will increase by one percent to 24% by 2032.

About 24,670 airplanes (70 percent) shall be single-aisle airplanes supplied in emerging markets like China.

Demands by regions

¨Emerging economies are driving demands for airplanes.

Pilot & Technician Outlook

Boeing will require 498,000 new commercial airline pilots and 556,000 new maintenance technicians for the next 20 years.

Demands by regions will differ.

Drivers of Air travel Demands

Boeing notes that air travel demand is resilient against change economic conditions.

Key drivers of air travel include economic growth, global trade, and traveler values.

Air Cargo Market

Air cargo continues grow because of industries that require transport of time-sensitive commodities.

Air cargo

Since 1982, air cargo growth has achieved an average annual growth of 5.4%.

Air cargo traffic will grow by an average 5.0 percent growth per year over the next 20 years.

The freighter fleet will grow by more than half, from 1,730 airplanes in 2012 to 2,810 in 2032.

Emerging markets will fuel the growth.

Geopolitical Trends

Boeing is a global business.

It supplies over 80% of commercial planes outside the US.

The company aims to understand impacts of economic and political trends on its business.

Boeing actively supports public policies that promote the aviation business.

It may to capitalized on market liberalization efforts of various governments, particularly in the Gulf region and other emerging economies globally (Goold, 2013).

Summary

¨Boeing forecasts a long-term demand for 35,280 new airplanes, valued at $4.8 trillion

¨The company projects that 24,670 single-aisle airplanes will be delivered, representing 70 percent of commercial airplane deliveries and 47 percent of total delivery value in the next 20 years

¨Demands differ from one region to another

¨The company will need 498,000 new commercial airline pilots and 556,000 new maintenance technicians to fly and maintain the new airplanes for the next 20 years

¨Boeing plans to add 1,000 engineers over the next two years in Long Beach – expansion targets high growth areas (Hennigan, 2014)

¨Asia Pacific, Europe, and the Middle East account for more than 90 percent of large-airplane demand in the 20-year forecast

¨Air travel demand is resilient

¨Air cargo will continue to grow at an average rate of 5% per annum for the next 20 years

¨Key drivers of air travel include economic growth, global trade, and traveler values

¨Boeing considers the important of political and economic factors on its global operations

¨Boeing does not publicly displace its cost and investment projections

¨Note: all figures and images are from Boeing 2014.

References

Boeing. (2014). Boeing: About Us.

Goold, I. (2013). Airbus: Middle East Will Increase World Traffic Share .

Hennigan, W. (2014). Boeing plans to increase workforce in Long Beach, Seal Beach. Los Angeles Times.

Tinseth, R. (2014). The Current Market Outlook 2013-2032.

Boeing is the largest aircraft manufacturer of all time, having success stories running throughout U.S business history. The company is well-known for its commercial airplanes and input in space and security. William E. Boeing established the company in 1916 in Seattle before moving to Chicago (O’Connell, 2020). Boeing started manufacturing by transforming a building plant designed for wooden boats. The company earned its first income from the United States military and contracted it to develop aircraft. Due to the influence the firm had in the market, the owner focused on ensuring that he gathered input and ideas from all staff members.

Boeing also developed aircraft specifically designed to deliver mail to faraway cities and towns in the country. The aircraft provided a faster way for people to share information despite having distance barriers. This forced the company to change its business model to incorporate airplane manufacturing and flights. In 1931, Boing transformed other airlines into a single one to form United Airlines (UAL) and also purchased other airplane manufacturing companies to expand its operations (O’Connell, 2020). Later, the firm changed its name to Boeing Airline Company and played a significant role in developing military aircraft used during World War II.

When the war was over, Boeing shifted back to manufacturing commercial aircraft to make single trips across the country. This meant that the company had to eliminate aircraft that used propellers and adapt turbojets. Boeing started receiving large orders from the United States air force, which made it roll out the 707, commonly used by Pan American Airlines. This airplane model was the public’s favorite since it allowed them to move from one city to another within a few hours. Becoming the public’s favorite aircraft enabled Boeing to manage large orders for the airplane model. The high number of orders for the 707 made Boeing develop the 737 and 747, which affected the production process, almost making the company announced bankruptcy.

As Boeing considered the production of the 747 models, the industry was hit by a recession which acted as a barrier to domestic carriers purchasing new aircraft. The production of the 747 was also affected when the company started building the 2707 model, whose production had been halted due to the high costs involved. However, the 747 became the highest-selling aircraft since they were bigger and had faster engines (Hayward, 2020). Boeing never gave up on the airplane model, which was fruitful. The company has seen an increase in revenue coming from its diverse product line and a high number of orders from customers. With time the company has opened up multiple subsidiaries to handle various operations. Despite being a giant in the aircraft manufacturing industry, Boeing still has many competitors seeking to overtake its position.

Boeing started expanding its operations to enable the production of helicopters. Boeing’s assembly lines also integrated the manufacture of missiles for the military, with the first missile being launched in 1962. Boeing also expanded its processes to allow air and land craft building, with NASA being the main customer. This enabled the company to produce rockets to take human beings to the moon and back. The firm also manufactured vehicles designed for the space shuttle mission organized by NASA till the project was closed down. Boeing later produced the 757 and 767 aircraft models, which were more beneficial since they were used in flying and training exercises. This helped cut down on costs needed to purchase aircraft designed for the two processes differ. Boeing was also involved in managing a housing project designed to develop various projects to improve housing in the country.

The 777 models from the company used a design and manufacturing software that was computer-aided. Boeing managed to save time and resources when building the aircraft by failing to create a physical frame first. The firm later turned to the production of the 787 Dreamliner, which caused significant production problems. The aircraft kept failing stress tests and experienced production flaws, which slowed the manufacturing process. The airplane model was later grounded since they indicated a high risk of batteries firing. However, the 787 became the fastest and most fuel-saving commercial aircraft in the industry. The various airplane models produced by Boeing have enabled the firm to become a top manufacturer globally.

Boeing has employed more than 140,000 people in various countries. Being located in various parts of the world has allowed the company to get one of the most diverse and talented workforces (Boeing, 2017). The company also focuses on offering its customer’s service solutions for the wide range of products available in the market. Boeing has customer support which is active to ensure that aircraft operate with high efficiency and enhance mission assurance. Boeing also has a capital corporation that provides its customers with a wide range of financing solutions. This helps to ensure that they have adequate funds to purchase different aircraft products hence minimizing struggles likely to be experienced due to lack of funds.

References

Boeing. (2017). The Boeing Company: General information. Web.

Hayward, J. (2020). The rise and fall of the Boeing 747 Jumbo Jet.Simple Flying. Web.

O’Connell, B. (2020). History of Boeing: Timeline and facts. The Street. Web.

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To enhance the lean approach towards plane body designs, Boeing deploys computer-aided design simulation to create prototypes of the plane dimensions in real life to reduce time and cost incurrences. Proper management of parts and inventory is structured so that only necessary materials are available for use as soon as they are required, significantly improving costs and storage needs. Prioritization of parts that carries much urgency ensures a streamlined pattern of multistage development. Also, proper coordination ensures that a disruption at a point does not cause the production to halt, but instead, workers can work on other portions of the design and production process. Adopting multiple quality tests ensures consistency, further enhanced by deploying computerized systems at the various production stages. Efficient inventory management and portability by Boeing’s representatives enhance the lean approach.

The adoption and integration of several methods and aspects in the production cycle help to ensure customer satisfaction, relatively cheap inventory management and maintenance of proper quality standards. Also, there is the enhancement of productivity which increases the profit ratio of Boeing while enhancing efficiency in labour management as workers do not experience an undesirable break in the production cycle. Also, Boeing seeks to streamline supplier services to improve time and cost by ensuring smooth and efficient inventory operations and time-saving phases at each level to optimize and leverage the competitive edge.

Like any other profit-making company, one of Boeing’s core values is meeting customers’ demands. In implementing the lean practices, the implications created are a lack of proper framework structure that clearly outlines the agile process progression from one stage to another. There might be issues with the on-sight customer experience due to simulation and computer-aided design, which creates a complex procedure that needs understanding. The testing process involving the use of computer systems can cause ethical issues and a lack of customer perspective transparency.

Introduction

Through cost leadership, Boeing will seek to become the low-cost producer in the commercial airplane market. To achieve this, the company can venture into upcoming production procedures and technologies that will enable it to produce its airplanes at a lower cost than its competitors (Suprihono et al., 2021). Additionally, Boeing will work to reduce its overhead costs and selling, general, and administrative expenses by automating production, reducing waste, and negotiating better deals with suppliers. In terms of differentiation, Boeing will differentiate its airplanes from its competitors by offering superior performance, fuel efficiency, and cabin comfort. Additionally, Boeing can offer its customers a unique suite of services, including maintenance, training, and support (Suprihono et al., 2021). This will increase customer preference and loyalty to Boeing Company, increasing its sales and maintaining current buyers.

Improving competitive advantage through focus requires the Boeing Airplane Company to select a specific market or customer segment and attend to them exclusively. Boeing will focus on serving the needs of airlines that operate in high-traffic, long-haul markets. IT can also design planes targeting leisure travelers around the globe, making them as unique and cost-effective as possible. By focusing on a specific market, the company can better tailor its products and services to meet the needs of that market (Suprihono et al., 2021). Thus, Boeing will be able to serve its customer’s needs better and compete more effectively against its competitors.

Diversification of Economies

Mergers and acquisitions are activities that change the ownership of either operating units or the entire business from one company to another. For instance, Boeing can unite with other airline production companies around the globe, where they will produce, market, and sell all their products as Boeing. This can help to diversify economies of scale by providing new opportunities for businesses to expand their operations and enter new markets. Additionally, mergers and acquisitions can help to create new jobs and spur economic growth. By acquiring other companies, Boeing can spread its fixed costs over a more significant number of units, leading to lower unit costs and increased profitability (Suprihono et al., 2021). Moreover, mergers and acquisitions can help Boeing access new technologies, products, and markets. Thus, Boeing will be better positioned to compete even globally with other Airplane production companies and stand a chance to be on the top.

One advantage a company’s diversification may gain from mergers and acquisitions is providing access to new customer segments and markets it could not reach before. For instance, in 1997, Boeing merged with McDonnell Douglas and could serve all previously owned market shares (Suprihono et al., 2021). Boeing was able to advance to one of the world’s greatest airplane producers due to the advantages posed by this merger.

Conclusion

Another positive result is cost savings by eliminating effort duplication and enjoying the advantages of economies of scale. For instance, two combined organizations can unite their various departments into one, making it easier and cheaper to manage. For example, if Boeing decides to merge with Bombardier Company, they could have one marketing department the two departments. This can also be done with other functions within the company, such as accounting and human resources. Moreover, the two firms can share resources and make what the other company lacks easier to access (Suprihono et al., 2021). For instance, if one company has a marketing team and the other company has a sales team, the two groups can share resources and information to avoid efforts duplication.

Reference

Suprihono, S., Prasetya, A., & Abdillah, Y. (2021). Improving firm performance through competitive advantage, differentiation strategy and cost leadership: A literature review.International Journal of Artificial Intelligence Research, 6(1). Web.

Introduction

The analyzed case revolves around Boeing company and the failure of its new aircraft. The corporation gives jobs to around a million people in the state and is one of America’s biggest exporters. For this reason, numerous accidents with Boeing 737 caused by the failure of MCAS became a significant problem. The investigation conducted by the FAA revealed that the changes in the company’s culture, the attempts to win rivalry with Airbus, and the culture of concealment became the main causes of crashes and the poor state of the new aircraft. In such a way, the case shows that radical changes in the organizational culture might promote the emergence of problematic issues and undesired outcomes.

Discussion Questions

The decision to move a top-management team to Chicago became one of the major mistakes leading to undesired outcomes. Analyzing this strategic move, it is possible to admit that the reasoning behind this decision was weak because of several reasons. First, the company managed to evolve and became successful by employing the model. It means that the management destroyed the effective approach and introduced a new one without any additional investigation. It radically altered the organizational culture and destroyed effective patterns of collaboration within a corporation (Palmer et al., 2016). Second, it resulted in a lack of understanding of engineering issues among senior executives. The ineffective information exchange is one of the major causes of poor outcomes (Palmer et al., 2016). As a result, the company lost its ability to consider the problems emerging during the design and testing phases and introduce the appropriate changes.

The crashes of Boeing 737 Max required immediate action from the company to ensure the aircraft could be used by various airlines globally. Thus, a new CEO, David Calhoun, managed to attain success and avoid new accidents. After the aircraft groundings, the company performed significant work to introduce necessary improvements and become safe (Cohn, 2022). As a result, most countries allow the use of Boeing again as it meets safety regulations. The plane carries around 2,400 uneventful flights globally every day and delivers passengers to various destination points (Chokshi, 2022). In this regard, the company managed to eliminate discovered problems. Moreover, it can be a result of using a more effective management model to address discovered defects (Palmer et al., 2016). However, it remains unclear whether Calhoun managed to reconsider the culture within the company and whether new issues will emerge.

Debriefing

In such a way, the case shows the critical importance of the organizational culture and relations within a team and their impact on outcomes. The successful development of Boeing was possible due to the effective collaboration between senior management and the engineering team. It provided both parties with specific benefits, such as the opportunity to report discovered issues and attain higher effectiveness of aircraft (Palmer et al., 2016). At the same time, the top management clearly understood how the company evolved and what technical issues it faced. At the same time, Boeing’s mistakes became economically devastating for the firm (Diss, 2020). In such a way, the unwise destruction of this bond created the basis for numerous misunderstandings and the corporation’s failure. It means that the radical change of existing patterns requires an in-depth investigation and correct understanding of whether the alteration is needed and will have a positive impact on outcomes.

Conclusion

Altogether, Boeing’s case evidences the critical importance of organizational culture and the complexity of change processes. The shift of priorities from effectiveness to finance-driven performance had a negative impact on designing and manufacturing processes. As a result, the Boeing 737 had critical flaws that resulted in crushes and numerous victims. After several updates made regarding the FAA recommendations, the plane is allowed to fly again. However, the culture within the organization might remain problematic, which can be a source of new accidents in the future.

References

Chokshi, N. (2022). Boeing 737 Max flies again, but crash victims’ kin say risks remain. The New York Times. Web.

Cohn, S. (2022). One year after the 737 Max’s return, Boeing is still trying to get back on course. CNBC. Web.

Diss, K. (2020). Troubled 737 MAX Boeing airplane had at least 13 other safety incidents, ex-employee says. ABC. Web.

Palmer, I., Dunford, R., & Buchanan, D. (2016) Managing organizational change: A multiple perspectives approach (3^rd ed.). McGraw Hill.

Introduction

According to Palmer, Dunford and Akin (2009), the six box organizational model addresses the major issues related to an organization functionality where various data, research and theories are applied to analyse a situation. The six variables of the model are the purposes, purposes, structure, rewards, helpful mechanisms, relationships, and leadership (Palmer et al., 2008). The major benefits associated with the model is that the variables are interrelated and persons seeking to improve a situation need to address it by looking at all the relationship between the variables. Furthermore, the model offers a framework which succinctly points out the different key factors which were at the center of the Boeing situation.

Analysis

To analyse readiness for change for Boeing, the six box organizational model is most appropriate. This is because, the model focuses on different variables which affect the operations of an organization. The model addresses issues related to the functionality of an organization. For instance, the variable purpose can answer the question: What business are we in? ((Palmer et al., 2009).

By analyzing the structure of Boeing, the model can address the question: How do we divide up the work? (Palmer et al. 2009). By addressing the structure, the model enables one to know whether the organization is on right track, what changes have been carried and what problems are being experienced. For instance, through the use of the model, it is clearly shown that the structures did not function as expected. Although the company had a merger, there was no clear definition of routes to be taken or the target markets. However, through the use of the model variable, one can identify that Boeing was undertaking some structural changes such as implementing changes to overcome bureaucratic structure, unnecessary process and outdated technological systems (Palmer et al. 2008).

By using the model, it has been possible to identify whether the employees of Boeing were being motivated through rewards and incentives. As noted in the case study, Boeing employees were extremely demoralized (Palmer et al., 2009). The moral of the employees was very low and as a result, the issue needed to be addressed. This is an indication, that the model is strong in addresses issues which touch the improvement of performance which is reward system and motivation.

As noted by Palmer et al. (2009), helpful mechanisms help an organization to coordinate different departments. Through the use of the model, it is possible to answer the question: Have we adequate coordinating technologies? (Palmer et al., 2008). This helps in the identification of communication and communication channels within Boeing. It also shows some of the efforts which were adopted by Boeing such the adoption of lean manufacturing principles to reduce cost of production and rejuvenation of its reputation by ensuring that production becomes more efficient (Palmer et al., 2008). It shows some of challenges which were being faced such lack of communication which is believed to have been a major cause of the problems experienced in the organization.

It also shows some of technology coordination mechanisms which were adopted such as updating its technology systems as a way of increasing efficiency, decentralization of technology system, use of technological platform to regulate the lifecycle of products, and adoption of a web based procurement system which would allow monitoring of stock levels by suppliers (Palmer et al. 2009). This is a clear indication that the model was the right choice as it addresses communication and technology which enhance competitiveness in an organization.

Technological platform model

According to Palmer et al. (2009), technological platform was adopted to cut down manufacturing costs and encourage rapid production of 7E7. In addition, the new platform would improve innovation, collaboration, time-to-market, product quality and return-on-investment. This is an indication that the company was ready for change.

Through the use of model, it is possible to answer the question: How do we manage conflict among people? With technologies? (Palmer et al., 2009). Based on the case study, there was lack of communication and collaboration within the company. To address the issue, the organization decentralized technology system (Szymczak & Walker, 2003). In addition, a web based procurement system was put into place to facilitate and coordinate communication internally and externally (Palmer et al., 2009). The adoption of technology based application, is a clear indication that the company was ready for change and ready to regain its market share and confidence from its different clients.

The model answers the question: Does someone keep the boxes in balance? (Palmer et al. 2008). After noting the leadership was in a mess, its CEO resigned where a new one was appointed to keep the boxes in balance. Overhauling leadership is part of organizational change which shows its readiness to adopt new leadership.

Recommendation

The leadership of Boeing was faced with major leadership challenges which led to the resignation of its CEO. In addition, ethical leadership was not present. Therefore, it has been recommended that Boeing to bring another leader instead of recycling existing leaders. This would bring new change and method of leadership. There is also need to bring ethical leadership and encourage accountability. This is because, according to Hussein (2007) encourages, accountability, responsibility, and the ability to make ethical and effective decisions. Lastly, the organization need to improve its communication channels further to facilitate and coordinate departmental communication.

References

1. Hussein, M. (2007). Ethical leadership makes the right decisions. Journal of Technology and Business, 57-69.
2. Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach. Boston: McGraw-Hill/Irwin.
3. Palmer, I, Dunford, R & Akin, G. (2008). Managing organizational change: a multiple perspectives approach. (2nd edn). McGraw-Hill Irwin, New York.
4. Szymczak, C, C & Walker, D, H, T, 2003, ‘Boeing: a case study example of enterprise project management from learning organisation perspective’, The Learning Organization, vol. 10, no. 3, pp. 125-137.

Introduction

Economic growth in such developing countries as Vietnam and India has been rapid over the last few years, which provides aviation manufacturer Boeing with an outstanding opportunity to source the production of one of its key high-precision airplane parts.

However, several risks could detrimentally affect Boeing’s potential operations growth into these countries. The most significant problem that many enterprises within the aircraft market are currently facing is that the industry is ever-changing and complex, which in turn makes these companies reluctant to do business in or with countries that are still actively developing. A thorough evaluation of the internal and external environment in both India and Vietnam is paramount. The first step is the identification of possible risks, followed by the development of strategies to help minimize potential losses.

Therefore, it is reasonable to research to identify the option that would be the most appropriate. Peer-reviewed articles and books on this subject matter will be examined to get a better understanding of the sociopolitical situations and business climates of these countries. The most attention should be devoted to risks related to supply chains. From this research, it will be possible to develop a set of recommendations as to which country is better suited for airplane part production.

Discussion

Strengths and Weaknesses of India

First of all, most economists believe that India will become a leader in the aircraft industry in the future because of the country’s rapid economic growth and ready access to necessary resources. Moreover, the Indian government has recognized the need to modify current policies that limit the possibilities for business development. The political situation in the country is also stable and is not expected to change in the foreseeable future based on most predictions. The country’s police force has extensive control, and the risk of issues related to crime is relatively low (Bayley 377).

Several important factors could affect supply chains in India and the surrounding region. The fact that titanium block, a key raw material in aircraft part manufacturing, is sourced from Russia needs to be taken into account. India and Russia have built an outstanding relationship over the years, and the two countries are actively collaborating in the development of new technologies. In general, Russia’s trade openness levels are rather low (Tabata 39).

However, it can be seen that metals are exported to India regularly, so any complications that could affect the supply chain are highly unlikely. Another factor that could affect the supply chain is the fact that industries like online retailing are growing rapidly, and factories in India are willing to utilize the latest technologies (Mishra 113). This fact is crucial and should be considered by any enterprise that wants to do business with Indian suppliers.

Because Indian employees have related experience, companies can potentially implement software programs that would improve supply chain management. Another important aspect that should be highlighted is that the economy of India is developing rapidly and will outpace other countries in the region. On the other hand, government regulation may be incredibly problematic because the government is determined to protect native businesses. Another aspect that needs to be highlighted is the role of insurance, an industry that is well developed in India and helps protect enterprises from most complications. Terrorist threats should not be disregarded.

For example, it may be beneficial for companies to utilize such tools as high-pressure hoses to avoid complications related to pirates in the Indian Ocean (R. Crandall, W. Crandall, and Chen 320). Another critical risk to consider is the lack of education among the general population (Park et al. 350). An enterprise may invest enormous resources in Indian supply chains, but the introduction of new technologies that require a high degree of training or knowledge could harm business as workers may need additional time to adjust to such changes, which only adds complications to operations. Demand risk is not problematic in this case because this aircraft part is incredibly valuable. Another weakness of India is the underdevelopment and inefficiency of supply chain networks in the region (Park et al. 350).

Strengths and Weaknesses of Vietnam

Vietnam presents an intriguing situation; the country has been developing at a rapid rate, and many scholars suggest that it has enormous potential. Many enterprises in Vietnam have focused on the improvement of supply chain management, so many supply chains in the region are well developed. Their efficiency is not yet maximized because such processes are relatively new in the region, but the progress that has been shown is significant.

The business environment has become more supportive of foreign enterprises due to the government’s introduction of several business-friendly policies. Most factories work as suppliers for many firms at the same time, and there are no limitations that could affect Boeing (R. Crandall, W. Crandall, and Chen 245). Because Russia is an ally of Vietnam, problems during the sourcing of raw material titanium blocks are not expected (Elliott 260).

On the other hand, Vietnam also presents several weaknesses that may affect such operations as manufacturing and delivery. Terrorist threats are dangerous and could have a lasting impact on supply chains. Though the region is generally viewed as incredibly safe, a slim possibility of terrorism should be acknowledged. The major problem, however, is that the business environment in Vietnam is not stable, and suppliers may have to deal with numerous complications. The country’s banking system needs to be improved because banking inefficiency affects all business operations. Some transactions may also prove incredibly risky.

The government is trying to resolve issues like bribery, and though progress has been impressive, it is still a significant problem. Access to required information may also be complicated because of current government policies and guidelines. The world’s growing focus on sustainability also needs to be mentioned as a potential issue, as the need to comply with international regulations may harm many factories in the long term (Aboelmaged 146).

Additionally, weak infrastructure is an enormous problem because it leads to increased delivery times, and logistic channels are not currently optimized. It may be reasonable to send an external professional to examine the situation in the region, but that would require many resources, and the expense may be hard to justify. Another problem in Vietnam is the fact that ports and airports have quite limited capacity. New ones will be built in the future, but their construction will require a lot of time (Hult, Closs, and Frayer 13). Employees are also viewed as inexperienced because they lack the necessary training, which would undoubtedly have an enormous impact on the quality of products.

Beyond the business climate specifically, energy shortages can be extremely problematic in Vietnam as well. However, enterprises are investing in renewable resources on an ongoing basis, a factor that is expected to address the bulk of the problem eventually. Though these are positive steps, such changes are not yet fully implemented and, once again, are expected to remain incomplete for some time. An enterprise that relies on Vietnamese supply chains may suffer during such periods as summer because blackouts are quite common. Political instability is also a significant issue that affects most of the operations in the region.

Production levels in Vietnam are relatively low, and many firms lack the necessary resources to invest in research and new technologies. Indeed, supply chains in other Asian countries are much more developed than those in Vietnam (Kim Dung, Hai, and Hieu 178). However, the government has proven that it is willing to focus on the development of supply chains because the logistics market in the country is enormous and could lead to significant profits (Hult, Closs, and Frayer 13).

Comparison Between India and Vietnam

There are several notable similarities between India and Vietnam. Two of the most significant similarities between these countries are their tremendous growth over the last few years and their great potential as parts suppliers. Both regions have also established outstanding relationships with Russia. Moreover, it is an excellent opportunity to get access to some of the most innovative technologies. Another similarity that should be highlighted is that both of these regions are susceptible to natural disasters, and they are particularly exposed when it comes to some operations because any incident may lead to critical supply shortages. Also, both countries may present complications related to scheduling. Therefore, Boeing should not be too reliant on these regions and must consider other options.

Of course, many differences exist between India and Vietnam as well. Though the techniques utilized during the manufacturing of parts are relatively the same between the two countries, Indian factories are still viewed as much safer because employers pay enormous attention to the overall quality and precision. The natural climate in both of these countries is unique, but it is not expected that it would have a significant impact on supply chains. For example, intense rains can be quite problematic, but this issue may be addressed if forecasts are taken into account during the development of schedules.

The political systems in India and Vietnam are also very different: communism is quite prominent in Vietnam, while a focus on democracy is of utmost importance in India (Gainsborough 209). Both countries contain poverty-stricken areas, which itself may well be perceived as a tremendous risk. Sizeable demographic shifts in these countries may also have an impact on supply chains.

Justification of the Selection

Based on this research, India is the better choice for aircraft part production because the country has many advantages over Vietnam and has much more potential. Both regions present significant supply chain risks, but a company may minimize these risks by developing appropriate strategies and paying close attention to environmental factors. India is also a good choice because the country has proven to be a reliable partner, as many of its organizations are willing to do business with foreign enterprises.

Moreover, another factor that should not be overlooked is that the Indian workforce is believed to be much more skilled, which is particularly critical because precision and quality are of utmost importance in the production of airplane parts. Moreover, the Indian workforce is advantageous because the language barrier is unlikely to be a problem as India’s population becomes increasingly proficient in English (Park et al. 350). Managers and employees will be able to discuss all of the aspects related to logistics and come up with solutions without wasting any time.

The cost of manufacturing should also be mentioned; though production in India requires much more funding than in Vietnam, other factors make this higher cost worthwhile in the long term. India holds a strategic location that would allow companies to explore new possibilities related to supply chains. Moreover, the higher level of economic stability in the Indian sub-continent is one of the most important factors in the decision (Reddy 93). The political situation in the country is satisfactory, and such complications as protests are not likely. The Indian legal system is also well developed, so any problems related to policies and regulations may be solved promptly.

Although trade restrictions can still be quite problematic, the government is trying to reduce most of the barriers India is relatively stable when it comes to natural disasters, and significant changes to the climate are not expected any time soon. However, the country is still rather vulnerable because of its geographical location, especially to disasters such as floods and cyclones (Bangay 64). However, the firm will have to deal with such risks because other advantages are significant.

One of the biggest problems in India at the moment is the underdeveloped infrastructure, but this situation will change in the future due to urbanization and overall economic growth. ICT disruptions are also not viewed as problematic at the moment because most professionals in India have experience and will address issues as soon as possible. A lack of focus on infrastructure is particularly problematic in Vietnam, and the planning is not aligned with overall goals (Dinh and Thu Hang 45).

Moreover, some scholars suggest that value chains are relatively underdeveloped in the country and that supply chain management still needs to be improved significantly (Witt and Redding 295). Although problems related to infrastructure are also severe in India, the situation is much better on the whole, and interest from investors suggests that solutions are possible. Alterations to current public sector policies are required in Vietnam because they complicate most business operations. On the other hand, such issues are not as problematic in India, and big cities have devoted enormous attention to the enhancement of logistics.

Recommendations

It would be reasonable for a company to analyze the suppliers in India to determine their strengths and weaknesses. The process may require additional resources, but it will lead to enormous profits in the future because the company may avoid several risks. The choice of the supplier should be justified from an economic perspective, and it is important to collect all necessary data to support the selection. Also, it would be beneficial for the company to establish long-term relationships with suppliers because India has enormous potential when it comes to the production of new parts. Moreover, it will be possible to expand the business if such connections are utilized and the understanding of logistics in the area is improved.

The company should keep track of the latest trends and developments to avoid possible complications, and it should be flexible and open to modifying supply management strategy depending on the situation. The business can also take advantage of the fact that the desired part output is a two-foot square with a one-foot circle in the middle, according to the specifications. An enterprise may use the additional space to purchase other parts, which would help use the resources much more efficiently.

The company should establish a set of methods to identify and minimize possible risks to ensure that the business is not damaged in the long term. Natural disasters are always possible, so an analysis of routes may be incredibly beneficial. Financial risks are particularly problematic, and it is necessary to provide suppliers with a set of benefits to ensure that they are loyal and are not vulnerable to economic crises. Also, it is paramount to focus on communication patterns between the company and the suppliers. For example, the company should be informed in the case of any complication occurring. Security is another factor that the enterprise should consider.

The level of crime in the area needs to be evaluated, which would help prevent burglaries (Burges 158). Enormous attention should also be devoted to an inspection of the parts. All of the parts should be thoroughly checked to avoid complications. Moreover, the company should ensure that all operations-related information stays confidential because it may be abused by competitors. Such methods as transcription should be used to protect data when communicating with suppliers. The utilization of modern technologies will be crucial, and all of these aspects should be combined into an integrated supply chain to achieve the highest level of efficiency.

Conclusion

In summary, the best possible solution, in this case, is to source a high-precision machine part from India. Vietnam is also a reasonable option because of its lower manufacturing and transportation costs and other benefits. However, a business relationship with suppliers in India is expected to be more beneficial in the long term. India’s economy is predicted to continue growing at a rapid rate, which will lead to better infrastructure and shorter delivery times.

Also, the country is more likely to adopt new technologies and methods of production. Furthermore, it will be possible to take advantage of previously established relationships, and agreements may also be signed. The risks in the region are not as significant as those in Vietnam, and the situation is expected to remain relatively stable. Once the company establishes a relationship with a supplier in India, it should keep track of the latest developments and analyze the situation in both countries to make appropriate alterations to the strategy and achieve the best possible results. The enterprise must understand that there are still risks, but that possible consequences can be minimized if appropriate measures are taken. Although India is the better choice at the present moment, Vietnam should not be disregarded because the region has enormous potential that is not yet fully realized.

Works Cited

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Introduction

This paper will be focused on the development of a beneficial employee relationship (ER) strategy that can be used by Boeing, an extended organisation that is located in the US but cooperates with foreign companies. The necessity of its creation occurred because the International Association of Machinists and Aerospace Workers (IAM) approached the National Labour Relations Board (NLRB) with the request to unionise the firm’s workers. It targeted at almost 2500 employees who are working at the South Carolina plant, which deals with the production of the design parts for the new airliner.

This plant has a history of labour unrest, which is a problem for the organisation because such complications can affect its performance adversely. In this situation, Boeing will not be able to prepare 1095 high-quality items of 787 Dreamliner. As a result, it can lose the loyalty of 60 customers and face a substantial loss of profit. Fortunately, in the current situation, IAM refused to vote for the unionisation. However, there is a high possibility that the petition will be repeated and this time it will be accepted. To prevent the appearance of further complications and organise the factory, unitarist and pluralist ER strategies for the South Carolina plant should be developed in advance. Then, they can be assessed decently and implemented with no delays to avoid possible issues.

Alternative ER Strategies

Relations with employees and unions are critical for all organisations because they provide an opportunity to maintain operations effectively and efficiently and to determine what alterations are needed for improvement. Preparing ER strategies, Boeing can receive a guideline for its South Carolina plan that defines the peculiarities of employee cooperation and aligns with the business strategy (Leat, 2001).

In the framework of unitarist perspective, the organisation should include in its strategy several vital elements that would form it. Thus, Boeing’s South Carolina plant should have only one source of authority. It should be separate management with no other possible leaders. All decisions should be made by the management should promote loyalty and commitment among the employees.

The plant should be seen as an entity, which unites not separate individuals but teams of workers who cooperate to reach common aims. In this way, the management must have no conflicts of interest with the personnel, which can prevent the plant from achieving mutual goals. Thus, the leader and one’s followers are to cooperate to achieve common objectives. Here, strong leadership is critical, as it determines the way people work and affects the outcomes.

Thus, ER strategy in the unitarist perspective should be focused on turning Boeing’s South Carolina plant into one entity that consists of working teams that cooperate efficiently and effectively, being controlled by a single leader who promotes employee loyalty and commitment, to meet mutual organisational goals.

The pluralist ideas differ greatly from the unitarist ones, which makes these two approaches opposite to each other. According to them, an organisation is a place, which gathers people with different beliefs and values. They are always diverse regardless of the similarities (Schmidt, 2009). The power in the organisation does not belong to one particular person, and several leaders can exist. Pluralism allows coexistence of competing interests, which often leads to conflicts that are still not treated as something critical and extremely adverse. On the contrary, they are perceived as a helpful tool that can be used to guide the company and its responses.

The management is treated not as an only leader but as a mediate that helps to find a compromise when some issues occur. Moreover, in the framework of pluralist perspective, employees’ decision-making power is underlined, which defines them as individuals capable to affect the organisation. The public interest is also promoted. Thus, the management considers the opinion of the staff when deciding to implement some change.

Finally, it should be stated that negotiations play a critical role in the establishment of a stable environment in the organisation and stable positive performance. Managers and employees interact much and share their ideas, which provides an opportunity to balance all procedures and make them appropriate for everyone.

Thus, ER strategy in the pluralist perspective should be focused on turning Boeing’s South Carolina plant into a unity, which gathers the diverse population of workers who have their own beliefs and ideas but cooperate to reach the mutual goal, being led by managers but also having personal decision-making power and emphasizing negotiations as the source of understanding, stability and development.

Relationships with Employees and Unions

For now, Boeing needs to consider both relations with employees and unions, as its South Carolina plant is still represented by the members of the staff while the majority of other facilities deal with AIM. The main difference is in power. While ordinary employees are not able to affect the peculiarities of the job, those who are a part of the union sign a contract where everything is mentioned.

Thus, the organisation is free to decide whether it is willing to control its employees and their actions or to encourage them to be committed to the organisational objectives and goals. At the same time, it should decide whether to “avoid, accommodate, or partner” with the unions (Bamber, Gittell, Kochan, & Nordenflycht, 2009, p. 11).

If nothing changes for Boeing, may try utilising control approach. The managers of its South Carolina plant can make all detections themselves and then just let the employees know what they should do, demanding obedience. Here, the hierarchy of job positions is stable and tough. The personnel are responsible only for coming to the plant on time and maintaining their duties on a high level. Such an approach may be beneficial for Boeing, as it will be sure that the workers do those things that are expected from them. However, the labour unrest may be faced again, if they turn out to be dissatisfied with the situation. In such a case, strikes seem to be the most common way out.

When referring to the commitment approach, the managers will not give the orders but try to explain why particular actions are required and encourage the workers to undertake them. It looks much like an agreement, according to which the company promises to take care of the workers, while they are committed to it and its ideas. In this way, Boeing can refer to cross-functional teams and may make the range of duties more flexible, as well as scheduling, etc. The employees tend to appreciate such an approach, as it involves them more and does not focus on the demands.

Considering unions, the organisation can try to prevent their creation when suppressing their creation through the revealed resistance and aggressive actions or when substituting them by such improvements as increased wages so that there will be no need to gather. However, such prevention of union creation is considered to be a great deterrent to the company caused by its management (Kleiner, 2001). The act of substitution may appeal to the workers, but it is not likely to be undertaken, as it opposes Boeing’s business strategy.

Currently, Boeing operates based on the low-cost carrier (LCC) business model. In its framework, the organisation is willing to reduce airline costs with the help of cost-saving practices (Boeing, 2016b). Thus, it has low labour costs, which can cause employee dissatisfaction. Even though under the influence of the current alterations in the industry, some exceptions to the strategy may be found, Boeing tends to follow it. Thus, it would be better if a new ER strategy does not entail any changes regarding these aspects and will not try to unite the personnel, approaching them with compensation packages, etc.

The company can accept the existence of unions, which means to accommodate the unionisation of the South Carolina plant and its entrance to IAM. In this way, routine actions will be maintained, but Boeing will not be likely to support negotiations and give the workers more power. Such an approach is decent, as it does not trigger the development of new issues. Still, it also fails to provide many benefits. It is just an artificially created atmosphere of efficient cooperation.

Finally, an organisation can be a partner with the union. Being involved in continuous communication, Boeing will allow the members of the IAM to be involved in the decision-making, and they will resolve issues through negotiation. They will follow a contract, which allows IAM to be a consultant for the plant. In this way, the workers will have more power and the hierarchy will not be so oppressive. The union will be satisfied and will not be likely to trigger labour unrest. Moreover, “the employer who is willing to give employees what they want and need are far more likely to have success, but more importantly, the organisations will be doing the right thing” (Karnes, 2009, p. 189).

Recommendation

Today, many professionals tend to mention that the organisations in the US and all over the world prefer to work with separate employees but not with the unions, such as IAM (Logan, 2006). They consider that the workers are not efficient enough to make vital decisions that can affect the performance of the organisation. Still, collective bargaining and efficient negotiation are critical for the firms, as they ensure the possibility of successful development (Kochan, 2012). In this way, unions are likely to take the leading role, as cooperation between employers and employees is in its core.

As Boeing is willing to see its employees working together as one unit, it is likely to unionise the personnel of the South Carolina plant to become stronger. Moreover, the company encourages its workers to share basic values and take personal responsibility for the actions conducted, value people’s lives and their well-being and underlines both personal and collective characteristics (Boeing, 2016a). However, it is critical to remember that the union is not a compulsory thing that should be always present. Moreover, its presence does not ensure that the ER will improve, and no conflicts will occur. In this way, it is critical to select the appropriate ER strategy.

When trying to define what ER strategy should be utilised by Boeing when the workers from its South Carolina plant become a part of IAM, it should be taken into consideration that the US is a country that highly values individuality (Weaver, 2001). Even when emphasising the importance of the teamwork, Americans tend to perceive it as efficient cooperation of several employees who adjust to each other’s needs and share common values but still are separate individuals. Moreover, diversity at the workplace started to play an enormous role for the companies.

People are encouraged to be different, as in this way they can bring more benefit to the organisations, especially when considering innovations and problem-solving. Different background and opinions provide a basis for development, which is likely to improve performance. The thing is that diverse employees are to be able to interact while working without any misunderstandings and other issues (Chang, 2006).

Moreover, it is critical to make the ER strategy based on the vision of the organisation and values that are underlined by it. In this way, it seems that the company should refer to the pluralism ideas, as it is mentioned that the workers “are personally accountable for our safety and collectively responsible for each other’s safety” (Boeing, 2016a, para. 3). Moreover, the idea of worker’s power is discussed in the pluralist perspective: “openness and inclusion in which everyone is treated fairly and where everyone has an opportunity to contribute” (Boeing, 2016a, para. 3).

Ross & Bamber (2009) state that a lot of organisations start “shifting ER further toward direct individualised relations between employers and their employees” and find such approach to be rather beneficial for the company’s stability and enhanced performance (p. 28). Labour unrest has an adverse influence on the company’s performance that is why Boeing should do its best to encourage the workers to cooperate and share its views and ideas (Kleiner, Leonard, & Pilarski, 2002).

Even if Boeing does not provide its workers with additional benefits such as increased wages, it still has an opportunity to adapt organisational environment so that the employees become satisfied. Having more power and tightly cooperating with the management team, the members of the staff will work as one team regardless of them being representatives of the diverse population.

They can share their beliefs and ideas to solve organisational issues, reach mutual goals, and innovate. In this way, the implementation of the pluralist ER strategy and acting as partners with IAM will allow Boeing and its South Carolina plant to reach stability, prevent labour unrest and promote development.

Advantages and Disadvantages of the Options

ER strategy made based on the unitarist ideas can have a range of advantages to Boeing and its plant located in South Carolina. First of all, it should be mentioned that it presupposes the integration of employer and employee interests. In this way, the workers have more opportunities to develop shared values, which will help them to improve commitment and loyalty.

The members of the staff are likely to become important stakeholders of Boeing so that the company will pay more attention to their needs and will do its best to provide them with everything needed. The unitarist ER strategy underlines the value of the management also. It encourages going beyond one’s leadership styles and emphasises the necessity of being convincing and influential. Moreover, it is considered that all stakeholders, including the employees, will do their best to find shared values and common interests (Ross & Bamber, 2009). Such a step can help the company to implement a stable ER system.

Still, the unitarist ER strategy also has its negative sides. The most critical thing is that the leader and the workers are on different levels. Their powers are so diverse that different conflicts can be generated even in the framework of simple tasks and decisions (Guest, & Peccei, 2001). In this way, while the management has a right and a possibility to implement alterations in the organisation, schedule the work, etc.

At the same time, the workers are only able to accept the decision that was already made without their interference. As a result, the misbalance in powers can turn in a source of constantly occurring problems that will affect the performance of the plant and increase employee turnover. Except for that, unitarism has an extremely negative view of any conflicts. They all are considered to be a failure that cannot allow the organisation to reach adequate procedures while it can also be treated as a chance to find out what changes are required for improvement and how to reach the working harmony.

In the framework of the unitarist ER strategy, personal interests of every employee should be shared across the company. Even though such an event is likely to be beneficial because it cares about each worker, such alteration can be hardly reached. Generally, people have different views and interests. When working together, they try to focus on the organisational values and to believe in them. However, the range of organisational values is rather limited, and it is not focused on personal attributes while the unitary perspective tends to make one person absorb all characteristics of others (Edwards, 2003).

The unitarist perspective opposes any conflicts. On the one hand, it may be considered to be an advantage because teamwork requires efficient cooperation and harmony. Still, some conflicts may be helpful and their prohibition turns out to be an issue for the company. For example, when the conflict occurs when dividing the tasks, it can have a positive influence on the overall performance.

The members of the team will make sure that they are prepared to cope with the obtained tasks and can accomplish them decently. Moreover, according to the unitarist ideas the workers will be treated as significant stakeholders of Boeing. Of course, they are likely to consider such alteration as an advantage. However, it fails to align with the business strategy of the organisation, in the framework of which, the members of the staff are valued but perceived as a source of the opportunity to reduce expenditures. Thus, Boeing is not likely to undertake this ER strategy.

Except for the positive treatment of conflicts as an alternative decision-making process, pluralist theory presupposes a wider range of ER policies and motivate organisations to cooperate with the unions (Bacon & Blyton, 2007).

It allows the employees to realise that they are the vital element of the organisation, which encourages them to align personal interests with the company’s goals. Pluralism spreads diversity to the workforce and makes the employees more innovative and creative. It encourages teamwork and interaction with the management, which assists in the creation of a positive working environment, which has no labour issues (Badigannavar & Kelly, 2005).

Still, pluralism cannot be adapted to the different workplace conditions and pay little attention to commercial interests, which is not likely to appeal to Boeing (Gennard & Judge, 2002). Of course, worker interest is valuable but the organisation requires decent income to remain competitive. However, the focus on clients and possibility to find a common language between the workers and the management team is likely to ensure that the ER based on the pluralist theory can help to resolve the most critical current issues faced by Boeing and its plant.

Conclusion

Thus, it can be concluded that Boeing must consider main ER strategies for the South Carolina plant, including unitarist and pluralist ones. Still, when thinking of the most beneficial strategy that aligns with the company’s business strategy and its values, the pluralist theory seems to be more appropriate. It is likely to allow the person to feel valued and respected. As the relationship with the management improve and the workers receive more power, they tend to be more motivated to work and enhance performance so that labour unrest will not be faced.

The diverse staff population will work in teams to deal with the occurred issues referring to innovative ideas, which will appeal to the customers. People will be working as a unity, which encourages to share different beliefs and ideas. Being led by managers through negotiation and supported by them, the workers will understand why they are working in a particular way and what should be done further. As a result, the company will regain its stability and streamline development.

References

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Functional Strategy of The Boeing Company

A strategic approach is a prerequisite for successful development for all businesses in the modern world. It is now universally recognized that companies should not display shortsightedness by simply complying with the existing demands of the market. Instead, they should plan, look ahead, discover new needs and demands that they can address, and link all their actions to the overall vision and mission. These are important elements of a strategy. However, companies should not be regarded as solid entities, much less large international companies. They have different levels of operation, and the application of strategy to these levels requires understanding the differences between them. Three levels of strategy can be described: functional, business, and corporate. Functional strategy refers to processes and regulations at the level of departments, such as marketing, finances, production, or human resources. The business strategy encompasses the processes and regulations at the divisional level: for example, product lines and centers of activities and performance qualify for being addressed from the business strategy perspective. Finally, corporate strategy applies to the entire organization.

The Boeing Company has declared a few quite ambitious intentions recently, including doubling the profitability in four years and beating Elon Musk to Mars. What can be considered the most challenging is the Mars program, as this is an extremely difficult technical task that affects the operation of the company on various levels? From a strategic perspective, the functional issue is a serious modification of existing production. This is the goal of the Boeing Company’s functional strategy to shift from an airplane manufacturer to a corporation that produces various types of aircraft, including satellites and rockets. On the business strategy level, the company has been going through modifications, too, as its divisions need to additionally provide a wide range of technical support services. The functional tasks associated with the new production will inevitably affect the corporate strategy, as the Boeing Company is changing its vision to adjust it to the new requirements and ambitions.

Two functional areas can be identified related to the Boeing Company’s strategic development and intentions discussed above. First, the sales department’s goal is to extensively increase sales to reach the goal of doubling profitability. 2016 was planned to be a preparatory year, as the main leap in profitability was expected to occur in the next three years; however, the sales department should extend the reach, and the marketing department should identify additional demand, which is the important functional goals. Second, there is the Mars program, which deals with the functional area of production. Again, it was not expected that the Boeing Company would send its rockets to Mars in 2016, but the year was needed to prepare the technological basis for the achievement. It will require broadening the production network and finding new technological solutions that will allow gaining competitive advantage, as competition remains a major challenge. The resources for expanding the production network will be needed to achieve the profitability functional goal, too. The strategic activities on the functional level will be considered successful if the company manages to incorporate the functional strategy into its business strategy and corporate strategy and if the two goals—doubling profitability and reaching Mars—are achieved.

Strategic Intent and Strategy Implementation

Strategic intent is a key concept of strategic development because it helps formulate the goals in a brief and intelligible way. Strategies are quite predictably complicated things, as they involve various elements to address the complex systems of the existing operation and adjust them to the declared goals. However, an intent that is simply put, such as “to outperform company X” or “to earn 100,000,000 USD next year” can be beneficial because it enables matching strategic actions to a clear purpose. Therefore, for each action, it can be assessed whether it contributes to achieving the goal or not. Strategic intent should encompass so-called “stretch targets,” i.e. challenging goals that lie beyond the current reach of a company. If designed correctly, coordinated with strategic actions, and supported by the commitment of the management, stretch targets pull businesses toward new opportunities and new areas of the market. The Boeing Company has announced two stretch targets: to double profitability within four years and to beat Elon Musk to Mars. Both targets require an extensive effort, primarily in the functional area of production, and technological modifications that will help the company advance. The Boeing Company demonstrates that broadly defining the industry you are in is what moves businesses forward. Instead of positioning itself as an airplane manufacturer, the company acknowledges that it is one of the best in the world in terms of producing, operating, supporting, and distributing highly complex aircraft. This strategic definition allows going to new markets, such as the emerging market of private spaceflight.

Strategy implementation can be regarded from the “who, what, and how” perspective.

The strategic intent described above implies a significant leap for the Boeing Company, which is why strategic modifications should be applied to all the levels of the company. It requires a remarkable effort, which is why it is suggested to establish a new unit on the corporate level to coordinate all the activities and their correlations with the strategic intent. The unit is the Office of Strategy Management (OSM). Strategy managers are the “who” in the necessary strategic activities.

The “what” part of strategic implementation is the operation of the OSM. The Office will be different from other corporate units involved in strategic planning because it will have the authority for strategic execution. Achieving the strategic intent will require a lot of modifications in the production area, and they all need to be coordinated by the OSM and matched to the strategic goals. Nonstrategic investments and programs should be eliminated.

The “how” part of strategic implementation refers to the system of interaction that needs to be adopted for the implementation to be carried out successfully. The recommended system implies that the OSM should be close to the board to directors: the former is responsible for the highest level of strategic activities (the corporate level), and the latter is a principal decision-maker, which is why their activities should be coordinated. However, the OSM should be even closer to the functional area of production, as this is where the functional strategy is implemented, affecting the higher levels. The OSM does not merely monitor or report: it ensures the execution of strategic measures and coordinates the motion of strategic measures from lower levels to higher ones and vice versa.

Evaluation and Control

Kaplan and Norton’s classical concept of the balanced scorecard suggests adding to the financial perspective three more perspectives of performance evaluation: customer, internal operation, and learning and growth. From the financial perspective, the Boeing Company has the objective to have more international contracts, which will enhance the international presence and network of cooperation and reduce the dependence on current customers. From the customer perspective, there is the objective to reach new audiences, which requires an effort from the company’s marketers and will help discover new demand to move the business forward. From the internal operation perspective, one of the objectives is to increase environmental initiatives, which will involve research and technological modifications based on recommendations on reducing environmental impact and adopting more sustainable practices. From the learning and growth perspective, the Boeing Company has set the ambitious objective of technological leadership, which can be achieved through encouraging diversity, feedback, and ideas aimed at bringing innovation and committing to constant development by pursuing stretch targets.

It is important that the scorecard not only helps evaluate the performance but also facilitates the strategic development of corporations because it promotes adjusting everything the corporations do to their strategic goals. For the Boeing Company, the corporate balanced scorecard will feature the following elements:

• Finances

1. The number of international contracts
2. Environmental costs (including fines)
3. Employment efficiency

• Customer Perspective

1. Reaching new audiences
2. Increasing market share
3. Increasing customer loyalty and satisfaction

• Internal Operation
  1. Environmental initiatives
  2. Core competency promotion
  3. Corporate citizenship awareness
• Learning and Growth

1. Technological leadership
2. Encouraging diversity and creativeness
3. Leadership programs