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Series:   Elements in Reinventing Capitalism

The Transformation of Boeing from Technological Leadership to Financial Engineering and Decline

Published online by Cambridge University Press:  14 November 2024

Charles McMillan
Charles McMillan
Affiliation:
Schulich School of Business, York University, Toronto

Summary

Organizations rise or fall based on misreading of external signals as well as internal factors – strong or weak management, leadership and governance, proactive or reactive benchmarks of innovation and performance. This Element addresses the commercial aerospace sector the case study of Boeing Corporation. Boeing and Airbus illustrate the dynamics of competitive rivalry, the shifting attention span of senior leaders. Beset by internal dysfunctions, product delays and certification challenges, Boeing has a negative net worth, and perverse executive incentives, financial engineering values, and governance dysfunctions when confronting the changes facing the main customers, the airline industry. Boeing trails its European rival in market share, R&D investments, and diverse product line based on seat size, pricing, and distance. This case study provides an opportunity to suggest new research directions on governance and managing truly complex organizations.
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Keywords

strartegic intentreputation riskcorporate narcissismduopolyrivalry trap
Type
Element
Information
Series: Elements in Reinventing Capitalism
Online ISBN: 9781009394734
Publisher: Cambridge University Press
Print publication: 05 December 2024

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The Transformation of Boeing from Technological Leadership to Financial Engineering and Decline
  • Charles McMillan, Schulich School of Business, York University, Toronto
  • Online ISBN: 9781009394734
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The Transformation of Boeing from Technological Leadership to Financial Engineering and Decline
  • Charles McMillan, Schulich School of Business, York University, Toronto
  • Online ISBN: 9781009394734
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The Transformation of Boeing from Technological Leadership to Financial Engineering and Decline
  • Charles McMillan, Schulich School of Business, York University, Toronto
  • Online ISBN: 9781009394734
Available formats
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