Boeing under Phil Condit

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR098 Electronic Format: Rs. 500;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

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Case Length : 14 Pages
Period : 1992 - 2004
Organization : Boeing Inc
Pub Date : 2004
Teaching Note : Available
Countries : USA
Industry : Aerospace Industry

Abstract:

The case discusses the events that occurred in Boeing, one of the largest aerospace companies in the world, under the leadership of Phil Condit. Condit became the CEO of Boeing in 1996. In the very first year, the company found itself with a serious manufacturing breakdown, which led to huge losses. Condit was also responsible for shifting Boeing's focus from commercial aircraft to defense contracts, which possibly led to the emergence of ethical problems in the company. In addition to this, under Condit, Boeing was overtaken by rival Airbus Industrie in aircraft deliveries for the first time in 2003. Condit's diversification strategy was also not entirely successful and Boeing had to write off huge amounts in the late-1990s and early-2000s, due to failed acquisitions.


Condit resigned from Boeing in December 2003, and soon after his resignation, Boeing restructured its management structure. It also committed itself to the development of a new aircraft for the first time in 10 years. What remained to be seen was whether Boeing would recover from the damage it suffered under Condit and reestablish itself as the leader in the aerospace industry.

Issues:

Analyze the leadership style of a brilliant engineer who went on to become the CEO of one of the largest aerospace companies in the world

The importance of a CEO's leadership style in relation to the environment in which a company operated

Contents:

  Page No.
Condit Steps Down 1
Background Note 2
Condit Becomes CEO 3
Boeing Under Condit 4
The Boeing Future 9
Exhibits 11

Keywords:

Boeing, aerospace companies, Phil Condit, manufacturing breakdown, huge losses, commercial aircraft, defense contracts, ethical problems, Airbus Industrie, diversification strategy, huge amounts, failed acquisitions, resigned, management structure, aerospace industry

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