Boeing Strategy Analysis: Business Plan

Boeing business analysis 0
Boeing
Business

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Executive summary
Unethical behaviour of Boeing company is a thought-provoking example that shows how
avoiding ethics can cause several lives. The company’s concept of only-profit to run its
business resulted in loss of 346 lives, that represents its irresponsible and unethical
behaviour. It affected the company’s reputation, financial status and customers in a broad
manner. The disasters not only affected Boeing but also affected small industries, its
shareholders and its stakeholders in financial terms. As the planes of Boeing are grounded, its
customers are also bearing financial losses every day and this will be continued till the issues
in the plane are not found and rectified. The company is facing several issues including
lawsuits filed by families of victims and compensation demands from its customers. The
philosophy of ethics is neglected by Boeing to make short-term profit and experienced huge
financial and reputational loss with their planes banned and grounded. This shows importance
of practicing ethics and ethical decision-decision making.

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Contents
Introduction............................................................................................................... 3
Analysis................................................................................................................... 4
Impact of unethical behaviour on Boeing’s reputation........................................................4
Impact of unethical behaviour on Boeing’s revenue...........................................................5
Impact of unethical behaviour on Boeing shareholders.......................................................6
Impact of unethical behaviour on Boeing’s customers........................................................7
Conclusion................................................................................................................ 8
Recommendation........................................................................................................ 8
Bibliography......................................................................................................... 10

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Introduction
Ethics denotes a system of moral values and principles that helps in differentiating standards
of rights and wrongs. These principles are reflected in one’s activity and its behaviour. These
moral principles also include systematizing, defending, obligations and fairness. Ethics is the
system that defines concepts of bad and good, crime and justice, wrong and right, vice and
virtue (Singer, 2011). Big companies and government have the power to take strong
decisions and these decisions mostly affect other’s well-being. The decisions and actions
taken by these authorities or organisations may affect strong social consequences.
This discussion is about two Boeing 737 planes that crashed within few minutes after its take-
off in October 2018 and March 2019. The calamities cost 346 crews and passengers lives.
Both the disasters were blamed on errors of simple design and practice of bad engineering.
The software used in the plane was malfunctioning and pushing its nose downwards instead
of keeping it stable, overriding commands and actions of the pilot. Apart from the above
errors, airspeed issues and fractures in the components of the wings has been suspected. In
this case, the moral concern is that, whether the airplane company is considering profit more
than safety of passengers and its crew members.
A good business reputation is considered as vital for any company to grow and perform well.
Company’s reputation affects its customers and stakeholders, thus affects revenue of the
company (Crane, et al., 2019). Also, an organisation with good reputation has competitive
advantage in respective field. Companies practice ethical behaviour to ensure good business
reputation. Past deeds of individual or an organisation is the main factor that affects its
reputation (Rossouw & Vuuren, 2017). So, all the organisations try to maintain good
reputation to collect advantages that comes with it and neglect several issues (Yang, 2012).