Brand Communication and Reputation Management: Boeing Crisis Report

This report examines the Boeing crisis, focusing on the two 737 Max crashes and their impact on the company's brand image and reputation. It analyzes the media coverage, the organization's communication strategies, and the company's responses to the crisis, comparing it with another crisis from the past 12 months involving retail stores like Debenhams and Mothercare. The report explores the technical aspects of the crises, the methods used to manage them, and the ethical practices employed. It discusses the role of media, the application of the Freytag Pyramid Model, and the use of the Situational Crisis Communication Model to understand how the crises were handled and the effects on brand and reputation. The analysis covers internal factors such as human error, technical issues, and unethical practices, as well as external factors like economic recession and technological advancements. The report also provides insights into the importance of effective communication and ethical decision-making in maintaining a strong brand image and customer loyalty.

Brand communication
AND
Reputation Management
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Review of Boeing crises and another crisis that have occurred in the past 12 months...............3
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12
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INTRODUCTION
Most of the organisation plans to build strong brand image in market for long term
growth and sustainability of enterprise so that more and more customers are attracted towards
particular brand. Strong market reputation and effective communication of crucial information to
customers helps in building strong relationship and enhancement of company image. This report
is about Boeing that have used unethical practices which has lead to death of more than 346
people in two 737 Max Crashes. Therefore it has compared between Boeing crises and another
crises that have occurred in past 12 months. It has covers various point such as the media
coverage, the organisation successfully communicate through media and the way company
respond to crises. It also explained about the methods that are used by firm to handle technical
aspects of the crises and different ways two crashes have been managed.
MAIN BODY
Review of Boeing crises and another crisis that have occurred in the past 12 months
It can be stated that Boeing was one of the world largest commercial aircraft
manufacture and best selling 737 Max that have contributed towards growth and success of
enterprise in competitive market. But due to two crashes Lion air crash and Ethiopian Airlines
Crash in March 2019 it has losses its market reputation and strong brand image, customer’s
loyalty. Technical issue in airplanes has lead to death of people and many of the investors have
knocked more than 13% of their share for Boeing. Even after federal aviation administration
clearance more than 53% American does not want to fly on Boeing 737 Max thus it can be
illustrated that such practices have adversely impact on overall sustainability of huge
organisation in market. At the same time Boeing had to faced financial crises, legal penalty and
huge losses due to loss of customers trust and loyalty towards enterprise (Singh Crisafulli and
Xue, 2020). Another case is high street crises that states huge supermarket such as Debenhams
and Mother Care have to bear huge amount of losses and many people have lost their job. Such
as 79 Stores in UK of Mother care have closed down that have lead to risk for job for 2500
people after collapsing into administration. Waitrose is a another retailer stores that have close
seven supermarket thus putting nearly 700 jobs at risk therefore such crises have impacted on
overall employment rate and shut down of operation because of rising interest rates and
decreasing disposable income of customers.
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Media has provides sufficient information about crises of Boeing to people so that they
can be aware of unethical practices of company. It have provide information to people that due
to some technical problem in system there were two major crashes of 737 Max because more
than 346 people have died. Media has provide various crucial information to people because
Boeing is large and reputable organisation so general public needs to be aware about unethical
practices of company that can adversely impact on their health and wellness (Anisimova, Weiss,
and Mavondo, 2019). On the other hand due to decreased in income, shift from traditional
shopping to online and minimum wages rates that need to be pay to workers are some of the
problem that had lead to shut down of many stores of Debenhams and Mother care. Therefore
the way media has coverage issues of both Boeing and shut down of big stores can be understood
through use of Freytag Pyramid Model such as:
Exposition: Media has covered all crucial information about Boeing crises such as number of
people are affect and overall impact on organisation operation. Due to human error and
ineffective technology has lead to hundreds of death thus company have charged extra for not
taking proper steps for better health and wellbeing of individual
(Salvador, Ikeda and Crescitelli, 2017). On the other hand media has also explained about
another crisis that had lead risk to employment of many people and shut down of retail stores
such as Waitrose and Marks and Spencer.
Rising action: Media through continuous research found out relevant and important information
about Boeing crises that have lead to death of several citizens. Media is able to indentify
different reason that has lead to two major crashes such as human error and technological issues.
After airplane crashes Boeing reputation has adversely impacted due to decrease is sales volume
and overall customer’s satisfaction. Therefore second plane crash has lead to spread of
information on quickly basis thus creating awareness among large number of customers. It can
be critically analysed that continuous shut down of big supermarket retailers in UK and rising
risk of employment for individual has created tension and stress among individual.
The climax: The media has also conducted interview of Boeing top management in order to
known about their views regarding such critical issues that have lead to death of number of
individual. Loss of life of so many people due to two crises between 5 months has changed
overall Boeing position and market value (Carroll, 2017). At the same time economic recession
and increasing competition lead to shut down of many supermarket retailer stores therefore this
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have provide more detailed information about two topics.
Falling action: Boeing enterprise apology for more than one month for unethical operational that
had lead to death of more people. Future of Boeing was uncertain; unspecific because people
have lost trust with the company therefore lot of efforts will be needed in order to regain
customer’s loyalty and satisfaction level.
Solution: After gathering of all information about two crashes of Boeing 737Max it was legally
penalised and charged penalty that have lead to more financial loses and closure of company
operation. Media stated that unethical practice of Boeing has impacted on long term growth and
success of enterprise in market (Unutur, 2018). On the other hand still many retailer are facing
challenges of low
Purchasing power of customers and high cost of manufacturing products that have lead to shut
down of operation.
One of the biggest crises that is faced by Boeing due to failure of key system in safety
and security of its customers and failure to communicate deficiencies of key system to
stakeholders that have lead to death of thousands of people. Company by not information
stakeholders about such information has to face loss of public confidence and market image of
enterprise. Social media have drive crises of both Boeing and shut down of supermarket retailer
through information number of people about the incident. Top management of Boeing have
apologies for not neglecting deficiency in key systems that have adversely caused harm or risk to
number of people lives (Piplani and et.al., 2017). It have explained that Boeing has taken various
steps to improve its technologies efficiency so that safety and security of people can be ensured
better but due to tow major incidents people have lost their trust in company operation. They
does not want to travel through airplanes that are manufactured by Boeing as they possess threat
on their better health and well being. Boeing has promised to offer new aircraft that are better
fuel efficiency that will changed the flying characteristics of planes. Pilots have little or few
information regarding MCAS system that have resulted in improve implementation and threats to
lives of every passenger in the airplane. Lack of communication of information’s from Boeing to
pilot have lead to ineffective operation and two crashes of airplanes. Therefore company have to
provide all crucial information to pilot so that such harmful impact cannot be happened and life
of people can be saved (Genel, 2018). On the other hand retailer such as Debenhams and
Mothercare have expands its operation online or offers products through online sites so that
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maximum customer can be attracted to make purchased. Social media has provided opportunities
to such organisation to cope up with crises so that more employment can be generated and needs
of people can be satisfied though enhancing overall sales volume. Therefore all such organisation
has effectively used social media to make aware about recent trends and technologies so that
need of customers can be fulfilled.
Situational crises communication model
Manager of organisation need to identify crises responsibilities with reputation threats
posed by crises so that effective strategies can be formulated to manage business. There are three
stages in this mode from effective management of crises such as:
Denial: Top manager of Boeing have founded various caused that have lead to death of people
and reduction of brand image of company (Güçlü Sözer, Civelek and Kara, 2017). As compared
to supermarket crises manager of Debenhams have decided to start its business operation online.
Diminishment: It provide various justification to people about deficiency in system that are used
in aircraft but due to two big crash and harm to wide range of customers company have to bear
huge losses. On the other hand various promotion offers are introduced by Debenhams to
influence customers and effectively managed threats.
Rebuilding: Boeing company have planned to take full responsibilities to ensure better health
and safety of individual through making appropriate changes in MCAS system so that more and
more people can be attracted. It has paid penalty for loss of human life but instead of that
company was not able to grow and sustain its business in the market.
Boeing is huge organisation that has number of employees and manufacture standard
aircraft but there are various internal factors that have contributed towards rise in crises of
company. Such as human error have resulted in deficiency in key system of aircraft that have
resulted in continuous two plane crashes causing harm to lives of people. Unethical practice and
ineffective communication to pilot about MCAS system that has lead to crash of airplanes.
Overheating batteries were another caused for crises of Boeing as there are overheated alarms or
serious design flaw that can put entire organisation into peril. In order to cut cost Boeing have
used overheating Lithium-ions batteries that have lead to crises (Sözer, Civelek and Kara, 2017).
Technology of Boeing was effective but there were some major risk while outsourcing
components as they are not able to put together at time plane is assembled. It has not provided
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proper support to on- sites suppliers that have promoted to Boeing crises and death of number of
people. Company have used a crucial sensor form repair shop in Florada without proper
checking or testing that have resulted in key deficiency in aircraft manufactured by firm. MCAS
was a system that was made by Boeing in order to prevent 737 Max from stalling whereas it has
become one of the cause for crashes of two Lion air and Ethiopian Airlines crashes. Therefore
various internal issues that have influenced crises of Boeing as per Indonesian investigators are
pilot have not provided better knowledge to fight with control and repeated pushed plane nose
down that have caused two main crashes and adversely impacted on brand image or reputation of
organisation (Singh and Sharma, 2016). It have been founded that due to poor training and have
difficulty in following various procedure is also another internal catalyst that drive Boeing crises.
The captain stated that it was not provided proper guidelines to handle or control the plane in the
air and almost 31 pages of plane maintained log were missing. So, it can be stated that design
and mechanical problem were two main factors in crash of Lion Air plane.
On the other hand supermarket crises has occurred by due to external factors such as
decreasing in average income of customers, economic recession in UK and decrease in level of
employment. Due to continuous development in technology and digitalisation most of the big
organisation such as Mother care and Debenhams have to closed their operation and almost 400
jobs are at risk. Therefore it had lead to economic slowdown and lots of many job opportunities
have been reduced.
Boeing’s organisational environment is completely based on the technology, because this
company can’t regulate its business operations without involving new technology within its
business environment (Davies, 2017). The main reason behind the last statement is, Boeing
generally produces and develops airplanes and aircrafts for different airline companies, in which
top-level management of Boring is highly required consider hi technology within its daily
operations. On the side, the main reason behind Boeing crisis is also technology. This aircraft
manufacture company done many unethical attempts in its business environment. Of course,
after crisis, existing management of Boring was taken some important decisions towards
improving technology within its different aircraft. But still clients and airline companies of
Boeing faces different technical issues within various aircrafts which they have purchased from
Boeing. According to different business critics, top-level management of Boeing should
implement TQM and lean production techniques its production process for developing quality of
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its airplanes and aircraft.
The company not systematically handled technical aspect. Reason is, when Boeing was
faced some crisis also after its first crisis. I mean, this company not learnt from its first crisis, in
which this behaviour of Boeing is completely unethical. Basically, this company was provided
such aircraft to its client which has technological issues. The was fully aware about these issues
but it sold its aircrafts to different airline companies without fix those issues. That’s why its few
aircrafts were crashed due to different technological issues. For example; 346 passengers died
due to technological issues in Boeing’s 737 Max. Many critics says, the Boeing is only
responsible behind the death of 346 people, because this company could fix technical issue in its
aircraft before selling it an airline company. But the company not fixed that problem or issue, as
results it indirectly took lives of 346 people After this crisis, top-level management of company
promised in media that, Boeing will be fully focused on removing different technological issues
while manufacturing new aircraft. But Boeing was not properly fulfilled its promise, because it’s
some other aircrafts also got crashed due to same technological issues after death of 346 people
(Berg and Blomqvist, 2019). This this the main reason behind this statemen that, the Boeing not
systematically handled technological aspects.
After crisis, the brand value or reputation of Boring was decreased because of its
unethical attempt. Currently many people not like to travel with those airlines which uses
aircrafts of Borings. In this situation, top-level management of Boring should develop some
productive brand communication and reputation management strategies for maintaining its high
reputation in the market. The Boeing is highly required to make trust within people by
manufacturing those aircrafts which has zero technological issue. Of course, nowadays lots of
people within market scared to travel in Boeing’s airplanes and aircrafts due to recent crisis of
Boeing. The Boeing is not only the company in market which has faced this crisis, because there
are many other companies also exits in the market which has faced crisis relating to Boeing.
Currently hi-fi technology is the only way to company which again improve its brand value in
the market. Of course, that crisis decreased the reputation of Boeing in the international market,
so it has opportunity to again build its high reputation in the market by developing such aircrafts
which has zero technological issue.
The management of Boeing has systematically handled communication aspects of the
crisis. When this crisis happened, existing management was become responsible to express its
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view on its fault in media (Husda Ratnawati and Kusumaningtyas, 2017). That time was very
tough to the company, because people from all around the world badly criticise to this company.
But on that time, upper management of company was properly come to the press for
communicating. Press people asked many questions from upper management of Boeing, in
which the management communicate with all people in very effective manner. But company not
fully agreed with this that, Boeing is the only responsible to behind airplane crash. According to
the upper management of company, there is an airline company is also responsible behind the
airplane crash, because an airline company need to perfectly check its airplane before flying it in
the sky. The maintenance team of the airline company could search technical issue within its
airplane, but that team not played its job role in effective manner. On the other side, when people
and media asked to airline company about crash, then the management of that company said that,
the Boeing is only responsible behind that airplane crash. The airline company said, Boring
could inform us about that technical issue, but Boring was inform use about that issue, because it
was busy in earning profit in unethical manner.
Many people and critics also go with that same thing which airline company said. The
Boring should pay for that incident, because that was happed just its unethical attempts.
Currently most people in the market to travel in aircrafts of Boeing, because this company not
follows business ethics while manufacturing aircrafts. In one recent interview the management of
Boeing said that, the company fully focuses on solving those different technical issues in the
design of aircraft. The company again promise that, now no aircraft of Boeing will be crashed
due to technical issue. Of course, this statement of company is completely right, because recently
this aircraft manufacturing company has hired some highly qualified aircraft designers,
developers and airplane technology experts. Basically, these people will support to company for
dealing future technical issues in aircrafts (Narteh and Braimah, 2019). There was top-level
management of Boeing could understand this basic thing that, it has not right to put people’s
lives in risk just because earning some profit, because a human’s life expensive than earning
huge profit. That’s why that attempt of Boeing is completely unethical according to many
people.
On the other side, there are some other brands also exists in the market which has faced
that type of crisis in the market. For example; recently the Volkswagen blamed for providing
such cars in the market which badly impact to the natural environment. Basically, the case of
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Volkswagen is something similar as Boeing, because this car manufacturing company also was
taken such steps in its business operations which was completely unethical. The case is, recently
popular multinational car manufacture company Volkswagen was found for selling those cars in
the market which has negatively affect existing natural environment. Top-level management of
this company was completely known about this factor, but it was not making any changes in its
cars for earning huge profit in the market with law investment. But one day, people aware about
this unethical attempt of Volkswagen, and then company was faced great crisis due to its
unethical attempt. Many people still not like buy products and services this automobile company,
especially those people who really takes interest in protectinbg natural environment. So, the
similarities between Boeing and Volkswagen are, both brand or companies was continuously run
unethical business activities for earning high profit in the market (Anees-ur-Rehman and et.al.,
2018). On the other side, both companies were not considered CSR (corporate social
responsibility) while running their business operations in different market segments. That’s why
top-level management of each company should develop such business strategies for again
present their positive brand image in the market.
Top-level management of Boeing now focuses on solving their all issues by hiring some
more effective employees in its business environment. This step is very necessary for the
company, because effective employees can give great contribution in company for developing
such aircrafts which has no any technological issue. In this situation, when company provide the
best quality aircrafts to its different clients and airline companies, then it will be able to again
improve its brand image in the market. Recently Boeing’s two other aircrafts also get crashed
outside its home country the United States (Gavrila and Ramirez, 2019). That’s people within
market was be too angry on the Boeing, because this aircraft company was not following the
business ethics in its business operations. Many people got died due to Boeing’s unethical
business operations. Due to airplane crashes, the top-level management of Boeing was faced
court hearing as well, because people filed the legal case on Boeing. The search and
investigation committees also has established by the local government for identifying main
reasons behind Boeing airplane crashes. As result, committees nominated Boeing as guilty,
because existing management was ready to sell those aircrafts to airline companies which was
not eligible to fly in the sky.
In this dynamic and modern world, positive brand image and reputation is everything for
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different companies or business, in which if Boeing will not provide well-developed aircrafts in
the market, then it can’t survive in the market. Customers never like to buy products and services
from only those companies in the market which always follows business ethics in their business
environment (Schultz, 2017). That’s why upper management of Boeing should understand this
common thing that, it should avoid those all activities and operations in its business environment
which can negatively affect to the customers or people.
CONCLUSION
It can be concluded from above report that company need to ensure that it should take
various steps for better health and wellbeing of individual or customers for long term growth and
sustainability. Various external factors have lead to close down of stores of supermarket and
lead to increase in employment rate. At last it can be concluded that various ineffective process
and lack of testing have adversely impact brand reputation of Boeing. So, company need to
always make effort to satisfied needs and wants of customers in order to earn more and more
profitability.
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REFERENCE
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Husda, N. E., Ratnawati, T. and Kusumaningtyas, A., 2017. Antecedents brand trust and private
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