Please answer this. A BCDE A BCDE O@a) . A B C D, SO@ant o an components that ar
ID: 376455 • Letter: P
Question
Please answer this. A BCDE A BCDE O@a) . A B C D, SO@ant o an components that are seen as a source of Boeing's competitive advantage (wings, in particular, are often mentioned as a component that may not be outsourced for future aircraft models). What are the 1. What are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? potential risks? Do the benefits outweigh the risk? (10) 2. Some critics have claimed that by outsourcing so much work, Boeing has been exporting criticisms? (10) overseas. Is this criticism fair? How should the company respond to suchExplanation / Answer
Q1. What are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? What are the potential risks? Do the benefits outweigh the risks?
Benefits:
Risks:
Considering that Boeing will be saving possibly millions of dollars by outsourcing the 787, the benefits outweigh the risks because of the large amount of money involved. As long as much closer management and coordination is involved in the project, risks can be kept to a minimal.
Q. Some critics have claimed that by outsourcing so much work, Boeing has been exporting American jobs overseas. Is this criticism fair? How should the company respond to such criticisms?
The company should come clean and confess to the public that they are outsourcing local jobs overseas. Many American supply chains are affected by Boeing outsourcing jobs to offshore suppliers, and especially the city of Seattle, where Boeing's headquarters are located, and its surrounding areas. On the other hand, Boeing should also express that for a project as enormous as the 787, it was very important for the company's success to find lower production costs and to seek out expertise in foreign countries. It also helps the company to share the financial risks with partner companies. If Boeing, being such an important American company, were to take a huge hit by the project failing, it could have hurt the US economy in itself. In any case, money that was made from the project would have been delivered back into the American economy. Most of Boeing's parts are ordered overseas, so it makes sense to transfer our expertise to those companies. Lastly, because Boeing decided to outsource the 787, it has become the most sophisticated commercial airplane to date.
Flatworld Solutions Pvt. Ltd. (2012) Benefits of Outsourcing. Retrieved August 15, 2012
Hill, C. W. L. (2011) Global Business Today. Seventh Ed. closing case: Building the Boeing 787. (p. 490). Retrieved August 15, 2012, from The McGraw-Hill Companies, Inc