Boeing\'s strategy for its 787 Dreamliner is unique from both an engineering and
ID: 386278 • Letter: B
Question
Boeing's strategy for its 787 Dreamliner is unique from both an engineering and global perspective.
The Dreamliner incorporates the latest in a wide range of aerospace technologies, from airframe and engine design to superlightweight titanium graphite laminate, carbon fiber and epoxy, and composites. Another innovation is the electronic monitoring system that allows the airplane to report maintenance requirements to ground-based computer systems. Boeing has also worked with General Electric and Rolls-Royce to develop more efficient engines. The advances in engine technology contribute as much as 8% of the increased fuel/payload efficiency of the new airplane, representing a nearly two-generation jump in technology.
This state-of-the-art Boeing 787 is also
global.
Led by Boeing at its Everett, Washington, facility, an international team of aerospace companies developed the airplane. New technologies, new design, new manufacturing processes, and committed international suppliers are helping Boeing and its partners achieve unprecedented levels of performance indesign, manufacture, and operation.
The 787 is global not only because it has a range of 8,300 miles but also because it is built all over the
worldlong dash—with
a huge financial risk of over $5 billion, Boeing needed partners. The global nature of both technology and the aircraft market meant finding exceptional developers and suppliers, wherever they might be. It also meant finding firms willing to step up to the risk associated with a very expensive new product. These partners not only spread the risk but also bring commitment to the table. Countries that have a stake in the 787 are more likely to buy from Boeing than from the European competitor Airbus Industries.
Boeing teamed with more than 20 international systems suppliers to develop technologies and design concepts for the 787. Boeing found its 787 partners in over a dozen countries.
The Japanese companies Toray, Teijin Seiki, Fuji, Kawasaki, and Mitsubishi are producing over 35% of the project, providing whole composite fuselage sections. Italy's Alenia Aeronautica is building an additional 10% of the plane.
Many U.S. companies, including Crane Aerospace, Fairchild Controls, Goodrich, General Dynamics, HamiltonSundstrand, Honeywell, Moog, Parker Hannifin, Rockwell Collins, and Triumph Group are also suppliers. Boeing has70% to 80% of the Dreamliner built by other companies. And even some of the portion built by Boeing is produced at Boeing facilities outside the United States, in Australia and Canada.
The global Dreamliner is efficient, has a global range, and is made from components produced around the world. Theresult: a state-of-the-art airplane reflecting the global nature of business in the 21st century and one of the fastest-selling commercial jets in history.
Boeing is discussed in the Company Profile of Chapter 2. Does Boeing practice a multinational operations strategy, a global operations strategy, or a transnational operations strategy? Support your choice with specific references to Boeing's operations and the characteristics of each type of organization O A. Global. Its level of integration goes beyond multinational. The collection of parts and subassemblies coming from other countries is carefully orchestrated. It is O B. Transnational. Its material, people, and ideas transgress national boundaries. It combines the benefits of global-scale efficiencies with the benefits of local not transnational because its "home" is clearly the U.S., and there is little sense of "local responsiveness." responsiveness. It is not global because the core competence does not reside in just the "home" country but can exist anywhere in the organization countries. C. Multinational. Its level of integration is not enough to be global. Also it buys resources, creates goods and services, and sell goods and services in a variety ofExplanation / Answer
A. Global. It's level of Integration goes beyond multinational. The collection of parts and subassemblies coming from other countries is carefully orchestrated. It is not transnational because it's "home" is clearly the US and there is little sense of local responsiveness.
Boeing 786 has partners and suppliers spread over more than a dozen countries. Over 35% of it is built in Japan, over 10 in Italy. 70 to 80% of Dreamliner is built by other companies. It is typical of global strategy, to have partner countries participate in the development process, but final development takes place in the parent company. Boeing 787 is a very high technology product, so there is almost nil local responsiveness. Hence it's a global strategy.