Ivey Publishing
Boeing: The 737 Max Crisis
Product Number:
9B20M188
Publication Date:
10/30/2020
Revised Date:
10/30/2020
Length:
7 pages (4 pages of text)
Product Type:
Case (Pub Mat)
Source:
Ivey
In March 2019, Boeing's 737 MAX aircraft was grounded across the globe following its second crash in five months. Investigations concluded that the sensor in the planes’ Maneuvering Characteristics Augmentation System (MCAS) had failed, leading both aircraft to nosedive downward, crashing and killing all aboard. The public was confused as to how this engineering error occurred, given Boeing's strong history of aerospace achievements. The case traces the main developments in the aircraft manufacturing industry and Boeing’s organizational changes over time. How could these changes have affected events leading up to the two 737 MAX crashes?
Learning Objective:
The case provides an understanding of Boeing's history, and its cultural and environmental changes over time. This case is suitable for undergraduate- and graduate-level courses in operations management, such as corporations & society, learning through action, and leading people and organizations. After working through the case and assignment questions, students will be able to
  • explore the tensions between development cost and product safety;
  • examine the role of a regulatory body in product development;
  • draw insights regarding how organizational changes could have affected events leading up to the two 737 MAX crashes;
  • explain the effect of market competition on consumer surplus and product safety; and
  • assess the importance of organizational culture in creating a quality product.
    Issues:
    Disciplines:
    General Management/Strategy
    Industries:
    Manufacturing
    Setting:
    United States, Large, 2019
    Intended Audience:
    Undergraduate/MBA
    Price:
    $5.30 CAD / $5.00 USD Printed Copy
    $4.50 CAD / $4.25 USD Permissions
    $4.50 CAD / $4.25 USD Digital Download
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