Question

The closing case, found in Chapter 1 of your text, explores Boeing’s decision to outsource the manufacture of many components of the 787 Dreamliner. Components for the jet aircraft were manufactured around the globe and final assembly takes place at Boeing’s Everett plant north of Seattle, Washington. A discussion of the case can revolve around the questions below. For your first assignment, read the case on page 34 " Building the Boeing 787", think about the 5 questions below, then provide your responses. All written work should be submitted using APA formatting. If you are a not certain about APA formatting, connect with the writing center at Post or perform a quick Google search on how to properly format work using APA formatting, which can return you a wealth of resources.

Q1: What are the benefits to Boeing of outsourcing manufacturing of components of the Boeing 787 to firms based in other countries?

Q2: What are the potential costs and risks to Boeing of outsourcing?

Q3: In addition to foreign subcontractors and Boeing, who else benefits from Boeing's decision to outsource component part manufacturing assembly to other nations? Who are the potential losers?

Q4: If Boeing's management decided to keep all production in America, what do you think the effect would be on the company, its employees, and the communities that depend on it?

Q5: On balance, do you think that the kind of outsourcing undertaken by Boeing is a good thing or a bad thing for the American economy? Explain your reasoning.

Note: Your work should follow proper APA formatting including 12pt Times New Roman font, 1" margins all around, double-spaced, indented responses, title page, in-text citations, and reference page.  

Answer 1

1. Major benefits of Boeing outsourcing’s manufacturing facilities include the production quality and cost effective strategies that allow effective competition in the market. “To those suppliers who are the best in the world at their particular activity”(60), the text explains that Boeing wanted the absolute best materials going into the product. Another benefit of outsourcing to foreign nations was that those nations were more likely to buy the product of the company that gave them business originally as opposed to other companies offering a similar product.

2. The text highlighted a major risk that Boeing faced due to outsourcing which were later release dates. A major risk to the company is that parts turn up later than expected. This risk became a reality for Boeing, which resulted in costing them millions. Boeing also lost the convenience that comes when manufacturing facilities reside in Boeing’s backyard rather than across the world.

3. Benefactors to outsourcing include foreign households and economies because they will experience higher wages, better job security, and an increased sense of self- efficacy. Moreover, both the domestic and foreign economy will have the chance to specialize in the production of goods that they already make efficiently, increasing production quality of goods and the decreased price of them, making consumers happier. Potential losers of outsourcing include America and unskilled workers. Americans lose out on potential job opportunities or their current jobs. This would cause unemployment to rise and the poor to become poorer.

4. If Boeing’s management decided to keep all production in America, it would reduce their competitiveness in the market. It would be challenging for the company to create the all the parts at the same quality and price as if the product was outsourced. Globally, foreign communities will lose the opportunity to raise their living standards and lead lives that can benefit future generations. Overall, the company will depress the market and is not competitive enough to counter the complexities of postmodern society.

5. I think that the benefits of outsourcing outweigh the costs. Outsourcing reconnects subcultures in America to countries where that culture predominately derives from. Americans will ultimately be able to indulge in quality goods of an even higher caliber. That cannot happen without the specialization of manufacturing certain goods which I influenced by outsourcing.