In: Operations Management
Give one company in this 21st century that has benefited tremendously from ethical issues and leadership development, knowledge and practice.
please solve this question kindly explain your answers.
The best example that we can present here in Boeing. A company that had almost more than 50% shares of world's largest industry of aircraft manufacturing. Boeing and Airbus has the monopoly in thsi business and to compete to one another Boeing forgot the importance of ethics and good leader at the top was missing . Airbus introduced Neo whcih was less costly and better effcicient than Boeing aircrafts . To comepete they introduced 737 max with less costa nd to capture the market but the ethics was not followed at all.
•Boeing claimed that 737 max was similar to original 737 series of theirs and that pilots doesn’t need additional training and simulator time .
•The engine size was increased to have better fuel efficiency than 737.
•The engines were kept higher on the wings and in front of the old position.
•This changes made the aircraft unstable in certain conditions like steep pitch.
They introduced MCAS :
•To address the issue of instability while hard turns .
•It checks airspeed , altitude and angle of attack.
•They used sensors to get the readings.
•Command the aircraft’s trim system to adjust the rear stabilizer and lower the nose.Push the pilot’s yoke in the down direction.
But the pilots was not given an additional tests on MCAS as it would increase their costs. So while on flight they had issues controlling it.
•FAA certified 737 max 8, but some of the certifications was asked to be conducted by Boeing itself . It is a practice in this industry .So they faked many tests.
And finally the flights crashed in ethopia due to :
•Accident happened in march 2019.
•Around 136 people were died in that accident.
•Within 12-16 minutes the plan got blown up.
•MCAS was the reason for this major accident.
•MCAS was taking input from only one sensors.
•Inclination of the right and left wings were not in sync.
One more crash happend in Jakarta also in Indonesia , with almost same reasons.
This was clear case of ethics over money and market share.The company was focused on profits and now they lost the entire market and most of their flights grounded and waiying for apporval. The then CEO was Dennis Muilenburg was sacked due to this which shows a lack of proper leader can collapse the entire dynasty of 103 years.
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