Question

1. Describe the organizational structure of Boeing. Do you think it is optimally organized to achieve its goals? Why or why not?

2. What factors predict which type of organizational structure a company is most likely to adopt?

3. Find an example of a firm that operates as an LLC. Why do you think the owners of this firm chose this form of business over others?

Answer 1

1

Boeing Organizational Structure Boeing claims to be the world’s largest aerospace company and leading manufacturer of commercial aircraft and defense, space and security systems (Boeing, 2016). As per Boeing (2016), items incorporate business and military flying machine, weapons, satellites, dispatch frameworks, safeguard frameworks, correspondence frameworks, and execution based coordination’s and preparing. Boeing has corporate workplaces in Chicago, IL, and utilizes in excess of 165,000 individuals in the US and in excess of 65 nations. Boeing is sorted out into two specialty units:

·Boeing Commercial Airplanes

·Boeing Defense, Space & Security.

Boeing uses the global matrix organizational structure. A worldwide network is an authoritative structure frequently used to ease the burdens related with both geographic region and worldwide item division structures (Peng, 2014). The framework structure is a mix of the practical and divisional structures (Johnson, n.d.). The matrix organization structure was introduced in the aerospace industry in the 1950s to deal with complex projects (Hall, 2008). Since the 1950s many organizations have adopted the matrix organization to deal with internal and external complexity.

The framework association structure mirrors the outside multifaceted nature in the inward structure (Hall, 2008). In a grid association structure ordinarily requires different revealing lines. The framework association partitions expert by practical zone and by task. Each employee will report to two immediate supervisors which includes a functional supervisor and a project supervisor. People must work together in the matrix organization for it to succeed (Hall, 2008).

Advantages of the matrix organization structure (Hall, 2008):

·Better coordination on shared technologies across the organization.

·Improved ability to access resources across the old functional and geographic silos.

· Improved access to a diverse range of skills and perspectives.

· Faster decentralized decisions

·Broader and more multi skilled people development.

·Improved global or regional projects.

·Reflects the needs of global or regional customers.

·Increased communication and coordination across the business. .

Disadvantages of the matrix organization structure (Johnson, n.d.):

·May cause division among employees and managers.

·Can increase internal complexity.

·Organization may experience high employee turnover.

·Employee dissatisfaction and low morale.

·Competition for scarce resources may cause hostility within the workplace or hinder production.

·Can be expensive to maintain.

·May cause unhealthy competition between managers within a company.

Geographic Location of Sales

Boeing and Airbus are a global venture whose geographic area of offers extend around the world. Their area of offers incorporates Asia-Pacifica, Europe, North America, Middle East, Latin America, and Africa. Every area reacts to its one of a kind circumstance and conditions with specific prerequisites and rivalry between one another. The two organizations trust that throughout the following 20 years more individuals from rising economies will start to travel.