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Boeing is a U.S. firm, with a long history and good relationships with many U.S. airlines, where there is a nationalistic culture and close relationships with countries such as Japan. However, the culture is one that has been influenced by internal strife at many points in time, with a high union presence following the conflict model (Bryson, 2001). For example, in 2008 the company faced a strike by more than 27,000 workers following Boeings concerns regarding job security and pay when Boeing increased the level of outsourcing cost efficiency and flexibility (Gates, 2008). Bryson (2001) argues that the reason for the emergence of a collective culture characterized by conflict is the result of an employment relationship lacking communication and trust. However, Boeing over the years have sought to overcome this and create more unity, as seen with the rebuilding of the Boeing 737 manufacturing site at Renton, Washington, after it was destroyed by an earthquake (Steelcase, 2005). The redesign of the facility sought to reduce the barriers between management and employees so create a greater level of cooperation. Other strategies included increased communication and teamwork. More recently, the difficulties faced by the airline following the recession and the fear for jobs has also served to create more unity, but this has not prevented disagreements.

By comparison Airbus is a far more diverse firm, starting out in 1970 as a consortium of manufacturers from different European countries with members from France, Germany, Spain and later the UK. The culture of the organization may be argued as highly diverse, reflecting the national cultures from which the member companies originated. The internal culture had to deal with a wide range differences, including languages and general cultural practices. The firm has also had conflict, in 2011 firm faced a walk out by 11,000 German workers in protest at the requirement for productivity gains (BBC News, 2011). However, the European firms that made up Airbus, comes from an environment where there is generally a more cooperative model of collectivism with a higher level of social support (Legge, 2004; Hofstede, 2003).

It may be argued the respective cultures have influenced the way the firms develop strategy for themselves and each other. Airbus started out as the follower; only formed in 1970 when Boeing was already the market leader. Part of the firms' strategy was to find a way to compete which would allow them to compete with the larger firm, this included seeking and gaining government subsidies and support. While Boeing saw this as unfair, it was argued by Airbus and the relevant governments it was temporary, to help place Airbus in a position where they gained a sufficiently string market position and reputation to allow them to