Project on Business Research

Business Research Project

Area of Research: Strategies and Decision-making 

Project/Dissertation Title: Exploring the Strategies and Decision-making Approaches that Boeing should Adopt to React to the Business Challenges after 737 Max Crash. 

Project/Dissertation:  

This research project explores how the Boeing company strategizes and makes decisions specifically after the 737 Max crash, significantly affecting its business operations and model. The two crashes of 2018 and 2019 hit the company's core and had to reflect on its infrastructure and management (PBS, 2021). The research paper intends to compare the strategies and decision-making process before and after the crashes. The goal is to assess the mistakes and explore what the future holds for Boeing by analyzing the already implemented strategies and conducting extensive research to allow for recommendations. 

Research Aim Objective and Question 

The research aims at finding out how Boeing has revolutionized its business strategies and decision-making approaches after the 737 Max Crash. The main objective of the research is to explore the strategies and decision-making process for Boeing before the 737 Max crash.  

This objective follows a couple of specific sub-objectives:

i. To examine the strategic and decision-making changes after the 737 Max crash.

ii. To explore how the Boeing Company can explore diverse strategies and decision-making processes to enhance its business operations. 

The central research question guiding this research is: How has Boeing revolutionized its business strategies and decision-making approaches after the 737 Max Crash?

To explore the above questions and objectives, the research is broken down into the following specific questions:

Which strategies and decision-making methods did the Boeing Company use before the 737 Max crash?

i. Did the Boeing Company change its strategy and decision-making process after the crash?

ii. Which strategy and decision-making methods can the Boeing Company use to streamline its business operations and compete effectively?

Literature Review/Theoretical Framework 

The research studies how the Boeing company strategizes and makes decisions specifically after the 737 Max crash, significantly affecting its business operations and model. This is within an institution-specific knowledge of Strategies and Decision Making. Herein, I

discuss how Boeing operated before, during, and after the 737 Max crashes and how it reacted to the business challenges. 

How Boeing performed before and during the crashes 

Boeing Company has been the world's core manufacturer of commercial jetliners for decades. It has been renowned as the greatest innovator in the aerospace industry-with over 14,000patents to prove it. Boeing has survived brutal market forces-the competitors. Nevertheless, Boeing is the most significant contributor to U.S trade competitiveness and the main guarantor of American leadership in global aerospace (Forbes, 2021).

However, Boeing's achievements have been overshadowed by the Aftermath of the 737 Max crash, which left hundreds of people and killed almost 350 people. At least two days after the Ethiopian Airlines crash, Boeing made crisis communication missteps that may affect the company's reputation and credibility for a long time. Initially, their approach was too defensive, slow, passive, and lacked openness and accountability. 

Statements released on October 29, 2018, and March 10, 2019, communicated the company's deep sadness, extended their heartfelt sympathies, and stated how Boeing would provide technical assistance to the companies involved (Jong & Broekman, 2021, p.191). After the initial crash, the stakeholders-Lion, Air, relatives, and investigators, reacted neutrality and attributed no responsibility to Boeing.  

However, the blame levels took a different turn when Boeing's management referred to its Operations Manual Bulletin, which directed operators to take care of circumstances where one of the sensors sent an erroneous input. The FAA (Federal Aviation Administration) portrayed its commitment to Boeing and reinforced the bulletin. 

However, things changed rather drastically when the pilots reacted to the publication saying that the new procedure was not included in the standard operating manual and that the company's manual was incomplete. Boeing refused to take responsibility and claimed that they were confident that the Boeing 737-Max was safe to fly. 

Boeing used 'denial' as their crisis response strategy after the March 10, 2019 crash-a strategy they also used five months later. They denied any association with disruption and failed to keep their options open-that; there might be a problem with the Boeing 737 max and an erroneous input from one of its sensors. Boeing's strategies and decision-making methods after the 737 Max crash disregarded best practices in crisis management in terms of a sense of humanity, visibility, and transparency (Segal, n.d). 

The Aftermath of the 737 Max crashes 

Boeing has since suffered the consequences of its denial of responsibility for the crashes. The CEO, Dennis Muilenburg, was fired by Boeing two months after testifying in court that they would have grounded the Boeing 737 Max after the first accident if they knew back then what they know now (PBS, 2021). Boeing claimed that it fired him to restore confidence as it works towards repairing its relationship with the regulators, customers, and stakeholders. 

Besides, Boeing's pockets were hurt when the Department of Justice ruled that the company would pay a $2.5 billion settlement. This was to resolve a DOJ charge claiming the company's conspiration to defraud the FAA's Aircraft Evaluation Group. The acting assistant attorney general of the DOJ's criminal division said that its employees chose profit over candor when they concealed vital information from the FAA concerning the 737 Max airplane operation. Boeing and its executives would be granted immunity from further criminal prosecution if they lived up to the terms of the settlement (NPR, 2022). 

Nevertheless, Boeing has since faced more than 150 lawsuits from families of people who died in the crashes. Most countries, including China, the European Union, and even the U.S. FAA, grounded the plane-the 737 Max after the second crash. However, after retesting and approving the planes, the FAA ended the grounding in November 2022 and put strict guidelines to be followed before placing the aircraft into service (PBS, 2021). Things got a little better for Boeing in March 2021, when it received the most significant order for 737 Max aircraft. News reporters claimed that this was a vote of confidence for Boeing -accelerating recovery and boosting Boeing's 737 Max. 

Even with all the steps and the orders Boeing has received since the crashes; it is still at a disadvantage compared to its main competitor Airbus. This is because it is yet to develop new planes to satisfy the demand from its market as it recovers from the crisis. Boeing is experiencing an under-resourced engineering and development of new products and focusing on returning cash to its shareholders. 

Resuming service meant one thing for the Boeing Company- it had to ensure that the 737 Max was safe through multiple tests by FAA (PBS, 2021). However, there was resistance from various global airline regulators who chose to take more time in the certification process. In addition, it meant that the business operations for Boeing had changed, and it was facing different market structures that required a unique approach. In light of the crisis, Boeing shifted its business strategy and decision-making processes to favor financial performance by cutting costs, shedding assets, and increasing reliance on global suppliers. They aim to lower unit costs of labor and capacity to gain higher short-term margins (Sorscher, n.d.). The Boeing team has been steadfast in sharpening its focus on safety, quality, and transparency. This has enabled them to safely return the 737 Max to service through a detailed, lengthy, transparent certification process (Boeing, 2022, p. 1). Nevertheless, they stated that they are laying the foundation for their company's future growth through advanced development of their jetliners, developing a digital ecosystem, investment in Wisk for urban air mobility, etc. 

Methodology 

       i. Research Philosophy and Approach

The research is mainly qualitative and quantitative. It involves extensive study of the subject area to widen the understanding of the topic and provide suggestive evidence and be specific in the findings. The research will be guided by the research questions outlined herein. 

The researcher will use the questions to identify the strategies and decision-making methods the Boeing Company used before the 737 Max Crash. They will also determine whether the Boeing Company changed its strategy and decision-making process after the crash and the strategies and decision-making methods Boeing can use to streamline its business operations and compete effectively. 

The researcher will use methods like library research, case studies, structured and unstructured interviews, and focus groups to undertake the qualitative research. For example, a quantitative research design will determine how long a business takes to bounce back into normal operations after a crisis and the percentage to which a company's strategies and decision-making processes affect its success.  

Research Methods

Library research

A review of related studies that other researchers had previously undertaken will be carried out. This is aimed at improving methodology and procedures, avoiding duplication of studies. The analysis will be based on projects where an attempt to shift strategies and decision-making processes had been carried out to learn from them about business strategies and decision making. 

Case studies

An intensive description and analysis of a few companies that shifted their strategies and decision-making approaches to business challenges were done. Case studies will be analyzed using a variety of sources, namely;

· Archival records

· Interviews

· Observation

Structured and unstructured interviews 

Structured and unstructured interviews were conducted within the Boeing Company and other companies after authorization. The information gathered from the interview was both specific and open-ended. The researcher will collect information regarding how the crisis happened, what led to the situation, the companies' operations, and how they operated after the problem. 

Moreover, some of the stakeholders in the Boeing company will be interviewed by the researcher. They will talk about their experience with Boeing during, before, and after the 737 Max crash. During the interviews, the stakeholders will also be asked to suggest how they think the Boeing company can change its structure to ensure success after the crisis.  

Focus groups

Focus groups will be created to discuss some of the strategies and decision-making processes that companies can apply in response to business challenges and how they can effectively do so. 

iii. Research Data Collection, Processing, and Analysis

The data collection process will use secondary data to gather information. 

The following data collection techniques will be used during data collection:

· Notes

After research through library research, case studies, and interviews, notes will be taken in summary for dissertation purposes.

These data collection methods will be used during the data collection process:

· Questionnaires 

Random questions will be used to collect data from randomly selected respondents. The respondents will be mostly the stakeholders of the Boeing company. This will aid in collecting information on people's perceptions, attitudes, and values on how the Boeing Company responded to the business challenges before and after the 737 Max crash.  

· Observational checklists

Involves ticking off and filling a prepared list of features deemed necessary. This is ideal for comparison purposes and will help the observation method by enabling the acquisition of standard data on selected case studies.  

· Case studies

It involves intensive description and analysis of an individual subject based on information obtained from various sources. In addition, case studies will be carried out through an intensive description and analysis of a few companies that have shifted their strategies and decision-making approaches to business challenges.

· Articles and internal documents

Articles from the specialized press, websites, financial databases, and internal documents of various companies will be used to collect information about the companies' history, structure, and financial growth. These will also be used to analyze strategic changes before the company's shift in its strategic and decision-making approaches.  

The following recording tools will be used to obtain data; pre-corded checklists, writing materials, the internet, and unstructured and structured questionnaires. 

Sampling procedure

i. Sample size

This study will entail the use of 20 respondents who have either worked at Boeing or still work at Boeing. It will also include other stakeholders like relatives of the people who died in the crashes and even investigators of the crisis. the sample size may be altered if the need arises-when the data collected is inadequate.  

ii. Systematic sampling

This technique will be used in the study to obtain a sample from a defined population. Respondents will be selected to answer questionnaires relating to the study.  

iii. Sequential sampling

This technique will be used in this study to evade excessive data for the required level of accuracy. Therefore, as the data will be observed and collected, it shall stop immediately when sufficient data is attained. These are methods and procedures used to carry out the research.  

This qualitative research investigates a question without attempting to measure variables or look at potential relationships between variables quantifiably. It involves the description and interpretation of phenomena that is under investigation. A descriptive study is one in which information is collected without changing the environment. Boeing and the case study companies will continue their normal operations even while the research takes place.   

Data analysis

To conduct data analysis in quantitative research, data collected from the sample field will be reproduced into a form that could provide straightforward interpretation and then coded into a system of statistical indices. Data analysis and organization will be undertaken in three steps, data validity, data editing, and data coding. Data validity aids in analyzing collected data by ensuring accuracy, quality, completeness, and relevance to the study since it permits cross-checking and confirmation of any inadequacies. Existing gaps in the data will be filled by inferences from memory or comparisons derived from other research methods. 

Data editing will ensure consistency between the data collected and the facts gathered through uniform data entry, observation f completeness, and proper arrangement to expedite coding and tabulation. Nevertheless, data coding will include grouping and categorizing the edited information into groups which will e assigned precise numerical and alphabetical codes for more straightforward analysis.  

The validity of the data collected in the field will be concerned with checking the subject's response to what existed in the area. This will involve a comparison with bookcase studies. The reliability of the data collected in the field will entail consistency and the probability of obtaining the same findings if the research is conducted again. Inconsistency will be avoided by repeating different wording questions to confirm the response. The reliability will further be enhanced by using internal checks through direct observation.