Corporate Governance

Boeing 737 (B)

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These cases describe how Boeing handled the situation of their 737 airplane. Designed in the 1960s, it was difficult to update with current engines in the 2010s. Faced with high competitive pressure, Boeing opted for shortcuts and created the 737Max, which had two accidents and was grounded worldwide.
Bibliographic citation: SAMILA, S., WEHRHEIM, D., BIQUEZ TALAYERO, J., BAEZA, A. (2022). Boeing 737 (B). IESE, SM-1728-E.
Date: 01/06/2022
Author(s): Sampsa Samila; David Wehrheim; Jesús Biquez Talayero; Antonia Baeza
Document type: Case
Department: Strategic Management
Sector:
Languages: English
Year of the events: 2010
Geographic area: Global
Learning objective This case allows discussion of multiple topics. First, there is the question of legacy technology. Most companies at some point face the question of how to update their technology platform. Second, there is the question of competitive interactions and how companies respond to increasing competitive pressure. There is also potential for a discussion of ethics and governance, in considering how Boeing opted to take shortcuts that resulted in accidents that killed hundreds of people.