Boeing 787

Management Risks

• Boeing had inadequate outsourcing capabilities of the 787t, exposing it to management risks.

• Boeing failed to perform market analysis as it lacked experience.

• Boeing outsourced 70% of the 787t parts, exposing it to unforeseen implications.

• Outsourcing increased the operations costs resulting from hidden expenses (Denning,

  2013).

• Boeing lacked proper communication skills during the outsourcing process.

  o Communication failures bloated the cost of production and increased delays.

• Management dangers caused costs overrun in the Boeing 787t project.

Labor Risks

• Outsourcing 70% of the 787t parts affected Boeing’s workers’ job security.

• Boeing failed to involve its employees in decision-making processes, demotivating them.

• Subcontracting other entities affected Boeing’s relationship with labor organizations.

  o In 2008, over 25,000 Boeing's employees downed their tools (Tang et al., 2009).

• Workers failed lawsuits over Boeing’s failure to address their immediate safety and

  remuneration concerns.

• The boycott tarnished Boeing’s corporate image, affecting its future business.

• Boeing’s strain with its employees affected its relations with its suppliers over fears over

  order cancellation.

Demand Risks

• The introduction of the 787t resulted in high demand from airlines.

• High demand prompted Boeing to outsource parts for production.

• Boeing failed to deliver the 787t aircraft on time, augmenting its problems.

• Demand concerns prompted the cancellation of orders.

  o Within eight months, Boeing's orders fell from 895 to 850 (Tang et al., 2009).

• Outsourcing of the 787t components resulted in end-users' dissatisfaction.

• Loss of customer faith prompted Boeing to compensate them for damages and

  invest in restoring its image.

Conflicts between Stakeholders