Develop a corporate profile for the Boeing Company.
Address the following discussion questions:
1. What are benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? What are the potential risks? Do the benefits outweigh the risk?
2. In 2007 and 2008 Boeing ran into several well-publicized issues with regard to its management of a globally dispersed supply chain. What are the causes of these problems? What can a company like Boeing do to make sure such problems do not occur in the future?
3. Some critics have claimed that by outsourcing so much work, Boeing has been exporting American jobs overseas. In this criticism fair? How should the company respond to such criticisms?
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The benefits for Boeing are the same as for any other company. The ability to have others hire and control labor costs is a major benefit. Also, the outsourced company must maintain the resources inventory and pay the taxes and other fees for creating the parts. There are considerations of costs, capital investment and overhead that is the responsibility of the company making the parts. Cost savings and less need for buildings, inventory maintenance and labor costs are among the most important benefits.
The potential risks are that the parts are not provided in a timely manner or are delayed for reasons beyond the control of Boeing. The costs can be passed to Boeing in terms of delays in providing the planes to clients. The quality control may be of some concern and the materials used might ...
The expert develops a corporate profile for the Boeing Company.