Stakeholder Management

Case Study Analysis On Boeing 737 MAX 8 Disasters

The Boeing 737 Max crisis is a situation that offers a good instance of how incentives
shape the character of a technical and economic structure decision that causes serious issues.
After a century of successful and respectful organizations in airplanes and aviation, Boeing's
success in building a safe commercial aircraft brought much doubt after two accidents within a
year. The way Boeing 737 MAX will return to its former glory and confidence from mainly the
general public, airline customers, and regulatory agencies. Understanding the Boeing 737 Max
crisis requires a good analysis of the Company, crisis, and several possible alternatives to address
these key issues and concerns.
The History of the Organization
Boeing is an aeronautic and aerospace giant company in America. Two individuals
formed it: George Conrad Westervelt and William E. Boeing on July 15, 1916. Before the
Company took its initial name, Boeing Airplane Company, it first had B and W and later Pacific
Aero Products (Holeman, 2019). The Company specializes in manufacturing civil aircraft and
helicopters, with its headquarters in Chicago, Illinois. The Company also focuses on the design
of satellites, rockets with defense, satellites, and military aircraft helicopters. In 1920, Boeing
had the obligation to create various aircraft designs for military transportation purposes.
However, Boeing Corporation changed its services and focused on mail services by winning
many company delivery contracts within the U.S. Post office. It was a service different from the
initial air passenger travel that B-1 Boeing's first commercial plane was intended to perform.
During the Second World War, B-17 and B-29 were some of Boeing's predominant
military airpower. After the war, thousands of workers at the Company lost their jobs because of
the reduced need for military aircraft. The Company began producing commercial planes that

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could cross the Atlantic Ocean driven by turbofans rather than propellers. The new focus on
commercial planes increased Boeing's economy in the 1980s when there was high demand for air
travel. Even with the competition from aviation and aeronautic companies in Europe, the
Company has the credit of the most acclaimed plains 737, 747, and 777 worldwide.
Background of Boeing 737 Max 8
In August 2011, the Boeing aircraft manufacturers launched the 737 Max, one of the new
versions of the most successful planes. It was the successor of the 737 Next Generation (N.G.)
and the fourth generation of the 737. The airplane had its first flight on January 29, 2016, and in
March 2017, the Federal Aviation Administration gave the Company the certification to fly the
plane. With only a few years in operation, the plane was the most preferred carrier among most
airlines and the manufacturer's flagship airplane. The 737 Max plane's praises were mainly for its
lower operation cost, quieter CFM International LEAP 1B engines, and fuel efficiency. From this
praise, the Company made sales of over 50 planes worldwide and almost 400 units. The plane
seats were between 138 and 230 from the designed and sold 737 Max planes.
The Boeing 737 Max Crisis
Immediately after the Boeing 737 Max began making international travels, the aircraft
experienced a series of fatal accidents that doubted the plane's safety. The first air crash occurred
on October 29, 2018, only six months after the introduction of the Jakarta to Pangkal Pinang,
Indonesia 737 Max Lion Air Flight 610 (Seyer & Londner, 2020). The crash took the lives of
189 passengers and all crew members. Investigators' analysis proves that the airplane had itself
began a nose-down pitching motion before it crashed and had no option of preventing the crash.
Six months later, on March 10, 2019, a similar plane, Boeing 737 MAX, had a similar incident
flying as Ethiopian Air Flight 302. The plane was on the Bole, Ethiopian to Nairobi, Kenya

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Route, resulting in the grounding of the Company's worldwide operation to date. The decision
came after much international backlash and competition on the public safety from the 737 Max
Boeing flagship aircraft.
The public negative perception of Boeing company’s value of profit over its customers
came as a result of the Company's failure to initiate a grounding process after the first accident.
Even the Senate Committee of Inquiry into the accidents re-echoed the same perception as the
public (Seyer & Londner, 2020). Boeing 737 Max took the blame fo


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