1. Select one or more diagnostic modes that you believe provide a framework that succinctly identifies the key factors at the center of the Boeing situation. Explain your choice.

I chose the 7 S Framework and the six box organizational model. The models are most often used as a tool to assess and monitor changes in the internal situation of an organization.

7S Framework
1. Strategy- Boeings strategy was to update the technology systems, downsize their operations and reestablish relationships with their suppliers and the only chance of cutting operating cost.
2. Structure- the problem of 1994 was the Airbus ( their main rival-booked more orders). This shocked the management executives and began a series changes that were implemented to overcome the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that reportedly changed.
3. Systems-Boeing adopted the principles of creating more value for customers with fewer resources.
4. Style-the decision was made to diversify from the traditional commercial airline industry and that many acquisitions that were made createe integration issues for the company. They were trying to add more stability to the business by entering the space industry and information services.
5. Staff-According to The CEO of Airbus( Noel Foregeard), the process of diversification was demoralizing for Boeing employees. Boeings vice-president of marketing contradicted Foregeard and said “what affects morale right now is that we are in a down cycle” (Palmer, 2009). Regardless of why the employees morale was low, Boeing had to take steps to rectify it.
6. Skills-Boeing bet is future on the market developing a partially smaller aircraft like their new 7E7 Airbus . They also plan on purchasing larger aircraft in the future.

The Six-Box Organizational Model

Purposes: Boeing was initially in the