Task

Developing Global Strategic Options and Role of Leadership 

Strategic Option 1

Enhanced Safety and Quality Assurance Strategy

Aim (BCG Matrix)

The main objective of this approach is to strengthen Boeing’s standing as a ‘Star’ in the BCG Matrix. This is achieved through building on the existing market share and promoting market development at the same time.

The spotlight, in this case, is on improving the safety and quality assurance performance of all Boeing products, especially the 737 MAX (Naor et al., 2020). By realizing this goal, Boeing will recapture its position as an innovator in the aerospace industry in the areas of market share and growth.

Tactics (Ansoff Product-Market Mix)

This strategy revolves around ‘Product Development.’ Boeing must incorporate the newest safety techniques into its plane designs. This includes a full redesign of the Maneuvering Characteristics Augmentation System (MCAS) and essential systems to maintain the highest level of safety (Johnston and Harris, 2019).

In addition, this strategy is not limited to purely technical updates. This incorporates a contemporary safety approach, with extensive pilot training programs and the use of stringent quality control measures throughout the manufacturing chain.

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Method (Competitive Generic Strategy)

This method includes differentiation. Through its focus on the safety and consistency of its planes, Boeing enables itself to distinguish itself in an environment where competition is stiff (Demirci, 2022). This strategy would allow Boeing to win back the confidence of airlines, passengers, and regulators, and thus save the company’s image and retain the competitive advantage. The focus on safety as an element of Boeing’s branding could become a key determinant in customer decisions.

International Strategy

A partnership with international organizations is very important. By partnering closely with agencies such as the FAA and EASA, Boeing can make sure that its safety standards meet or even greater the regulatory standards (Sgobba, 2019).

These alliances would not only ease the recertification of the 737 MAX but also strengthen Boeing’s reputation in the world market. Such partnerships may also provide opportunities for sharing the best practices and innovations regarding the aviation safety, which would improve the company’s reputation.

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Role of Leadership

This strategy is heavily dependent on leadership. A transformational leadership style is critical, so Boeing’s leaders genuinely motivate the employees in a culture of safety, innovation, and ethics (Bakker et al., 2023).

The implementation of safety protocols should be under the watchful eye of top management, to reflect that leadership is invested in the culture. This approach would help create a culture of safety and quality throughout the organization at every level.
 
Figure 1: Transformational Leadership
(Source: Kulhan, 2022)

Justification

This approach fits very well into Boeing’s capability and resource profile. Boeing is technically ready, has the human capital, and the financial resources to implement these changes. Additionally, the focus on safety is consistent with the goals that the company wishes to achieve in the long term and is necessary for restoring trust among stakeholders (Kolpakov, 2020).

Thus, Boeing should concentrate on these points in order to resolve not only the current issues of 737 MAX’s crisis but also establish a basis for future expansion and development. Boeing, by leading in safety, can reclaim its role as the trusted leading innovator in the aerospace sector.

Strategic Option 2

Global Market Expansion and Diversification Strategy

Aim (BCG Matrix)

The aim is to have the new ventures of Boeing placed under either the ‘Question Marks’ or ‘Stars’ quadrants of the BCG Matrix which represents the markets with high growth potential.

It also encompasses industries such as aerospace services, defense, and even possibly future markets such as space tourism (Mhatre et al., 2023). These activities will allow Boeing to capitalize on novel revenue sources and reduce threats to its commercial aviation business.

Tactics (Ansoff Product-Market Mix)

This approach is based on the principles of ‘Market Development’ and ‘Diversification’. Boeing should consider entering new geographical locations in which its presence is minimal. This may include focusing on developing economies or demographic areas with a rising demand for aviation.

Further, diversification in the neighbouring industries, such as space travel or defense, may offer new opportunities for progress (Kolpakov, 2020). This decision would not only help Boeing’s market reach but also create a portfolio equilibrium.

Method (Competitive Generic Strategy)

In these emerging industries, Boeing should pursue Cost Leadership without compromising quality. Boeing can provide competitive pricing in these new markets or sectors through utilizing its established manufacturing and R&D strengths (Wendel, 2019). This strategy would allow Boeing to compete aggressively without compromising the excellence that is desired in the aeronautical sector.

International Strategy

Part of this approach is through the development of strategic alliances and collaboration in the developing world (Appicharla, 2023). These partnerships need to be focused on compliance to local laws, culture, and customer preferences. Through establishing strong ties with the local players, Boeing is able to ease in dealing with new markets better in terms of compliance and relevance of its offerings.

Role of Leadership

In this respect, leadership should be characterized by visionary and participative leadership. Leaders need to promote a vision, identifying new opportunities in uncharted markets or sectors (Black, 2020).

While they do so, they should work with teams from other departments, stimulating creative minds and working on solutions together. This form of leadership guarantees that the strategy is in line with international standards and peculiarities of local market factors.

 

Figure 2: Visionary Leadership
(Source: Venngage, no date)
 


Figure 3: Participative Leadership
(Source: Belyh, 2020)

Justification

Boeing has a high possibility of diversifying its markets and sectors since it is global and has an aerospace-oriented nature. This plan is also based on the company’s long-term growth targets, which gives the company access to emerging markets and markets while expanding its presence in any single product line or market (Demirci, 2022).

The diversification and international growth strategy not only reduces risks but also puts Boeing in a better position to leverage new growth opportunities, thus contributing to its recovery and future success.

References

Appicharla, S., 2023. The Boeing 737 Max 8 Crashes: System-based Approach to Safety—A Different Perspective. Safety-Critical Systems eJournal, 2(1).
Bakker, A.B., Hetland, J., Olsen, O.K. and Espevik, R., 2023. Daily transformational leadership: A source of inspiration for follower performance?. European Management Journal, 41(5), pp.700-708.
Belyh, A. (2020) Participative Leadership Guide: Definition, qualities, pros & cons, examples, Cleverism. Available at: https://cleverism.com/participative-leadership-guide/ (Accessed: 18 January 2024). 
Black, G., 2020. The Vital Connection of Self-Awareness to Ethical and Participative Leadership: In the Decision Making Processes (Doctoral dissertation, Alliant International University).
Demirci, S., 2022. The requirements for automation systems based on Boeing 737 MAX crashes. Aircraft engineering and aerospace technology, 94(2), pp.140-153.
Johnston, P. and Harris, R., 2019. The Boeing 737 MAX saga: lessons for software organizations. Software Quality Professional, 21(3), pp.4-12.
Kolpakov, O., 2020. Improvement of the Boeing 737 airworthiness system based on the implementation of European aviation regulations.
Kulhan, C. (2022) A practical guide to transformational leadership, Medium. Available at: https://che-kulhan.medium.com/a-practical-guide-to-transformational-leadership-27cf45de93e6 (Accessed: 18 January 2024).
Mhatre, A., Kamble, C., Shah, A. and Malim, S., 2023. Reviving The Boeing Project By Using Project Management Methodologies.
Naor, M., Adler, N., Pinto, G.D. and Dumanis, A., 2020. Psychological safety in aviation new product development teams: case study of 737 MAX airplane. Sustainability, 12(21), p.8994.
Sgobba, T., 2019. B-737 MAX and the crash of the regulatory system. Journal of Space Safety Engineering, 6(4), pp.299-303.
Venngage (no date) Visionary leadership style example. Available at: https://venngage.com/templates/social-media/visionary-leadership-style-example-e749cce3-5853-4a44-bce0-b091fc700650 (Accessed: 18 January 2024).
Wendel, W.B., 2019. Technological solutions to human error and how they can kill you: Understanding the boeing 737 max products liability litigation. J. Air L. & Com., 84, p.379.
 

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