Boeing 737 Manufacturing Footprint: The Wichita Decision Case Solution

Case ID: 612036
Solution ID: 2721

Words: 1120

Price: $45

Case Solution

This case discusses the situation that led the Boeing to develop a separate division called Wichita. The case covers the efficiency of capital and the modularity in manufacturing and design.

Excel Calculations

Questions Covered

1. Is a horizontal industry structure a benefit or a liability for a company like Boeing? For a company like Airbus? For Commercial Aircraft Corporation of China (COMAC)? 

2. Do you agree or disagree with the Stonecipher’s strategy of only doing design and final assembly of commercial airplanes? What does theory suggest? Is there a performance-defining subsystem?

3. Why are things like NPV, EVA, RONNA, and other financial measures taught separately in finance classes?

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