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.
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 Stonecipherâ€™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?