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This podcast explores how a mega-merger in 1997 may have caused Boeing's downfall, including cultural clashes, the grounding of the 737 MAX 9, a terrifying incident on an Alaska Airlines flight, compromising quality and safety, and the ongoing challenge of rebuilding trust.
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- Boeing's culture shifted from prioritizing engineering excellence to pursuing cost and shareholder value after its merger with McDonnell Douglas in 1997, compromising quality.
- Boeing's decision to tweak the existing 737 design to compete with Airbus instead of investing in innovative alternatives, as a consequence of the merger with McDonnell Douglas, compromised safety and quality, leading to fatal accidents in 2018.
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Boeing's Merger with McDonnell Douglas
In 1997, Boeing acquired McDonnell Douglas in a $14 billion merger. The merger led to a significant change in Boeing's culture, shifting from prioritizing engineering excellence to pursuing cost and shareholder value. The company started outsourcing critical operations and moved its management headquarters from Seattle to Chicago. The culture change compromised quality, as evident from subsequent incidents and safety issues.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode