Boeing under Phil Condit


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Case Details:

Case Code : BSTR098
Case Length : 14 Pages
Period : 1992 - 2004
Organization : Boeing Inc
Pub Date : 2004
Teaching Note : Available
Countries : USA
Industry : Aerospace Industry

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EXCERPTS

Condit Becomes CEO

Condit was born on August 2, 1941, in California. From a young age he was an aviation enthusiast, and earned his pilot license at the age of 18. In 1963, he received his bachelor's degree in mechanical engineering from the University of California, and in 1965, a master's degree in aeronautical engineering from Princeton University. Soon after receiving his master's, he joined Boeing as an aerodynamics engineer on the prestigious Supersonic Transport (SST) project. The project was aborted due to lack of federal support in the early 1970s and Condit moved on to other assignments like the development of the Boeing 747, the short haul development systems program and the marketing of the 727 plane...

Boeing Under Condit

Soon after Condit became the chairman of the company, he received his doctorate in engineering from the Science University of Tokyo.

In 1997, a manufacturing crisis, coupled with the depression in Asian markets (on which Boeing was heavily dependent), resulted in huge losses for the company. Realizing the dangers of being overly dependent on one category of business (commercial aircraft), Boeing began diversifying into space, military and missiles. Under Condit, Boeing acquired Rockwell International Corporation's (Rockwell) aerospace and defense units (1996), McDonnell Douglas (1997), the space and communication business of Hughes Electronics Corporation (Hughes in 2000) and Jeppesen Sanderson Inc. (2000). These acquisitions established Boeing as a diversified aerospace company and reduced its dependence on the volatile commercial aircraft market...

The Boeing Future

Soon after Condit's resignation, the board voted to develop the long-pending 7E7 aircraft. This was the first product development in the company since 1990, when the 777 plane was developed. The development and success of the 7E7 was critical to Boeing's future in the commercial aircraft market and was expected to reestablish it as the leader of commercial aviation...

Exhibits

Exhibit I: Global Aerospace Industry - Market Shares (In %)
Exhibit II: Contribution of Different Segments to Boeing's Corporate Revenues (In %)
Exhibit III: Boeing Vs Airbus - Projects in the Pipeline
Exhibit IV: Boeing's Net Earnings Under Condit

 

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