cleaning up boeing

IE 652: FUNCTIONS OF EXECUTIVES

GRADED CASE STUDIES

Department of Industrial Engineering
Faculty of Engineering
King Abdulaziz University
Jeddah, Kingdom of Saudi Arabia

Fall 2014

CONDITION
The information supplied in this document is for the use of students undergoing IE 652: Functions of Executives course.
DESIGNED & DEVELOPED BY: Dr. Muhammad Ehsan Ulhaque

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FALL 2014
CASE STUDIES

IE 652: FUNCTIONS OF EXECUTIVES
Facilitator: Dr Muhammad Ehsan Ulhaque

Case Studies (5 Graded Marks each / 30 Points for Each Case) In this document you will find 4 case studies taken from different Chapters. The common is, these case studies were published in Business Week. Please read these cases carefully and then attempt the questions at the end of each case.

As these are four case studies therefore these are considered as 4 assignments. You should do all these 4 assignments.
You should submit your assignment on / before the due date as shown in the Event Manager through my eMail [email protected] Assignments sent in an unreadable format will not be considered for credit. eMails turned in late will not be considered for credit. Font should be ‘Candara’. Font Size should be 11 for normal text, Headings should be size 12, bold & underline. The document text should be justified.

Following are the marks distribution:
 Synopsis of the Chapter – 5 points
 Synopsis of the Case – 5 Points
 Answers to the Questions with Justification – 15 Points  How the idea can be fitted to your organization? – 5 Points

Schedule for submission has already been given in the Event Manager. After due date + 1 the site will not accept any assignment. A paper turned in a day late will be considered for half credits. Papers more than a day late will not be accepted.

Submission Schedule
Case Study 1 – Submission Date – Oct 26, 2014
Case Study 2 – Submission Date – Nov 14, 2014
Case Study 3 – Submission Date – Nov 28, 2014
Case Study 4 – Submission Date – Dec 15, 2014

2 IE 652: Case Studies – Business Week – Fall 2014

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1
Cleaning Up Boeing
By Stanley Holmes
Business Week – Case in the News [LO 1, 3, 5] Chapter 4
When W. James McNerney Jr. decided that Boeing Co.'s (BA) top managers needed a loud wakeup call, the new chief executive chose the obvious place to sound the alarm: the company's annual executive retreat on Jan. 4 and 5. A year earlier, the event had been held at the posh Mission Hills Country Club in Palm Springs, Calif., and nobody apparently had a better time than McNerney's predecessor, Harry Stonecipher. After a day devoted largely to socializing and playing golf, the former CEO, surrounded by Boeing's elite, closed down the bar and then fired up a cigar. It was at the same event that the married Stonecipher began a relationship with a female vice-president at Boeing -- a misjudgment that ultimately paved the way for his humiliating ouster on Mar. 6, and for McNerney's appointment as CEO on July 5. Stonecipher could not be reached for comment. The "Palm Springs fling," as it became known at Boeing, marked an all-time low for the company. It followed a three-year binge of widely publicized corporate misbehavior highlighted by the jailing of Boeing's former chief financial officer for holding illegal job negotiations with a senior Pentagon official, the indictment of a manager for allegedly stealing some 25,000 pages of proprietary documents from his former employer, Lockheed Martin Corp. (LMT), and the judicial finding that Boeing had abused attorney-client privilege to help cover up internal studies showing that female employees were paid less than men. Scandals involving multiple forms of misconduct in geographically scattered locations enveloped nearly every division at Boeing, leaving little doubt that the legendary company, even as it began to enjoy a cyclical boom, was plagued by a poisonous culture.

Given that backdrop, nobody was particularly shocked when the 2006 annual...