4 ms·
MBAs can only pull this off when there is no competition and they are in bed with the regulators. You can very easily get Boeing back on track by splitting them
by matrix_overload 3y ago
MBAs can only pull this off when there is no competition and they are in bed with the regulators. You can very easily get Boeing back on track by splitting them into multiple competing businesses, but we all know this won't happen.
- db48x 3y agoThey’re already broken up. They consider themselves to be a system integrator. They design the planes, hire contractors to build most of the parts, and then assemble the parts. The fact that this gives Boeing most of the risk and the contractors most of the profit doesn’t seem to bother them.
- matrix_overload 3y agoVertical integration is not competition. A decision maker at any level within the vertical of power is facing internal competition from political rivals, but no results-based competition from his peers in other companies. So this promotes political shenanigans, and applies negative selection pressure on the actual product quality.
- db48x 3y agoThis is some kind of vertical dis–integration. They literally sold their factories and tools to their contractors because owning land and buildings and machinery was dragging down their metrics! (Specifically assets to earnings or something along those lines.) But regardless of that, breaking up a large company because it has some problem doesn’t fix the problem. It just makes all the smaller companies you created easier to purchase. Just look at AT&T. NorTel bought every single one of the baby bells within a decade of their creation, resulting in just as much of a monopoly except now in a foreign corporation.
- musiciangames 3y agoInterested in the Nortel acquisitions, do you have a reference? I don’t see that in the Wikipedia narrative, but maybe I’m misunderstanding.