Individual Case Study - Managing under uncertainty

Individual - Managing under uncertainty - Case Study Example Another major difference identified is the way by which the companies want to cater to their target segment. Boeing emphasized on the use of point-to-point system whereas Airbus authorities judged hub-and-spoke system to be more effective for the company and deemed it as the future of the airline industry. 1.0 INTRODUCTION This report attempts to investigate the decision making agenda of the two multinational Aerospace and Defence Corporations namely Airbus and Boeing Airlines Company. The case made it evident that the aerospace industry has been witnessing colossal growths since the last few decades as a result of that rivalry among the established players of the industry also reached an intense state. Despite that, the concern of both the companies was associated with the ways by which they can satisfy the rapidly growing market of aerospace. It has been observed that till the late 1990s, the size of aircrafts grew at an even rate, but since then trend begun to shift drastically an d companies started to manufacture both smaller and jumbo aircrafts (Hitt, Ireland and Hoskisson, 2009; Ward and Tripp, 2013). The motive of the companies operating in the aircraft industry also shifted from enhancing market share to increase the profit. The companies are now apprehensive over the decision pertaining to the way they can capitalize on the opportunities provided by the industry and market. There were clear indications of the differences between the two companies pertaining to the area of concern. According to the authorities of Airbus, the hub-and-spoke system is the future of the airline industry and is probably the most viable option for successfully catering to the needs of the customers. On the contrary, Boeing emphasized on the use of point-to-point system, which they consider to be the pragmatic approach to satisfy the multi dimensional needs of the consumers. Therefore, a great deal of divergence among the decision making parameter exists between the two establ ishments. This report will make use of the sociological perspective to discover the challenges faced by the companies and on the basis of that companies will be subsequently recommended about the line of attack they should undertake to confront the issues. 2. THE DECISION MAKING FRAMEWORK AT BOEING The history of Boeing goes back to the year 1916, when the company begun its operation in Seattle, Washington, U.S. The company was founded by William Boeing and it is currently headquartered at Chicago, Illinois, United States (Pasiuk, 2005). The company was initially incorporated under the name of Pacific Aero products Company, but within one year of operation the name was changed to Boeing Airplane Company. Due to the previous experience of working in timber industry and knowledge on wooden structure, the designing and manufacturing of airplanes was not at all a complicated task for him. Some of the products manufactured by the company include commercial airlines, military aircrafts, s pace systems, and computer systems. 2a. A sociological perspective The parameters on the basis of which the decisions are made have an insightful impact on the efficacy of the decision (Bryant, 2011; Gates, 1999). Scholars have even mentioned that a number of paradigm have profound impact on the decision