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1 – 4 of 4Jamie O’Brien, John-Gabriel Licht and Joy M. Pahl
Public data such as news reports, interviews and memos were used to craft the case. In addition, the technical reports released by the National Transportation Safety Board (NTSB)…
Abstract
Research methodology
Public data such as news reports, interviews and memos were used to craft the case. In addition, the technical reports released by the National Transportation Safety Board (NTSB), along with secondary data in the form of expert accounts and congressional hearings were used to round out the synopsis of the case study.
Case overview/synopsis
This case explores the Boeing–McDonnell Douglas merger and its impact on Boeing’s corporate culture, ethics and strategic decision-making. After the merger, Boeing shifted from a culture focused on engineering excellence to one emphasizing cost-cutting and shareholder value. This cultural shift contributed to the development failures and ethical lapses that resulted in the 737 MAX crisis, which involved two fatal crashes. The case is designed for courses in Strategic Management or Organizational Behavior.
Complexity academic level
Strategic Management or Organizational Behavior
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John-Gabriel Licht, Jamie O’Brien and Marc Schaffer
This case has three primary objectives. First, it allows students to think through a conceptual cost and benefit analysis associated with the decision-making process in line with…
Abstract
Theoretical basis
This case has three primary objectives. First, it allows students to think through a conceptual cost and benefit analysis associated with the decision-making process in line with basic economic thinking. Students will revisit core concepts of marginal benefit vs marginal cost, the notion of opportunity costs and the role of sunk costs in this type of analysis, while also highlighting the nature of market structure, oligopolies and competition across firms in an industry. The second goal of this case is to consider the role of business ethics in the DC-10 case: specifically, to consider the potential influence of moral awareness and moral disengagement in unethical decisions made by McDonnell Douglas. Students will develop an understanding of these concepts and solidify their learning by applying them to the case and engaging in active discussion. Finally, the third goal of the case allows students to explore organizational culture and specifically offer recommendations for organizations thinking about the link between decision-making, the role of ethics and culture.
Research methodology
The technical reports released by the National Transportation Safety Board along with secondary data such as available public data such as news reports were used to round out the synopsis of the case study.
Case overview /synopsis
This case explores the accidents of two McDonnell Douglas DC-10s in the early 1970s at the onset of the jumbo jet race between Boeing, Lockheed and McDonnell Douglas. It explores the series of events during the “Windsor Incident” in 1972 and the subsequent accident over Paris in 1974. It explores the reasons why the cargo door on the DC-10 was faulty and subsequently why the door was not fixed. It examines the interplay of industry suppliers such as McDonnell Douglas and how they interact with oversight authorities such as the Federal Aviation Authority. The Teaching Note focuses on the economic thinking at McDonnell Douglas, behavioral ethics and organizational culture.
Complexity academic level
This case is best explored over a 90 min session but could be expanded to take up one 3 h session. The authors have used this case format in an undergraduate organizational behavior class, an MBA Leadership and Organizational Change class, and an MBA Economics of Managers class. It works particularly well in the MBA setting, as students with work experience can see the links between the mistakes made by McDonnell Douglas and their workplaces.
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Jamie O’Brien and John-Gabriel Licht
The technical reports released by the National Transportation Safety Board, along with secondary data in the form of available public data, such as news reports, interviews and…
Abstract
Research methodology
The technical reports released by the National Transportation Safety Board, along with secondary data in the form of available public data, such as news reports, interviews and memos, were used to round out the synopsis of the case study.
Case overview/synopsis
This case explores the events that led up to the crash of United Airlines Flight 717 (for anonymity), in Sioux City, Iowa, on July 19, 1989, and the subsequent investigation. The case uses secondary sources to highlight the positive team interactions between the pilots that led to the crash landing not being as catastrophic as it might have been with 185 survivors in an extreme crisis scenario. The teaching note focuses on the importance of cognitive bias, psychological safety and teamwork in a crisis situation, and practical recommendations for managers at all levels.
Complexity academic level
Organizational Behavior at the undergraduate and graduate level. Leadership and Change at the graduate and graduate level.
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