Publications
Publications
- June 2020 (Revised October 2020)
- HBS Case Collection
What Went Wrong with Boeing's 737 Max?
By: William W. George and Amram Migdal
Abstract
This case describes the development of the Boeing 737 Max airplane model and the events leading up to two tragic plane crashes, in which a total of 346 people died: the crash of Lion Air flight 610 on October 29, 2018, in Indonesia, and the crash of Ethiopian Airlines flight 302 on March 9, 2019, in Ethiopia. The evolution of Boeing’s organization and management is described, focusing on the span from Boeing’s 1997 merger with rival McDonnell Douglas through the development of the 737 Max and the crashes. The case examines the antecedents and possible causes of the crashes, both through the lens of industry and competitive dynamics and through the lens of corporate culture and development processes at Boeing. The development of the 737 Max is described in detail, including the factors and decisions that led to the development of the Maneuvering Characteristics Augmentation System (MCAS), the system that ultimately led to the crashes. Information about Boeing’s response and actions during the period between the two crashes is also included in the case.
Keywords
Communication; Communication Intention and Meaning; Communication Strategy; Forms of Communication; Announcements; Decision Making; Decision Choices and Conditions; Judgments; Ethics; Moral Sensibility; Values and Beliefs; Globalization; Global Strategy; Governance; Corporate Accountability; Governance Controls; Human Resources; Resignation and Termination; Leadership; Leadership Style; Management; Business or Company Management; Crisis Management; Management Practices and Processes; Management Skills; Management Style; Management Systems; Risk Management; Time Management; Markets; Demand and Consumers; Digital Platforms; Supply and Industry; Duopoly and Oligopoly; Industry Structures; Operations; Product Development; Organizations; Organizational Change and Adaptation; Organizational Culture; Outcome or Result; Failure; Success; Planning; Strategic Planning; Problems and Challenges; Relationships; Business and Community Relations; Business and Government Relations; Business and Stakeholder Relations; Risk and Uncertainty; Safety; Strategy; Transportation; Air Transportation; Aerospace Industry; Air Transportation Industry; Africa; Ethiopia; Asia; Indonesia; North and Central America; United States; Seattle; Chicago
Citation
George, William W., and Amram Migdal. "What Went Wrong with Boeing's 737 Max?" Harvard Business School Case 320-104, June 2020. (Revised October 2020.)