Introduction
Ultimately the case stipulates Critical issues in the analysis of the crisis at Boeing company with a specific focus on the 737 Max from a stakeholder perspective. In this context, there is a focus on communication, how it affects the brand reputation, and how stakeholders view future crises. The case study analyses the response of the Boeing company to the Lion Air crash JT 610, as of 2018. The subsequent reaction was to the Ethiopian Airlines crash. The Maneuvering Characteristics Augmentation System (MCAS), a piece of software installed in the aircraft that was supposed to prevent it from stalling, was found to have a design flaw, according to the investigations that followed. Crisis History and hindsight: A Case Study A stakeholder perspective on the Boeing 737-Max case by Wouter Jong outlines the issues and problems, underlying causes of the issues, a plan of action, and a conclusion to the Boeing 737-Max crisis.
Challenges and issues
The Boeing 737-Max crisis significantly challenged the company and its stakeholders. The first and foremost issue was the loss of trust among the passengers and airlines(Jong & Broekman, 2021). The second issue was the damage to the company’s reputation, which led to a decline in sales and revenue. The third issue was the legal challenges and lawsuits filed against the company, which resulted in the payment of billions of dollars in compensation.
The root causes
The challenges’ root cause was the MCAS software’s design flaw, which must be tested and certified. The second root cause was the failure of the regulatory authorities, the Federal Aviation Administration (FAA), to ensure the safety of the aircraft(Jong & Broekman, 2021). The third root cause was the need for more transparency and accountability of the company, which resulted in the delay in acknowledging the design flaw and taking corrective action. The Maneuvering Characteristics Augmentation System (MCAS), a piece of software installed in the aircraft that was supposed to prevent it from stalling, was found to have a design flaw, according to the investigations that followed.
Plan of Action
The first element is quality management and auditing of the technologies before the installation of the Boeing company airplanes. In this context, it follows specific ethical leadership and accountability of actions in both disapply chain the testing programs and software development. To this effect, the company should ensure that it hires competent human capital, including engineers, and that their working schedules align with the aircraft demand of the different companies they supply.
The next recommendation is on the improvement of training schedules and augmentation of the information two complete manuals which will help in pilot training. Since the technology is essential for pilots to maneuver airplanes in challenging situations, the training manual should be inclusive of their contemporary technology and any updates and should be incorporated in the simulations.
There should be proper ethical communication strategies when similar happens. In this context, ethical policy and regulatory statutes should be formulated to audit any ethical policy violations. It, therefore, means that it will be essential in optimizing trust and rebuilding the company’s reputation after the lack of accountability that was occasioned in the Ethiopian air crash.
The plan of action taken by the stakeholders to address the Boeing 737-Max crisis was multifaceted. The first action taken by the FAA was to ground all the Boeing 737-Max aircraft globally. The second action was the formation of a Joint Authorities Technical Review (JATR) team comprising aviation experts from different countries to investigate the root cause of the crashes. The third action was the revision of the certification process by the FAA to ensure the safety of the aircraft. The fourth action was the modification of the MCAS software and the installation of additional safety features in the aircraft. The fifth action was the compensation paid by the company to the victims’ families and the affected airlines.
Conclusion
In conclusion, the crisis involving the Boeing 737-Max was a serious setback for the business and its stakeholders. The crisis made clear how crucial safety and responsibility are in the aviation sector. The crisis also showed how important it is for stakeholders to communicate clearly and openly. The crisis lessons can be used to prevent similar occurrences in the future. To ensure the safety of the passengers and the aviation industry, the stakeholders must collaborate. the Boeing 737-Max crisis was a critical event in the history of the aviation industry that highlighted the importance of safety and accountability. The crisis had significant consequences for the company and its stakeholders. The root cause of the crisis was the design flaw in the MCAS software, which was not adequately tested and certified. The stakeholders took various actions to address the crisis, including grounding the aircraft, forming a technical review team, revising the certification process, modifying the software, and paying compensation to the victim’s families and the affected airlines.
References
Jong, W., & Broekman, P. (2021). Crisis history and hindsight: A stakeholder perspective on the case of Boeing 737-Max. Public Relations Inquiry, 10(2), 185–196. https://doi.org/10.1177/2046147×211001350
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