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Boeing – what happens when financial engineering replaces real engineering

9 pointsby superbraneover 5 years ago

2 comments

Trasterover 5 years ago
I'm sorry, but I simply don't see a direct connection between how you choose to finance your company and how you plan your engineering strategy. Boeing made a decision to modify the 737 instead of building a new plane. But that's a perfectly valid strategy. Hell, Boeing's chief rival is Airbus and their equivalent of the 737 Max is the A320 neo- they did exactly the same thing. It's a fine strategy. The problem was that Boeing was trying to cut costs - which is a natural and expected part of a large company. The problem was they executed that badly and the company culture became bad. But that really has nothing to do with the debt structure of the company.
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superbraneover 5 years ago
this is what happens when top management is compensated based on stock value and the bottom line. Instead of doing their job, top management practiced shares buy-backs as a way to increase share price. I think we'll get a new motto soon - if it's Boeing, I'm not going...