Boeing through hook and by crook had become the world’s only major passenger plane manufacturer. Their order books was years deep, with tens of billions of orders waiting to be fulfilled. Somehow they’ve managed to sink into near insolvency. How did it happen?
Boeing spent tens of billions of dollars over years and years buying up their own stock. They refused to invest in new designs, they refused to invest in their workers, they refused to invest in their process, their tooling, their research and development, and instead played financial games designed to boost their stock price while ignoring the fundamentals of their business. This is what happens when MBA’s take over a company, and Boeing has become a shining example of what not to do with a major company if you care about it surviving, growing, and prospering over the long run.
If, however, your goal is to “bust out” the company and snap up the wealth while destroying it, then Boeing is a shining example of exactly what to do and how to do it. Who knew “Mafia 101” would become a major part of the MBA curriculum? Then again, with hypercapitalism and all, maybe Mafia 101 is the new and improved ultimate goal.
> “When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it.” – Frederic Bastiat, “The Law”_
Again, it’s the idea that a corporation is responsible to make as much money for its shareholders as possible. The issue is with timeline. As much money as possible in the next six months, or as much money as possible in the next six years, or to generate as much value as possible in the next sixty years.
Henry Ford thought in terms of decades. The current crop of business people appear to be crooks in suit, devoid of both patriotism and common decency. When these are the values one promolgates in one’s cinema, in one’s press and in one’s universities, these are the values one will see both among bootblacks and among one’s elite.
Financialisation is the gutting of an economy. Each agent of financialisation who takes an unearned piece of the pie leaves less on the plate for those who do contribute to society, with their services, their labour or their goods.
How MBA management destroyed Boeing
Boeing through hook and by crook had become the world’s only major passenger plane manufacturer. Their order books was years deep, with tens of billions of orders waiting to be fulfilled. Somehow they’ve managed to sink into near insolvency. How did it happen?
Again, it’s the idea that a corporation is responsible to make as much money for its shareholders as possible. The issue is with timeline. As much money as possible in the next six months, or as much money as possible in the next six years, or to generate as much value as possible in the next sixty years.
Henry Ford thought in terms of decades. The current crop of business people appear to be crooks in suit, devoid of both patriotism and common decency. When these are the values one promolgates in one’s cinema, in one’s press and in one’s universities, these are the values one will see both among bootblacks and among one’s elite.
Financialisation is the gutting of an economy. Each agent of financialisation who takes an unearned piece of the pie leaves less on the plate for those who do contribute to society, with their services, their labour or their goods.
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