Boeing, the icon of the `Jet age' is in dire straits. The company faces numerous problems: Ethical concerns, demand slump, tough competition, poor pipeline of new products and management reshuffle. There is little respite in sight.
On December 1, 2003, Phil Condit, the chairman and CEO of Boeing resigned rather suddenly. The resignation, which was accepted immediately by the board of directors, marked the end of a tumultuous year at Boeing. Phil Condit, the brilliant engineer, who had been associated with Boeing for over 38 years had diverted the company away from its core competence during his seven-year stint at the helm of the company. He inherited a pure play company, whose core competence was in manufacturing commercial aircrafts (with amazing success) and transformed it into a diversified group, which is now struggling. Condit's resignation came in at a time when the company was facing one of the most dismal times in its history.
Richard Aboulafia, an aerospace analyst at Teal Group Corp. Consultants sums up the reasons for Condit's departure, "Phil Condit was faced with three bad situations: The ethics scandals, the commercial market downturn, and investor dissatisfaction with the company's stock price. He was surviving the second two situations, but the ethics issue broke the camel's back. Of course, he could have survived it, if it weren't for investor dissatisfaction; ultimately, that's what really matters. Their patience had run out."
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