Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
Textbook Question
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Chapter 2, Problem 1DQ

Based on the descriptions and analyses in this chapter, would Boeing be better described as a global firm or a transnational firm? Discuss.

Expert Solution & Answer
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Summary Introduction

To determine: Whether Boeing could be labeled as a global or a transnational firm.

Introduction:

Global firm:

A global firm will look at the market as one global market. It will have centralized headquarters which will coordinate overall operations.

Transnational firm:

A transnational firm will have a global market but with customization for individual regional markets. The strategy will be customized for individual locations.

Answer to Problem 1DQ

Boeing would be better labeled as a global firm.

Explanation of Solution

Reasons for describing Boeing as a global firm:

The center of operations of Boeing is located in its home country, the United States. All decisions and responsibilities will be derived from the headquarters. Boeing has a vast global supply chain where the components for the aircraft are being developed in different countries, which are finally brought and assembled together at its headquarters in the United States.

Boeing has suppliers in over a dozen countries, making it global in nature. The global range and its worldwide supply chain allow it to be labeled as a global firm.

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