What's Wrong With Corporations?

[Callie Del Noire]

Boeing took up a bunch of Welch's proteges and started burning bridges with engineers very quickly. I heard personal accounts of them dicking people over while in school.

Later, they wondered why they had trouble finding engineers.

Amazon is running out of people to hire. They've burned so many bridges so quickly.

Corporations naturally work to externalize costs, and this is going to get more prominent the bigger the corporation.

When I was in the navy, we’d hear horror stories of how Boeing would run a military contract for 1/2 to 3/5ths complete over manned the shelve half the staff and when productivity dropped renegotiate for a higher contract then rehire staff.

[GloomCookie]

Standard Oil is a classic example of vertical integration.  This is really, really basic stuff.

I'm afraid you're wrong. Vertical integration is where a company controls links in the supply chain, while horizontal integration is where a company controls the market they're in.

https://en.wikipedia.org/wiki/Vertical_integration

Please do not just say I'm wrong without doing a basic Google search.

[Dashenka]

When I was in the navy, we’d hear horror stories of how Boeing would run a military contract for 1/2 to 3/5ths complete over manned the shelve half the staff and when productivity dropped renegotiate for a higher contract then rehire staff.

But Boeing are paying the price now. Both in civil and military aspects. They've controlled the market basically for such a long time and did things their way.

Airbus got ignored largely by Boeing and now Airbus has at least caught up with Boeing and with the issues Boeing aircraft have been showing lately, it wouldn't surprise me if the ramifications of this will echo long and far. Especially with the aviation industry in general struggling.

They were arrogant and sluggish and slow to react and although I doubt the US army ever changing to Airbus, there is a few major European countries that have places orders for Airbus military equipment, not to mention the civilian airlines that change over to Airbus.



So in this case, it's a bit of karma and arrogance that now cause Boeing to struggle on the civilian market at least.

[TheGlyphstone]

Standard Oil is a classic example of vertical integration.  This is really, really basic stuff.

I'm afraid you're wrong. Vertical integration is where a company controls links in the supply chain, while horizontal integration is where a company controls the market they're in.

https://en.wikipedia.org/wiki/Vertical_integration

Please do not just say I'm wrong without doing a basic Google search.

Standard Oil is a famous example of both horizontal and vertical integration, combining extraction, transport, refinement, wholesale distribution, and retail sales at company-owned gas stations.