Basically the company it took over, McDonnell Douglas, actually took it over - meaning the management of a successful company, Boeing, was swallowed by the management of the failed company, McDonnell Douglas.
Sadly, this is not happen to Boeing alone. Aerospace Industry, like other industries now drove by the need of short term gain from stock market. The need for fund managers that control flow of Investment is now more and more Paramount in the eyes of Company's Boards throughout multiple industries.
As a Banker I watch how the cycle will come back in the shorter intervals as time goes by. When I was still an Undergrate student, my professors talk about 20 years cycle between crisis, by beginning 21st, we see the cycle shorten to 10 years, now we in financial Industry begin to see the cycle can be shorten to 5 years. All related on the need of Capital Investors on moving fund fast but also gain fast.
My Industry (financial) have big influence for that, and I must admit the 'greed' of Investors drove the Financial Industry which then drove other industries for the need on 'short term' gain. The fluctuations of capital market, thus money market which run other industries more on more derived on shorter horizon gains.
Investors need to see how much annual return they can get, and this drove fund managers to tell all CEO's in multiple industry on: "stop talking much on long term..long term is my secondary or even fourth need..I want to now how you'll end this year".
Thus all bean counters in every companies told the strategy better be the one that can provide higher return in the shortest time.
What the article wrote is a very common strategy that any top tier/Ivy leagues business school teach for decades.. despite all talking of sustainability and business ethics, corporate responsibility, social accountability..in the end what matters most is what your investors need.
