Essay Title: 

Written Case

April 3, 2016 | Author: | Posted in management, mathematics and economics

Airbus Industry established in the year 1970 is headquartered in Toulouse , France . It is a consortium between the governments of France Germany , United Kingdom and Spain . Mr . Noel Forgeard is the Chairman and the present President and CEO is Mr . Louis Gallois . It is one of the leading manufacturers of aero planes with its key models being A-300-B A-300-B2 , A-310 and A-320 . Its main competitor is Boeing Airplane Company of the US established in the year 1916

Airbus has grown steadily since inception . It had gained 10 market share by 1975 . With [banner_entry_middle]

first time contracts from Eastern Airlines and Thai Airways , Its market share increased to 26 by the year 1978 . Its A-310 had a two-man cockpit and the dials were replaced by six cathode ray tube displays for the first time in aviation history . By the late 1990s it had equaled with its main rival and market leader Boeing in terms of market share . In October 2002 it bagged an of 120 A-319 Jets from EasyJet , a loyal customer of Boeing , and surpassed the market share of Boeing . With expectation of more s from other low cost airlines employee strength of 45 ,000 and turnover of 24 .3 Billion it is all set to lead the industry for the first time

Its strengths are its ability to manufacture fuel-efficient Jets that are economical to operate , efficient manufacturing and innovative and cost effective new product development process . The weaknesses are its difficulty in operating as a profit making business organization and ineffective decision-making process because of its multi-country consortium structure . The threats facing Airbus are the volatile economic environment , the interference of consortium governments and the huge costs incurred by the crucial R D function . However the major opportunity for Airbus is the expected increase in air traffic by 5 year over the next 20 years fuelling a great demand for its products

Airbus should evolve suitable strategies to optimize the utilization of this great opportunity by leveraging its strengths . It should manufacture and deliver cost effective , fuel efficient and innovative airplanes to cater to the growing needs of passenger airlines , freight shipment companies , military of different countries and business corporates

Basic Concerns / Key Issues of the Company

In October 2002 with the of EasyJet , a loyal customer of Boeing for 120 aircraft going to Airbus and with the expectation of more s from other low cost airliners to follow Airbus had emerged as a leader from being a challenger to its archrival Boeing in the aerospace industry . To maintain its leadership position Airbus has to address a number of basic concerns

A number of key issues facing Airbus are concerned with its very structure . The governments of the participating countries were concerned with safeguarding their own interests rather than the interests of Airbus . The political thinking within the countries was having an impact on the company ‘s effective decision-making process . Restructuring of the company was becoming difficult , as layoff of employees was politically unacceptable in France . Valuation… [banner_entry_footer]

Author:

This author has published 9453 articles so far. More info about the author is coming soon.
Did you like this essay sample?

You must be logged in to post a comment.