270 likes | 434 Views
Presented by: Michael Weidner Lindsay Brew Robert Zander. Airbus | Case Presentation. Introduction History Industry Analysis Company Analysis Competitor Analysis Recommendations. Introduction. Mission Statement:
E N D
Presented by: Michael Weidner Lindsay Brew Robert Zander
Airbus | Case Presentation • Introduction • History • Industry Analysis • Company Analysis • Competitor Analysis • Recommendations
Introduction Mission Statement: “Meet the needs of airlines & operators by providing the most modern and comprehensive aircraft” • Goals • Deliver Aircraft On time / On Cost / On Quality • Provide safest plane possible
Reasons for Airbus creation • To compete with American companies • Boeing • McDonnell Douglas • Lockheed Martin • Goal was to be more affordable than competitors
History • Chose name “Airbus” because it was accepted by the French • Officially formed in 1970 • Maiden voyage for A300 in 1972 • CASA of Spain joined 1974 • UK joined in 1979
Airbus | The organization 20% 80% AIRBUS FRANCE AIRBUS GERMANY AIRBUS SPAIN AIRBUS UK *Source: Airbus S.A.S
55,000 employees at 16 centers Airbus | Production and engineering sites Production sites Broughton Stade Major engineering sites Nordenham Buxtehude Filton Varel Hamburg Bremen Airbus |direct workforce in Europe * Headquarters: <1% employees Airbus France: 33% employees Airbus Germany: 37% employees Airbus UK: 18% employees Airbus Spain: <1% employees Méaulte St Nazaire Nantes Laupheim Toulouse Madrid Illescas * Approximate figures July 2004 * Values from Airbus 2006 Puerto Real
AIRBUS-France AIRBUS-Germany AIRBUS-UK AIRBUS-Spain Airbus | Production system *Source: Airbus S.A.S
Aircraft Industry Analysis • Global Issues • Risks • Future Trends
Global Issues • Aviation & Environment Summit • Noise Reduction • Air Quality • CO2Emissions • Fuel Efficiency
Risks • Aircraft Market Cyclicality • Terrorism • Limitations for Funding • Competition
Future Trends • Commitment to going “Green” • Technology • Development • Training • Maintenance • Fuel Efficiency • Personal Air Travel
Company Analysis • Company Information • Strengths • Weaknesses • Opportunities • Threats
Company Information • Owned jointly by EADS & BAE • 78% of sales for Commercial use • 22% of sales for Military use • Largest customer: • International Lease Finance Corp. (ILFC) • Lease Airbus & Boeing planes to many major airlines
Strengths • Diversity • 55,000 employees as of 2006 • 85 different nationalities • Customer Support • 2006 spare parts prices froze at 2003 prices • Keeps repair costs down for its customers
Weaknesses • Management changes • Caused by delay of A380 • Parent company EADS will have more oversight • Too many suppliers • Plans to cut number of suppliers down from 3000 to 500
Opportunities • Going “Green” • Ensuring all manufacturing sites be compliant with latest environmental standards • As of 2005, 14 of 16 had been certified • ISO 14001 • Internationally recognized standard • Recycling program: 4000 planes to be retired in next 20 years
Threats • Litigation • In 2006, Airbus & Air France found guilty of negligence in 1992 plane crash • Mismatching currency exchange rates • Most sales are in US currency, while its operating costs are in Euros
Threats from Government Financing • Government financing • Subsidies for Research & Development • Purchases for Military & Defense • Agreement on Trade in Large Civil Aircraft • 1992 agreement between EU and US to regulate levels of government support • In 2004 US broke agreement
Competitor Analysis • Transportation Industry • Major Competitor • Boeing • Minor Competitors • Bombardier • Embraer
Recommendations • Short Term • Refocus and Reevaluate goals of Mission Statement • Ensure arrival of A380 with no more delays • Long Term • Develop new safety technology & training programs • Gain market share in China, India & other emerging countries • Continue Diversity & Commitment to going “Green” • Work with airports to accommodate new A380