The reactions from the airline industry for previously launched planes by Airbus and Boeing have also been discussed and then the opportunities that 787 has, have been the main point of the study. This report basically has been divided into four sections. In the first part of the report, important variables that could influence the decision of Airbus and Boeing have been discussed in detail. In the second part of the report, the risks faced by both these firms have been discussed and how the risks faced by Airbus and Boeing are identified and analysed and then model has been used to know how firms should manage risk (McLaney, 2009). In the third part of the report, stakeholders of both Airbus and Boeing have been discussed and how these stakeholders could influence the firm have been described in detail. However, in the fourth section of the report, critical financial analysis about Boeing has been discussed as it introduces the Dreamliner in the market. In the end, conclusion of the report along with recommendations has been discussed. Contents Management attitude and perception 6 Market analysis 7 Traffic of passengers 8 Change in Idea to Point to Point 8 Market Deregulation 8 Product Portfolio 9 Cost and the return 9 Technological ability 10 Risks faced by boeing and airbus 12 Technological Risk 12 Market Risk 12 Economic Risk 12 Environmental Risk 12 Financial Risks 13 Political Risks 13 Economic Risk 14 Social Risks 14 Technological Risk 14 Legal Risk 15 Environmental Risk 15 Managing Risk 15 TARA Model: 15 Predict 15 Prevent 16 Detect 16 Response 16 List of Stakeholders 18 Impact of each Stakeholder 18 Government: 18 Airlines 19 Society 19 Shareholders 19 Employees 19 STAKEHOLDER MAPPING 20 Group A 21 Group B 21 Group C 21 Group D 21 Tallman GmbH Model: 22 How has each stakeholder been affected 23 Government 23 Competitors 24 Airlines 24 Society 24 Shareholders 24 Employees 25 Recommendations 28 Conclusion 28 Reference List 30 Introduction The report is about Airbus and Boeing and it is primarily based on a case when Boeing introduced its Dreamliner. The case discusses the background and how things shaped up that lead towards a fuel efficient aircraft, 787 Dreamliner. The report discusses how the management feels and what variables they considered when they were preparing the feasibility of introducing a new fuel efficient plane as well as variables that influenced their decision to not go for a jumbo sized aircraft, 747. The second section of the report discusses about the risks that the company faces and how Airbus and Boeing need to manage their risk properly in order to have consistent profits in the long run. The importance of managing and identifying risks has been described in this section. The third section of the report discusses important stakeholders of both the aircraft manufacturing firms; Boeing and Airbus and analyses how they could impact the firm’s operations. Also stakeholders have been prioritised using a theoretical framework to identify the level of their impact and their power to influence the firm’s operation. The fourth section of the report discusses the critical financial analysis of Boeing as it introduces a new fuel efficient plane and what impact the plane would make in the long run profitability of the firm. The report then gives recommendations for Airbus and Boeing
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Executive summary This report analyses two aircraft manufacturing firms; Airbus and Boeing. The report is based on a case which mainly revolves around the airline manufacturing industry. The most important players in the airline manufacturing industry are Airbus and Boeing and both are competing against each other…
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