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The Case Study on Airbus - Essay Example

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The Case Study on Airbus

Its inception was in the form of a GIE, or more popularly as the Economic Interest Group. This was an attempt on the part of the European nations to unsettle the unflinching dominance of the Americans in this sector. Early phase and development of the Company The name Airbus was taken from a generic term used by the Airline industry. One of the other reasons of choosing the name was the linguistic acceptance of the name to the French. Initially, the stake holdership of the company was distributed between a number of players. Aerospatiale had 36.5% of the controlling stake in the company, whereas Deutsche Airbus also had a 36.5% share in the company. This pattern was evident in the company due to the multifarious origin. The other stakeholders were Hawker Siddeley with 20% and Fokker-VFW with 7%. A major change came in the year 1979 when the British Aerospace acquired 20% stake in the company Initiation into Aircraft Development The A-300 was the first Commercial Airline to come out of its stable. The work of the development of each of parts was given to separate countries (that in turn is routed to the various companies in the consortium). Initially the sales of the aircrafts were extremely slow, but later the sales of the aircrafts picked up considerably. This was mainly due to the development of subsequent superior models of Aircrafts as well as the innovative marketing strategies used by the company Strategic Drift- Corporate Restructuring and other changes The fact the Airbus was a consortium a number of companies was working against it. The group companies were not ready to divulge information on the technical breakthroughs. The attempt of the part of the companies to maximize the prices on the transfer of the sub assembled parts had detrimental effects on the financial fortunes of the company. Secondly, the Company was in a stage where it was developing a large number of new aircrafts to fend away competition from the other players as well as to augment market share. In the early half of 1990, a lot of steps were taken on an executive level to merge the various entities of the various companies to ensure a smoother environment for the purpose of decision making (Matthew, 1997). However, the steps were averted because of the fear of absolute ownership by one company. One such instance happened in the year 1998, when Aerospatiale tried to sabotage negotiations fearing a take over by British Aerospace and DASA. In the year 2000, three of the participating partner companies, namely CASA, Aerospatiale, Marta and Daimler Chrysler Aerospace merged together to form the new entity called as EADS. BAE and EADS transferred the production facilities to the new company called as Airbus SAS, in lieu of shareholding rights in that concern, this also brought to an end the constant bickering among the various partners and went a long way in streamlining the production facility of the consortium. Scientific implications (merging of the separate entities) The merging of the separate entities had a great effect on the operational and financial ...Show more

Summary

Airbus Case Study [Type the author name] Table of Contents Background and history 4 Early phase and development of the Company 4 Initiation into Aircraft Development 4 Strategic Drift- Corporate Restructuring and other changes 5 Scientific implications (merging of the separate entities) 6 Financial Implications 6 Operations Strategy 7 Manufacturing Process Design 9 PRE PRODUCTION AND DESIGN PHASE 9 DESIGN AND PRODUCTION PHASE 10 Airbus (Quest for quality) 12 CLASSIC CASE OF A-380 12 CONCLUSION 13 REFERENCES 14 ANNEXURE 15 Annexure-1 15 Annexure-2 17 Background and history The following case study tends to comprehend the various factors that have contributed to the current exalted status of Ai…
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