This 9 page paper in written in three parts. The first part looks at the problems and challenges faced by Airbus in the early years and how they were overcome. This section makes use of McKinsey's 7 S's model and a SWOT analysis. The second part of the paper considers the industry that Boeing and Airbus work in, using Porters Five Forces model and a PEST analysis. The last part of the paper considers the future fort the companies and how they need to adapt and change. This section uses a PEST analysis and identify key factors for success and driving forces. The bibliography cites 3 sources.
Name of Research Paper File: TS14_TEairbus.rtf
Unformatted Sample Text from the Research Paper:
optimistic, with many problems faced in the earlier years. It is the way these problems were faced and overcome that has lead to the current position.
When Airbus started out in the 1970s the environment was very different. May airlines, the main customers had a more stable and protected business. The development of
the supply if aircraft to the industry had matured, companies such as Boeing were large, able to gain economies of scale, even where profits were elusive. The need for a
model where there was the ability to gain economies of scale and seek a position able to compete in a market where there was an effective oligopoly the use of
a strategic alliance to create a stronger competitive force was needed. However, this also introduced a range of problems. This can be seen by looking at McKinseys 7 Ss. These
may be seen independently, but a change in one will impact on others. The strategic alliance brought together a number of companies from
different companies. The 7 Ss are strategy. Structure, systems, staff, style, shared values and skills. If we look at these individually we can see how some of the challenges arose
and the difficulties they created. Strategy was the reason that the French and German companies joined together, later joined by the Spanish and the
UK companies. The ability to maximise resources and compete with companies such as Boeing. The structure was an issue from the beginning.
Structure indicates the way that communication take place, the flexibility of the organisation and the interconnections that take place. Then structure with separate companies sin this type of arrangement was