Airbus's Efas And Ifas

Introduction

This company is doing very well right now. I had never heard of them and I was wowed! I want to ride one of their planes right now. Boeing is the top-dog here and has been for some time. I am ready to see what the new technology and innovation is going to do for this company. They do have problems with management and shareholders but are currently working on it. The safety issue is what I was really looking for because as we know in the past, Boeing has had a few of theirs fall from the sky.

I have described my environmental and internal scanning processes. Using these processes I was able to develop an EFAS Table and an IFAS Table on Airbus. I have also explained what factors I chose and why. Then I conclude with my own thoughts and views.

Environmental Scanning Process (EFAS Table)

With the external factors I chose to research their task and societal environments in order to find Airbus's opportunities and threats. These environments can have a huge affect on the corporation. I took a look at their technological forces, economic forces, socioculture forces within their societal environment, and their shareholders, communities, customers, and governments within their task environment. Environmental scanning is one way to avoid future problems and to ensure long-term success (Hunger & Wheelen, 2007). With all this information I was able to develop an EFAS Table for Airbus.

Opportunities:

Innovation & Technology--Airbus's innovation first started with the A300 in 1974 and it continues too do so today. The new 380 has high-pressure hydraulics and variable-frequency electrical generation which decreases the weight while increasing the performance system (Airbus S.A.S., 2008). Like I stated above, safety is a big issue for me and what I found was that the A380 also has an Autopilot Traffic Collision Avoidance System which provides them with additional protection. With new technology Airbus can communicate globally and solve problems immediately.

Company Structure-- Airbus does have a global industrial presence. Management has changed and they are currently taking action on the structure. Strategic planning takes time and commitment. Their goal at this point is to place their suppliers where their customers are (Airbus S.A.S., 2008). In 1970 Airbus S.A.S. was created. They are also an EADS Company. Thomas Enders is president and CEO. They have 57,000 employees. They have 16 facilities in Europe that manufacture, produce, and assemble parts. They have facilities in North America that are for design engineering, sales, and support. They have sales and customer support facilities in I Japan and China. In 30 countries they have 1,500 suppliers in their global network. They currently have 24 customer commitments to achieve. They are well on their way to globalization.

High Quality Standard--Airbus strives for the highest standards in quality. The key areas that are very crucial to quality in an airline's judgment are safety, reliability, and comfort (Airbus S.A.S., 2008). They continuously monitor, evaluate, and test all these areas in order to ensure the very highest standards from the first step which is the design and to final assembly and there after. In order for them to maintain their success and to meet the high demand for planes they will have to set even higher standards in quality.

Globalization--Airbus joined the United Nations Global Compact. In order for them to have sustainable development in their sector they will have to fully integrate their environmental and societal ideas into their business. What the United Nations Global Compact does is bring businesses together internationally through UN agencies, civil society, and governments (Airbus S.A.S., 2008). This will help them with the challenges of globalization. In order for Airbus to have a more stable market and business success they will have to stay committed to their value-based approach to strategy and operations. Globalization could possibly give them the advantage over the number one company in the industry.

Threats:

Boeing--Boeing is "top dog" in the airline industry. They are Airbus's biggest competitor. For almost every nation they are mass producers. Boeing has been around for a long time and can and has beat Airbus in releasing new planes that are comfortable, has new technology, and hold more passengers. In fact because of this Airbus has at these particular times lost potential customers. From my research I found, Airbus is taking action on being number one in the industry by slowly catching up with Boeing on producing and delivering more planes. Not only that but with the governments support through the United Nations Global Compact they are gaining an advantage on Boeing with new technology development (Airbus S.A.S., 2008).

Financial Problems--As the company grows there is no way to avoid future financial problems. They go hand in hand. The key area that will dig a hole for them is continuing a non-profit organization. They really need to focus on financial forecasting to help them in this area. Delays cost major profits.

Maintenance Cost--If Airbus does not renovate, update, or replace their old planes they will be seeing higher maintenance cost. This can also happen if they don't keep up with demand. They have had 8,676 orders, 4,829 in operation, and 5,054 delivered. That is a lot of material to keep up with all the policies and regulations.

Market--Right now this is the high stakes card that will either make or break the business. They need market to go global. Their solution to this was the A380 and a twenty-year Global Market Forecast (Airbus S.A.S., 2007). Demand is high for people wanting or needing to fly. This forecast evaluates the growth of the industry as a whole in context of its contribution to the environment in which we live and the world's economy. Forecasting is an efficient way to solve problems quickly and stay on track. The A380 was the first step to their marketing plan but they still have some work to do. I do believe that Airbus will pull this off and be successful as long as they keep focused and committed.

Internal Scanning Process (IFAS Table)

With the internal factors I chose to research their organizational environment in order to find Airbus's strengths and weaknesses. This environment can have a huge affect on the corporation. I looked at their structure, culture, and resources. Internal scanning is one way to sustain competitive advantage (Hunger & Wheelen, 2007). With all this information I was able to develop an IFAS Table for Airbus.