Efas/Ifas Airbus

Airbus Corporation

Airbus has been in business for a little over 30 years and is jointly owned by EADS (80%) and BAE systems which are two of the largest defense contractors. There are seven members that act as a supervisory council (shareholder committee); working together they approve the annual budget, three year investment plan, new programs, and other major investments. The Committee also appoints the Airbus Executive committee members, which are nominated by the CEO. The Committee compromised of ten people from each core business function and is responsible for managing all activities that involve Airbus. With such a international company the GM's of the national entities in France, Germany, Spain, and the U.K. have a dual mission. Guarantee that all national obligations are met and that instructions issued by the central functions are implemented properly. Thus, General Managers have a huge responsibility and task in insuring that all human, industrial, and financial resources of the entity they manage are in compliance with national laws and regulations as well as Airbus policy.

External Factor Analysis Summary: Airbus Corporation

Opportunities

Technological Changes

With ground breaking technology Airbus is able to communicate more sophistically with all parts of the world. As they have many plant all across the world, as they do employees they are able to break the time barriers and regional barriers that allows them to take orders, plan deliveries in the click of a coupe buttons. They are able to receive alerts about problems and let the people that need to know, know. Along with the advancement in technology for the business sense of communication and just doing everyday to day task easier they are able to create safer planes. For example, on the A380 include an Autopilot Traffic Collision Avoidance System that offers additional protection when compared to conventional TCAS systems, and the Airbus-patented "Brake-to-Vacate" technology - which allows pilots to select an appropriate runway exit when landing and regulate the aircraft's speed and deceleration accordingly. As technology is changing they will be able to change and use it to their abilities to create better software for the planes, more technological planes, and just better ways of doing business. Also with the new creating of robots and machines that can do all the work that a human can do but better and faster will help generate more revenue and more planes in a quicker amount of time which means more profit.

Military Defense

Globally there has been continuous increase in defense expenditure by the nations to protect the security. This is also due to development of "rogue" states and organizations that sponsor terrorism across the globe. Thus customers are now focusing on the development of defense capabilities that call for speed, precision, flexibility, and the ability to share knowledge and information.

Globalization with other countries

Globalization is going to give Airbus the opportunity of a life time as it will make it easier for them to sell their planes to almost anybody; as well as receive the parts and technology they need to advance themselves in the industry. As the world, goes from several different economies to one global economy it will create a business world never seen before and the companies that prepare for it will be able to gain a hand an excel from the growth from all of the emerging companies such as India, China, and Brazil. Already they are seeing the growth and impact this is having as the world turns into one economy as they have received a global forecast of needed airplanes in the years of 2007 and 2025, that calls for an estimated 22,700 passenger and freight aircrafts valued at 2.6 trillion. As the Asia-Pacific region grows to a third of the world wide market by 2025 and Europe-Asia, transpacific, and transatlantic long haul routs will increase by 60%. This will mean a global increase in the airlines major pickup cities doubling; which means the manufacturers of the aircrafts will need to mass produce the planes or use the new technology to create bigger planes to even out the traffic in the next 10 years.

High Quality Products

With the purchase of high quality products and then returning the favor to the buyers of these marvelous aircrafts means nothing but good news for Airbus. If they continue to offer high quality products to their customers; they will continue to buy their planes and will stay atop the industry. If they are able to top Boeing as they have been doing in the recent year by delivering their products on time and high quality, they might just be able to take over the market share.

Threats

Strong Competition

Airbus has had a threat with there competition as they have always been number one and are still number one, Boeing. Boeing is good at what they do and have been able to beat Airbus to the punch every time it comes to releasing a new plane that has better technology and comfort as well as can hold more passengers. Now if I was an airline company I am going to want to go to with the company who can produce me the biggest plane available faster. Although, this is the case right now Airbus is working on that number one spot and they are making up some ground by producing and delivering more planes than their competitor Boeing. Not only that they are taking their advantages they have which is they are backed by the British, French, German and Spanish Governments which enables them to develop new technologies without having to pass that huge price tag to their competitors.

Financial Problems with Airline Companies

As we all know the airlines business is a very bad business to go into instead of becoming an owner of an airlines company they should have invested in the producers of these aircrafts and probably would have done better off. Well if the airliners keep going down this non-profit organization path their will be nobody to buy these massive planes which means reduce profit and if they forecast to many planes and start to manufacture these needed planes they manufacturers may find themselves in whole they will not be able to get out of.

Boeing Strong Globally

With Boeing being a big competitor in this industry they will need to try and knock out Boeing form their side of the region and keep them in the United States sales. Boeing is a mass producer and makes planes for almost every nation and has no problem taking away Airbuses customers from them