Does it have competition from any other manufacturer of wide body twin aisle aircraft? If there are substitutes for the 787 Dreamliner, how would it affect the cross elasticity for its demand? Literature Review The production of the Dreamliner was a departure from Boeings traditions (Peterson, 2011). Boeing chose to outsource a major percentage of the engineering and manufacturing of the Dreamliner. The intention was to reduce development cost from $10 billion to $6 billion and reduce development time from six to four years.
Introduction In 1971, the American firm Lockheed undertook the necessary legislative and financial steps to secure production/assimilation of the L-1011 Tri Star Airbus for future commercial flight implementation. The L-1011 Tri Star Airbus was a direct competitor to the DC-10 trijet and the A-300B airbus; it was designed as a wide-bodied commercial jet with capacity for 400 passengers. While Lockheed representatives claimed that the project was financially sound, there were others who doubted the ability for the Tri Star Airbus endeavor to recover costs. The center of the debate was over the estimated break-even sales that the Airbus would require to recover its initial cash outflows. However, Lockheed testified that the number of units they were contracted to sell (including option-to-buy) would well recover the production costs and the Airbus would be an economically viable project for commercial jet production.
The Hersey Blanchard Situational Leadership Theory was created by Dr Paul Hersey and Ken Blanchard in their book “Management of Organizational Behaviour” (Hersey, Blanchard & Johnson 2007). They suggested that the most effective leaders change and adapt their styles to not only the situation but also to the maturity of the person or group they’re leading and the details of the task. Using this theory, in order to complete a task or job successfully, leaders place more or less emphasis on the task depending on the maturity of the person or group they’re leading. Hersey and Blanchard identified four maturity levels and aligned this with four leadership styles that would be appropriate to the person or group’s maturity level. You can see each of these maturity levels aligned to leadership styles in figure 1 of the appendix.
MT0822A Managing Organisational Performance Abstract The report I have compiled reports the importance of managing stake holders in The John Lewis Partnership Organisation, the primary stakeholders of JLP and the interests of each in the reduction of 25 call centres to two. This report will also cover the value of motivational models within the JLP and how employee needs are being met by in that organisation on Maslows hierarchy of needs model. Finally the report will cover the reasons for the change in the JLP and how this change can be managed in an organisation. Introduction The purpose of this report is to show the importance of managing stakeholders and their importance in an organisation, the value of motivational needs within an organisation and the reasons of organisational change. The report will also identify John Lewis's primary stakeholders, their level of interest and importance in the plans to replace 25 call centres with two.
The competition has taken advantage of the situation and has managed to grab the market share of Boeing over in few years. The considerable market share of Boeing, 70%, has now dropped to half and EADS’ position has considerably risen in the market. Now, Boeing wants to focus all its resources in gaining back its past glory in commercial airline sector. Both of them looked at the future in almost opposite way. EADS considered the future as the era of “big, large and expensive” airplanes and whereas, Boeing considered that in future we will need cost-effective considerably smaller planes.
The overall goal of the scenario building step and its ‘Scenario Matrix’ tool is to generate and develop four distinct future scenarios. Of particular interest in this context is the actual process of deriving the scenarios out of the previously identified two critical influence factors using the so-called ‘scenario influence diagram’ and ‘scenario fact sheet’ (Wulf, Meissner and Stubner, 2010). Before explaining the ‘Scenario Matrix’ tool itself we will examine what scenarios actually are, what the basic idea behind them is and how they can help a company to think ahead. Figure 1: Six-Step Scenario-based Approach to Strategic Planning Center for Scenario Planning – Roland Berger Research Unit 3 2. Background Information Scenario Building Building sound and plausible scenarios is a challenging task that needs to follow a structured process.
New entrants such as Virgin America are bracing the competition by offering lower fares to customers. Such a strategy pose a great threat to the operations of Jet Blue whose major strategy and survival is the low airfares offered. Lastly, the potential for increased labor cost as a result of the possible future shortage of pilots predicted by the International Air Transport Association will impact negatively on future expansion programs of smaller airlines such as Jet Blue. Discuss Jet Blue’s strategic intent prior to 2008 Jet Blue strategic intent prior to 2008 was to use low fares and entertaining planes to
What does this imply for the future success of each product? Answers: In the 1970s, Boeing dominated all aircraft market segments before Airbus started to challenge it through a series of innovations. In 1972, Airbus entered the twin-aisle segment with the A300 B1 powered by just two engines, pioneering the concept of “twin-aisle-twin.” Over the years Airbus became a stronger challenger and caught up with Boeing in terms of market share. Since the 1990s, the two companies have been in tight competition for virtually each aircraft order. The orders for Boeing has been more than that of Airbus from the year 1996 to the year 2000 with the orders for Boeing decreasing in the year 1999.
Master II LEA Affaires Internationales & Informatioins Stratégiques Université de Provence BOEING INDUSTRIES INTERNATIONAL MARKETING COMPANY CASE Introduction Boeing Company PEST Analysis * Political Impacts * Measures taken by Government * Political differences between Europe and USA * Strong influence of the US government and its Federal Aviation Administration over the international aeronautic market * Economical Impacts * Impactd of US economic downturn and Worlwide growth slowdowning * Unfair Government’s grants attribution * Kerosene & Gas costs * Environmental constraints & restrictions * Terrorism threat related costs due to insurance & security increasing expenditures * New competitor arrival, China * Duopoly situation with Airbus Consortium * Social Environment Impacts * Anti-USA behavior worldwide could threaten Boeing’s brand overseas * Economical recession could lead to relocation & work condition deterioration * Technological Impacts * Technological progress imply huge R&D investments * Production lines Robotization & Technological up gradation Boeing Company SWOT Analysis Strengths * Strong worldwide network * Large range of products thanks to a diversified portfolio within the niche segments * High R&D capability thanks to a huge investment * Strong liability and profitable financial performances * Leadership position * High quality & certification | Weaknesses * Loss of market shares left to the rival Airbus * Uneficient management based on military structure * High dependency to US government inconsistent with WTO grants attribution | Opportunities * Launching of new products far from Airbus’s segments * Flying routes in increase * Commercial flights expending demand * US
In 2005 Boeing a giant in the Manufacturing of aircraft made the decision to change the way they run their supply chain. Boeing’s mission with this change was to prevent a repeat of mistakes made in 1997/1998; when during the aviation boom the giant flooded with orders in turn flooded its production lines, just to find they could not keep up with production. The result, Boeing manufactured too many planes and ended up selling them at cut prices resulting in a 4 billion dollar loss in revenue. In 2007 Boeing debuted their new 787-Dreamliner resulting in orders from 50 customers who purchased over 710 aircraft. Having the mistakes of the past fresh in mind Boeing in turn is changing the way they manage their supply chain.