Airbus Case Study

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Airbus: Problems and Solutions [pic] San Jose State Students Table of Contents Executive Summary ……………………………………………………………… 3 Introduction ……………………………………………………………………… 5 History and Structure of the Corporation ………………………………… 5 Three Major Problems Facing Airbus …………………………………… 6 Analysis of Major Problems and Possible Solutions …………………………….. 7 Political and Cultural Environment ……………………………………… 7 Solutions …………………………………………………………………. 14 Management Instability ………………………………………………….. 17 Powerful Competition …………………………………………………… 27 Conclusion ……………………………………………………………………….. 37 Works Citied …………………………………………………………………….. 39 Executive Summary To regain its competitive edge and ensure financial prosperity, Airbus should eliminate political basis of its management decisions and improve its organizational structure. A leading aircraft manufacturer based in Toulouse, France, Airbus S.A.S. has been facing a number of political, management, and socio-cultural problems. The resulted pressure led to serious production delays, billions of dollars of lost revenues, and loss of about 11% of market share to its closest competitor, Boeing. The consortium of the companies that integrated into Airbus represented interests of four major European countries. These countries continue pursuing their national interests in Airbus by manipulating EADS, Airbus's parent company. As a result, management makes decisions taking into account political rather than economic expediency. To solve its political, management, and cultural problems, Airbus should: 1. Minimize government intervention. It can be done by either reducing government's stake in EADS, the parent company of Airbus, or by making Airbus an independent company with private shareholders. Private

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