To solve this problem Air Canada outsourced the whole IT department to IBM and other vendors, except the core IT group to monitor the company’s IT standards and policies. The second major changes took place in 2011, when they decided to restructure their functional units to achieve new strategic objectives that will increase operational excellence and customer satisfaction. In order to expand, Air Canada needs to launch new low cost airlines and start an aggressive global advertisement campaign to establish Air Canada as a new brand in the airline industry. Even though Air Canada’s decision to outsource the part of IT department was to reduce cost and focus on core business activities, but the main motivation behind it was to open new opportunities for innovation. In 2003, this airline company began to implement a multiple-vendor strategy in order to benefit from best and experienced vendors and their products.
Airbus' success forced Boeing to develop the rival 771 twinjet, yet by the early 1990s Airbus was winning as many orders for new aircraft as Boeing. In 2000 Airbus became o conventional shore-based company owned 20% by the European Aeronautics Defence and Space (EADS) Company and 20% by British BAE Systems. It immediately decided to develop o 'superjumbo', the 4380, with the potential to carry up to 850 passengers, depending on internal seat layout. In 2005 EADS become the sole owner of Airbus. The A380 made its first commercial flight in 2007.
“Going off site inevitably made executives anxious”. Adam Gryglak, the chief diesel engineer for Ford delivered an all new ford engine that was classified as an “impossible task”. Through strategic planning, team corporation, group performance and a change in culture and lifestyle, Adam Gryglak was able to deliver an assignment that made executives “anxious” and in previous years “tended to look unkindly on heterodoxy”. The project nicknamed “Scorpion” was a success which was contributed by a degree of factors, the underlying being trust. Without the trust of the hierarchy of Ford managers the project wouldn’t have been delivered or achieved in the manner it was.
Both companies remain in fierce competition to dominate the number one spot in the industry. Airbus has held that position since 2003. However, according to the Wall Street Journal, Boeing is threatening to take its position back and reign as number one for the first time in over a decade (Ostrower, 2013). As a duopoly, this change can prove to have a significant effect on the aircraft marketplace as well as our economy in general. As a duopoly, the entrance into the aircraft market can prove to be extremely difficult, not leaving many options for substitutes.
In addition, airplanes re-orders were being rescheduled. Rising fuel prices consolidation - Cost pressure – resulted as there was a decline in the industry as a whole. Increasing competitive intensity – Airbus, Boeings competitor, offered the same airplanes at cheaper costs. 2. What is the e-Enabled Advantage?
This is very beneficial for Delta; the airline industry is always being pressure to show more profits and results. Delta achieved this by extending the life of its equipment and changing its residual values. It resulted in a savings of $127 million in depreciation expense for year-end December 2007. A downside to decreasing depreciation is taxes. With decreased depreciation and increased net income, Delta’s income taxes increase.
Meanwhile, going public can also increase the publicity of JetBlue and attract more potential customers, which may result in a greater market share of JetBlue in the airline industry. For founding individuals of JetBlue, its IPO may be an opportunity to increase their liquidity. At the same time, disadvantages arise when JetBlue goes public. Before going public, JetBlue needs to solicit approval from SEC, which monitors listed firms to ensure they obey all the rules and regulations, for instance, JetBlue is required to make adequate disclosure to investors and the like. And the costs of complying and some additional costs such as audit fees can be very high, especially for small firms.
Describe online collaboration and its benefits to Boeing. Basically Boeing is a transformed Chicago based aerospace company which undertakes high level technology and system integrator, and uses cutting edge materials and electronics for its newly designed assembly process passenger planes i.e. the Boeing 787, which is also known as “Dreamliner”, other new midsize passenger jet that’ll have carbon-fiber-reinforced plastic parts which will make it lighter and provide better fuel economy. Furthermore, Boeing’s shift goes beyond making planes faster and cheaper, due to its consolidated technology group (IT system people) playing a large role towards this shift. Thus, partners including companies in Japan, Russia, and Italy are there to design concepts to production level, bearing in mind that concept parts are assembled in a computer model maintained by Boeing outside its corporate firewall.
HARVARD BUSINESS SCHOOL 9-201-028 REV: APRIL 26, 2004 BENJAMIN ESTY Airbus A3XX: Developing the World's Largest Commercial Jet (A) Aviation is a great business to be in, provided you have limitless money at your disposal, limitless confidence in your ability to get everything right the first time, and limitless resolve and iron nerve,' EADS (Airbus) is betting the company on this aircraft. 2 On June 23, 2000, Airbus Industrie's Supervisory Board approved an Authorization to Offer (ATO) the A3XX, a proposed super jumbo jet that would seat from 550 to 990 passengers, have a list price of $216 million, and cost $13 billion to develop. Before the Board would commit to industrial launch, the point at which significant expenditures would begin, it hoped to secure orders for 50 jets from as many as five major airlines. While Airbus had been courting potential customers for many years-in fact, development had been underway since 1990-the ATO gave the sales force permission to begin taking firm orders for the plane with delivery starting in 2006. Airbus management announced the first orders for the A3XX at the bi-annual Air Show in Famborough, England, in July 2000.
* Summarize of the operational challenges facing global managers illustrated in your selected case. Conclusion References: Boeing vs Airbus INTRODUCTION After cooling off with the signing of the 1992 subsidy agreement, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry heated up again in 2004. This time, however, the stakes were higher since both the Americans and the Europeans filed complaints at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as Airbus and Boeing spar for dominance in the highly competitive commercial aircraft Industry. Achieving and maintaining global