Logan (2006) notes that the industry was affected tremendously by the terrorist attack on September 11, 2001. Many airlines have been struggling specifically the two biggest companies, the Boeing and the Airbus. The two are in a fierce competition with each other so as to maximize their profits. Even though the two companies operate in the same industry, each one of them has adopted a different strategic plan so as to attract new business. Said (2013) documents that by examining the strategies employed by each of the two companies it will be quite clear to discover the company that will emerge the winner.
Boeing was now long overdue to develop a product. Project analysis The decision for Boeing to undertake the 7E7 project depends on the value that it will add for shareholders. If the 7E7 can produce an internal rate of return that is greater than the cost of capital for the project, it will offer positive value for the company and its shareholders. Isolating the specific risk of the commercial industry and determining the appropriate inputs for WACC are critical in evaluating the project and the potential that it has. It is also extremely important to assess the sensitivity of both the WACC and the IRR to variables used in their computations.
Today it has nearly 400 Boeing 737 series of aircrafts and operates in more than 59 cities across America. In 2011, it completes 40 years of its existence. Its mission is to provide the customers with highest quality of personal services company. It has been able to sustain its profitability through the turbulent phase of post 9/11 period and current recessive economy even though the rest of the important airlines like United and Eastern were struggling to survive. After deregulation in 1978, the airline industry became highly competitive.
Due to scandals Enron went from being the nation’s 7th largest corporation to going in bankruptcy within weeks. At the beginning of the documentary John Cliff Baxter was found dead with a gunshot wound to the head. He was an Enron employee that I personally feel couldn’t handle the truth on the scandals that was going on within the company and also could not deal with the vicious media statements. Jeffrey Skilling who was the former President and CEO of Enron corporation stated that John Cliff told him that media was calling all the employees child molesters. Jeffrey Skilling clearly stated in court that, “I don’t believe I did anything wrong.” Chartering the futures of energy and power Ken Lay, Chairman of Enron, and Jeffrey Skilling built their own plus state room in the company.
Boeing Case The Boeing case posed several examples of questionable decisions being made. The first instance of questionable behavior included a blatant example of conflict of interest with Darleen Druyun and Mike Sears. The next instance was when Boeing executive, Larry Satchell, was caught stealing trade secrets of a competitor and violating U.S. procurement laws. Another example of questionable ethics from the case was Boeing’s lack of transparency when they manipulated financial statements to ensure a merger would go through. Next, Boeing’s knowledge of pay discrimination was revealed.
Case Project Assignment Westjet is a company that has been recognized for its strong corporate culture. Several issues have been facing the organization in the past few years that may or may not pose a threat to the culture including: • An agreement to pay $15.5 million to settle accusations of corporate spying • Extensive turnover among the top management team, including many of the co-founders • Difficulty finding enough new employees to hire that match the culture well • Negotiating a partnership with Southwest Airlines • Drastic change in the cost structure of jet fuel Your group should research the background of these potential threats and any other necessary information about the company using the various search tools available to you through the UBC library, diagnose them from an Organizational Behaviour perspective, and recommend a plan going forward to preserve the organizational culture as a competitive advantage. You should specifically answer these questions: • What insights do the theories of Organizational Behaviour provide in understanding these threats? • What possible solutions could help maintain their corporate culture in light of these threats? • Which solution do you recommend?
Huge increase in US military spending has been one of the factors contributing to the deterioration of the American economy since 2001. (Billions) What is confined to this disagreement with the costs of such a world power are the negative attitudes towards militarism in a more vague sense. Western militarism frequently overlaps by means of civilian functions disturbing attitudes to militarism in general. As a result, when revelations come out that some Western armies may have trained dictators and human rights violators, the reasoning given may possibly be quite astonishing. (Anup) As an extension of such aggression in anger towards our own government is the amount of jobs lost when our government considers that moving away from military manufacturing would not necessarily end in the loss of jobs rather a decrease for cuts in other areas.
Background Introduction After the terrorist attacks on September 11, 2001, it was upset deeply because of the safety for the airline industry in the United States. The passenger demand suddenly reduced and many flights cancelled afterwards, which led a lot of American airlines declared bankruptcy afterwards, including US Airways and United Airlines. It was a challenging time for airline industry, however, David Neeleman, the CEO and Founder of JetBlue Airways, discovered an opportunity for the company. Barely two years after its foundation, the company decided to raise additional capital through initial public offering (IPO). This report is aimed to apply financial theories and concepts into analyse the real case study of JetBlue Airline.
According to the author’s viewpoint, many scandals have happened because of the following illegal behaviors. It can be clearly seen from the case that the most obvious scandal is that Tyco’s money has been used for personal expenses. CEO Kozlowski was accused of using corporate funds to illegally purchase precious artworks, residences, and properties. More importantly, Kozlowski used Tyco’s $1.5 million to pay for his second wife’s birthday week (Stanwick & Stanwick, 2009). Another unethical action that suffers complaining from many critics is that Kozlowski, together with some other members of Tyco’s management, have received unreasonably high compensation levels, which contributed to the fall of Tyco’s stock (Stanwick & Stanwick, 2009).
Nation debt reached an all time high in the trillions, American jobs were being outsourced and the stock market was at a record low. Americans were afraid. Afraid that our weakness would be seen by our adversaries as an opening to attack. The nation was in dire need of not only a president, but a leader. One who understood the problems the average American was facing.