The Effect of Article on the Economy Toulouse - Dissertation Example

?The Effect of Article on the Economy Toulouse Introduction: Toulouse, the capital of the region of Midi-Pyrenees in France, is situated on the Garonne River side, in a plain midway between the Atlantic sea and the Mediterranean Sea. It is at present the fourth biggest city in France. Its international airport is just an hour away from Madrid, a one hour away from Paris and almost one hour and twenty minutes away from London. Airbus has done its best in increasing worldwide marketplace share for airplanes “Aviation industry is an essential part of the Toulouse economy (Toulouse is the home city of Airbus Industries) but is by no means the only high tech industry located there. The city has become Europe's leading space centre with CNES (French Space Agency), Matra Marconi Space, Alcatel Space Industry and Spot Image among others, all with their head offices around Toulouse” (13th Annual Computer Security Incident Handling Conference 2001). Toulouse has turned out to be a one of the center of spaceflight and aviation t in the past 20 years. In addition to 35,000 city dwellers 400,000 people from other part of the globe work in space industries or civil aviation; EADS/ Airbus is one of the largest employers in the area. This particular metropolis has remained comparatively unchanged in spite of the economic boom. Airbus provides tours with excellent services and facilities; and the tour for about 60 minutes consists of a guide who inform the background of the corporation; the screening of a historical / promotional video, and one can also observe the A380 production line. Airbus played a leading function in guaranteeing the sector elaborate communication and a common position on its various environmental impacts, on the foundation of scientific proof, and on the social and economic advantages it generates. The aim of the study is to identify how airbus has affected the economy of Toulouse since its inception in 1970. Due to the economic effect the industry has brought on Toulouse, this particular city has grown. The main reason for the city having grown is the a result of the aerospace industry, which has had a direct effect on the city of Airbus. Background of the Study: Airbus is a one of the leading aircraft and its producers have clients who focus on profitable know-how, technical leadership, and manufacturing competence which have added to its accomplishments in the industry. It was launched in 1970 as a European grouping of German, French, and later, UK, and Spanish business establishments. Air transport facility plays a key function in the economic growth and social development by addressing the rising demand for worldwide mobility. The advantages of air travel facility are becoming more available, more affordable and more significant to citizens from every economic environment and from every part of the world. The production of airbus is a clever move on the part of the top ranking Europe nations, to complete with the operations of the US Being. Airbus is a configuration of smaller organizations combined into one large unit. The states that are the main players in Airbus are United Kingdom, Germany, France, and Spain. In recent times, airbus has done very well in increasing worldwide marketplace share for airplanes. Airbus is repeatedly trying to increase its market share by trying to reach out to new emerging marketplaces. These new marketplaces like India and China will play a big position in the future for airbus and boeing. Main industries of Toulouse are electronics, aeronautics, biotechnology, and space and information technology. Toulouse hosts the head office of the Airbus and assembly-lines of various airbuses such as A380, A340, A330 and A320. The others (A380, A32, A319 and A318’s interior furnishing) are in the state of Germany, Hamburg. Airbus intends to reposition Toulouse A 320’s bind assembling location to Hamburg, with A350 and A380 manufacture going in the opposite way, as a division of its Power8 Organization Plan initiated by its ex-CEO Christian Streiff. With the 21st century we have came in into a new period. Mobility of citizens, commodities and information has minimized the distances and travelers understand increasingly that airbus exists in a finite world with restricted and limited resources. Its future growth and well being rely upon its capability to meet the growing challengers and to construct sustainable financial systems. Aviation with the use of information technologies has been a leading influential factor in that revolutionary alteration which influences the whole world; as its aviation business leader has dedicated itself to implant corporate responsibility and sustainability (CRS) into its core plans and business procedures in addition to its existing internal policy and vision. As mentioned earlier, the impact that the aviation business has on the financial system will be functioning incessantly in the future. The increase of Environmental Summit and Aviation is the confirmation of the trend for business establishments to turn out to be more “green.” A huge deal of technology will give attention to these features alone. Additionally, numerous other trends deal with new skill and technology. As the whole financial system is becoming more technically advanced each day, and the aircraft business is also executes these advances in all aspects of their business. Software and Technology are being used in growth, preservation and training of the latest aircrafts. The economic effects, since its beginnings in 1970 have led to various changes in Toulouse. Airbus has also played a significant role in the overall development of the Toulouse. Diversity is a one of the key features in its achievements. With its worldwide presence rising, It is at present bigger globally than it ever has been ever. Eighty five dissimilar nationalities represent its 55,000 workers. The study includes literature review, methodology, discussion and conclusion regarding the topic. Aim and Objectives: 1) To identify how Airbus has affected the economy of Toulouse. 2) To identify various service and facilities offered by the Airbus. 3) To identify the economic conditions of the Toulouse in present day. 4) To identify the economic conditions of the Toulouse 1970 century. Methodology: Introduction: Research is the art of scientific and systematic search for relevant information on a specific topic. It refers to the method of articulating the problems, formulating hypothesis, collecting fact or data, analyzing the facts, and arriving at certain conclusions either in the form of results or by adding information to a pre existing theory. Research is of special importance in solving operational and planning problems of business firms. Operational research, market research, and motivational research are often conducted by industries, and their results are used in business decision making, and to gain edge over competitors. It is the description, explanation and justification of various methods used in conducting research. The methodology determines the appropriateness of a given research tool. A research methodology is defined as “The general approach the researcher takes in carrying out the research project (Leedy & Ormrod, p. 14)” (Ellis & Levy 2008, p. 21). Each type of research method congregates many specific research tools that can be employed to address different research questions. In general, the methodology must be in depth and address the how, when, where, and who questions. The methodology outlines the types of research tools that the researcher uses to make the final results. The study results include the data, or the evidences, that can be used to answer the research problem. This is the reason why the researcher can easily draw conclusions which are, in fact, the answers to the research problems. The entire process is a blended effort as well as an appreciation of its individual components. The methodology hired for the study goes from a very wide concept to very comprehensive one. When we initially commenced this case study, we got jointly, and started brainstorming a few thoughts that seem necessarily significant to research. The major of sources are from survey basis and the systematic review which are opinions of the eminent in this particular field, and that the sources are much creditable. One of the primary sites we browsed was the company website www.airbus.com/en/. From the website we traced the past of the company, the mission, the vision, and the goals of the company, and various financial statements. With the information created on its own website we feel we have a considerable amount of information on the business so that we can locate else where its competitor, how it faired as an environmentally fresh company, and risk that the business faces. Some TV networks post enormous quantity of information on figures regarding the corporation and the industry. Industry Analysis: The airline industry is one of the chief industries surviving today all over the world. Although, air travel has been there for numerous decades, only recently it has turned out to be a big part of vacation and trade travel. The airline industry, like Airbus, is continually adding up new planes and making efficient designs for big planes still in operation. Airbus stands next to others in the airline industry by being dedicated to the safety of its travelers and its employees. In an attempt to stay up with the changing times it has moved toward with a solution aid to create airplanes lighter and to build the weight limitations. Airbus’ new A380 will be built-in with carbon-fiber compound to make the jet thinner. These composites are created from a petroleum-derivative like epoxy resin that weighs 39% less than aluminum and is four times as powerful . Airbus plans to use this complex for about 18% of A380 production. Global Issues: The aviation sector account for merely two percent of artificial CO2 release, which many believe are accountable for weather change. This is amazing which considering that it comprises a $2.9 trillion in global economy, which is in par with 80% of the global GDP (Final, 2008). Conversely, the damage is causes to the environment as a consequence, is still taken very critically. New thoughts and strategies are shaped and carried out constantly, to aid in the decrease of environmental harm, with a large importance on research and expansion of new aircrafts. In response to the significance of awareness and transformation in the environment at the beginning of this year, the Aviation & Environment meeting was held in Geneva, Switzerland. The second division of the annual summit is committed to observe all areas of the aeronautical industry to deal with environmental challenges that the industry faces each day? Guests incorporated major aviation associated organizations, airlines, ground surface and transport establishment, fuel suppliers and chambers of commerce are a part of it. This involves further research and expansion not only on the manufacturer of the total product, like Airbus, but also, on the engine manufacturer like Roles Royce and General Electric. Secondly, the insistence for higher excellence of air around airports, places an important portion of the weight on the aircraft manufacturers. However, on an optimistic note, the industry has previously worked intensively with this, receiving supportive results. At this point, hydrocarbons and visible smoke for the main part have been eradicated, and the discharge of nitrogen oxides (NOx) from aircraft engines has gone down by 50% over the past 15 years. A reduction is programmed to persist through 2020, tolerating an extra 80% finally, and the most thoughtful aspect concerned with climate change. As mentioned earlier, the entire aviation industry report for two percent of the total CO2 discharge, but this is predicted to increase to three percent by 2050. With incessant inspection of aviation pollution, it is the top priority of the aircraft industry to focus more on research and devolvement to make aircrafts more capable. Progress has previously been executed in the construction of new aircrafts. Literature Review: Introduction: Airbus is the leading aeronautics producer and one of the two major dealers of commercial aero planes in the world. Airbus is a global organization that makes value for its consumers, its investors, itself and the countries around the globe where its aircrafts are organized. This literature review states how Airbus has affected the economy of Toulouse. The United States International Trade Commission in its book titled The Changing Structure of the Global Large Civil Aircraft Industry and ...says that Airbus’s most important aim is the development of a single corporate entity, entailing the total organization of its corporate arrangement to improve competitiveness in the present price aware aircraft market. Airbus expects to attain better operating competencies and prolonged access to worldwide funding for prospect program savings with the SCE. Airbus also shares ordinary industry concern regarding price reduction, developing procedure for the industry and the rising organization. Additionally, airbus is placing precedence on developing extra offshoot of its current aircraft families, searching chances in the local jet and jumbo airplane markets, and reacting to consumer needs, for instance improved operational capacity, support, and traveler comfort, to attain its aim of a 50% share of the international aircraft market. It also says that the reforming of airbus may recover its facilities to meet future challenges worldwide LCA market demands, take on the flourishing growth of new aircraft, and fight with Boeing in excising and potential market sectors. The single business entity is probable to improve cycle times, efficiency, profitability and consumer support by consolidating responsibility and authority for airbus under a solitary business management. In the long term, airbus will possible gain operating cost decreases through streamlining and competence developments, more elasticity to outsource aircraft parts, and entrance to better economic resources in global markets. Airbus will also be capable of focus more sharply on incomes, which can have long term insinuations for strategic planning. One of the most important competitive and operational developments for airbus will be the move to centralized organization and decision making that will focus on airbus. “The SCE will have sole accountability for the actions and responsibilities of a company, will gain control of its industrial assets, and will present a single point of contact for its customers and suppliers. The partners are making progress in developing this new management structure, and have appointed a chief executive officer. Corporate headquarters will remain in Toulouse, but airbus has yet to announce where the firm will be registered for tax purpose” (The Changing Structure of the Global Large Civil Aircraft Industry and Market: Implications for the Competitiveness of the U.S. Industry 1998). The book titled ‘Recent Developments with Airbus: Ninth Report of Session 2006-07, Vol. 2 ... By Great Britain: Parliament: House of Commons: Trade and Industry Committee’ says that the four airbus associate companies had processing units in France, Spain, Germany and UK, with all partner companies containing work share accountabilities that reflected their specific areas of capability. The UK took the wing management role and the unit has been accountable for the development, design, manufacture and incorporation of wings for every airbus aircraft formed to date. The UK unit is also accountable for fuel method and landing gear incorporation. In 1987 Airbus took another step in enlarging its product choice with the opening of A 330/340 airbuses. The double engine of A330 is optimized for maximum revenue creation and the low operating expenses from regional parts to wholesale range ways, whereas the four engines of A340 give adaptability on the most demanding ultra range and long range flights. The A330/340 relations have an order booking for above 990 aircrafts. “At the beginning of this decade, following the merger of three of the partners, Airbus moved from the GIE structure to become a single company under a unified management team in order to secure the full benefits from economies of scale and integrated ways of working. Thus the airbus single company became operational in the year 2001, with headquarters in Toulouse and design manufacturing facilities in France, Germany, Spain and the UK and subsidiaries in the US, China and Japan” (Recent Developments with Airbus: Ninth Report of Session 2006, p. 33). In the article titled ‘Changes in the Aeronautics Sector – The Case of Airbus in Midi-Pyrenees Jacques Igalens, Christine Vicens, Lirhe – UMR 5066 – Toulouse it is stated that Airbus’s association is prepared around the establishment of a global separation of labour by means of a manufacturing concept based on different Centres of Excellence, in agreement with the major skills located at each site in its region of expertise. The informations vary according to the aircraft form, other than that the most common association is the manufacturing of divisions in Britain, the end in Spain, the fuselage in Germany and the central part in France. The final congregation takes place in Toulouse. This separation of the workload among the different manufacturing sites is clubbed with a division of labour among the various plants within a single site and a distribution of the work between Airbus and sub-contractors. One of the main troubles is therefore organizing the design and manufacturing of sub-assemblies and also in organizing the incorporation of sub-assemblies in the closing product. These concerns guide to the restructuring of the control and structure of the aircraft division. Since 1987, the site based industry has been replaced by function-based industry, so as to recover the organization from among the manufacturing sites and harmonies production devices, with operational control based in Toulouse. The main example of diversification is that of the organization Liebherr Aerospace in Toulouse, which concentrates on the total air processing system for aircraft, containing air pressurization, conditioning and heating. On the Liebherr Group level, the diversification of its actions is wide-scale, through a strong attendance of the public workings sector, domestic appliances and aeronautics. The organizational unit in Toulouse has also diversified its markets and customers. Therefore, it has marked a memo of contract with Boeing for the source of the air conditioning system and air sampling system for the UK producer’s new long haul airplane, which is a major break through in the UK market, and the biggest contract it has won straightly from the UK Company. Discussion: Toulouse is the fourth largest city in France, occupying a small density of population. The government of the city has contributed a lot to the aeronautical activities by concentrating more on the research and engineering activities. This is evident in the introduction of airbus in the city. The Airbus European Consortium was founded in the 1970 which expanded the aircraft industry with the latest technologies. Airbus has a regional office in Moscow to deal with marketing and public affairs, as well as to assist and expand present and future collaboration with the Russian aviation industry and to present airline, which can assist in the expansion and development of the city. The implementation of Airbus in the city of Toulouse has affected the city directly and indirectly in the following ways, Direct Effects: With Airbus, the city has got the reputation of being “Europe’s capital of aerospace industry.” Many digital technologies have been developed and this has improved and expanded the research and development activities. Various breakthrough technologies have developed and innovations of the new products have created international standards. It has increased employment opportunities. The aerospace industry has provided jobs for a number of educated peoples in the city. “Airbus and EADS employ over 21,000 people here; There would be another 41,000 indirect (employment generated in the businesses that supply goods and services to the aerospace sector) and 32,000 induced jobs (employment in other sectors generated thanks to the income spent by direct and indirect aerospace-related employees) thanks to the activity of EADS in the region, in total ~73,000 extra jobs” (Impact of Airbus in Toulouse Employment 2011). It has improved the standard of living 25-30% of the families live with the income obtained from this aerospace industry. Airbus also provides a broad variety of services to the customers in all parts of assistance, modified to the requirements of individual machinists all over the world. The benefits to the passengers come in the form of the airbus industry having solved the problems of the passengers. They can easily avail the services of the airbus at any time. It has expanded its business: This has widened the market for transferring the products and services from one country to another and has directed to the outlook of global leadership in the present economy. The nationalized segment has shaped an environment in which condition restricted inventive entrepreneurialism and assumption in technical modernization could prosper and operate as paradigm for the local industry systems Many regional expansion and industrial forecast plans have been developed for increasing wealth and the prestige of the nation. The industry has attracted the tourists. More number of tourists is attracted to the city and they enjoy sight seeing. The airbus conducts four programs for them. Aviation performs as a cultural method engaging the Toulouse society with the culture and values related with present dynamic capacity. It operates as the inventive power following the industrialization of the economy. The developmental representation of the airbus has set an amazing path confirmation in dropping the energy utilization and in combating against its environmental force in increasing its hard work. The level of specialization within the production series of the Airbus has lead to low down stage of competition with the other cities. The invention of the air bus factory in the city provides an indication of the success of the firm in gathering air planes. The visits of people to the site will provide them information about the new technologies and its advancements. Students will be able to learn about solar system and space technology. It attracts a large number of tourists by providing them first class mobility services. Indirect Effects: The introduction of airbus industry has also indirectly affected the city in some ways: Emission of fuels and oxygen: The lives of people living in the city are affected early in the 1970 with the implementation of aerospace activities. For the small constricting firms, the cost disadvantages of the city are too high irrespective of the existence of possible consumers. The expansion of the urban tourism has turned out to be a major dispute for the cities as it is measured that it has an effect on their overall illustration and appeal. It directs the city to become operators in the tourism sector and to obtain new competencies and impose a big challenge to meet the hope of the tourists. The indirect impact includes the increased use of air pollution. This has affected the lives of many citizens living in the city. Another indirect effect is the extra spending done by the tourists irrespective of their visit to places. Prices of the products and the services, cost related to transport, accommodation and food expenses have indirectly affected the city. Disturbs the landscape and other ecological conditions: The setting up of airbus factory needs lot of space and the people have destroyed the land for this purpose. This has disturbed the environment in a huge way. Conclusion: The Airbus now controls the highest business and it is the icon of the city. The icon of an Airbus fluttering grandly over the location has favored the economy. The coming century, the economy will attract more tourists to travel across the world. In 1970s the socialists controlled the top order of huge developments in Toulouse. The fiscal modernization limited corresponds with the city was combined to the level of the city. Airbus serves as a specialized international market. The innovation comes during better infrastructural facilities, research and development activities, technological parks and finance. In the city of Toulouse, the Airbus has offered a suitable assured market for the small and medium group companies that praised and encouraged the French cultural disinclination to get connected to aggressive entrepreneurship and suppose rivalry linked risk. The environmental management system of the Airbus continuously supervises and reduces the effect of environment and undertakes an environmental friendly approach. Reference List Ellis, TJ & Levy, Y 2008. Framework of Problem-Based Research: A Guide for Novice Researchers on the Development of a Research-Worthy Problem. The International Journal of an Emerging Tran discipline. Available at [Accessed on 15 April 2012] Impact of Airbus in Toulouse Employment 2011. The Blog by Javier. [Online] Available at [Accessed on 15 April 2012] Recent Developments with Airbus: Ninth Report of Session 2006. Vol. 2. Great Britain: Parliament: House of Commons: Trade and Industry Committee. Print. The Changing Structure of the Global Large Civil Aircraft Industry and Market: Implications for the Competitiveness of the U.S. Industry 1998. U.S. International Trade Commission. Print. 13th Annual Computer Security Incident Handling Conference 2001. First Org, Inc. 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