The paper deals with change management of the Airbus Company. Such issues as technological advancement, design development of aircraft products, competitive relations between the rivalries on the international arena are discussed further on. …
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Differentiation policy of the Company, people-centered approach, a great attention to the customers’ needs and interests of shareholders are the basic principles of the change management policy development.
Thesis: Airbus is a perfect example of strategic management involvement in the process of the company’s development and functioning in the modern global world. Strategic concerns are multi-faceted and focused on the customers’ interests, stakeholders’ involvement, aerospace business profitability and advancement in the international arena.
Keywords: aerospace industry, strategic management, profitability and advancement.
Change management of the Airbus Company
Airbus and Boeing are two world’s largest developers of aircraft potential of the world. Financial crisis has caused a serious impact on Airbus and the company managed to cope with the crisis rather well. Still, it is relevant to save the amount of production and not to suffer great losses.
In spite of the fact that in accordance with prognoses production rates of Airbus were unsustainable, Airbus does not lose its positive mood and makes an attempt to satisfy the needs of the customers, to meet the requirements of the suppliers and to take care of the stakeholders’ interests. ...
In order to beat the competition, the Airbus Company makes an attempt to advance “modern and cheaper transportation, communication and technological development” (Airbus Official Website). Being one of the largest manufacturers of jetliners and airlifters, Airbus has essentially grown “on the basis of its mission, vision and passion of the employees” (Airbus Official Website) . With regards to the research conducted by McGuire (1997), there are certain key factors, which determine the character of the industry. The following factors may be applicable for the Airbus Company: design, a scale of production, cost reduction strategies, networks, demographics passengers and timing are essential for a potential successful evolution of the country (Airbus Official Website). With respect to Airbus it should be noted that there is a strong development of the Company: “till the end of August, 2009; Airbus has designed 13 models of aircraft and sold 9,340 units with the strong customer base around the world which makes it passenger friendly using high technology” (Airbus Official Website). Data obtained from the annual review (2005-2009) prove the fact that Airbus achieved an enormous success within the last five years in spite of challenges experienced after the world’s financial crisis (from 22,179 million in 2005 to ?27,453 million in 2008) (Airbus Official Website). There is an evident strategic advancement of Airbus in comparison with Boeing. Yearly sales of airbus increased substantially in comparison with Boeing sales for the last five years (McGuire, 1997). The following strategic steps are beneficial for Airbus advancement in the international arena: the introduction of fly-by-wire, cockpit commonality and configuration of the engines
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Soft Systems Methodology has been chosen for Analyzing and defining the business requirements of Airbus. This particular methodology was used because its advantage, in comparison to Hard Systems Methodology, is that it gives an evaluator an opportunity to obtain a deep understanding of the major problems at the early stages of the analysis.
As Green (2007, p. 89) points out, the company decided to introduce a change, that is, to introduce a number of centers of excellence across Europe, in an effort to speed up its decision making processes to meet European standards. Thus, there were three centers of excellence, in Switzerland, UK, and Holland.
The author states that in relation to the business performance of the organisation, it can be witnessed that the European roots of EADS is quite stronger. However, the aerospace and defence industry based operations of EADS is one of the major considerations for the organisation which entails a range of products and services.
Therefore, it can be recognized that change activities are considered to be necessary in order to enable the organizations to adjust to the altering situations and to attain competitive advantage (Cohen, 2005). The paper would attempt to introduce and discuss the various related aspects of a change initiative in an organization in a successful way.
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This research aims to evaluate and present operations management of Airbus Company. The report will cover the following: issues that require investigation; objectives that would assist in evaluation of recommendations; operation management techniques; lessons learned from part three analysis; future analysis prospects.
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Business Process Reengineering (BPR) refers to the essential redesigning and restructuring of the main business processes in order to achieve improvements in organizational productivity and efficiency. Using the concept of BPR, companies analyze the working of existing business processes in order to improve those areas which cause difficulty in delivering value to the customer (Brain & Company Guide [BCG] 2013).