Adam Aircraft Company Analysis - Essay Example

?Adam Aircraft Memo December 14, Adam Aircraft Adam Aircraft was founded by Rick Adam in the year 1998 for the purpose of attaining its predetermined business goals. The mission of Adam Aircraft was to deliver high performance air planes to its potential customers. The mission of the company was followed with an objective to become a successful aircraft company. The strategies of the company were typically customer oriented that were endeavored towards producing light, comfortable, affordable and fast aircrafts. Findings The company faced many severe challenges. One of the prime challenges faced by the company was the availability of limited fund. The aspects of inadequate time and lack of skilled workforce were the other vital challenges for the company. At the same time, the company realized that in order to succeed in aircraft industry, it must develop new and innovative products. Recommendations Addressing the challenges faced by the company, certain recommendation have been given. In this regard, the company must cautiously utilize the available time and funds. Any kind of wastage within the company should be quickly curtailed. Further, it should seriously consider the rules and regulation prescribed by FAA in order to prevent any delays during the work process. Table of Contents Memo 2 Table of Contents 4 Introduction 5 Thesis Statement 5 Identification and Evaluation of the Company’s Existing Mission, Objectives and Strategies 5 Identification of the Key Strategic Issues (Problem Statement) 7 The Causes of the Problem 8 Identification of the Key Inferences and Assumptions 9 Alternative Solutions 10 Recommendations 12 Conclusion 15 Works Cited 16 Introduction Rick Adam, a successful entrepreneur who had a passion for flying, founded Adam Aircraft Company in the year 1998. Adam identified the market needs and conducted an efficient market research as well as analysis; as the result of his efforts, Adam Aircraft was founded. Rick Adam’s passion for flying has developed since his childhood - he got inspiration from his father, George Adam Sr who had served as an Air Force Officer during the World War II (Hedberg and Hamilton, “Adam Aircraft”). Thesis Statement This paper is all about making a thorough analysis of the case study relating to Adam Aircraft Company by concerning certain significant aspects. In this regard, the aspects include the identification as well as the evaluation of the company’s existing mission, objectives and recognition of chief strategic issues along with the reasons for the problems. Various aspects such as the identification of the key facts and the assumptions drawn from the aforementioned aspects, proposition of alternative solutions and specific recommendations for action will also be portrayed in the paper. Identification and Evaluation of the Company’s Existing Mission, Objectives and Strategies During the period of the establishment of Adam Aircraft, it has been viewed that the airplane market possessed high entry barriers and required to invest huge capital in order to formulate as well as to implement effective business strategies. In this similar context, Rick identified the pitfalls associated with aircraft manufacturers that included the problems relating to aircraft designing, building and certifying new aircraft. Furthermore, he also identified the prime reasons behind the success and the failure of those companies who had entered the aircraft manufacturing industry with high enthusiasm. The detailed analysis of these significant factors ultimately led him towards recognizing new as well as innovative ways for entering into the aircraft industry. Rick founded the company with the purposeful mission of delivering quality and efficient products or services to its potential customers and ensuring greater customer satisfaction by meting their respective expectations and needs. At the same time, the objectives of the company were to manufacture and deliver advanced aircraft support structure sin the finest way to its valuable customers. The strategies of the company were intended towards producing high performance aircrafts. Adam identified two major markets that can considerably influence his company which comprised owner flown and professionally flown. The owner flown business market were more concerned with the performance of the aircraft and handling the facets and the electronic systems, while the professionally flown business market were especially concerned about meeting with the passengers’ or customers’ requirements such as seat comfort and baggage keeping spaces among others. Considering the above statement, it can be affirmed that the company’s strategies were mainly customer oriented and particularly based upon promoting enhanced customers’ satisfaction at large. The different business strategies of the company were generally followed by ensuring easiness to access the system relating to its various operational procedures (Hedberg and Hamilton, “Adam Aircraft”). Identification of the Key Strategic Issues (Problem Statement) Adam realized that most of the companies engaged in aircraft manufacturing were lacking innovation; they greatly relied upon old design for developing their products. Moreover, he identified that it was quite expensive to operate in the aircraft industry due to increased market competition. The demands for old planes were quite high as compared to the new planes due to high costs of the last. He also gathered an imperative idea concerning the fact that the airplanes become unsafe with the passage of time even when substantial aircraft maintenance is performed. Despite the challenges related to the investors, Adam invented two sorts of flying prototypes that comprise the A700 jet and the A500 twin piston. The development of these two flying prototypes within a short period of time was indeed a great achievement of the company that had considerably appreciated and attracted the interest of many people especially towards the aviation sector. It was observed that the companies like Beechcraft and Cessna were the major competitors of Adam Aircraft. The company was intended to make new category of Very Light Jet (VLJ) in order to keep the development costs low and meet the requirements of FAA certifications (Federal Aviation Administration, “Transport Certification Update”). However, it was apparently observed that Adam Aircraft was facing certain major difficulties in relation to designing and building new and efficient aircrafts. Furthermore, the company did not possess sufficient funds in order to meet the increasing manufacturing costs. The pilots belonging to the company were quite hesitant adopting new aircraft policy as well as the measures since the company was new and did not bear any reputation in the aviation industry. Moreover, there was a fear that the company might not be able to succeed in the market place and may fail as other companies fall short in the past (Hedberg and Hamilton, “Adam Aircraft”). From the perspective of the investors, it was observed that the investors were also reluctant to invest in the aviation business of Adam Aircraft and were less interested to support the company. So, these are the certain key strategic issues faced by Adam Aircraft within the context of industry dynamics. The Causes of the Problem The major reason behind the problem faced by the company is that Adam Aircraft was identified to be the incessant failure of many aircraft companies particularly in the aviation industry in the past. In this regard, the constant failure of these companies had extensively demoralized significant portion of the investors to invest particularly in the aviation sector, due to which the company faced financial problems. Besides, Cessna, the competitor of Adam Aircraft, was already investing large sums into the development of its various products or services. Another major cause of the problem that can be recognized was related to the lack of availability of necessary equipments and trained employees that are required for fulfilling the necessary tasks or activities and comply with the preferences and desires of the customers. In this connection, the major problem Adam Aircraft faced was the difficulty in assembling the technical parts related to its operations. It was quite difficult for the company to combine all the qualities that are needed by customers like comfort, safety, lightness and speed among others. The company was aware and realized that that must require introducing certain new as well as innovative conceptions or qualities that can mitigate the aforementioned problems by a considerable level. However, this would require huge amount of investments on behalf of the company, and unfortunately, the company did not possess a strong monetary base in order to meet its financial requirements (Hedberg and Hamilton “Adam Aircraft”). Identification of the Key Inferences and Assumptions After critically addressing the company’s missions, objectives, strategies as well as the problem issues and their causes, it can be identified that the situation during its time of establishment was not much favorable. It has been viewed that the previous companies of similar industry were not been able to deliver positive results and at the same time failed to establish themselves in the said industry. Consequently, it was a great challenge for Adam to efficiently structure his company in those circumstances. In addition, the company was also observed to possess crucial problem in relation to attract the investors for financing its overall business operations. However, Adam was quite familiar with the prevailing situations, and he knew that in order to succeed in the industry, he should try to develop new as well as unique aircrafts as compared to its competitors. Furthermore, he also identified that different customers possess dissimilar requirements and the company should critically consider those requirements for ensuring its successful establishment. Thus, Adam wanted to design such aircrafts that would truly fit the requirements of his potential customers. Nevertheless, the unavailability of sufficient funds ultimately supported the company to face constant difficulties in designing aircrafts (Hedberg and Hamilton, “Adam Aircraft”). Alternative Solutions High Speed in Design and Production With regard to the strengths and weaknesses of Adam Aircraft, it can be affirmed that the company can consider both time as well as decisive factors for its production process. In relation to its manufacturing process, the company may also initiate 24 hours scheduling. Moreover, the company can employ highly sophisticated modeling designs, based tools and techniques that are developed by powerful aircraft builders as an alternative solutions in order to mitigate the aforesaid problems. However, employees might find difficulties in handling these tools at the initial stage, but later these tools might considerably aid the company to pace up its business operations by a significant level (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). Highly Professional Management Team In order to cope up with the identified problems, Adam Aircraft can employ highly developed professionals possessing relevant skills particularly in the aircraft industry. Contextually, this particular initiative as an alternative solution can enable the company to enhance its operational standards as well as work procedures with minimum efforts (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). Close Consideration of the Competitors’ Actions In relation to strengths and weaknesses of Adam Aircraft, it can be affirmed that the company may strive to provide its customers with cheaper and better products or services by easy accessing to the operational systems. Moreover, in this similar context, the company can also imitate the best practices of its competitors and take superior competitive position over its chief business market competitors. Notably, it will require the company to make substantial investments but can help the company to mitigate its problems in terms of taking effective measures against any deviation in its business as well as operational performance during the time of its operations (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). Keeping Track with Advancement in Technology The company may rigorously consider any sort of changes particularly in technology or use of raw materials. This will eventually enable the company to quickly shift its business operations towards incorporating new and latest technology. Additionally, such activities will help the company in building unique aircrafts along with extra-ordinary designs and facilities. These would also help the company to attract considerable attentions of investors and fulfill its funds requirements (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). Complying With Rules and Regulations of FAA The different activities of Adam Aircraft must comply with the rules as well as the regulations that are prescribed by FAA from the initiation of the project. This will reduce any overlapping of the rules and regulations relating to FAA in later stages (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). Recommendations The company faced several significant problems relating to investments, lack of trained employees and difficulties in pooling necessary equipments while performing its operational functions. In order to tackle these problems, the company must rigorously follow the following suitable recommendations. In this regard, Adam Aircraft can increase industrial research and development (R&D) expenditure by reviewing terms and conditions of existing programs and introducing new programs. The company must also redirect its existing funding programs in order to address the needs of the industry in an effective manner. Furthermore, it may also commit towards ensuring steady long-term improvement in its products or services along with work procedures. In addition, the business strategies of the company must focus upon reducing the development costs and ensuring superior quality in terms of its product designs, manufacturing, administrative and support activities. The company must recognize that the imperative resource for its product development is the availability of human resources and ensure that the people or the workforce who are engaged with designing and building the company’s products are skilled, well trained and highly creative (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). In order to gain the benefit of skilled workforce, the company can introduce as well as develop effective training and development programs for the employees as an inevitable component of its business strategies. The company must carefully consider that technologies are changing at rapid pace and are becoming obsolete very quickly. Contextually, the company must not adhere to one specific technology; rather, it can implement new technologies quickly for the motive of gaining its expected business targets. Such adoption of new and innovative technologies will eventually help the company to remain competitive in the market place for longer period of time. Today, every business organization performs their business processes at high risk of solvency; hence, the company should ensure that it has sufficient financial base for meeting any kind of contingencies. Additionally, the company can also retain substantial capital resources in order to meet its current commitments and for investing in the development of new products. Furthermore, the company’s actions must focus upon establishing a prosperous association with the customers and the suppliers (Kleinhenz and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). The FAA imposes considerable impact upon the aviation sector of the U.S. by a greater extent. As a result, the company must closely view and analyze the policies that are initiated by the FAA and should comply with the rules and regulations formulated by them. Usually, it has been viewed that huge investments of the customers are closely associated with the political circumstances of the country in which the company operates. In relation to this, the company must keep in track with the ongoing political situation of the country for availing the prevailing opportunities. Finally, it can be stated that Adam Aircraft can make better utilization of recyclable materials for manufacturing its products such as VLJ (Kleinhenz, and Austrian, “A Strategy for Growing the Ohio Aerospace & Defense Industry”). Conclusion Adam Aircraft was established by Rick Adam in the year 1998. The major reason behind the establishment of the company was to produce high performance aircrafts with enhanced customer services in the business market. The business strategies of the company were mainly customer oriented that were formulated to produce aircrafts which would meet the expectations of its potential customers. However, in the course of introducing new and innovative product, Adam has continuously been facing numerous significant challenges. Amongst the challenges, the imperative problem was that the company did not possess sufficient finance and adequate support to promote its operational functions. The continuous failure of other companies to report their success belonging to the similar industry was the major factor that that had discouraged the investors from investing in aircraft industry. It can broadly be stated that any sort of delays in the production of aircrafts would certainly put the company behind its competitors like Cessna that had already placed itself as a reputed name in the aircraft industry. In order to mitigate crucial challenges that faced by the company, certain suitable recommendations along with alternative solutions have been provided. These include introduction of innovative technologies, compliance with the legal guidelines as prescribed by the FAA and formation of effective training and development programs for its entire workforce. Thus, it can be affirmed that these significant solutions or recommendations can ultimately support the company to fulfill its expected business targets and to accomplish superior competitive position over its major business market competitors. Works Cited Federal Aviation Administration. Transport Certification Update, 2007.Web. 14 Dec. 2012. Hedberg, Carl, and John Hamilton. “Adam Aircraft.” Babson College (2004): 2-14. Print. Kleinhenz, Jack, and Ziona Austrian. A Strategy for Growing the Ohio Aerospace & Defense Industry, 2005. Web. 14 Dec. 2012. Read More