Statement Defence - Airbus PDF

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Statement Defence for Airbus case...

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A. The strategic level plans differed between Airbus and Boeing because they had different visions they wished to enact. Airbus’s vision differed to Boeing, so therefore their strategic plan as these are based around long-term needs. Their vision was to “alleviate problems” like airport congestion by planning to build a larger plane to carry 800 passengers at a time, decreasing total flights needed. Boeing’s vision saw a need to fly to more than just “hub” airports; airports large aircrafts are more restricted to. They planned to build a smaller plane that can land at mid-size airports so passengers spend less time in transit by flying directly from one place to another. Airbus had uncontrollable delays after events such as lightning, protests, and worker strikes. Experts said it’s ”not unusual for new planes to develop unforeseen faults” indicating issues with the A380 weren’t unexpected, proving issues/delays caused by operational plans weren’t the most critical point; some were inevitable/uncontrollable. Airbus planned to build 1,300 planes in 20 years while Boeing planned 10 a month by the end of 2013 alongside an 800 order backlog, meaning manufacturing had to be fast, increasing chances of mistakes as workers are rushed, therefore this alone was more critical than implementing the solution, the fourth stage in the decision making process.

CASE AND NOTES: Airbus made the decision to recall all 69 planes in service, but a much more critical element than this is the fact these planes had issues to start with. before they did this one hundred and sixty planes were delivered late to other customers and some even cancelled their orders. The cracks had been caused by the assembly procedure used to fit the type of aluminum brackets, which hold the wing’s skin to the wing structure Airbus had planned to build and sell 1,300 planes over a period of 20 years Boeing announced plans to build 10 Dreamliners a month by the end of 2013 as it works off a backlog of more than 800 orders for the model. However, in view of recent discovery of delamination problems in the fuselage of the aircraft this may be over-optimistic and may have to be adjusted downwards.

Airbus will bear the cost of inspecting all 69 of the A380s in service and repairing them. Airlines may also seek compensation for leasing planes to compensate for the A380s that were temporarily out of service. Although estimates vary, all agree that the global recall of the 69 planes currently flying will cost Airbus a lot of money, possibly as much as US$132,000,000.

Strategic plans are based around long-term needs and provide thorough guidelines for an organisation The majority of the delays were attributed to wiring problems - the A380 has 500 km of wiring running throughout the aircraft. It appeared that these problems were caused by mismatched design software.One hundred and sixty planes were delivered late to other customers, costing Airbus large penalties – we are talking here billions of US dollars! To recall the 69 A380’s in service though estimates vary, all agree that the global recall of the 69 planes currently flying will cost Airbus a lot of money, possibly as much as US$132,000,000 The Dreamliner, however, has suffered even worse delays than Airbus. Until now it has had seven delays related to new materials and manufacturing processes used.

B. The issues and delays caused by operational plans that each company suffered are the most critical point.

C. The third stage in the decision making process that each went through is the most critical element.

D. The fourth stage in the decision making process that each went through is the most critical element.

Operational plans describe what needs to be done in the short term to progress strategic objectives. Typical operational plans in an organisation include: ● production plans — dealing with the methods and technology needed by people in their work ● financial plans — dealing with the money required to support various operations ● facilities plans — dealing with the facilities and work layouts required to support task activities ● marketing plans — dealing with the requirements of selling and distributing goods or services ● human resource plans — dealing with the recruitment, selection and placement of people into various jobs.

Airbus, was joined by Boeing but after both companies had examined the air traffic trends each wanted to pursue a very different solution and therefore they parted ways and developed separate projects. Airbus, anticipated that hundreds of ultra-large aircraft would be needed over the following twenty years. They focused on developing a “super-jumbo” with 555 seats which could be adapted to carry as many as 800 people, thus reducing the number of flights needed to carry the same number of passengers Boeing took a different approach. Boeing believed the market for very large aircraft was limited due to the disadvantage of only being able to fly to the ‘hub’ airports. . Its smaller size means that it will be easily accommodated in mid-size airports, thus enabling passengers to fly directly from one destination to another without the inconvenience of changing airplanes and spending time in transit....