CASE 2 WRITTEN REPORT ASSIGNMENT ( Bussiness)
WRITTEN REPORT ASSIGNMENT
PROPOSED DETAILS FOR WRITTEN REPORT
The following is an outline describing the format and content to follow for the Written Report.
FORMAT: (Please put your information in the following order)
1. Title Page (separate page) +
2. Table of Contents (separate page) +
3. ½ page Executive Summary (separate page) +
4. Minimum of 5 full pages of text, maximum of 7 pages; double-spaced- meaning one blank space between lines (including headings and sections), indent at the beginning of paragraphs. Make sure you write in paragraphs, not outline or listing information. +
5. Bibliography- (separate page) Minimum of four sources and they all can be online sources. You may also interview people doing that job now right now for 2 of your sources.
6. Total # of pages will be between 9 – 11 pages.
The theme of this report will be from the following:
BUSINESS CAREER TOPIC – pick a job that you might obtain after you get your degree in a career that you are interested in and research it. This should include: job requirements (education, work experience, licenses, skills), salary, benefits, job duties, employment outlook, and more. The job is Accounting Assistant and their is two article I would like for you to use and also you can use more.
See me for a different topic
Spacing – 1 blank space between Headings, Lines and Paragraphs
Indent at the beginning of a paragraph
Follow my page numbering exactly
Lots of headings – Use the Written Report Headings in Modules 8.3
Proofread for spelling, punctuation and grammar.
students Topic here
students name here
MARCH 24, 2017
Differing Approaches to Manufacturing…………………………….1
Competitive Tactics Backfire for Boeing…………………………….2
Opposing Views of the Future……………………………………………..3
Market Gambles—Both Firms “Bet the Company”…………………4
Boeing has been defined by its sheer technical bravado—and at times by its almost willful disregard for financial realities. The Seattle company designed the B-52 in a single weekend and launched the 747 jumbo jet in spite of the many observers who declared it financial suicide. Boeing is the world’s largest aerospace company and the largest exporter in the United States. It has built some 85 percent of the world’s jetliners and has dominated commercial aviation since the 1950s. But in 1999, the once unthinkable happened: rival Airbus sold twice as many planes as Boeing. This report is a comparison of these two competitors.
Boeing has been defined by its sheer technical bravado—and at times by its almost willful disregard for financial realities. The Seattle company designed the B-52 in a single weekend and launched the 747 jumbo jet in spite of the many observers who declared it financial suicide. Boeing is the world’s largest aerospace company and the largest exporter in the United States. It has built some 85 percent of the world’s jetliners and has dominated commercial aviation since the 1950s. But in 1999, the once unthinkable happened: rival Airbus sold twice as many planes as Boeing.
Airbus was founded in 1970 as a consortium of four European partners with homes in Great Britain, Germany, France, and Spain. Airbus would never have gotten off the ground without subsidies from the partners’ governments. In 2001, confident that Airbus could finally stand on its own, the partners turned it into a single private company. Like Boeing, Airbus manufactures a full fleet of planes. Unlike Boeing, it has no jumbo jet. As a result, when it approaches an airline with a package deal, it has no big plane to clinch the sale.
Differing Approaches to Manufacturing
Airbus and Boeing build their planes differently. At Airbus, large airplane components, such as wings, cockpits, engines, and landing gear, are produced by suppliers all over the world and flown in giant cargo jets to a final assembly building in Toulouse, France. There, a handful of employees operating giant machines snap the large plane sections together. The finished aircraft are sold by Airbus Industry, a sales and marketing joint venture owned by the partners. Many once-loyal Boeing customers now find innovative Airbus designs to be technologically superior and more comfortable for passengers.
Besides offering wider planes that accommodate wider passenger seats, more overhead bin space, and more aisle space, all Airbus jets share the same cockpit design. This uniformity allows pilots to easily shift from flying one model to the next, which can slash pilot training from 30 days to less than 8 and save airlines millions of dollars annually.
Until recently, Boeing customized a cockpit for every model and built airplanes like customized houses: Airlines could select from 109 shades of white paint or 20,000 galley and lavatory configurations. Worse yet, Boeing relied on a manual numbering system to track the 4 million parts and 170 miles of wiring needed for any one airplane. Compared to Airbus, Boeing’s assembly lines were a beehive of activity, and its systems were woefully inefficient. Boeing is now rebuilding its operations and systems, but only after learning its lesson the hard way.
Competitive Tactics Backfire for Boeing
With Airbus gaining ground in the mid 1990s, Boeing decided to deal this challenger a crippling blow. Banking on its ability to overhaul operations, cut production costs by 25 percent, and double production of its profitable 747 line, Boeing offered customers deep discounts on smaller jets to win multi-aircraft orders. But its plan backfired. The company was besieged with more orders than it could deliver on time. Production problems, management turmoil, and a market slowdown (spurred by the Asian economic crisis) collided head-on with Boeing’s planned system upgrades, sending the aerospace giant into a tailspin. The company took years to recover, and the crisis triggered a massive reengineering attempt. Boeing is now following in its rival’s footsteps by outsourcing the manufacturing of more components. “The goal is to transform Boeing into a company focused on design, marketing, and assembly while letting others build the parts,” says one Boeing spokesperson.
Opposing Views of the Future
Boeing and Airbus have very different visions of the future of aviation. Airbus believes that the number of people traveling between the world’s biggest airports will grow faster than airport capacity, boosting demand for a new generation of gigantic planes. Airbus projects that the market potential for a super jumbo is about 1,500 planes. So it is spending $12 billion to develop the world’s biggest passenger jet, which it claims will revolutionize air travel just as the 747 did. The wide A380 super jumbo double-decker will seat 555 passengers (and can be configured to seat 800), surpassing Boeing’s 416-seat 747-400. The A380 will showcase the latest technology and use light-weight composite materials currently found in military aircraft, making the A380 cheaper to operate per seat-mile than Boeing’s 747-400. But the super jumbo will fly no faster than today’s jets.
“Not worth it,” says Boeing chairman Phil Condit. After taking a close look at the super jumbo, Boeing concluded that it couldn’t make the plane pay. Boeing sees demand for new jets in the 400 plus category ranging between 400 and 1,000 units over the next 20 years. The company plans on servicing this growth with its current 747 model and a new longer-range version that could fly an additional 775 miles without sacrificing airspeed or cargo capacity. In fact, Boeing thinks the Europeans “have gotten themselves in a terrible jam. They just won’t be able to meet their commitments,” says Joe Sutter, the engineer who led the design team that produced the original 747. Airports would need to spend hundreds of millions of dollars to upgrade terminals and taxiways to service the A380 and its two levels of jet ways. Furthermore, the super jumbo’s huge capacity limits its use to only the most densely traveled routes.
In contrast, Boeing is betting that airlines will begin using moderately smaller planes to fly passengers directly between smaller cities, bypassing congested hub airports.
The company anticipates that new airports will be developed to accommodate passenger needs—especially in trans-Pacific and intra-Asian markets. So instead of building a super jumbo, Boeing will spend about $10 billion to develop a near-supersonic plane that will be able to fly 20 percent faster than today’s conventional planes without breaking the sound barrier and without increasing operating costs. The Sonic Cruiser 20XX will save one hour of flying time for every 3,000 miles flown, which could change the way the world flies (perhaps as dramatically as the introduction of the jet engine.
Market Gambles—Both Firms “Bet the Company”
If the Airbus vision is right, the newcomer will likely steal some of the most lucrative sales from large markets such as Japan, where Boeing holds a commanding market share. For instance, if the Japanese buy the A380, Airbus could become the undisputed world leader in the market for big jets, ending Boeing’s 30-year jumbo-jet monopoly. Furthermore, if it turns out that customers like the A380 better than Boeing’s current 747 or its planned long-range version, they may be tempted to buy their smaller jets from Airbus as well as their larger jets.
On the other hand, if Airbus has misjudged the market demand for super jumbos, the company and its backers would be facing a financial catastrophe. For one thing, developing the proposed A380 could zap resources from existing lines, which would hurt the company’s overall competitiveness at a time when Boeing is devoting its engineering efforts to squeezing costs out of planes and manufacturing processes while developing a smaller plane for faster travel.
TO COMPLETE THIS ASSIGNMENT YOU WILL NEED 5 FULL PAGES OF TEXT
Cole, Jeff. “Flight of Fancy.” Wall Street Journal, 3 November 1999, A1, A10.
Edmondson, Gail, Janet Rae-Dupree, and Kerry Capell, “How Airbus Could Rule the Skies.” Business Week, 2 August 1999, 54.
Holmes, Stanley. “Boeing Jettisons a Plant.” Business Week, 2 February 2001, 14.
Michaels, Daniel. “Europe’s Airbus Ready to Spread Wings as a Company.” Wall Street Journal, 23 June 2000.
Michaels, Daniel. “Flying High.” Wall Street Journal, 25 September 2000.
Michaels, Daniel. “Giant Jet Gets Orders It Required.” Wall Street Journal, 30 November 2000.