STRATEGIC BUSINESS MANAGEMENT ANALYSIS 2022

Running head: STRATEGIC BUSINESS MANAGEMENT
STRATEGIC BUSINESS MANAGEMENT
Name of the student
Name of the university
Author notes

1
STRATEGIC BUSINESS MANAGEMENT
Table of Contents
Introduction....................................................................................................................2
Environmental Analysis.................................................................................................3
Macro Trend Analysis................................................................................................3
Highly Uncertain Key Drivers of Change..................................................................5
Industry Analysis.......................................................................................................6
Capability Analysis........................................................................................................7
Value Chain Analysis for Airbus Commercial Aircraft.............................................7
VRIO Analysis of Value Chain................................................................................10
Competitive Implication...........................................................................................11
Proposed Strategy and Conclusion...............................................................................11
References....................................................................................................................14
Appendices...................................................................................................................16

2
STRATEGIC BUSINESS MANAGEMENT
Introduction
Airbus SE is a known name in the airline manufacturer industry. The company
is the European multinational aerospace corporation that have its headquarters in
Netherlands. The Airbus group has its shared trades in Germany, France and Spain. This
company was the highest order taker in the airliner manufacturing in the year 2019. The
company manufactures military and civil aerospace products. They also manufacture aircrafts
in Europe and worldwide. The company has three units of business- commercial aircrafts,
helicopters and Defence and space (airbus.com 2020). The commercial aircraft is the
emerging segments for the company performance. Yet, the problems in this sector cannot be
avoided. The main challenge that the company is facing in Commercial aircraft segment is
low intake of orders and delivery problems (reuters.com 2017). The manufacturing delays are
affecting the reputation and business of the commercial aircrafts of Airbus group.
The official website of Airbus Commercial Aircrafts states that, “Airbus is a leading
aircraft manufacturer whose customer focus, commercial know-how, technological leadership
and manufacturing efficiency have propelled it to the forefront of the aviation and air
transport industries.” (airbus.com 2020) The challenges that the company is facing in recent
times do not go with the “manufacturing efficacy”. The number of products also is the part of
the manufacturing deals. The company has not been able to deliver the promised number of
products in time. This is creating a problem in their performance. The internal problems of
the company culture can be one of the reason of such degradation. The changes in the
authoritative and managerial roles are creating imbalance in the organisational work culture.
The overall impact can be shown in the manufacturing units. The delay in manufacturing of
the new commercial flights are the outcomes of the lack of leadership competencies. The
company has recently lost one of its important deals to a Singapore based aircraft. The

3
STRATEGIC BUSINESS MANAGEMENT
famous Superjumbo A380 production is now standing in a questionable position because of
the delayed manufacturing.
The rival companies are capturing the markets of Airbus as they are delivering more
aircrafts in less time. The competition is high and in this situation, the Airbus is not being
able to manage its internal problems effectively. In the company statement, the mention of
technological leadership is there. The reputed European aircraft company is also falling
behind in their innovations. One of the main competitors Boeing is been grounded for last
few years, but because of the manufacturing delays, the company is not being able to grab the
opportunity of the market. The Airbus Chief Executive Guillaume Faury, stated in an
interview- “It might look like a paradox, but in the short term, we don’t benefit from the
situation with our competitor.” (Lincoln and Linh 2019). While publishing the annual report
of 2019, Faury explained that they are not being able to grab the opportunity Boeing has
provided them as they are not being able to manufacture the planes fast enough (nytimes.com
2020). The bulk orders for the planes are lagging behind for months and this is hampering the
profit and reputation of the Airbus Commercial Aircraft.
Environmental Analysis
Macro Trend Analysis
The drivers of change in an industry are the determinants of the opportunities and
threats within its context. In the airline industry, the main trade drivers are the political
scenario of the country, in this case, United Kingdom would be considered. These are the
external factors that influences the organisational growth and impact (Richter and Witt 2017).
Other than the political factors, the technological interventions and the legal factors also are
affecting the business results of Airbus commercial aircrafts.
Political