International Project Management: Analyzing Airbus A380 and Boeing 787

This report provides an in-depth analysis of international project management, focusing on the challenges and lessons learned from the Airbus A380 and Boeing 787 projects. The study examines the impact of cultural differences, communication barriers, and stakeholder engagement on project success. It explores the projects' failures, including delays, budget overruns, and operational issues, and identifies the root causes of these problems, such as inadequate preparation, ineffective communication, and complex management structures. The report also delves into the airline industry's competitive landscape, considering factors like buyer power, supplier power, and the threat of new entrants. Furthermore, it assesses the project management methodologies employed by both companies at each stage of the project management cycle, highlighting the strengths and weaknesses of their approaches. Finally, the report offers recommendations for Murasaki Aircraft Corporation (MAC), a relatively new aircraft manufacturer, on how to avoid similar pitfalls and improve its international project management practices. The analysis emphasizes the importance of effective communication, stakeholder engagement, and governance systems to enhance project outcomes.

Running head: INTERNATIONAL PROJECT MANAGEMENT
International Project Management
Name of the Student
Name of the University
Author’s Note

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Introduction
The present essay provides an overview on the unique features of international projects.
The study intends to assess an international project in form of how well it can be operated,
improved and solve the problem areas. This paper illustrates on the challenges that the two major
projects such as Airbus A380 and Boeing 787 face while undertaking certain changes and huge
scale innovation. Specifically, this paper shows the impact of change in design that is caused by
inadequate preparation prior to the implementation on these projects. It also reflects on the
significance of effective communications, stakeholders engagement and governance systems
within the project management. International project management has been becoming
increasingly significant in present business world where the businesses are expanding into new
markets and nations either for increasing its market share or utilizing efficient resources.
International project management needs unique tools as well as techniques for providing
international projects larger chance of success (Hwang & Ng, 2013). Managing international
project becomes challenging at times mainly because of differing standards and differences in
culture. Failure in international projects occur mainly due to culture that the project managers
tries to change but for the political reasons finds it impossible to do so. The learnings from the
case studies of Boeing 787 and Airbus 380 has been adopted into MAC company’s growth
ambition project. Furthermore, strategies are recommended to the MAC company for not
repeating mistakes done by Airbus and Boeing because of cultural differences and other
problems.
Background of Study
Globalization has created interdependent global economies and also raised total number
of international projects within the economies. A project manager has the sole responsibility to

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make a project successful in international scale. Project managers considers both social as well
as cultural differences for delivering international projects across several nations. The project
managers usually implement few process of the standard project management in order to make in
effective on both national as well as international scale. On the contrary, the project managers of
international projects face several problems that are not covered by the standard methods.
However, the project manager implements various tools and methods for combating with such
problems relating to international projects (Burke, 2013). Thus, few unique features of
international project management are-diversity, complexity, limited resources, risk, dynamics.
Apart from this, working on the international projects usually include high level of uncertainty
relating to project costs, time, external forces involving government regulation, inflation and so
on. Some of the recent evidences reflect that uncertainties within the project influences the total
capacity of the project management system that facilitates project managers to lead and monitor
projects in effective way. Some researchers have pointed out that uncertainty within the projects
disrupts the project management process as well as put the managers in such situation that
becomes highly challenging or them to make decisions. In fact, uncertainty also lowers the
returns on project and adversely influences the stakeholders cash flow and value (Hwang & Ng,
2013). The condition of international project management uses proper assumptions and
expectations to define as well as realize the result of project. In some cases, when stakeholder of
the international project do not have same culture, it adversely impacts planning and execution of
project. The three key aspects of international stakeholders cultural difference are- negotiations,
decision –making and communication with other employees. Moreover, the project managers
encounter cultural differences in the language communication, which is one of the largest barrier
in communication (Ramazani & Jergeas, 2015). Communication slows down when the

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international project stakeholders do not belong to same culture and share similar language. This
in turn influences the project planning as well as execution in which exchange of ideas and data
becomes critical. Moreover, the investment of stakeholders in the project as well as their
capability to affect the whole project results might create complexities within the project
management. However, the project managers help in resolving the project issues and improve the
management process by interacting with the cultural systems (Kerzner & Kerzner, 2017).
Industry analysis
The airline sector in which Airbus and Boeing are operating is huge and thus the
competition within this industry is high. The analysis of this airline industry is done with the help
of porter’s five forces-
Bargaining power of buyers- The bargaining power of buyers in this industry is low. High costs
are involved with the switching airplanes and have the ability to compete on this service.
Bargaining power of suppliers-The suppliers bargaining power is also high in this industry. The
supply business of this airline sector is majorly dominated by Airbus and Boeing. Owing to this,
there is high competition among the suppliers and likelihood of these suppliers integrating
vertically is less likely.
Threat of new entrants-The new entrants threat is quite low in this airline sector. The players
have existing loyalty to the main brands and incentives for using specific buyer. The fixed costs
in R&D is high and the technical resources are also scarce. Moreover, the new entrants faces
some government restrictions and high costs in switching over the companies.

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Threat of substitutes-For the regional airlines, threat of substitutes is higher than the foreign
carriers. While determining this, the existing players in this industry consider time, personal
preference, money and convenience in air travel.
Competitive rivalry-This airline industry is highly competitive and mainly earns low returns due
to high competition costs. Moreover, this might create disaster during tough times in the
economy.
Future trends in aircraft use
The future trends in the use of aircraft within the aviation sector depends on – fuel cost,
eco- friendly operation, hub and spoke, strength of Euro vs dollar and so on. Both these Airbus
and Boeing aircraft manufacturers are competing to develop artificial intelligence for making
computers to fly planes without the control of human beings. Airbus has been looking to develop
autonomous technologies and aircraft for allowing one pilot to operate jetliners and aiding to
reduce costs for carriers (Mir & Pinnington, 2014). For several years, Boeing has also being
experimenting with different approach, which is hybrid laminar flow control. This company has
been making innovations relating to wing structure, stabilizers and allowing designers of aircraft
to improve aerodynamic efficiency of lifting surfaces. Moreover, both these companies will be
changing its aircraft structure and improve the operations through integration of advanced
technologies (Harrison & Lock, 2017).
Critical assessment of two enterprises have done at each phase of project management cycle
The Airbus A380 as well as Boeing 787 have integrated several methods at each stage of
the project management cycle. The aim of Airbus A380 has been to design, develop as well as
deliver hub and also spoke huge passenger aircraft. Their main objective is to better than Boeing

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in all aspects of the business operation. In the first stage of the project management cycle, the
project scheduling has been done by both these airline companies that demonstrates project
conversion target into the attainable methodology for the successful project. Harrison and Lock
(2017) argues that, even though Airbus announced the launched date, they delayed in launching
this project. As per Mir and Pinnington (2014), estimation of time has been vital in effectual
project completion. During scheduling the project, Airbus estimated 5 to 6 year time limit for
product unveiling and delivery. Badewi (2016) argued that the company had taken more time
than it was estimated for completing this project. Ahlemann et al., (2013) found out that this
enterprise also adopted fuel injection system for the assembling and delivering project. Several
researchers also argued that numerous production problems started to surface after installing of
fuel injection system as it was three times complex. However, Airbus was left with no choice but
to postpone aircraft deliveries. During the planning stage of the project management cycle, this
company has adopted risk management process for reducing the effect of issues during this
project. In fact, computer software has been implemented in order to design components of
aircraft (Burke, 2013). The project manager of this enterprise has used several tools while
planning and monitoring thus project such as- progress charts, MS project software, progress
photographs, weekly programs, recognition of long lead items. It has been argued by some
researchers that technical issues occurring due to integration of these softwares have been one of
the reasons of project failure. Airbus has also utilized check list for different work items in order
to control project quality. The cash flow statements has been made along with project schedules,
monitoring of tendered quality and avoidance of work items in order to control the project costs
(Golini, Kalchschmidt & Landoni, 2015). Furthermore, for reporting project status, this
organization has compared the progress of project schedule comparing with budget costs and

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thereby analyzed manpower. Still few researchers have argued that the enterprise culture created
problems during the project management activities.
Similarly, Boeing 787 has integrated numerous methods during the initiation stage
according to its project objective. They integrated lean production techniques in order to
assemble line of this project. Ahern, Leavy and Byrne (2014) argues that, this enterprise did not
manage risk during the production techniques, which in turn affected its project management
operations. Furthermore, the project scheduling has been prepared by incorporating computer
software. The project budget as well as design were scheduled during the planning stage of the
project management cycle (Golini, Kalchschmidt & Landoni, 2015). They have also
implemented particular framework for spreading development and design to the global suppliers
so that it does not affect on their project budget cost. The project managers have adopted some
termination strategies, which includes- testing and informing shareholders regarding completion
of project. Even the project managers of Airbus introduced feedback system within the project
operation regarding scheduling as well as designing of projects. Still the Boeing 787 project
failed owing to inappropriate risk management at the planning stage of project management
cycle.
Analyzing the outcome of the project activities
Airbus A380 has faced project failure owing to delayed unveiling of product, budget
overturn, delayed delivery and lost sales. Other reasons behind the project failure are enterprise
culture, project cost, scheduling and project control over needs. The project activities outcome
has been adverse due to ineffective project management as well as bad quality workmanship.
Even though several workmanship have been hired from across the regions, these laborers
avoided to adopt with project target and values. In fact, this enterprise has been plagued with

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convoluted management structure which reflected slowed decision making of project managers
(Ramazani & Jergeas, 2018). The employees of this company also blamed of unresponsive
procedure of management an unresolved internal disputes. Moreover, the delay of Airbus A380
launch also led to failure of project outcome. Besides this, the project manager of this company
failed to address issues of transportation during the project planning process (Kerzner, 2018).
Failure in engaging stakeholders during project planning procedure also negatively affected the
project management activities.
The Boeing 787 project activities outcome has also been negative due to mismanagement
of project activities. The outsourcing decision cost Boeing huge sum of money. One more aspect
of this project failure has been complex supply chain activities planning. Although the project
managers of this enterprise attained advice from professionals before initiation of projects,
traditional design methods led to adverse outcome of project advice since they ignored their
advice. The project leader reduced control on project, which in turn complicated matters within
the project activities (Ahlemann et al., 2016).
Assumptions as to what these two companies might implement in terms of project management
methodologies
Project management methodology relates to collection of methods as well as principles,
which guides in project management. Both these airline companies might adopt IPM or
integrated project management. As the two enterprises have to deal with aircraft manufacture,
this IPM approach would be suitable for them. This methodology will aid them in sharing as well
as standardize the procedure across enterprises. Other components of project management
method that these two enterprises have integrated include- project scope, projection execution,
project charter and project monitoring. This IPM will provides enterprises accountability as well

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as transparency (Kerzner & Kerzner, 2017). As Airbus as well as Boeing deals with the diverse
teams and huge complexity, the IPM would be suitable for them.
Recommendations on strategies to be integrated by MAC for not repeating Boeing and Airbus
mistakes and can benefit from analysis
Both Boeing as well as Airbus have adverse project activity outcomes owing to lack of
effective project management. Being appointed as the director of MAC company, it would be
assured that MAC does not repeat limitations that these two airline companies faced in project
management process. MAC would firstly select skilled workers for the project activities so they
have the ability to work according to project activities. The project manager must finalize project
details with team members for avoiding any kind of conflicts. MAC company must integrate
proper culture within the project by adopting new system for solving existing issues. The project
manager of this company should consult with the stakeholders before initiation of a project. The
MAC company must adopt risk assessment procedure in order to avoid risks associated with the
project completion. All these suggestions might aid this company to gain benefit from doing any
project.
Conclusion
From the above discussion, it can be concluded that poor project management leads to
project failure. Effective management of project leads to effective planning, organizing and
administering of project activities. Both the Airbus and Boeing enterprise reflected that these
projects differed and related in various ways in terms of project management activities. Even
though these companies integrated advanced technologies and new methods for completing its
project, the outcome of its project had been adverse. The MAC enterprise should establish proper

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requirements of projects involving – cost estimation, stakeholders culture, risk management and
project planning in order to make this successful. Overall, this study will aid the MAC company
to expand its business across the globe.
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