International Project Management: Airbus and Boeing Project Analysis

This case study provides an in-depth analysis of international project management, focusing on the experiences of Airbus and Boeing. It examines the unique challenges and features of international projects, including complexity, risk, diversity, and the impact of cultural differences on project planning and execution. The analysis leverages Porter’s Five Forces to assess the airline industry and explores future trends in aircraft technology. By critically assessing Airbus's A380 and Boeing's 787 Dreamliner projects at each project management phase, the study identifies key successes and failures. The case study highlights the importance of team identity, effective communication, and integrated project management methodologies. Ultimately, it offers recommendations for MAC, a new aircraft producer, on how to avoid past mistakes and achieve successful international project outcomes, emphasizing the need for robust risk management and transparent project processes. This assignment solution is available on Desklib, a platform offering study tools and resources for students.

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

1INTERNATIONAL PROJECT MANAGEMENT
Introduction
This essay intends to analyze on the significance and special features of the international
projects. This assessment provides an overview on the method in which uncertainty affects the
total number of project management activities. This study mainly focuses on how the culture of
international stakeholders influences planning as well as execution of the projects. The
assessment is to assess critique of an international project in form of how well it is being
conducted and its possible improvements. Given the scenario, the study requires to provide an
information to the MAC company for determining how feasible project build business case for
persuading shareholders. MAC is the new aircraft producer that is situated in Japan. The CEO of
this company is determined to make improvements in Boeing Dreamliner as well as Airbus
A380. In context to this, the purpose of this essay is to analyze both Boeing and Airbus
Corporation projects in what they attained or failed and lessons learned from success and
failures. This essay also highlights on how the management of international project becomes
challenging at certain times because of varying standards and cultural differences. It analyzes on
the occurrence of international project failure owing to change in culture and other political
reasons. The recommendations on the strategies are given to CEO of the MAC company
regarding avoidance of mistakes done by both Airbus and Boeing.
Overview of the study
Globalization has brought about several international projects within the nations. This has
changed the role of project managers in the global scale. Now – a- days the project managers
takes into account social, cultural and economic differences for delivering successful
international projects across the regions. 1The project managers are now adopting new methods
1 H Wu & C Cheng, "A hierarchical model of service quality in the airline industry", in Journal of Hospitality and
Tourism Management, vol. 20, 2013, 13-22.

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of standard project management for making it effective on global scale. Still the project
managers are facing numerous problems while managing international projects, which are not
included by standard methods. They integrate numerous tools as well as methods to deal with
issues relating to the international project management.
2Some of the unique features of the international project management include-
complexity, risk, diversity, dynamics and limited resources. Besides this, operating on
international projects might involve high degree of uncertainty regarding external forces, project
time and costs. Uncertainty reduces total return on investment within the project, which in turn
adversely impacts cash flow of stakeholders. Few current evidences highlight that uncertainties
within project affects capacity of project management system. This in turn aids the project
managers to monitor as well as lead project in effectual manner. Furthermore, the international
project management utilizes particular assumptions for defining and realizing outcome of
project. Varying culture of international stakeholders negatively affects planning as well as
execution of the project. The three important aspects of international stakeholders culture, which
include-decision – making, communications, negotiations. The project managers thereby face
cultural differences in language communication with the stakeholders. This in turn affects project
planning and execution while exchanging critical ideas and data.
Analysis of the airline industry
2 H Kerzner, Project management, in , New York, John Wiley & Sons, Inc., 2013.

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The airline industry in which Airbus and Boeing has been operating is analyzed with the
help of porter’s five forces-
Buyers bargaining power- Bargaining power of purchasers in this airline sector is low. High cost
is included with switching airplanes and thus have capability in competing with this service.
Suppliers bargaining power- The bargaining power of suppliers in this airline sector is high.
Both Airbus and Boeing dominates the supply business of this industry. Due to large competition
among suppliers, they likely integrates vertically.
New entrants threats- The threat of new entrants has been quite low in this industry. The new
players entering this industry face government restrictions as well as high costs for switching
over the other enterprises. They also face threat regarding scarce technical resources and high
cost in research and development.
Threat of substitutes- The threat of substitutes is higher for the domestic airlines with respect to
foreign airlines. In order to mitigate this threat, both Airbus and Boeing takes into account
personal preference, time, budget and convenience.
Competitive rivalry- Competition in this airline sector is high and the players operating in this
industry are earning low returns owing to high cost of competition. In fact, Airbus is one of the
competitors of Boeing in this industry.
Future trends in use of aircraft
The future trends of the aircraft utilization by this industry is high as the airline
companies operating in this sector focuses on integrating new technologies in doing eco- friendly
operation. Both the Airbus as well as Boeing airline companies will focus on developing

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artificial intelligence in order to make computers fly planes without human control. Boeing has
been focusing on experimenting with varied approach such as laminar flow control in order to
improve the business operations. In addition to this, Airbus has been focusing on to integrate
automated technologies for permitting pilot to operate jetliners as well as decline carrier costs. In
future, the organizations will be making innovations regarding its structure of wing, stabilizers
and other engineering design. They will permit aircraft designers to improve efficiency in
aerodynamics of lifting surfaces. Overall, they will focus on improving project management
activities in order to enhance their business profitability.
Critical assessment of Airbus and Boeing have done at each project management phase
The Boeing 7897 and Airbus A380 have adopted various methods at each stage of the
project management cycle. The objective of Airbus A380 is to design, develop and deliver
passenger aircraft. It purpose is to be better than Boeing in every aspects of business operation.
In the initial project management phase, project initiation is done by both airline enterprise that
validate project conversion goal into achievable methodology. Estimation of time (EOT) has
been vital for effective completion of project. 3While scheduling this project, Airbus company
estimated completion time of around 5-6 years. In addition to this, this enterprise has adopted
fuel injection system to assemble and deliver this project. During the planning stage of project
management, Airbus introduces risk management processes for resolving problems during the
project activities. They used advanced technologies and computer software to design the aircraft
components. Airbus also integrated tools while planning and monitoring of project such as –
weekly programs, MS project software, recognition of project items. In fact, they used check list
3 M Oellgaard, "The Performance of a Project Life Cycle Methodology in Practice", in Project Management
Journal, vol. 44, 2013, 65-83.

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for different project work at every stage and field test to bring about various components. 4For
controlling project costs, Airbus integrated strategies and prepared cash flow statements.
Furthermore to report project status, this company compared scheduled progress, budget costs
and examine material status.
Boeing enterprise also integrated project aim during the initial phase for enhancing
various business opportunity. They utilized lean production techniques to assemble project line
with the target. 5The project management of Airbus designed project scheduling with the help of
computer software. Furthermore, Boeing controlled design as well as prepared budget schedule
during the planning stage of project management. They also implemented certain framework for
providing information to suppliers regarding design and development on global scale. The
project management of this airline enterprise also adopted project termination strategies, which
includes testing, informing the project details with shareholders. Apart from this, the project
manager of Boeing also tried to attain feedback from team members regarding designing and
scheduling of the project. This in turn made the team members comfortable in working and
focusing on the project. Even though these methods were undertaken by project manager of
Boeing, they faced several issues during project management activities.
Analysis of the outcome of project activities
Boeing organization announced the launch of 787 Dreamliner aircraft three years before
the actual launch date. It has been evident from previous facts that after several delays, this
project was launched. Moreover, by the time project had been launched, it doubled the estimated
budget for this project. Besides this, the lithium batteries had created problems, which in turn
4 F Saladis, I Learning & H Kerzner, Value-driven project management, in , Hoboken, N.J., Wiley, 2013.
5 M Huettinger, "What determines the business activities in the airline industry? A theoretical framework", in Baltic
Journal of Management, vol. 9, 2013, 71-90.

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caused fire after the take off. This in turn adversely affected airlines normal operations as it had
been impossible for this company to ensure safety of customers and effectual services. This
issues fled several customers and also contributed to financial loss. However, this company had
experienced failure in delivering project development plan on time as well as finding out service
issues at same time. 6This enterprise outlined this project in several ways such as- technological
advancements, engineering management, design and technology. Most of the projects developed
grapsed for welfare of developments in the aviation technology and in catalyzing layout as well
as advancements. Thus, this project activities outcome affected both the project members and the
enterprise.
7Airbus has initiated this project A380 with the purpose of developing partnership with
existing enterprise whore amenities were distributed at several locations. They wanted in
changing established enterprise and replace them with other competing corporations. T8hey took
this complex project in order to integrate new technologies within this business and make it
successful in the market. They incorporated partnership as well as declared new constitution. But
the project managers faced challenges regarding its engineering design as the wires did not fit the
aircraft frames. In fact, they also aced problems regarding compatibility in softwares as well as
time of launching. Few team members of this enterprise did not cooperate with others for
completing this project within specific time. Thus, their self – interest mainly prevailed in
workplace. Moreover, some managers went against the project development. As a result, the
outcome of the project activities has been adverse due to poor project management.
6 A Omorede, S Thorgren & J Wincent, "Obsessive passion, competence, and performance in a project management
context", in International Journal of Project Management, vol. 31, 2013, 877-888.
7 N Ortiz Pimiento & F Diaz Serna, "The project scheduling problem with non-deterministic activities duration: A
literature review", in Journal of Industrial Engineering and Management, vol. 11, 2018, 116.
8 L Evripidou & Y Melanthiou, "Airline industry consolidation and its effect on shareholder value", in J. for Global
Business Advancement, vol. 6, 2013, 318.

7INTERNATIONAL PROJECT MANAGEMENT
Assumptions as to what these enterprises might adopt in form of project management
methodologies
Project management methods relates to assembling of methods and principles, which
guides in administering project. 9Both the airline companies might deploy IPM or integrated
project management for attaining positive outcome. Since these two enterprises deal in designing
aircrafts, this IPM approach might be effective. This method would facilitate them to share and
standardize process across enterprises. Other components of the project management method that
these companies might involve – project execution, project charter and project monitoring. This
IPM method might provide proper accountability and transparency in project.
Suggestions on how MAC project can attain benefit from analysis
The lessons gathered from Boeing and Airbus project management is highly significant to
the development of MAC future project. For example, Airbus has failed in effectively delivering
its project owing to shortcomings, which arose from team members. This is one of the significant
lessons that MAC must learn before initiation of its project. Since team identity is vital aspect of
an enterprise, team members must work towards attaining of enterprise set target and objectives.
The team members must try to avoid politics, which might adversely affect in the tasks. Another
aspect that MAC must adopt is conflict tolerance act. Conflict tolerance is vital since MAC tries
in implementing project management plan. The time must be placed for abetting huge conflicts
that instead be integrated towards promoting affairs of airline enterprise. This approach will
assure that enterprise maintain what they are predicted to deliver according to enterprise
objectivity.
9 R Verburg, P Bosch-Sijtsema & M Vartiainen, "Getting it done: Critical success factors for project managers in
virtual work settings", in International Journal of Project Management, vol. 31, 2013, 68-79.

8INTERNATIONAL PROJECT MANAGEMENT
Integration is one of the vital aspects in each enterprise. For instance, Boeing and Airbus failed
in delivering its projects on the planned date owing to lack of integration. Moreover, Airbus
failure of project was the outcome of poor implementation between the units. Thus, MAC must
integrate project activities in such a way that it does not hamper the project operations and
culture.
Conclusion
From the above study, it can be concluded that project management play vital role in
making a business successful and reputed in the market. There is relationship between several
practices of the system development and the project management to generate new product
brands. As general cognition matter, composite projects mainly necessitate considerable problem
level owing to several components and technologies, huge coordination needs and distributed
teams. The enterprises usually expect challenges when development occurs, which in turn might
outcome to risks and adoption of management process during project advancement as well as
growth. Both Airbus and Boeing enterprise projects have shown that the project differ as well as
relate in several ways regarding to what they attained so far and development they contributed to
this sector. Moreover, the learnings gathered from these two companies case studies will help
MAC project to become successful.

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References
Evripidou, L, & Y Melanthiou, "Airline industry consolidation and its effect on shareholder
value.". in J. for Global Business Advancement, 6, 2013, 318.
Huettinger, M, "What determines the business activities in the airline industry? A theoretical
framework.". in Baltic Journal of Management, 9, 2013, 71-90.
Kerzner, H, Project management. in , New York, John Wiley & Sons, Inc., 2013.
Oellgaard, M, "The Performance of a Project Life Cycle Methodology in Practice.". in Project
Management Journal, 44, 2013, 65-83.
Omorede, A, S Thorgren, & J Wincent, "Obsessive passion, competence, and performance in a
project management context.". in International Journal of Project Management, 31, 2013, 877-
888.
Ortiz Pimiento, N, & F Diaz Serna, "The project scheduling problem with non-deterministic
activities duration: A literature review.". in Journal of Industrial Engineering and Management,
11, 2018, 116.
Saladis, F, I Learning, & H Kerzner, Value-driven project management. in , Hoboken, N.J.,
Wiley, 2013.
Verburg, R, P Bosch-Sijtsema, & M Vartiainen, "Getting it done: Critical success factors for
project managers in virtual work settings.". in International Journal of Project Management, 31,
2013, 68-79.
Wu, H, & C Cheng, "A hierarchical model of service quality in the airline industry.". in Journal
of Hospitality and Tourism Management, 20, 2013, 13-22.