An Analysis of Airbus: Structure, Achievements, and Financials

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This report provides an analysis of Airbus, a multinational European aerospace corporation. It begins with an executive summary and an introduction to Airbus, detailing its core business of designing, manufacturing, and selling military and civil aerospace equipment. The report then explores the company's organizational structure, including its shift from EADS to Airbus and its current structure with a CEO, COO, and subsidiaries. It also highlights notable achievements, such as the A300, the 10,000th plane, and innovative projects like bionic structure planes. The report concludes by emphasizing Airbus's ongoing growth and potential in the aerospace industry. The report is a valuable resource for students studying business development and the aerospace industry.
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Running head: AN ANALYSIS OF AIRBUS
An Analysis of Airbus
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1An Analysis of Airbus
Executive Summary:
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2An Analysis of Airbus
Introduction:
Initially known as, European Aeronautic Defence and Space Company (EADS),
Airbus is a multinational European Aerospace Corporation, headquartered in Netherlands,
with its trades and shares expanded in France, Germany and Spain. The company, essentially
designs, sells and manufactures military and civil aerospace equipment ‘across world. The
main manufacturing house of the companies in Europe, however it is spread over other
countries as well. The third largest company in this business, is divided in three layers,
Defence and Space, Commercial Aircrafts and Helicopters (Airbus. 2019). The company
designs military transports, satellites, launch vehicles, helicopters as well as commercial
vehicles, at the same time provides, data services, urban mobility and transports, navigations,
secure lines of communication and other solutions to the customers at the global level. The
company includes ethical considerations into its orientation and uses modern age, developed
technologies and digital and scientific excellence. The aim of the company is to make the
world more global and connected, safe and prosperous with a better communication and
commutation system (Airbus. 2019). Along with the expansion of the business the company
works towards becoming the global supplier and expanding their range of vehicles using
more scientifically sound technologies. They perceive innovation as their factor of motivation
and driving force. They practice a sustainable and responsible approach in their conducts.
Structure of the Company:
The company has took a new name and became Airbus from EADS, in the year 2014,
and incorporated a unified headquarter along with certain corporate changes within the
organization. These changes were structural in orientation. Previously the organization had a
structure with an operational parent company, chief executive and three main subsidiaries,
one civil planner, a fixed military system who controlled the wing aircraft and space systems.
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3An Analysis of Airbus
In the new structure he following structure was incorporated (Schmid and Altfield. 2017). A
chief executive, chief operating officer and two main subsidiaries and in the defence section a
fixed military system who controlled the wing aircraft and the space systems. The executive
committee manages the organization as per the Laws and Articles of the association and
practices a transparent governing system. The executive committee are the main controlling
body of the organization. Therefore, the role and responsibilities of the governing body are-
o Taking decisions, both financial and organizational.
o Setting up and implementing the strategies.
o Governing the policies and supervising whether the policies are properly
implemented.
o Controlling and governing the performance level and production quality of the
organization.
o Appointing employees and making them understand their roles.
o Conducting the managerial works and maintaining the organizational
structure.
o Controlling and managing all the business issues and maintain a proper
organizational structure within the system (Bodily et al. 2017).
The CEO of the company works towards meeting the goals and practicing a consensus in the
conducts of the company. One of the most important aspect of the organizational structure is
that, they prioritize their subsidiaries, especially on the financial way. The data sheet and the
financial statements are made on the same date and thus the organization practice a
consolidated financial statement system. The executives also maintain an equity approach to
their associates and in their joint ventures, investing equally in both the cases, and these
investments are essentially and initially recognised at cost (Petrescu et al. 2017).
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4An Analysis of Airbus
Notable Achievements of the Company:
The first plane that was made by the company was A300, in the year 1972, which was
the first twin-engine, wide bodied Plane, which the world had first seen to be flying. The
company gradually made its entry in the market, and had made a good customer base in USA.
But today, the company has humongously expanded all across the country. In January 2015,
it made its’ 10,000th plane that was the widest that the world had ever seen and entered into a
joint venture with Qatar airways (Airbus. 2019). This the only company that makes both
commercial air vehicles and space crafts. In 2016, the company had shown its biggest project
or concept plane that included a bionic structure mimicking the bone structure of the birds,
which is both strong and light and open at the same time, with skinny wings. The company
has said to have introduced planes with intelligent cabin membranes hat can go transparent
and can provide the passengers a panoramic view, by the year 2050 (Milana. 2017). In the
past years Airbus has shown a notable increase in its net revenue with launching an increased
number of flights (Airbus. 2019).
Therefore, as a concluding point it can be said that the company has just started its journey
and has a long way to go.
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5An Analysis of Airbus
References:
Airbus. (2019). Airbus Home. [online] Available at: https://www.airbus.com/ [Accessed 10
May 2019].
Bodily, S.E., Lichtendahl Jr, K.C., Bodily, S.E. and Lichtendahl Jr, K.C., 2017. Airbus and
Boeing: Superjumbo Decisions. Darden Business Publishing Cases, pp.1-7.
Milana, B., 2017. Valuation of Product Line Extension Success: Airbus and Boeing Case.
Petrescu, R.V., Aversa, R., Akash, B., Corchado, J., Berto, F., Mirsayar, M., Apicella, A. and
Petrescu, F.I., 2017. Home at airbus. Journal of Aircraft and Spacecraft Technology, 1(2).
Schmid, S. and Altfeld, F., 2017. Airbus–Managing the legacy of a complex international
merger. In Technologie, Strategie und Organisation (pp. 287-308). Springer Gabler,
Wiesbaden.
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