Airbus A3Xx Essay

Words: 8252
Pages: 34
Open Document
Contents

1. Introduction 1. Purpose And Objective Of Report 2. Background Case 1. Analyzing Airbus’ Objectives 2. Analyzing Boeing

2. Capital Structure 1. Assumption Of No Interest Payments

3. Demand Forecast 1. Key Competitive Characteristics Of the Commercial Jet Aircraft Industry 2. Boeing’s Response 3. Forecasting Demand In The Very Large Aircraft (VLA) Market

4. Net Present Value Analysis 1. Data Given and Assumptions Made 1. Financial Data Given 2. Assumptions On The NPV Calculation 3. Assumptions On The Rates Of Return 2. Base Case Calculation 3. Conclusions Of NPV Analysis

5. Breakeven Analysis 1. Breakeven Quantity 2. Conclusions Of …show more content…
We should hence analyze the sustainable competitive advantages that Boeing possesses before we can make conclusions on their courses of action they would employ.

The core competencies of Boeing Company would no doubt be its political strength that is of significant importance to the US economy. With 190,000 employees, it is also the largest single contributor to the US balance of payments. Being the 2nd largest defense contractor, it also leverages on its manufacturing and defense experience to be the world’s leading producer of aircraft.

As of 1999:

Financial Leverage Ratio:

Debt Ratio = = = 0.18624

Asset Management Ratio:

Total Asset Turnover = = = 1.60437

Profitability Ratio:

Return on Asset (ROA) = = = 0.06388

High efficiency with which different assets are utilized to generate sales coupled with a low extent of firm’s debt burden is sufficed to show the financial strength of Boeing (with reference to exhibit 4A from the case). This, too, translate to being one of Boeing’s competitive advantages.

1. Capital Structure

1. Assumption Of No Interest Payments

Currently the funding for Airbus on the development and launch of the A3XX relies on 3 primary sources.

a.
Show More

Related Documents: Airbus A3Xx Essay

Essay about Airbus Case Summary

In the Airbus case we are faced with a capital budgeting decision. It is the planning process used to determine whether a firm's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures. Capital budgeting decisions are crucial to a firm's success for several reasons. First, capital expenditures typically require large outlays of funds. Second, firms…

Words 988 - Pages 4

BUFN 750 Case 1 Full Version Essay

Case 1 Airbus A3XX: Developing the World’s Largest Commercial Jet Group Members: Menglin Tao 113427190 Yun Lin 113700606 Baochan Wang 113428968 Yue Ji 113710339 【An Overview of Problems】 Airbus and Boeing are famous manufacturers for aircrafts. In VLA (very large aircraft) market, Boeing has 747, which almost forms monopoly in this area, while Airbus doesn’t have any competitive…

Words 1135 - Pages 5

Boeing Company Essay

In order to get more market share and to compete with Boeing’s 777, Airbus plans to develop their own long range aircrafts which are more fuel-efficient and with the advanced high technological design such as a newer flight management system and liquid crystal displays (Velocci Jr. 2000). However, it takes time and money to develop a new airplane. For example, Airbus started to design their A380 in 1994 and the first airplane is only expected to be delivered to customers…

Words 8699 - Pages 35