This report will give a comprehensive analysis of Airbus based on strategic analysis (internal and external) and strategic formulation and will conclude with a recommendation.
One of the most vital tools for human success is strategy. Even- though influential people for example, Barrack Obama, and Warren Buffet epitomizes luck, what really made them successful was to have a clear goal, understanding of their competitive environment and most importantly, identifying opportunity when they appeared and to have the clarity of direction and the tractability necessary to exploit these chances- effective implementation. Reason is that without a consistency of direction, based on understanding their environment and a keen awareness of how to maneuver into a position of advantage, competitors will out-compete them.
Therefore, strategy refers to having a succinct and articulate goal, and plans to achieving it - put succinctly, a good strategy is about winning.
In light of constant change and relentless competition ,strategy becomes less about building positions of sustained competitive advantage rather, more about developing the responsiveness and flexibility to create successive temporary advantages-the economic downturn in 2008-9, is encouraging new thinking about the purpose of business. Disillusion with “shareholder value capitalism” has been accompanied by renewed interest in corporate social responsibility, ethics, and sustainability of the natural environment and the role of social legitimacy in long-term corporate success.
Table of Contents
1. INTRODUCTION
2. Part 2- Strategic analysis:
2.1. Prescriptive Purpose delivered through: Mission, Objectives and Ethics.
2.2. Internal analysis
2.2a. Internal resources:
2.2b. Knowledge, Technology and Innovation
2.3 External Analysis
2.3a. Macro environment –PESTLE
2.3b.Micro Environment –PORTER’S FIVE FORCES
2.4. Strategy Dynamics
3. PART 3. STRATEGY FORMULATION
3.1. Developing Strategic Option:
4. Part.4. Strategy Evaluation from an Emergent Viewpoint
5. Part.5. Conclusion and Recommendation
Objectives and Core Topics
This report provides a comprehensive strategic analysis of Airbus, evaluating its mission, internal capabilities, and external environment to develop effective strategic options. The primary goal is to guide Airbus management in sustaining competitive advantage through innovation, proactive strategic dynamics, and a blend of prescriptive and emergent management frameworks.
- Prescriptive and emergent strategic purpose
- Internal resource hierarchy and knowledge management
- External macro-environmental analysis (PESTLE) and industry competitive forces
- Business and corporate level strategy formulation
- Performance assessment via the EFQM Excellence Model
Excerpt from the Book
2.1. Prescriptive Purpose delivered through: Mission, Objectives and Ethics.
In setting its mission, objective and Ethics, Airbus has to use a prescriptive approach, because the Airline industry is highly capital intensive and thus it has to have a well-defined strategy in advance. Hence, in order for Airbus to succeed, there has to be a strategic purpose which are linked to another (see appendix 2, fig 2)- shaped by vision, stakeholders and ethical issues and delivered by mission and objectives (Grant,2010). The disadvantage with prescriptive approach is that by been so rigid about the purpose; an organisation might miss a better option (Ibid).
Airbus purpose is linked to its ambitious visions for the future which are: Intelligent concept carbine that provides panoramic view and seats that mould to customers shape (see appendix 3, exhibit 1), an interaction zone where passengers can play visual gulf (see fig 3) and a greener affordable airplanes. Axel Krein Airbus head of R&T pointed out Airbus target by 2050 which are to reduce C02 by 75%, Nox reduction by 90% and noise reduction by 65%. The reason is to reduce the negative impact their planes have on the environment and also, to get a positive media (Grant, 2010) which will help them to make more sales.
Summary of Chapters
1. INTRODUCTION: Explores the fundamental role of strategy in organizational success, emphasizing the need for clear goals and environmental awareness in a competitive landscape.
2. Part 2- Strategic analysis: Provides a diagnostic review of Airbus, covering mission, ethics, internal resources, and external market forces.
3. PART 3. STRATEGY FORMULATION: Details the transition from analysis to developing strategic options at both the business and corporate levels.
4. Part.4. Strategy Evaluation from an Emergent Viewpoint: Focuses on the learning-based route to strategy, highlighting the importance of adaptation and continuous adjustment in dynamic markets.
5. Part.5. Conclusion and Recommendation: Summarizes the report findings and proposes the EFQM Excellence Model as a practical tool for Airbus management to achieve business excellence.
Keywords
Airbus, Strategic Analysis, Competitive Advantage, PESTLE, Porter’s Five Forces, SWOT Analysis, Innovation, Knowledge Management, Corporate Strategy, Business Strategy, Sustainability, Emerging Markets, Stakeholder Analysis, EFQM Excellence Model, Growth Strategy
Frequently Asked Questions
What is the core focus of this report?
This report provides a comprehensive analysis of the organizational strategy of Airbus, using various strategic frameworks to evaluate its current position and future direction.
What are the primary themes discussed?
Key themes include strategic analysis, internal resource capabilities, knowledge and innovation management, external environmental factors, and strategy formulation.
What is the main objective of the study?
The main objective is to provide a strategic review of Airbus and propose actionable strategic options to help the company sustain its competitive advantage in a complex industry.
Which scientific methods are employed?
The study utilizes several established management frameworks, including PESTLE, Porter’s Five Forces, SWOT analysis, BCG growth-share matrix, and the EFQM Excellence Model.
What is addressed in the main body of the work?
The main body covers prescriptive and emergent strategy, internal resource hierarchy, analysis of the macro and micro environment, and strategic dynamics, alongside specific recommendations for the Board of Directors.
Which keywords define this report?
Keywords include Airbus, competitive advantage, strategy formulation, PESTLE, SWOT, innovation, and sustainability.
How does Airbus utilize tacit and explicit knowledge?
The report discusses how Airbus leverages tacit knowledge (employee intuition and learning curves) and explicit knowledge (patents, documented history, and training schemes) to foster operational efficiency and innovation.
Why is the A320neo significant to the company's strategy?
The A320neo is identified as a breakthrough resource and a 'cash cow' within the BCG matrix, providing substantial competitive advantage and the necessary capital to support investments in other areas like the A350.
What role does the EFQM Excellence Model play in the recommendations?
The authors recommend the EFQM Excellence Model as a self-assessment tool to help the Airbus management team maintain focus on quality, customer results, and operational enablers.
What challenges do the political and environmental factors pose for Airbus?
Political factors involve trade tensions regarding subsidies with Boeing and the US, while environmental challenges center on the need to innovate to reduce emissions and noise, aligning with long-term ecological sustainability goals.
- Quote paper
- Charles Ekweruo (Author), 2012, Strategic management of an airline. Developing a proactive strategy for Airbus, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/187839
