airbus balance scorecard-ppt

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  • 1. Airbus S.A.S. (Socit par Actions Simplifie) Pilot : Naikal Appasaheb (G0701340H) Co-Pilot : Lim Siew Chen (G0701339E) Air Steward : Wallace Zheng Yu (G0701307F) Chia Sok Mui (G0701327B) Ho Mei Yee (G0701333A) VIP : Mr Kan Siew Ning Passenger List : K6226 class

2. AgendaAgenda Aviation History o Aviation History o Industry Overview Aircraft Maker Industry o Overview o Key Players o Porters Five Forces o Industry Trends & Outlooks Dinner Break (Class Exercise) Airbus S.A.S o Overview o Business Strategy and KM Strategy o Strategy Map and Balance Scorecard Questions & Answers 3. Aviation HistoryAviation History Activity : Video watching 1 Time : 3min 45secs 4. Aviation Industry Overview 5. Knowledge Transfer Between Players 6. Along with the European Aviation Safety Agency (EASA), the Federal Aviation Administration (FAA) is one of the two main agencies worldwide responsible for the certification of new aircraft. Air Type Certificate, is awarded by aviation regulating bodies to aerospace manufacturers after it has been established that the particular design of a civil aircraft, engine, or propeller has fulfilled the regulating bodies' current prevailing airworthiness requirements for the safe conduct of flights under all normally conceivable conditions (military types are usually exempted). Aircraft produced under a type certified design are issued a Standard Airworthiness Certificate.[1] Airworthiness certificate is an FAA document which grants authorization to operate an aircraft in flight. [2] Sample : Air Type Certificate Airworthiness Certificate Source: [1] [2] Adobe Acrobat 7.0 Document Government Regulator: FAA & EASAGovernment Regulator: FAA & EASA Adobe Acrobat 7.0 Document 7. Aircraft Maker IndustryAircraft Maker Industry 8. Key PlayersKey Players Airbus and Boeing are the only players in the commercial aviation industry for 100 or more seats capacity Source: 9. Airbus vs Boeing Airbus Boeing Entity An EADS Subsidiary Public Founded 1970 (Airbus Industrie) 2001 (Airbus S.A.S.) 1916 (Seattle, WA) Headquarter Toulouse, France Chicago, Il, USA Key People Thomas Enders, CEO W. James McNerney, Jr. CEO Industry Aerospace Aerospace & Defense Products Commercial airliners Commercial airliners Revenue 23.5 billion (2005) $61.5 billion (FY 2006) Employees 55,000-57,000 153,000 (2006) Slogan Setting the standards Forever New Frontiers Source: 10. Airbus vs. Boeing Products Source: 11. Very Large Commercial AircraftVery Large Commercial Aircraft Source: A380 747-8 Speed 0.85 mach. 0.855 mach. Range 10,521 mi 10,254 mi Wingspan 261 ft 224 ft Max takeoff weight 1,235,000 lb 970,000 lb Capacity 525-853 450 Cost US$319 million US$300 million Taxiway Wider Normal Operation cost Cheaper Higher 12. Key CustomersKey Customers 8 more to come Source: 13. Competitive PositioningCompetitive Positioning Source: Airbus 2005 annual Report 14. PorterPorters Five Forcess Five Forces AnalysisAnalysis 15. Five-Forces Analysis Supplier Power High technology Various supplier needed for specialized in different parts and components Supplier dependency on company is low. Buyer Power Fewer manufacturer choices Costly to switch to another aircraft producer - maintenance, retraining cost. Low bargaining power of buyers Threat of Substitute Buyer propensity to substitute low due to nearly no alternative Price & performance of substitute not attractive Industry Rivalry Equally balanced competitors Low Differentiation Low Low High Low HighThreat of Entry High switching costs High capital requirement High economies of scale High Retaliation Government policy and restriction 16. Industry TrendsIndustry Trends && OutlooksOutlooks 17. Industry TrendsIndustry Trends Source : Airbus Air traffic demand will double in next 15 years. Airport capacity will not. 18. Industry TrendsIndustry Trends -- Aircraft DeliveryAircraft Delivery Sources : Wikipedia and Airbus 19. Source: Industry OutlookIndustry Outlook North America and Europe are also expected to remain significant. Traffic within China is now expected to add more RPKs than any other flow in the next 20 years, with the domestic and intra- European flow next in order of importance using this measure. 2nd highest growth Highest Growth 20. Industry OutlookIndustry Outlook 21. Dinner Break!Dinner Break! (Class Exercise)(Class Exercise) 22. Class Exercise : Who are these Airbus customers? Lufthansa Air France Qantas Em irates 23. Airbus S.A.SAirbus S.A.S ((SociSocitt par actionspar actions simplifisimplifiee )) 24. Toulouse subsidiaries Airbus of North America Airbus China Airbus Japan Airbus Worldwide Presence History of Airbus o Airbus established in Dec 1970 o Place : Toulouse, France o Employees : 57,000 o Shareholders : * EADS (80%) * BAE Systems (20%) Training Centers o Toulouse (France) o Miami, Florida (USA) o Hamburg (Germany) o Beijing (PRC) Main Subsidaries o Airbus North America o Airbus China o Airbus Japan 25. Mission & ValuesMission & Values Mission : create the best and safest aircraftMission : create the best and safest aircraft Airbus' mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support. ValuesValues Airbus fosters values of excellence and innovation among its culturally- diverse employees and considers its customers, contractors and suppliers to be partners working in the interests of safety, quality and performance. Source: 26. Airbus ResultsAirbus Results Source: Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Aircraft orders 556 476 520 375 300 284 370 1111 824 1458 Value of orders 39 30.5 41.3 44.7 24.3 24.3 34.4 95.9 75.1 181.1 (US$ billion) Cumulative orders 3203 3633 4125 4399 4632 4886 5252 6307 7097 8555 Aircraft deliveries 229 294 311 325 303 305 320 378 434 453 Turnover US$ 13.3 US$ 16.7 US$ 17.2 Euro 20.5 Euro 19.5 Euro 19.3 Euro 20.2 Euro 22.2 Euro 26.0 N/A (billion) Cumulative deliveries 1894 2188 2499 2824 3127 3432 3752 4130 4564 5017 Order backlog 1309 1445 1626 1575 1505 1454 1500 2177 2533 3538 Number of customers 160 169 173 180 191 186 204 225 271 287 Number of operators 158 178 188 188 188 210 232 249 250 286 Aircraft orders = 62% ^ Value of orders = 78% ^ 27. Sources : Airbus AIRBUS FLEET STRUCTURE 28. Airbus Business StructureAirbus Business Structure Source: 29. Airbus SWOT AnalysisAirbus SWOT Analysis Source: 30. Airbus Cost StructureAirbus Cost Structure Source: EADS 31. Business StrategyBusiness Strategy Supply Airbus announced it would axe more than 80% of its supply base. It would reduces the companys supplier rolls from the current 3000 to just 500, to reduce material costs by 1 billion (US$1.9 billion; S$2.8 billion) over the next three years. Supplier consolidation will also cut administrative costs by an additional 235 million (US$446.5 million; S$665.3 million) Support Strategy Rather than becoming a standalone business unit, building an integrated customer support can help make Airbus airplanes more attractive. To create a network of MRO (maintenance, repair, and overhaul) providers - Airbus "e- solutions" for maintenance. 32. Business StrategyBusiness Strategy Innovation Align strategic vision and innovation goals with implementation of throughout the organization, focusing on collaboration both vertically and horizontally. Managing boundaries enables collaboration across organizations, establishing structures and processes regarding governance, operations and technology. Finally, an ongoing commitment is required to orchestrate and systematize collaboration for innovation throughout the organization and its extended enterprise over time. Customer Establish stable relationships with all customers, from the biggest to the smallest, from major airlines to regional airlines and start-ups 33. AirbusAirbus KM StrategyKM Strategy 5 Strategies Codification Focus Personalization Focus Competitive Re-use Business emphasises commonality in fleet design. Provide high quality, reliable, and fast implementation by reusing codified knowledge. Customisation Business emphasises highly customised service offerings. Provide creative and rigorous solutions by focusing on centres of excellence. Economic Reuse economics Customize Spares Logistics: Airbus is taking responsibility to deliver spares & kits directly to the customer, generating additional revenues. Expert economics Charge high fees for highly customised solutions to unique problems. Knowledge Management People-to-documents Migration of technical documents from paper to digital support. Provide innovative e-portal solutions for customers and suppliers. Promote knowledge reuse through EBOK. Person-to-person Form CoPs across functions boundaries to bring together experts with different interests. Marketing and Story-telling success stories Form College of Experts network. Strong collaboration with institutes, partners and universities. Information Technology Repositories Invest heavily in IT to provide e-solutions (AIRMAN, AIRNET, AIRTEC, LPC etc) to cus