Civil aircraft manufacturing industry

Civil aircraft manufacturing industry 1. Introduction Civil aircraft manufacturing industry is one of the largest industries in the world which Boeing and Airbus are the two large players who dominated the industry. The main former competitors have exited civil aircraft manufacturing market, for instance, Boeing merged with McDonnell Douglas Corp in August 1997 (Boeing, 2010a), and left Airbus and Boeing operating in a near duopoly global market. Boeing now headquartered in Chicago and employs more than 158,000 people in 70 countries with $60.9 billion revenue in 2008 which founded in 1916 (Boeing, 2010b). Airbus, by contrast, created in 1970 with 52,000 employees comes from more than 80 nationalities (Airbus, 2010) and gained à ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ã‚ ¬43.3 billion revenues (EADS, 2008). Apparently, it is vital important for new player to survive and prosper by examine the macro and sector environment. This report tries to seek the critical success factors and evaluate whether this is an attractive sector to compete in by research secondar y information. This report will begin with evaluate key drivers for change in order to know the external environment issues. Secondly, Porters five force analysis and industry life cycle will undertake to analysis the structure of this industry. Finally, the report is going to conclude critical success factors from the findings draw from last two steps. 2. Key Divers for change Macro-environmental influences sometimes are significant important for an organisation to survive and prosper. Therefore, there are five external key diver listed below and draw from PESTEL analysis about civil aircraft manufacturing industry. 2.1 Recession Global economic recession had impact on civil aircraft manufacturing in several aspects. On one hand, the direct influence is the two companies received fewer orders than before. For instance, the number of orders Boeing received decreased significantly in 2009 (142) compared to 2008(662) and 2007 (1,417) (Talton, 2010). On the other hand, the recession had led to downsizing in both Boeing and Airbus. For example, Boeing announced that it would cut 4,500 jobs (Weber, 2009). So the new entrants can gain access to the expertise in this industry easily. It means the new master of those staff will know not only the market but also some secret of the two main competitors. 2.2 Fuel price increased Fuel price is also an influence for aircraft manufacturing industry. According to The Times (2008), more than $100 billion of aircraft orders have cancelled or postponed resulted from high price of fuel. It indicates that if one company can produce the more environment-friendly aircraft will attract potential buyers who want to take advantage of low fuel cost. 2.3 Political influence Political influences sometimes are vital important for manufacturing industry. For example, IATA had introduced emission policy options in order to improve fuel efficiency and emissions for protecting environment (IATA, 2010). Otherwise, the companies need to pay huge fund. Therefore, some companies need to redesign the component such as engine and exhaust system. Moreover, some governments intervene international trade is another issue can not ignore, namely, recently Boeing suffered threat from Chinese government after United States arms sold to Taiwan (Lubin, 2010). 2.4 Government aid Both of Boeing and Airbus regularly accuses the other of receiving unfair state aid from their respective governments, namely, the WTO Boeing-Airbus dispute (European Commission, 2007). The reason why is aircraft manufacturing company need significant mounts of money to set up and invest in research and development. For example, Gresing and Johnsson (2007) cited pure development cost of Boeing 787 was $10 billion. 2.5 Technology Innovation Advanced technologies are one of the key factors for this industry. It helps the company not only keep the differentiation of product but also save internal resources. Boeing 787 dreamliner is a living proof to prove this, namely, 50 percent of the primary structure of Boeing 787 is made of composite materials to achieve higher strength-to-weight ratio (Hawk, 2005). In addition, Boeing announced General Electric and Rolls-Royce have developed new engines which will improve the fuel efficiency approximately 20% compared to Boeing 767 (Boeing, 2010c). The new aircraft will attract customers who want to take advantage of lower maintenance cost. 3. The Structure of the civil aircraft manufacturing industry Porters five force analysis and industry life cycle will undertake below in order to evaluate whether civil aircraft manufacturing industry is an attractive sector to compete in. 3.1 Porters five forces analysis Appendix 7.1 illustrates the Porters five forces analysis and it will describe below. 3.1.1 Threats of entrants 3.1.2 Supplier power 3.1.3 Buyer power 3.1.4 Threats of substitute 3.1.5 Competitive rivalry 3.2 Industry life cycle Appendix 7.2 shows the industry life cycle for civil aircraft industry. This report considers the stage of civil aircraft industry life cycle is in the end of shock-out and in the beginning of the maturity because of this industry still maintains some features in shake-out stage and gain new features in the fourth stage. Both shake-out and maturity stage have some similar characteristics, like the low and slow growth and high entry barrier. For example, boeing and Airbus suffered from the sharp deceasing number of order at Duhai show in 2009 (EASA, 2009). On the other aspect, Airbus and Boeing received government aid from Europe and United States respectively. It also indicates that it is difficult to survive in this industry without government support. In other words, at least the cost of threshold resource and competence are quite high. However, the situation of this industry is also fulfilling the some exclusive characteristics of the two stages, namely, in shake-out stage smaller player in this industry were forced exit or acquired with the Boeing and Airbus resulted in left a near duopoly market for the two giants. Boeing merged McDonnell Douglas Corp is one example (Boeing, 2010a). Meanwhile, the fierce competition with rivals will happen due to the strong buyer power resulted from more players compete in this industry such as China, Brazil (Goodrich, 2009). 4. References Airbus (2010) Employees from all corners of the world [Online] Retrieved from http://www.airbus.com/en/corporate/ethics/diversity / [Assessed on 23 February, 2010] Boeing (2010a) The Boeing Logbook: 1997-2001 [Online] Retrieved from: http://www.boeing.com/history/chronology/chron16.html [Assessed on 23 February, 2010] Boeing (2010b) Boeing in Brief [Online] Retrieved from: http://www.boeing.com/companyoffices/aboutus/brief.html [Assessed on 23 February, 2010] Boeing (2010c) Boeing 787 Dreamliner Will Provide New Solutions for Airlines, Passengers [Online] Retrieved from: http://www.boeing.com/commercial/787family/background.html [Assessed on 24 February, 2010] EADS (2008) Financial Statements 2008 pp.9 [Online] Retrieved from: http://www.reports.eads.com/2008/en/s/downloads/files/financial_statements_eads_ar08.pdf [Assessed on 23 February, 2010] EASA (2009) European Aviation Safety Agency News Summary 14/11/2009 20/11/2009 pp.1 [Online] Retrieved from: http://www.ucl.cz/download/pdf/News_Summary_23_11_09.pdf [Assessed on 24 February, 2010] European Commission (2007) The WTO Boeing-Airbus dispute (updated 15 June 2007) pp.1 Retrieved from: http://trade.ec.europa.eu/doclib/docs/2007/june/tradoc_134957.pdf [Assessed on 23 February, 2010] Goodrich (2009) Goodrich and Chinas XAIC Agree to From Joint Venture Companies [Online] Retrieved from: http://ir.goodrich.com/phoenix.zhtml?c=60759p=irol-newsArticleID=1319837highlight= [Assessed on 24 February, 2010] Greising, D Johnsson Julie (2007) Behind Boeings 787 delays pp.2 [Online] Retrieved from: http://www.buffalo.edu/news/pdf/December07/ChicagoTribPritchardBoeing.pdf [Assessed on 23 February, 2010] Hawk, J (2005) The Boeing 787 Dreamliner: More Than an Airplane pp.10-11 [Online] Retrieved from: http://www.aiaa.org/events/aners/Presentations/ANERS-Hawk.pdf [Assessed on 24 February, 2010] IATA (2010) Emission Policy Options [Online] Retrieved from: http://www.iata.org/whatwedo/environment/emissions_policy.htm [Assessed on 23 February, 2010] Lubin, G (2010) China Threatens Unprecedented Sanctions Against Boeing After US Arms Sales to Taiwan [Online] Retrieved from: http://www.businessinsider.com/china-threatens-unprecedented-sanctions-against-boeing-2010-2 [Assessed on 23 February, 2010] Talton, J (2010) Boeings drop in orders shows recessions effects still linger [Online] Retrieved from: http://seattletimes.nwsource.com/html/soundeconomywithjontalton/2010729937_boeings_drop_in_orders_shows_r.html [Assessed on 23 February, 2010] The Times (2008) Threat to aircraft orders as fuel prices soar [Online] Retrieved from: http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4327146.ece [Assessed on 23 February, 2010] Weber, J (2009) Boeing Will Cut 4,500 Jobs [Online] Retrieved from: http://www.businessweek.com/bwdaily/dnflash/content/jan2009/db2009019_791015.htm [Assessed on 23 February, 2010]

Career as a Concept Artist Essay -- Video Game Development

The employment outlook in my area for a Concept Artist in Video Game Development isn’t too promising. Nebraska isn’t the metropolis for technological employment like this, thus I would have to relocate to somewhere along the East or West Coasts, where jobs are more available than they are in the mid-west. This is due to the fact that a lot of the Game Publishing companies, such as Blizzard Entertainment, Monolith Games, a subdivision of Warner Bros. Entertainment, require an applicant to work on-site. According to the U.S. Bureau of Labor Statistics, in 2007, Graphic Designers earnings ranged from entry-level pay of about $35,000.00 to staff-level median of $45,000.00. More seasoned designers earned $62,000.00 and freelance designers earned around $60,000.00. Design Directors earned up to $98,600.00. Graphic designers with ownership or partnership interests in a firm or who were principals of the firm in some other capacity earned $113,000,00. Generally, for every company, there’s a different salary, depending on the type of work being completed and what they need. The role of ...

Ecosystems and How They Work Essay

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In 1969, there was Friends of the Earth (FOE) which aimed to protect the planet from environmental disaster and to preserve biological, cultural and ethnic diversity. The National Environmental Policy Act (NEPA) made it mandatory for federal agencies to prepare environment impact statement. To regulate the air and water quality, hazard and disposal management, the Environmental Protection Agency was established. In 1970, Earth Day was first promoted to fight environment causes and to oppose environmental degradation which led o the Environmental Movement. In the same year, the U. S. passed the Clean Air Act. Almost two decades later, an agreement by industrialized nations called the Kyoto Protocol was reached to reduce greenhouse gas emissions (Merchant, 2002). The cost of substantially reducing industrial pollution is high but the costs of ignoring it is even higher as it would compromise the sustainability of life itself. 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It can also be obtained through bacteria living in the root nodules of legumes. They obtain fee nitrogen from the air, and synthesize or fix it or even just incorporate it into their bodies so when they die, the nitrogen compounds are released. The phosphorous cycle does not include a gaseous state. Instead, phosphates are removed from rocks where it usually occurs and distributed to both the soil and water. The plant absorbs all the nutrients it needs from the soil, produce its own food, releases oxygen, then are eaten by herbivores, who themselves are eaten by carnivores. The phosphates absorbed are returned to the soil through urine and feces as well as from plant and amanimal decomposition. Since the industrial revolution, we have increasingly ignored or altered the natural cycles. The resulting explosion in economic output has come at the cost of the long-term and dangerous depletion of natural capital. By relying on nitrogen fertilizer instead of organic farm wastes, we have reduced the fertility of agricultural lands and created dead zones in our oceans and rivers. Our logging operations and regular use of fossil fuels have increased atmospheric carbon concentrations to very high levels. By diverting or damming our rivers, we’ve dried out seas (or created new ones), changes local weather patterns and disrupted entire ecosystems. Nature will not be able to keep up if the natural cycles are disrupted by high quantities of wastes. We know this simply cannot go on.

Islam and Anti-Semitism A Conflicting Set of Stories

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