Airbus is currently implementing new logistics processes that it expects to cut costs by 20%. Part of this is because Airbus has been flying parts for planes to central locations to facilitate assembly. However, it is perhaps more important that this increases inventory turnover; because like all airplane manufacturers, Airbus has a backlog: if this backlog is eliminated or lessened by more expedient manufacturing, Airbus produces at a faster rate and is able to sell more products. The backlog is also counter-cyclical; customers get their orders faster when less are buying. The current backlog is over four years whereas cycles generally last ten or less with prolonged recessions rare. Only a sustained recession of more than several years can threaten Airbus'es production pipeline. This is unlikely as air travel has already recovered from its early-2003 low. Accoring to the exercise, a new airplane needs a total of 85 days in the Toulouse plant, although many of these days it does not (or all of it does not) spend within the plant itself.
Perhaps more disquieting is the falling dollar. Because most international banks use the dollar as a reserve currency, the Euro is able to buy drastically more than it did three years ago. Although this is good for western consumers, this occurs at the expense of European manufacturers who wish to export their products. Many companies such as Gulf Airlines that operate outside Europe and North America must now decide between expensive Airbuses and relatively inexpensive Boeings.
Analysts have commented that Airbus and other European companies have so far protected themselves against the dollar's slide using hedging instruments: forward contracts designed to lock in contracts at a specific price. Of course, Euro-denominated...
Management Case Study Where the Rubber Meets the Road Total quality management (TQM), defined in the most simplistic of terms, is the incremental improvement of all facets of a business to increase customer satisfaction and, in turn, company viability. Although TQM is often applied first to manufacturing functions in an organization (zero defects, on-time production), the intent of TQM is equally meaningful in all aspects of business, from administrative (zero defects in
In other words, he must come up with a way to collect the tax, as through affixed transit tax. Since he has already come up with the idea for a fixed tax, he must now take steps to implement it successfully. One method of achieving this is first to gain the following of his Merrymen in acceptance of the tax. They must be able to demonstrate to the farmers,
Robin should first establish different departments to fulfill the varied needs of the organization in a systematic and efficient manner. In that regard, Robin should immediately appoint department heads in the following areas: shelter facilities, food storage and distribution, recruitment and hiring, training, and field operations. The head of shelter facilities must solve the problem of ensuring that employees in the field have safe accommodations in remote areas of operation.
Possible Problem with Current Strategies The most obvious conceptual problem is that two of Nike's current goals seem to conflict. Namely, it's expressed intention to increase the integration of it products and product lines and its simultaneous intention to further differentiate its women's "fitness" product lines by specific fitness interest. In principle, both initiatives make sense: increasing overall integration builds brand loyalty and cross-over consumer interest. However, because Nike determined that
Strategic Management Case Study of Four Worlds Restaurant WHO? How would you describe the target segment? Which segments does Four Worlds not target? Make assumptions where needed in order to build on the information provided in the text and discuss the type of segmentation that would have revealed the need for such a restaurant as Four Worlds. Chef Nadero Ravioli and his team of culinary experts have clearly positioned the ambitious and
Strategic Management Case Study on Target According to the company's profile provided by Reuter's, the Target Corporation ("Target") operates Target-brand general merchandise discount stores and an online business, Target.com (found to be slow by this researcher). The profile reports that as of November 11, 2004, Target operated 1,313 stores in 47 states; in addition, the Company maintains 22 distribution centers in 19 states. Times have been tough for Target, and
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