Destination Horizon

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This Presentation was delivered on April 7, 2007 at MegaBucks, annual Management Fest of Indian Institute of Technology, Kanpur, to compete in the BattleFeild contest.

This case study was presented as a solution to the case "Future of Airbus", provided by eValueServe.

Published in: Economy & Finance, Technology
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Destination Horizon

  1. 1. DESTINATION HORIZON
  2. 2. Immediate Challenges <ul><li>Delay in Delivery of A380 </li></ul><ul><li>Managing Customer Discontent </li></ul><ul><li>Stemming Loss of Revenues </li></ul><ul><li>Credit Rating & Share Value </li></ul><ul><li>Organisational Restructuring </li></ul><ul><li>Balancing Transnational Political Interests </li></ul>
  3. 3. Delay in Delivery of A380 <ul><li>Design Issues </li></ul><ul><li>- Problem in Wiring Installation </li></ul><ul><li>- High Weight Pressure </li></ul><ul><li>- Incompatible versions of CATIA </li></ul><ul><li>Certification Delay </li></ul><ul><li>- Ground Operations </li></ul><ul><li>- Wake Turbulance </li></ul><ul><li>- Wing Span </li></ul>
  4. 4. Customer Discontent <ul><li>Uncertainty in Delivery ! </li></ul>
  5. 5. Stemming Customer Discontent <ul><li>Adaptive Compensation Packages </li></ul><ul><li>Aggressive CRM: Joint Preview of Development Process </li></ul><ul><li>More Involvement during Testing phase </li></ul>
  6. 6. Stemming the Loss of Revenues <ul><li>Cost Cutting Measures </li></ul><ul><li>- Right Sizing Workforce </li></ul><ul><li>- Performance based Wages </li></ul><ul><li>Improve Productivity </li></ul><ul><li>- More Efficient Resource Utilisation </li></ul><ul><li>Outsourcing of Less Strategic Processes </li></ul><ul><li>Attract new Customers </li></ul><ul><li>- More Lucrative Deal ! </li></ul>
  7. 7. Credit Rating & Share Value <ul><li>Degradation in rating by Standard & Poor Credit Rating Agency </li></ul><ul><li>The Company is loosing share holders </li></ul><ul><li>Loss in Market Capitalisation </li></ul>
  8. 8. Loss in Revenues <ul><li>Loss of Potential Customers </li></ul><ul><li>Cancellation of Orders </li></ul><ul><li>Compensation paid to Customers </li></ul><ul><li>Over bludgeoning of design process </li></ul><ul><li>Weaker Dollar !! </li></ul><ul><li>Lesser Bargaining Power </li></ul><ul><li>Higher Transportation Costs </li></ul>
  9. 9. Organisational Restructuring <ul><li>Demarcation of Profit spinning & Non-performing Assets </li></ul><ul><li>Sellout Non-performing Entities </li></ul><ul><li>Lease out working hours </li></ul><ul><li>Job scaling </li></ul><ul><li>Segregation of Work into Shifts </li></ul>
  10. 10. Long Term Tasks <ul><li>Launch A350 </li></ul><ul><li>Rollout A380F </li></ul><ul><li>Construction of MRO facilites </li></ul><ul><li>Setting up Research Facilities in Russia </li></ul>
  11. 11. Brighter Side of The Darkness <ul><li>Air France 2009 10 </li></ul><ul><li>China Southern 2008 5 </li></ul><ul><li>Emirates 2008 43 </li></ul><ul><li>Etihad Airways 2008 4 </li></ul><ul><li>ILFC 2013 10 </li></ul><ul><li>Kingfisher Airlines 2010 5 </li></ul><ul><li>Korean Air 2008 5 </li></ul><ul><li>Lufthansa 2009 15 </li></ul><ul><li>Malaysia Airlines 2008 6 </li></ul><ul><li>Qantas 2008 20 </li></ul><ul><li>Qatar Airways 2009 2 </li></ul><ul><li>Singapore Airlines 2007 19 </li></ul><ul><li>Thai Airways 2010 6 </li></ul><ul><li>Virgin Atlantic 2013 6 </li></ul><ul><li>Total 157 </li></ul>
  12. 12. Vision 2025 from A380 Cockpit <ul><li>Estimated Sales by 2025: 750 units </li></ul><ul><li>Break even Cost: 420 units (after delays) </li></ul><ul><li>Cost per Unit: $ 108 m </li></ul><ul><li>Profit: $ 100 bn </li></ul>

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