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Running head: MEMO OVERVIEW 1
MEMO OVERVIEW
2
Memo Overview: Airbus
March 11, 2018
Milestone Two
MBA-665: Government Impac...
Business
Profile…………………………………………………………………
………...4
Governmental
Action…………………………………………………………………
…..6
Organization and
Teams...
and known involved parties have since been terminated. The
organization is seeking your consult and assistance to directly...
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Running head: MEMO OVERVIEW 1
MEMO OVERVIEW

2






Memo Overview: Airbus
March 11, 2018
Milestone Two
MBA-665: Government Impact on Business
Southern New Hampshire University







Abstract
This memo addresses the business profile and government actions as they relate to Airbus corporate governance structure. Stakeholders, organizational team impact and the current financial and overall health of the organization and how the company addressed critical situations is explored.

Table of Contents
Introduction……………………………………………………………………………………..…4
Overview…………………………………………………………………………………………..4
Business Profile…………………………………………………………………………...4
Governmental Action……………………………………………………………………..6
Organization and Teams…………………………………………………………………. 7
Stakeholders…………………………………………………………….………………... 9
Current Environment………………………………………………………………….…. 9
Conclusion……………………………………………………………….………………………10
References…………………………………………………………….………………………….11








TO: Jack Harris, President Crisis Consulting
FROM: Gerette Bednarz, Vice President, Governmental Affairs
DATE: March 11, 2018
SUBJECT: Company Overview
Introduction
Airbus is currently facing internal and external investigations into possible fraudulent financial activities from 2007 to 2010. The company is accused of using secret firms and middlemen while dealing with the British government. These activities were not known to the Board or executives at the time and known involved parties have since been terminated. The organization is seeking your consult and assistance to directly address ensuing government actions.
Overview
Business Profile
Airbus is an international corporation that designs, manufactures and delivers commercial, private and government aviation and aerospace product. Corporate locations and plants span North America, Europe, Asia, Africa and the Middle East and Australia (Airbus Home, 2018).
The business proposal will be the development, production and use of an unmanned commercial passenger aircraft that will be and comprise the entire fleet of an airline also named AirVahana. The product name is Airbus AirVahana. The aircraft will be larger, faster and able to travel longer distances and fueled by sustainable means.
The commercial passenger aircraft market is a highly competitive a duopoly. Airbus holds about 50% of the market share, slightly above Boeing (Airbus Home, 2018). Market entrants in China, Russia and Canada, if successful, are likely to impact and transform competition in the coming years (Wall, 2017). In addition to market share Global Horizons (Airbus Home, 2018) forecasts global passenger travel to increase 4.4 per cent annually for the next 20 years, with 35,000 new passenger and freight aircraft dedicated deliveries and a potential 5.3 trillion USD revenue over the 20 year period.
As globalization evolves and progresses air travel will be used more as a means in the corporate world. Also, if the economy is stable and strong domestically and inte.

Running head: MEMO OVERVIEW 1
MEMO OVERVIEW

2






Memo Overview: Airbus
March 11, 2018
Milestone Two
MBA-665: Government Impact on Business
Southern New Hampshire University







Abstract
This memo addresses the business profile and government actions as they relate to Airbus corporate governance structure. Stakeholders, organizational team impact and the current financial and overall health of the organization and how the company addressed critical situations is explored.

Table of Contents
Introduction……………………………………………………………………………………..…4
Overview…………………………………………………………………………………………..4
Business Profile…………………………………………………………………………...4
Governmental Action……………………………………………………………………..6
Organization and Teams…………………………………………………………………. 7
Stakeholders…………………………………………………………….………………... 9
Current Environment………………………………………………………………….…. 9
Conclusion……………………………………………………………….………………………10
References…………………………………………………………….………………………….11








TO: Jack Harris, President Crisis Consulting
FROM: Gerette Bednarz, Vice President, Governmental Affairs
DATE: March 11, 2018
SUBJECT: Company Overview
Introduction
Airbus is currently facing internal and external investigations into possible fraudulent financial activities from 2007 to 2010. The company is accused of using secret firms and middlemen while dealing with the British government. These activities were not known to the Board or executives at the time and known involved parties have since been terminated. The organization is seeking your consult and assistance to directly address ensuing government actions.
Overview
Business Profile
Airbus is an international corporation that designs, manufactures and delivers commercial, private and government aviation and aerospace product. Corporate locations and plants span North America, Europe, Asia, Africa and the Middle East and Australia (Airbus Home, 2018).
The business proposal will be the development, production and use of an unmanned commercial passenger aircraft that will be and comprise the entire fleet of an airline also named AirVahana. The product name is Airbus AirVahana. The aircraft will be larger, faster and able to travel longer distances and fueled by sustainable means.
The commercial passenger aircraft market is a highly competitive a duopoly. Airbus holds about 50% of the market share, slightly above Boeing (Airbus Home, 2018). Market entrants in China, Russia and Canada, if successful, are likely to impact and transform competition in the coming years (Wall, 2017). In addition to market share Global Horizons (Airbus Home, 2018) forecasts global passenger travel to increase 4.4 per cent annually for the next 20 years, with 35,000 new passenger and freight aircraft dedicated deliveries and a potential 5.3 trillion USD revenue over the 20 year period.
As globalization evolves and progresses air travel will be used more as a means in the corporate world. Also, if the economy is stable and strong domestically and inte.

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Running head MEMO OVERVIEW 1MEMO OVERVIEW2.docx

  1. 1. Running head: MEMO OVERVIEW 1 MEMO OVERVIEW 2 Memo Overview: Airbus March 11, 2018 Milestone Two MBA-665: Government Impact on Business Southern New Hampshire University Abstract This memo addresses the business profile and government actions as they relate to Airbus corporate governance structure. Stakeholders, organizational team impact and the current financial and overall health of the organization and how the company addressed critical situations is explored. Table of Contents Introduction………………………………………………………… …………………………..…4 Overview……………………………………………………………… …………………………..4
  2. 2. Business Profile………………………………………………………………… ………...4 Governmental Action………………………………………………………………… …..6 Organization and Teams…………………………………………………………………. 7 Stakeholders…………………………………………………… ……….………………... 9 Current Environment………………………………………………………… ……….…. 9 Conclusion…………………………………………………………… ….………………………10 References……………………………………………………………. ………………………….11 TO: Jack Harris, President Crisis Consulting FROM: Gerette Bednarz, Vice President, Governmental Affairs DATE: March 11, 2018 SUBJECT: Company Overview Introduction Airbus is currently facing internal and external investigations into possible fraudulent financial activities from 2007 to 2010. The company is accused of using secret firms and middlemen while dealing with the British government. These activities were not known to the Board or executives at the time
  3. 3. and known involved parties have since been terminated. The organization is seeking your consult and assistance to directly address ensuing government actions. Overview Business Profile Airbus is an international corporation that designs, manufactures and delivers commercial, private and government aviation and aerospace product. Corporate locations and plants span North America, Europe, Asia, Africa and the Middle East and Australia (Airbus Home, 2018). The business proposal will be the development, production and use of an unmanned commercial passenger aircraft that will be and comprise the entire fleet of an airline also named AirVahana. The product name is Airbus AirVahana. The aircraft will be larger, faster and able to travel longer distances and fueled by sustainable means. The commercial passenger aircraft market is a highly competitive a duopoly. Airbus holds about 50% of the market share, slightly above Boeing (Airbus Home, 2018). Market entrants in China, Russia and Canada, if successful, are likely to impact and transform competition in the coming years (Wall, 2017). In addition to market share Global Horizons (Airbus Home, 2018) forecasts global passenger travel to increase 4.4 per cent annually for the next 20 years, with 35,000 new passenger and freight aircraft dedicated deliveries and a potential 5.3 trillion USD revenue over the 20 year period. As globalization evolves and progresses air travel will be used more as a means in the corporate world. Also, if the economy is stable and strong domestically and internationally, leisure travel will increase. This will be an opportune time for a faster, sustainable, cost effective and time efficient means to travel. The plan is for the unmanned fleet and airline AirVahana to be fully operational by 2023. An important component in the entire process of introducing new product and technology into the commercial passenger aircraft market is to consider current and potential government actions that impact
  4. 4. the market and Airbus. Global terrorism is on threat the company and industry faces. The public’s reaction to global terrorism can significantly decrease leisure travel worldwide due to fears of personal safety and security. If air travel decreases, airlines may not invest in new aircraft due to a decrease in cash flow and capital. Another threat to Airbus is the highly competitive market with Boeing, as explained earlier. Also, if the aircraft does not acquire Federal Aviation Administration approval, there will not be an opportunity for an airline that only provides pilotless flights. Competition with Boeing in the duopoly poses a threat to Airbus as well. If Boeing launces a product similar to the one proposed it can alter the direction and plan to extend the product to an airline service. Governmental Action FAA The concept of flying passengers all over the country in unmanned commercial aircraft will not be possible without meeting regulations and standards of agencies such as the Federal Aviation Administration (FAA). An aircraft cannot fly commercially in the United States without FAA approval (FAA, 2018). The Airbus A350-1000, for example, received FAA approval and certification just six months after application submittal and enduring intensive flight testing in November 2017 (Airbus Home, 2018). FAA regulations of Unmanned Aircraft Systems (UAS), or drones, have been developed for vessels that do not carry passengers. Certified drones are used in the military, privately and commercially (FAA, 2018). One obstacle unmanned commercial passenger aircraft like AirVahana and helicopter passenger drones face is the development of certification and standards from these entities has yet to occur. Without certification the aircraft and airlines cannot operate commercially. SEC The Securities and Exchange Commission (SEC) is a federal
  5. 5. governmental agency in the United States that provides oversight for companies and investors in the securities markets. The SEC works to ensure investors are provided with meaningful financial information by the public company prior to investing (SEC Home, 2018). Airbus is a public company and files with the SEC, providing necessary financial documents and disclosures for investors. While Airbus is in the process of developing and launch this new product and airline it is essential to ensure all necessary financial documents ae filed with the SEC. If the company fails to comply, there are costly legal and financial consequences. Organization and Teams Airbus’s organizational structure is designed to ensure the organization is managed in accordance with regulatory laws and standards and articles of association. This organizational governance structure includes a board of directors and executive committee. Corporate structure designed to adapt and change while managing growth, projects and obligations (Airbus Home, 2018). Board of Directors and Executive Committees The Board of Directors for Airbus is required to adhere to laws associated with the company’s Articles of Association and is responsible for the management of the company, which is delegated to the Chief Executive Officer (CEO) to manage and oversee day to day operations. The Board is also responsible for ensuring all regulatory laws, articles and standards are met legally. The Board is comprised of committee to ensure ethical and regulatory standards are met and in compliance: the Audit Committee, Ethics and Compliance Committee, The Remuneration, Nomination and Governance Committee and the Executive Committee. (Airbus Home, 2018) The Executive Committee is a group of company executives tasked with supporting the CEO with day to day management of the company. The Executive Committee is comprised of company leaders from key operational departments: Human Resources, Military Aircraft and Defense,
  6. 6. Commercial Aircraft and Helicopters, General Counsel, Airbus Americas, Commercial Operations, Finance, Procurement and Airbus China (Airbus Home, 2018). The Board of Directors and Executive Committee are and have been essential in ensuring legal and appropriate investments are disclosed and sought out, defending the company in legal and liable suits that arise and have arisen, and compliance and oversight of regulatory standards (Wall, 2018). One example of the Board’s oversight is the Board’s response to alleged financial improprieties in 2014; reported publicly suspended payments to business partners while investigating compliance infractions through a payment review and disclosure of the internal investigation and ethical and financial compliance outcomes and processes (Airbus Home, 2018). Operational Committees Operational committees at Airbus are structured to manage and oversee operations and connectedness of the various sectors within the company. The Operational Executive Committee is comprised of leaders from each segment of the company’s operational structure: Human Resources, Commercial Aircraft, Strategy and International Relations, Engineering, Programs, Legal, Industrial, Commercial Aircraft, Commercial, Procurement, and Financial. The operational Executive Committee works alongside company subsidiary committees: Helicopter, Defense and Space, and Commercial Aircraft divisions. Within the operational structure are teams and subcommittees, regionally and globally designed to ensure ethical and financial compliance and adherence to regulatory and securities laws and standards as well as sharing and creation of technological and production designs and processes. (Airbus Home, 2018) Stakeholders Internal stakeholders for Airbus include investors, employees, board of directors and business partners. External
  7. 7. stakeholders include customers, consumers that utilize product, communities, suppliers, vendors, and local and national governments. One example of stakeholder actions taken to influence and advocate for Airbus currently taking place. Airbus is seeking regulatory approval from China to deliver aircraft. Some obstacles that are slowing the approval process are political in nature and impact Germany and France operations. Both German and French leaders have met with China’s leaders to come to a political agreement in an attempt to perpetuate the approval process. Internally, top Airbus executives have met with China’s governmental officials to seek approval. To date the aircraft have not been released or approved for delivery to China (Ostrower, 2018). This scenario is one example of how stakeholders of a global operation are impacted and act in the best interests of the company. Current Environment Full Year 2017 Results (2018) reported, in Euros (EUR), that the company is financially healthy with 2017 revenues of 67 billion EUR. Net income in 2017 was 2.8 billion EUR, up from 995 million EUR in 2016. Free cash flow was 3.7 billion EUR in 2017 an increase from 2016 3.1 billion EUR. Also reported was an increased order backlog worth 158 billion EUR of aircraft orders (Full Year 2017 Results, 2018). Stock market shares have increased to 1.99 USD per share (Airbus SE ADR, 2018). Response by Airbus Board and executives to address allegations of fraudulent financial activities was launched in 2017, according to Pegg (2017) and Airbus Home (2018). The company was allegedly involved in secret deals and money exchanges from 2007 to 2012 resulting in SEC and other regulatory investigations (Pegg, 2017). Airbus Board of Directors separated key personnel involved in the activities as well as launched a full internal investigation in 2017. The Board and Airbus has also fully cooperated with the SEC and involved officials (Airbus Home, 2018). Conclusion
  8. 8. Airbus has to interact operationally and financially with regulatory and governmental bodies throughout the world. The organizational structure is implemented to provide checks and balances as well as to remain attached and informed of business dealings. There are times that the corporate leaders are not informed of questionable activities. Governing bodies like the FAA and SEC provide oversight to ensure regulations and laws are complied with by the company. Stakeholders impact and are affected by corporate decisions and activities and have influenced or attempted to influence government officials in the certification and approval processes. Currently the organization is financially healthy despite allegations of fraudulent financial activities from 2007-2010. The company’s leadership is seeking consultation assistance in order to maintain and continue financial health as well as design and manufacturing operations. References Airbus Home. (2018). Retrieved from http://www.airbus.com/ Airbus SE ADR. (2018). Retrieved from https://www.marketwatch.com/investing/stock/eadsy/financials Federal Aviation Administration. (2018). Retrieved from https://www.faa.gov/ Full-Year 2017 results: Airbus overachieved on all key performance indicators. (2018, February 15). Retrieved from http://company.airbus.com/news-media/press-releases/Airbus- Group/Financial_Communication/2018/02/AirbusFY2017 Ostrower, J. (2018, January 12). Airbus built a lot of planes for China last year. Retrieved from http://money.cnn.com/2018/01/12/news/companies/airbus-china- certification-delivery-delays/index.html Pegg, D., & Evans, R. (2017, September 18). Airbus launches internal corruption investigation after Guardian exposé.
  9. 9. Retrieved from https://www.theguardian.com/business/2017/sep/18/airbus- launches-internal-corruption-investigation-after-guardian- expose SEC Home. (2018). Retrieved from https://www.sec.gov/ Wall, R. (2018, January 13). Airbus Seeks Resolution to Germany Corruption Probe. Retrieved from https://www.wsj.com/articles/airbus-seeks-resolution-to- germany-corruption-probe-1515869310 Wall, R. (2017, July 16). New Jets Threaten Airbus and Boeing Duopoly. Wall Street Journal. Retrieved from https://www.wsj.com/articles/new-jets-threaten-airbus-and- boeing-duopoly-1500202802 Steiner, J., & Steiner, G. (2012). Business, government, and society. Los Angeles: McGraw Hill. MBA 665 Final Project Milestone Two Guidelines and Rubric Prompt: The final project for this course is the creation of an impact of governmental action on a business paper. For Milestone Two, you will submit the Overview section of your final project, which continues building on what you started in Milestone One to complete Section I of the final project critical elements. You will provide the business profile and governmental action, revised according to feedback received on Milestone One, then add organization and teams, stakeholders, and current environment. Be sure to support all factual claims/positions with appropriate citations to your
  10. 10. research materials. Specifically, the following critical elements must be addressed: I. Overview: In your role as vice president of governmental affairs, your boss, the business’s CEO, is considering retaining an outside consulting firm to assist the company with a government issue that it is facing. Jack Harris is the president of that firm, which is called Crisis Consulting. Jack has told your boss that he will not know if he can help until he learns more information about your company and the issue it faces. Your CEO has asked you to prepare a memo that will provide a detailed overview of your company as well as the government action that is it facing. Address the following: A. Business Profile: Provide a brief profile of the business and the industry it occupies, including the business’s market share and competitors, as well as opportunities and threats facing the business and industry outside of the particular governmental action now facing the business. B. Governmental Action: Analyze the potential governmental action or political challenge that will affect the business in this particular situation. C. Organization and Teams: Describe the organization of the company, including divisions and project teams, and the manner in which the company has used these teams to respond to government regulations in the past. D. Stakeholders: Describe the company’s internal and external stakeholders. In your description, include the actions taken by
  11. 11. the stakeholders to date to influence the political process and advocate for the business’s interests. E. Current Environment: Describe the current business environment, both financial and otherwise, including the initial reaction of the company to the situation and the initial position taken by political actors and other stakeholders. Guidelines for Submission: Your paper must be submitted as an 8-10 page Microsoft Word document with double spacing, 12- point Times New Roman font, one- inch margins, and sources cited in APA format. Rubric Critical Elements Proficient (100%) Needs Improvement (70%) Not Evident (0%) Value Overview: Business Profile Briefly profiles selected business and industry it occupies, including market share, competitors, opportunities, and threats Profiles selected business and industry it occupies, including market share, competitors, opportunities, and threats, but
  12. 12. response is wordy or vague Does not profile selected business and industry it occupies 15 Overview: Governmental Action Accurately analyzes potential governmental action or political challenge that will affect business Analyzes potential governmental action or political challenge that will affect business, but with gaps in accuracy or detail Does not analyze potential governmental action or political challenge that will affect business 15 Overview: Organization and Teams Comprehensively describes the organization of the company, including divisions and project teams, and the manner in which
  13. 13. the company has used teams to respond to past government regulations Describes the organization of the company, including divisions and project teams, and the manner in which the company has used teams to respond to past government regulations, but description is cursory or inaccurate Does not describe the organization of the company and the manner in which the company has used teams to respond to past government regulations 20 Overview: Stakeholders Comprehensively describes company’s internal and external stakeholders, including actions taken by stakeholders to influence political process and advocate for business interests Describes company’s internal and external stakeholders, including actions taken by stakeholders to influence political process and advocate for business interests, but description is cursory or inaccurate
  14. 14. Does not describe company’s internal and external stakeholders 20 Overview: Current Environment Comprehensively describes current business environment, including financial status, initial reaction of company to situation, and initial position taken by stakeholders Describes current business environment, including financial status, initial reaction of company to situation, and initial position taken by stakeholders, but description is cursory or inaccurate Does not describe current business environment 20 Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors
  15. 15. related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100% Running head: STARBUCKS CLOSING STORES DUE TO MINIMUM WAGE INCREASE 1 TOPIC SELECTION 5 Starbucks’s Corporation and the decision to close Stores due to increase in Minimum Wage Carmen Hendrickson MBA 665 Mod 2 Business Profile Company Description and Market Share Starbucks Corporation is an organization that is involved
  16. 16. in the development, marketing, retailing, and sale of specialty coffee. The company has built stores and outlets that provide a choice of coffee and tea beverages, and premium coffee, tea and related beverage products. These include packaged roasted whole beans and ground coffees, a wide range of premium single-serve and ready-to-drink coffee and tea products, juices and bottled water (Starbucks Corporation, 2019).The company also has stores that provide a collection of fresh foods and snack offerings. In addition, Starbucks generates and sells a broad range of ready-to-drink beverages, including Frappuccino coffee drinks. In the last five years, the organization has been producing soft drink beverages known as Refreshers, and child multi-serve beverages through several channels, such as grocery company store outlets. Starbucks is one of the multinational coffee corporations that have established their presence in different parts of the world. Headquartered in Seattle, Washington, the organization has expanded its operations across different foreign markets. For instance, the company operates in regions such as Asia Pacific, Africa, Europe, Middle East, and North America. In 2018, the organization recorded revenue of $ 24,719.5 million (Starbucks Corporation, 2019).This figure re[presents a 10.4 percent increase from 2017. Furthermore, the organization is the leading coffee brand in the world. As such, its market share is about 21.9 percent. Therefore, the company is the leading player in the out-of-the-home coffee market. Opportunities and Threats Starbucks has various opportunities that provide it with potentials for growth in the present and the future. These opportunities include: growing foodservice sector in the United States, growing presence in the emerging and key Asian markets, as well as the company’s growing office coffee marketplace. Indeed, the restaurant sector in the United States is projected to witness a strong growth. This is especially true for the restaurant and foodservice sales, which will was estimated to $800 billion in 2017 alone (Starbucks Corporation, 2019). In
  17. 17. addition, Starbucks has been growing and expanding in the Asian Markets, especially in China and India. The high pace of economic progressing China has brought with it opportunities for the company to optimize sales and profits in these target Asian markets. There are various threats that threaten to cripple the organization’s performance and productivity. One such threat stems from strict government regulations. In the American market alone, the government has been passing policies that are geared towards increasing the federal minimum wage (Starbucks Corporation, 2019).This policy has resulted in increase in the company’s labor costs. As a consequence, the organization has been closing down its operations in some of its branches in the United States. The cost of labor is a vital component in the day- to-day running of a business. Without labor an organization can neither produce or sell its products to the target market. Equally, a high cost of labor makes it impossible for a business to generate profits. Another potential threat stems from intense rivalry from other key players that are serving the same market. The specialty coffee sector is characterized by stiff competition as firms scramble for the already exhausted market share. Government Action In 2018 and 2019, the federal government has been increasing minimum wage. Presently, the federal minimum wage stands at $15. In response to this problem, Starbucks reported to the media that it would close about 150 American stores. This report happened at a time when voters in Washington voted for the minimum wage to be increased to $15 (Bartash, 2019). The targeted zones for closures are mainly in metropolitan areas where the increments in minimum wage and occupancy, coupled with other requirements, have the potential to cripple the company’s operations (Bartash. 2019). However, the government has cautioned Starbucks not to close down its stores, stating that such efforts would cause job loss and increase unemployment rates.
  18. 18. ReferencesBartash, J. (2019). Starbucks closures and D.C. restaurant minimum-wage hike are two sides of same coin. Market Watch. Retrieved from https://www.marketwatch.com/story/starbucks-store-closures- and-dc-restaurant-pay-initiative-are-two-sides-of-the-same- story-2018-06-20Starbucks Corporation. (2019). Company profile: Starbucks corporation. Marketline, 1-9. Running head: STARBUCKS CLOSING STORES DUE TO MINIMUM WAGE INCREASE 1 Starbucks’s Corporation and the decision to close Stores due to increa se in Minimum Wage Carmen Hendrickson MBA 665 Mod 2 Running head: STARBUCKS CLOSING STORES DUE TO
  19. 19. MINIMUM WAGE INCREASE 1 Starbucks’s Corporation and the decision to close Stores due to increase in Minimum Wage Carmen Hendrickson MBA 665 Mod 2

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