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Business Plan for a New Entrant Airline
ATRN701 Airline Economics Business Plan for a new–­
‐entrant airline by Cem Ersöz w14191741 March 2013 Company Profile
FlyLikeUs is a new entrant airline financed by a team of businessmen from the UK and Finland. Its headquarters and main facilities
are in Helsinki. London City Airport –where business travel is highly common but the demand for leisure travel continuously
increases– is considered as our future hub as soon as required maintenance facilities are employed at the airport. FlyLikeUs wants to
bring an innovative approach to regional market in Europe by operating a fleet of brand new high–tech Embraer E–Jets. Mission ...
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(source: skyscanner.com) 1.4 In–­
‐flight Services BA&AY Economy class seat pitch length is between 31–34 inches and Business
class seat pitch is fixed at 34 inches. A variety of complimentary food and beverages are offered, based on the time of day and
departure location. Business class passengers take advantage of an enhanced meal service. Short TV programs are shown on some
flights. Norwegian offers a 29–inch seat pitch for all passengers. It accepts one hand baggage for low fare and check in baggage and
seat reservation are available for purchase. Flexible fare includes check in baggage and seat reservation. Free Wi–Fi is offered on all
Norwegian flights for the use of passengers but no complimentary food or meal is available. (source: www.seatguru.com,
www.norwegian.com/) 1.5 Background to the market London, the capital of United Kingdom, is a huge metropolis, which consists
of diverse range of cultures, with a population of 15 million people. It is located in South East England along the River Thames. It
attracts leisure travellers from all parts off the world for its sightseeing, nightlife, restaurants, museums, hotels etc. Being the centre of
culture, music, education, finance and trade, London is a leading destination for business travellers, students, artists and so on. It is
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The Internal Environment Of Embraer
This paper is a progressive writing for a group business report. In this paper, the internal environment of the South African airline
company, Embraer, will be analysed. For this, a resource–based model will be used to analyse Embraer's internal resources,
capabilities and core competencies that helped Embraer gain a sustained competitive advantage. This will be followed by discussion
on VRIO framework to identify aptitude of resources that assisted Embraer to perform superior over its counterparts. Included in the
paper will also be discussion on the concept of value chain analysis which is a model companies use to analyse their activities that
help them generate more value over its cost. In conclusion, the paper will state the strategic position of Embraer with a hint of
recommendation for it to sustain competitive advantage. ... Show more content on Helpwriting.net ...
2016). Companies in the same industry can also struggle maintaining its competitive advantage because of their exposure to similar
opportunities and threats in their market area (Rothaermel 2017). Hence, it is necessary for the companies to analyse their internal
resources and capabilities that form their core competencies (Rothaermel 2017). It has been studied that a company's differentiating
internal environment accounts for more than half of its success (Rothaermel 2017). This resource–based view enables the company to
identify their strength and weaknesses for strategic competitiveness (Rothaermel 2017). An analysis of a company's external
opportunities and threats in combination with its resources and capabilities propels activities for strategic manoeuvre (Hanson et al.
2016). This, in–turn, creates pathway for above–average returns (AAR) (Hanson et al.
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Essay about Bombardier Case Study
1. Introduction: Problem Statement
The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders. It
has now become unclear to investors what Bombardier's future strategy will be within the aerospace industry.
2. External analysis
Technological: Due to the competitive nature of the industry, it is important to stay ahead of the pact in term of technology;
continuously improving energy efficiency of the carriers.
Economic: The industry's performance is highly tied in with the economy. A weak economy will mean weak sales.
Industry analysis: Porter's five forces model
Bombardier Aerospace's industry would be most clearly defined as the airline industry. * ... Show more content on Helpwriting.net ...
(See exhibit A)
Intangible Resources
Innovation Resources: Bombardier designed the model C110 that would compete with the Airbus and Boeing at a significantly lower
operational costs and significant fuel consumption improvements.
Reputational Resources: Bombardier has been known to be the world leader in business and regional aircraft manufacturing.
* Capabilities:
Manufacturing* * Design and production skills yielding reliable products. * Product & design quality
Research & Development * Innovative technology
* Core competencies:
Innovative Technologies:
Valuable: Yes, it is valuable to Bombardier because it gives them an edge over the competition.
Rare: Yes, it's not easy to innovate
Costly to Imitate: Yes, Millions in resources should be spent on innovation.
Non–substitutable: Yes, there are no strategic equivalents.
* Value chain analysis: what are the activities that should be improved? Should be outsourced?
Given the state of the financial analysis, it is evident that their resources are not being distributed properly and therefore their
operation efficiencies need to be reviewed.
* What are the firm's business–level and corporate–level strategies?
Business–Level:
Cost leadership, because the demand of aircrafts requires Bombardier to create more operationally efficient and fuel efficient aircrafts
due to the rising level of demand of low cost carriers.
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Air Canada Future Plan Essay
Air Canada being the largest airline service provider in Canada has a lot of plans for the future in term of regulatory practices,
economics, technological advancement, social responsibilities, and positive and healthy competition.
In the next five years or so, Air Canada will put a lot of focuses on the Asian Markets. In regards to this future plans, the main
targeted hubs of Asia will be some of the biggest economies nations such as China and Japan where Air Canada has already had
flights from Vancouver to Tokyo's Narita Airport and Vancouver to Shanghai using the 251–seat Boeing 787 Dreamliner.
This plan will mean developing bigger and newer Boeing as the prediction indicates that travel demand will surge in Asia over the
next decades. This is partly due to an increase in the ... Show more content on Helpwriting.net ...
It is also in the mind of the Air Canada managers to plan a cost–cutting efforts with plan to cut 15% from efficiencies as well as labor
savings by transferring more regional fling to SKY Regional
Another major effort will be reducing fuel consumption on the ground by using ground power at the gate to using a lighter paint
which will reduce ancillary revenues, the fees airline charge for services from checked baggage to internet connection
Air Canada also had a plan of purchasing fuel efficiencies and simplified airline fleet in the future to boost the existence orders for
33737 MAX 8 and 28737 MAX 9 aircraft
Air Canada continues to evaluates the potential replacement of its Embraer E190 fleet with more cost efficient, larger narrow body
aircraft that are better suited to its current and future network strategies.
In consistence with this future plan, Air Canada made agreement with Boeing which will purchase up to 20 of the Air Canada's
existing 45 Embraer E190 aircrafts currently in the Air Canada's
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Aircraft Scheduling and Fleet Management
The primary considerations for airline scheduling are routes that "provide optimum public service...consistent with the financial
health of the carrier" (Wensveen, 2011). In addition to that, there are numerous other factors that must be taken into account. These
factors include: equipment maintenance, crews, facilities, marketing factors, and other factors such as wind patterns and what I would
call "rush hour". The aircraft must be scheduled so as to allow adequate time for routine maintenance, as well as a buffer to meet
unscheduled maintenance requirements. Crews must be scheduled with adequate crew rest periods allowed, as well as avoiding over–
flying the maximum hours as directed by the Federal Aviation Regulations. Facilities ... Show more content on Helpwriting.net ...
To accomplish this, Great Lakes Airlines relies heavily on the EAS program. After deregulation, the EAS was established so that the
small, rural areas that had reaped the benefits of air service prior to 1978 would continue to do so. Because these small routes are not
profitable for airlines to provide service to, they are heavily subsidized by the government. Since 2001, the percentage of revenue
from the EAS program (as a percentage of gross revenue) has been as low as 19% and as high as 50%. In 2013 this number was at
42% (Nickerson, 2013). Great Lakes is also able to rely on these subsidies to keep their pricing competitive with other airlines. They
also reap the benefits of being able to offer access to United's and Frontier's frequent flyer programs as a method of keeping
themselves competitive. For the promotion portion, Great Lakes relies on its "internet website, code–share partners' websites, the
Delta.com website, global distributions systems (travel agencies and travel agent websites) and our reservation system's call center"
(US SEC, 2013). As for place, Great Lakes services the small regional airports that the majors don't fly into. Because it just would not
be profitable for the larger airlines to operate into these smaller airports, Great Lakes (along with the other small regionals) have
carved out a niche.
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Swot Analysis Of Southwest Airlines Routes
Summary
The Northeastern airlines route presented the connectivity to numerous cities offered by the airline and the profits in United States
Dollars value for each passenger are presented for each of the routes serviced by the airline. For example the route between the cities
Boston and Providence and between Providence and Boston deliver only US Dollar nine for each passenger as profits to the airline.
For delivering its service for these routes, the airline makes use or operates a fleet of sixteen airplanes. All these airplanes are of the
model 122 Passenger Embraer E–195 Jets. These 122 Passenger Embraer E–195 jets, which were manufactured by Embraer which
were first introduced in the market during the year 2004. These airplanes have helped Northeastern Airline to sustain profitability for
a long period. As presented in the case, Northeastern Airline started facing drop in its success and profit margins. In light of this
situation the Northeastern airline is exposed to the possible risk of bankruptcy unless it downsizes its airline operations. The
management team of the Northeastern Airlines has been assessing and evaluating various options to bring down costs and improve
profitability. As per the regulations of the airline regulatory body, i.e., Federal Aviation Administration, the airline company has to
continue its operations by serving at least nine cities. However the regulation does not specify anything on thestrategy and other
aspects related to the operation.
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The Contingency Paradigm, The Resource Dependence And...
ntroduction:
In 1989, Compsis was established in São José dos Campos by Ailton and others from the aircraft manufacturer company Embraer
where they were software developers. At the beginning, the founders planned to develop and integrate aircraft embedded systems.
After they decided that the plan would not be profitable the company decided to develop new applications by using their own
software technologies. The most important invention was their SICAT, which helped their business with the Brazil government in
ETC. In this paper, the company will be analyzed by using three paradigms which are: the contingency paradigm, the resource
dependence and transaction cost paradigm, and the institutional and population ecology paradigm.
The Contingency Paradigm
Complexity:
Compsis can be described as a company with little complexity. This does not mean that they do not have variance within the
company, but because of their size they operate using a limited horizontal form of complexity. Decisions are made among the five
members and the means ends outcomes are predictable for the company.
Closed Systems Approach:
There are two ways that the structure of businesses are analyzed. They are viewed from either a closed system approach or an open
system approach. Therefore, since Compsis does not have the ability to create much complexity within its business structure, it is
based in Brazil, and has little influence outside of Brazil. Compsis seems to operate on a closed systems approach.
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Strengths And Weaknesses Of Boeing
Strengths and Weaknesses of Boeing (SWOT) The ideal way for any company to analyze their strengths and weaknesses is to review
the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By understanding the SWOT model, a
company can see factors that can affect their future. Both strengths and weaknesses are internal to the company. Opportunities and
threats are external factors and the company cannot control these.
Strengths Over the years Boeing has always held a strong presence in the domestic and international market. Boeing is the second
largest Department of Defense contractor. This means that they will most likely always have ongoing business. Boeing also holds
many commercial airliners such as the ... Show more content on Helpwriting.net ...
(Schmidt 2015) Threats One of the biggest threats to Boeing is its international competitors. Airbus, Bombardier, and Embraer are all
in global competition with Boeing. Lastly, government continued sequestration could limit and reduce the number of government
contracts for Boeing. Since defense contracting makes up a lot of Boeing's revenue, this could hurt the company tremendously.
(Schmidt 2015)
Boeing's Competitors As stated above, Airbus, Bombardier, and Embraer are Boeing's biggest competitors. Airbus, a French
competitor, is Boeing's biggest rival on the global market. Airbus has become famous by implementing a digital fly–by–wire aircraft,
the Airbus A320, into the market. They are also known for creating the largest passenger airliner, the Airbus A380. Airbus has also
been reaching their hands into the defense contract pocket. They currently have the A400M aircraft in service. The A400M is a cross
hybrid aircraft between the C–17, and the C–130 aircraft. While this aircraft is only currently used by NATO countries, the United
States could one day implement this aircraft due to its versatility. This would mean that Boeing could potentially loose defense
contracts. According to Jon Ostrower from CNN Money, "Airbus, however, maintains an edge over Boeing in its total backlog. That 's
the number of airliners that have yet to be produced and delivered. The two manufacturers
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Boeing Executive Summary
Considering our analysis of the company, it is recommended that shares of Boeing should be bought or held. This recommendation is
based on factors such as company valuation, financial analysis of comparable firms, and a sensitivity analysis. In using the CAPM,
the value of the stock calculated is equal to $192.48, which is more than the current trading value of $153.24 (Apr 13, 2015). In
addition, the shares are also undervalued when using EV/EBITDA and P/E ratio analysis. Every analysis and calculation used for
Boeing has implied that the company's stock is undervalued, so we are confident this is would be a safe and profitable investment.
Boeing faces aggressive competition in two of the five principal segments: Commercial Airplanes, along
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A Report On The Company Embraer
The company Embraer has made a major investment in the Phenom 300. It's "design life is 28,000 cycles or 35,000 hours, assuring it
will have a 30– to 40 year economic life even with heavy economical use" (Pilot Report). In order to have a more reliable aircraft
Embraer improved the Phenom 100 to produce the Phenom 300. The Phenom 300 contains a trimmable horizontal stabilizer to
provide a better pitch control, and fly–by–wire multifunction spoilers. These panels "provide pilot–commanded inflight speed brake,
automatic ground spoiler and automatic differential roll spoiler actuation to augment roll control authority." (Pilot Report). If engine
failure occurs, the Phenom 300 has a spring–loaded rudder boost system that automatically is used ... Show more content on
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Aircraft has to not only be designed for reliability but also for maintenance. Basic maintenance intervals are 12 months or 600 flight
hours. The aircraft's "MSG 3" maintenance–friendly design allows windshields replacement in two hours. The third–generation "L–3
SmartProbes" eliminate unneeded tubes and pipes between probes and ADC boxes. All antennas and other external sensors can be
easily replaced from outside the airplane. Gel gaskets eliminate the use liquid sealants that are necessary before flight. All flight
control cables are designed to minimized reversal during the installation. The dual batteries that were mentioned earlier slide out on
trays for easy access and replacement. One type of grease is used for the aircraft. The "fuel boost pumps have brushless motors for
long life and they are mounted in dry canisters so they may be changed without defueling the aircraft" (Pilot Report). The winglets
uses screws to make them easy to remove and replace. A central maintenance computer can check autopilot servo torque which
eliminates removal for bench tests. The oxygen bottle may be refilled through a port in the nose baggage compartment. The Phenom
300 has the downside of having fresh water reservoirs must be replenished internally because the systems weren't installed in the
flight test aircraft. This would change workload issues if accessed externally. The use of ground power allow all the
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Ryanair History
History
ATR–42 in 1991
Ryanair has grown since its establishment in 1985 from a small airline flying a short hop from Waterford to London into one of
Europe's largest carriers. After the rapidly growing airline was taken public in 1997, the money raised was used to expand the airline
into a pan–European carrier. Revenues have risen from €231 million in 1998, to €1843 million in 2003 and €3013 million in 2010.
Similarly net profits have increased from €48 million to €339 million over the same period.[3]
[edit]Early years
Ryanair was founded in 1985 by Christopher Ryan, Liam Lonergan (owner of Irish travel agent Club Travel) and Irish businessman
Tony Ryan (after whom the company is named), founder of Guinness Peat Aviation and father ... Show more content on
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However, the airline recovered posting profits soon after. The enlargement of the European Union on 1 May 2004 opened the way to
more new routes as Ryanair and other budget airlines tapped the markets of the EU accession countries.[16]
In February 2005, Ryanair announced an order for a further 70 Boeing 737–800 aircraft, along with an option for a further 70. This
was expected at the time to allow Ryanair to increase passenger numbers from the 34 million expected in 2005 to 70 million in 2011.
Some of these aircraft would be deployed at Ryanair's 12 European bases, others to 10 new bases the company intended to establish
over the next seven years.[17]
In June 2006, the company announced that in the quarter ending 30 June 2006, its average yields were 13% higher than the same
quarter of the previous year[18] and its passenger numbers were up by 25% to 10.7 million, although year–on–year comparison was
difficult, because of the movement of Easter from first quarter 2005 to second quarter 2006. Net profits (€115.7 m) increased by 80%
over the same quarter in 2005. Management indicated that the level of growth may not be sustained for the remainder of that year,
despite adding 27 new aircraft and opening new routes.[19]
Ryanair's passenger numbers have grown by up to 25% a year for most of the last decade. Carrying under
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S&S Air Inc. Mini Case – Ch 3
Question 1
Current Ratio = Current assets/current liabilities = $1,561,800/$2,085,000 = 0.75
Quick (or acid–test) Ratio = (Current Assets – Inventory)/Current liabilities = ($1,561,800 – 740,800) /$2,085,000 = 0.39
Cash Ratio = Cash + Cash equivalents/Current Liabilities = $315,000/$2,085,000 = 0.15
Total asset turnover = Sales/Total assets = $21,785,300/$13,077,800 = 1.67 times
Inventory turnover = Cost of goods sold/Inventory = $15,874,700/740,800 = 21.43 times
Receivables turnover = Sales/Accounts receivable = $21,785,300/$506,000 = 43.05 times
Total debt ratio = [Total assets – Total equity]/Total assets = [$13,077,800 – $7,192,800]/$13,077,800 = 0.45
Debt/equity ... Show more content on Helpwriting.net ...
When compared with the industry, the inventory turnover of S&S Air of 21.43 times is well above the industry upper quartile of 10.89
times. This indicates that S&S Air is much more efficient than the industry average at inventory management.
When compared with the industry, the receivables turnover of S&S Air of 43.05 times is well over the industry upper quartile of 14.11
times. This shows that the collection of accounts receivable is a major strength of S&S Air when compared to the rest of the industry.
Long–term Solvency Measures
When compared with the industry, the total debt ratio of S&S Air of 0.45 is just above the industry lower quartile of 0.44. This
indicates that S&S Air has less debt than the industry average and may be less likely to experience credit problems, but may not have
an increase in shareholders return.
When compared with the industry, the debt/equity ratio of S&S Air of 0.82 is just over the industry lower quartile of 0.79. Again, this
indicates that S&S Air has less debt than the industry average of 1.08.
When compared with the industry, the equity multiplier of S&S Air of 1.82 is just over the industry lower quartile of 1.79. This once
again indicates that S&S Air has less debt than the industry average and may be less susceptible to credit problems.
When compared with the industry, the times interest earned ratio of S&S Air of 6.36 times is between the industry lower quartile of
5.18 times and the median of 8.06
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Case Study Bombardier
CASE STUDY Bombardier Aerospace: The CSeries Dilemma
Propaedeutics in Strategy 70–450–12A
FOROUGH ENSANDOUST MARTICULE 11142559
1. Current Performance As of September 30, 2012, the total number of 138 units of CSeries100 and CSeries300 commercial jets are
ordered, while it now expects the first delayed delivery before the end of next June, a delay that had been anticipated due to high
performance milestones set by company .According to Pierre Beaudoin CEO ,company requires more time to meet certain CSeries
program targets but others had been met and the company and its suppliers have "now fully harmonized all commitments to the
program's schedule."
2. Current Strategy Since July 2004, Bombardier is working on new family of ... Show more content on Helpwriting.net ...
According to Stakeholder mapping9next page) the highest impact is reserved for Government and investors because of the
importance of financial and legal–political support in this industry, while industry partnerships and suppliers play the next important
rule by contribution in technological and manufacture aspect.
STAKEHOLDER MAPPING HIGH HIGH POWER Government Shareholders Investors Suppliers Employees LOW LOW
Communities LOW Non–Government Organizations LOW INTERESTS HIGH Academia Industry Partnerships
HIGH
STRATEGIC ISSUES
1–Bombardier is mostly famous for business–military 2– High dependence on financial stability of airlines can aircraft while CSeries
are commercials in competition be a problem.IT was the main reason of stopping the with giants like Airbus, Boeing and Embraer.
This makes project at 2006 due to failing to secure significant airlines more cautious in ordering CSeries, because they orders to that
point question Bombardier's technology and experience in commercials 3–The
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Taking a Look at Embraer
1. Perform a brief SWOT analysis of Embraer.
A SWOT analysis is a structured planning method used in order to evaluate the strengths, weaknesses, opportunities, and threats
involved in a project as well as in a business venture. Strength (S)
The Embraer was created in1969 by a military government. It hold several strengths in manners that it strategically placed as well as
being advantageous in having smaller and less costly jets, not forgotten their structure of production that plays a role in being
competitively advantageous. It was located in San Jose dos Campos in Sao Paulo or simply known as "Technology Valley", consisting
of industrial cluster in aerospace telecommunication, auto mobile and petroleum sector. It was what that gave Embraer distinctive
competency areas to run their R&D, design, product development, system integration, and assembly as well as technical assistance in
aircraft manufacturing.
Aside from having a strategic place, Embraer holds a competitive advantage by having jets which are smaller in size and are less
costly. By introducing a 35–seat ERJ 135 and 50–seat ERJ 145, Embraer was able to meet increasing demand for jets that replaces
their turboprop model. The production structure is also one of the mentioned strengths. Their network consists of three levels by
which risk partners or strategic partners at the first level carries most innovation and risk endeavors and operate based on a long term
contract. The second level is their
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Boeing Market Analysis
The Boeing Company is a major player in the aerospace and defense industry with over 150,000 employees. As of 2006 they led the
commercial and defense aircraft market as the company with the largest total revenue. (Defense News , 2007). The corporation is
divided into five separate business units/services. Commercial Airplanes and Integrated Defense Systems are the two major
components. The other three units span control over research and development, services and financial services; Phantom Works,
Shared Services Group and Boeing Capital Corp, respectively. As of 2006, these three smaller units contributed only 2% of the
revenue for the Boeing Company, but played a valuable role in their various supporting contributions to the main ... Show more
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It also splits targeted market segments through the use of different versions. The 777, –200LR and –300ER are the long range leaders
of aircraft in service. Boeing compliments this range with a large passenger base and at a competitive price. It has been the market
leader in this category over the recent years, but its market share has recently been cannibalized by the lighter, less costly, more fuel
efficient 787–8/9. However, the 777s still hold passenger capabilities over the new jets' offerings. The –200ER, and –300 models are
arranged in the mid–sized competition group, and offer competitive ranges and passenger capability, but are more expensive than
their closest Airbus competitor. (Boeing, 2007)
Competition Company Model 2006 Deliveries % segment Total Unfilled Orders 2007 Orders (As of 16 Oct 07) % seg 2007
Deliveries (as of 16 Oct 07) Price ($Million) Range (nm) Seating Current Status
Mid–Sized Boeing 767 12 12% 55 36 18% 9 141–169 5200–6600 218–375 Operational
Mid–Sized Ilyushin IL–96 2 2% 7* est. 6 3% 2 120–140 est
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Fire In The Air-Personal Narrative
The Lockheed C–5 Galaxy casts an aluminum eclipse over Washington's Dulles runway 01, bringing wet weather in tow. The
incoming clouds begin to release drops, creating a wet, dusty scent in the air. Within five minutes, the C–5's four General Electric
engines begin to whine down and its 28 wheels come to a slow, but poignant stop on the water speckled tarmac. A black SUV pulls
near and waits with flashers blinking. On the C–5's forward quarter, a large step door swings down and Ben Erikson exits the
behemoth. Two men quickly escort him to the waiting truck, now fending off a downpour with its wipers. The short, hushed drive
departs the military section of the airport and enters to where the smaller, civil aircraft operate. Sitting among ... Show more content
on Helpwriting.net ...
We saw the dog was aggravating the now cornered young bear, so we elected to tranquilize the dog, while preparing the gun, Erikson
became agitated at this action. The situation was becoming dangerous with Erikson, the dog, the bear and the sow bear in the area. I
reloaded down the gun's dosage for a man and shot Erikson in the thigh, the dog then became agitated at me, so Weatherby shot the
dog in the hip with his tranquilizer gun. The bear ran off out in to the brush. No one attempted to shoot the bear. We then immediately
placed both Erikson and the dog into the helicopter and flew back to our departure point at the Flagstaff location. A Doctor was
radioed ahead of our arrival, to check both Erikson and the dog's medical condition. The medical report is attached. The summation is
that they were both pronounced medically healthy and would awaken within five or ten minutes at the time. Which they did without
incident."
Ben closes the folder and looks at Covertt, "They're a real A–Team aren't they? It's all very nice and tidy. Let's just pretend none of
this ever happened and I'll be on my way." Ben stands and looks at Covertt in the eyes. "Next time when you wish to talk to me, just
ask me." Ben turns and moves to the door as the jet's two engines begin to whine at a higher
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Embraer and Cessna Market Segmentation
Embraer is a Brazilian aerospace company that produces commercial, military, executive, agricultural aircraft and provides
aeronautical services. The Cessna Aircraft Company is an American general aviation aircraft manufacturing corporation
headquartered in Wichita, Kansas. Best known for small, piston–powered aircraft, Cessna also produces business jets. Market
Segmentation
Cessna Aircraft are sold to private businesses, governments, individuals, freight airlines, charter airlines, and air taxi companies.
Cessna has several competitors domestically and internationally in various market segments. Cessna's aircraft compete with other
aircraft that vary in size, speed, range, capacity and handling characteristics on the basis of ... Show more content on Helpwriting.net
...
Responsiveness, Access, Courtesy, Credibility, Understanding the customer and Communication:
Cessna's Citation service "No matter where you fly, you're always close to home. Our extensive worldwide network ensures the
maximum uptime for your aircraft and the utmost safety for its occupants" shows the willingness of the company to help the
customers at the time of need, they are readily accessible to provide customer service. Cessna is known to builds very good long–term
relationships with its customers.
Embraer's value of We are here to serve our customers shows company's readiness to provide service to its customers also its Helpline
which says it's a "Direct channel to raise concern" ensures customers that Embaaer employees are available when needed.
Competency: Cessna's Engineering and design feature shows that their aeronautical engineers have imagined hundreds of original
aircraft concepts into clean sheet designs advancing to the latest computer–enhanced technology and flight–simulation tools and,
finally, to prototype. Embraer's value of striving for company excellence shows that the company believes that technological progress
means continually striving for perfection. Company actions are aimed at simplicity, agility, flexibility and safety, while constantly
striving for improvement and excellence. Cessna (with the Citation Mustang) and Embraer (with the Phenom 100) both offer
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Boeing Mission Statement
The company I choose as my focus in this Marketing Management assignment is Boeing. Boeing was founded by William Boeing
and is the world's largest multinational aerospace company. Boeing is also the leading manufacturer of commercial jetliners and
defense, space and security systems ("Boeing," 1995–2015). With its headquarters in Chicago, Illinois, Boeing employs more than
165,000 people across the United States in more than 65 countries. Moreover, Boeing's mission statement is being "committed to
working in partnership to ensure that innovative/creative solutions are developed and implemented to improve health and safety,
employee development, and quality and productivity in the workplace" ("Boeing," 1995–2015). Nevertheless, in 2012, Boeing ...
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These prices start from 371 million for a commercial aircraft and 63 million for a freighter. As previously mentioned, all Boeing
aircrafts can be delivered to a location of choice and promotion is done via television ads, photos, videos and sponsoring selective
major events that resonates with the company's business and brand strategies.
Still, customers will perceive quality based advantage as an advantage for Boeing's product over its competitors because the Boeing
Production System and the Boeing Quality Management System are inextricably linked, as manufacturing and quality organizations
work together to achieve total customer satisfaction through a lean production system. All in all, research shows "Boeing builds the
best products in the world, and its standards are second to none" ("Boeing," 1995–2015).
Yet, Boeing has made certain that input from all significant stakeholders are factored into its products lifecycle. Albeit challenging,
Boeing must ensure that the systems and processed designated by the company is integrated and used correctly by all employees.
Therefore, it is always possible to make changes and or modifications to a company's existing product lifecycle, but not necessary if
it's not needed or required at that given
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Black Women In America Research Paper
Do You Know Which Country has an Airline Started by a Black Woman?
The United States prides itself on being a land of opportunities, and in many ways it is. We look at countries like South Africa, which
not long ago was segregated through the laws of Apartheid, and we are glad that we are so much further along than the land of
Mandela. However, every now and then we need to stop and ask ourselves just how far along we really are, and we have to wonder if
many of the once oppressed countries we helped free are not passing us up in the area of civil rights and opportunity.
For example, one thing that South Africa now has that America does not is a black female owner of an airline. According to
Timeslive, the country's newest airline, Fly Blue Crane, was started by the company's CEO, Siza Mzimela, who say a ... Show more
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By using just one aircraft type with the same configuration, the crews will be able to use interchangeable parts, the same tools, and so
forth.
Jerome Simelane, the airline's Commercial GM, "By using what we have learned over the years about international airline best
practice‚ we have also created a cost structure which allows us to offer competitive fares without cutting any corners on quality‚
safety and reliability."
During the initial phase of the airline, the flights will originate from OR Tambo International Airport in Johannesburg and fly to
Bloemfontein, Kimberley, and Nelspruit. According to the airline's details, flights will go to Bloemfontein five times a day during the
week‚ twice on Saturdays, and three times on Sundays. Kimberley will be served three times a day during the week, once on
Saturdays, and twice on Sundays. Flights to Nelspruit will leave twice daily Monday to Friday‚ with one flight on Saturday and one
on Sunday.
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Aviation Industry Essay
Introduction As an industry, aviation is not immune to changing economics, low demands, and threats. Throughout the history, there
have been hundreds of airlines formed, but some have already disappeared and some are still going strong. Aviation industry is
constantly being challenged by economic status, organizations, and individuals which affect the revenue, growth and profitability of
each airline. Tragic events that took place on September 11, 2001 put a huge dent in the industry but currently in the process of
recovering slowly and steadily. Demands for air transportation is constantly on the rise even with occasional sets backs encountered
by the industry such as; terrorism, changing economics, skyrocketing fuel prices, demand changes, and increasing competition.
Current Status of the Company In the early days, the airline was struggling to perform financially. It took about five years to post its
first profits. Today, the airline operates 10 hubs and 9 maintenance bases which are located mostly on the west coast. Current hubs are
also served by the partner airlines.
Hub Location Departures
Denver International Airport (DEN) 157
Houston International Airport (IAH) 47
Los Angeles International Airport (LAX) 163
Minneapolis St. Paul International Airport (MSP) 66
Chicago International Airport (ORD) 134
Portland International Airport (PDX) 26
Phoenix International Airport (PHX) 67
Seattle Tacoma International Airport (SEA) 25
San Francisco International
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Risk Sharing With Suppliers
Risk Sharing with Suppliers – Embraer Model Introduction Supply Chain Management
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Risk Sharing Partnerships
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About Embraer Embraer is a Brazilian company with global presence that designs, develops, manufactures and sells aircraft, systems
and solutions for Commercial Aviation, Executive Aviation, and Defense & Security. It also provides support and after–sales services
for customers in more than 100 countries. With expertise in all stages of its complex activities, it is the world's largest manufacturer of
commercial aircraft with up to 130 seats, and one of the leaders in the aerospace sector – a position achieved thanks to the constant
pursuit of entrepreneurial excellence and the complete satisfaction of its customers (Embraer, 2016). Vision and Values Vision
Embraer will further consolidate its position as one of the leading forces in the global aerospace and defense and security industries.
Embraer is a market leader in the segments in which it operates and commands a reputation for excellence. Values Embraer's values
unite and model the attitudes of its workforce, strengthening its results and ensuring the Company's long–term future. These are the
set of beliefs that guide business and strategic decisions on a daily basis, at all levels (Embraer,
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American Airlines Swot Analysis Paper
American Airlines is the world's largest legacy airline (Taube, 2014), operating nearly 6,700 flights daily to 350 destinations across 50
countries (American Airlines, 2017). American Airlines operates out of 10 main hubs and numerous spoke cities throughout the
United States and Internationally. American Airlines business model is aimed at the premium customer market of business and
international travelers as well as leisure travelers who want to enjoy the flying experience and the comforts of flying. American
Airlines offers main cabin and first class (for transcontinental flights) and business class (short–distance international flights)
structures for their flights. On long distance international flights, flagship first and flagship business classes are offered for "elevated"
and "personalized" experiences. American Airlines offers bundled ticket pricing which includes the price of the ticket, seat assignment
of the passenger's choice, basic ancillary service of snacks and beverages, in–flight entertainment (if available) and Wireless Internet
(if available). One piece of carry–on baggage and one personal item, such as a purse, backpack or laptop bag are allowed in the cabin
at no charge to the passenger. Passengers are given the option for upgraded seats with more legroom within the main cabin, or
upgrade to first class. American Airlines offers easy booking through their website. ... Show more content on Helpwriting.net ...
American Airlines however reports total revenues of 9.789 billion dollars and a gross profit of 5.691 billion dollars (YCharts, 2017).
The latest gross profit margin (quarterly) for American Airlines is 58.14 percent and an overall profit margin (quarterly) of 2.95
percent (YCharts, 2017). Spirit Airlines reports a 58.34 percent gross profit margin and a 8.38 overall profit margin (YCharts,
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Differences Between Cesna And Embraer
Cessna and Embraer offer aircraft for commuter, business and private use. Currently, Cessna offers 9 business jets in their fleet. A
10th aircraft is in production, with an unknown maximum passenger capacity and the longest distance capability of 4,500 nautical
miles. The Citation Mustang, the smallest of the Cessna aircraft, carries a maximum of 5 passengers at a maximum distance of 1,200
nautical miles. The largest aircraft in the Cessna fleet, the Citation Longitude has a capacity of 12 passengers and a range of 3,400
nautical miles. (Cessna 2016). Embraer offers 7 executive jets for purchase, ranging from 4 to 19 passengers. The largest of the fleet,
the Lineage 1000E is able to fly a maximum of 4,600 nautical miles, with 13 to 19 passengers on board; the smaller aircraft, the
Phenom 100 is able to fly 4–7 passengers, based on configuration, a maximum of 1,178 nautical miles (Embraer 2016). Each
manufacturer provides the highest quality of furnishings and avionics in each aircraft. Both offer living quarters in the larger aircraft,
as well as a food preparation area. Cabin entertainment and communication networks are supplied in ... Show more content on
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However, both Cessna and Embraer are very competitive with the other high–end luxury brands of Gulfstream and Dassault Aviation.
While the Gulfstream G650 and the Dassault Falcon 2000LXS are larger aircraft with a heftier price tags ($65 million and $33
million, respectively), the operating costs are higher compared to Cessna and Embraer. (Cessna 2016, Embraer 2016). The Cessna and
Embraer aircraft are capable of flying at the same cruising altitudes as their competitors, as well as flying at relatively same operating
speeds of 0.8 Mach (Cessna 2016, Embraer 2016); Dassault (Dassault 2016) and Gulfstream (Gulfstream 2016) are capable of 0.9 and
0.8 Mach,
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JET BLUE ; PREPARING FOR FINANCING
PAU/LBS/2011/10/024
FINANCE – 2 EXAM
ANALYSIS OF JET BLUE CASE: PREPARING FOR FINANCING
SYNOPSIS OF THE CASE
JetBlue Airways Corporation was formed in August 1998 as a low–fare, low–cost but high service passenger airline serving select
United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and
differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and
performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only
other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001 ... Show more
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Therefore, the company depends on its operating cash flow to finance its short–term obligations
The new capital will be required to finance working capital requirement of Jetblue, Working capital is the short term resources that are
used to manage the business on a daily basis. This is otherwise referred to as current asset.
The financing decision which is aimed at securing the purchase of the new 100–seat Embraer E190 aircraft would allow JetBlue to
enter smaller markets while maintaining low operating costs, and increase flight frequency on existing routes. The low fares offered
by JetBlue would allow it to attract new passengers who might otherwise not fly. Earnings from this market segment is expected to
contribute to the profitability and positive financial performance of the company
IMPACT ON FUTURE PERFORMANCE OF THE COMPANY
The additional capital is expected to strengthen the company's balance sheet at a time when JetBlue will be shouldering a significant
amount of debt related to new aircraft deliveries.
The decision on financing method would result in a strong capital structure for Jetblue which would ensure that the company would
continue to grow while avoiding financial problems.
The new cash inflow which is directed at ensuring JetBlue achieves its expansion activities. It is expected that the company will be in
a position to purchase larger volumes of jet fuel and would thus have more leverage in procuring fuel than today. The company
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Skywest Case Study
Brandon Cisco
15 March 2013
GBA 490 Case Analysis
SkyWest, Inc. Competitive Analysis
Table of Contents
1. Executive Summary....................................................................................3 2. Competitive
Analysis..................................................................................5 3.
Recommendations.....................................................................................7 4.
Appendix................................................................................................9 5.
Sources................................................................................................22
Executive Summary
This report examines the factors pertaining to SkyWest, Inc. (referred to in this document as SkyWest) and its response to all forces
present in the airline industry. Analytical tools used in this report are: * An analysis of the airline industry macro–environment * A
Five–Forces model of the pressures in the airline industry * A ... Show more content on Helpwriting.net ...
It is very important that SkyWest stay ahead in terms of being competitive regarding the industry's key success factors. As noted in
Exhibit 6 brand image is an important factor in the key success model. SkyWest's current engine upgrade plan will enhance reliability
in their fleet which will help boost the way passengers and investors view the company. One factor that could have a negative effect is
the recent acquisition of Atlantic Southeast Airlines and Express Jet. Both companies have been known to be poor performers in the
industry. SkyWest must successfully merge their operations in order to boost performance across their entire business operation.
Recommendations
SkyWest will need to continue to grow their brand through acquisitions. With the economy on such a slow rise, many of the smaller
regional airlines will find it difficult to turn enough profit to continue business. When the aviation was booming, there was incentive
to enter the market based on rising profits. Many of the smaller regional companies that entered the market did so by accepting
contracts that in times of economic difficulties would not cover costs. SkyWest has been known to be at the top of the industry in
regards to running their business. By continuing to keep successful business practices at the forefront of their operations, there will be
opportunities to acquire those companies that are struggling now. As they expand into more markets, SkyWest can ensure that their
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Assignment 3
DEPARTMENT OF ECONOMICS Economics 340H – FA 07 OSH Assignment #3 Instructor: Christopher Michael Due Date: Dec 6,
2007 Question 1 – Perfect Competition and Monopolistic Competition Superior Metals Company has seen its sales volume
DECLINE over the last few years as the result of rising foreign imports. In order to INCREASE sales (and hopefully, profits), the
firm is considering a price reduction on luranium, a metal that it produces and sells. The firm currently sells 60,000 kilos of luranium
a year at an average price of $10 per kilo. Fixed costs of producing luranium are $250,000. Current variable costs per kilo are $5. The
firm has determined that the variable cost per kilo could be reduced by $0.50 if production ... Show more content on Helpwriting.net
...
As a niche manufacturer, Embraer makes aircraft that offer excellent reliability and cost effectiveness. To illustrate the price
leadership concept, assume that total and marginal cost functions for Airbus (A) and Embraer (E) aircraft are as follows: TCA =
$10,000,000 + $35,000,000QA + $250,000QA2 MCA = $35,000,000 + $500,000QA TCE = $200,000,000 + $20,000,000QE +
$500,000QE2 MCE = $20,000,000 + $1,000,000QE Boeing's total and marginal cost relations are as follows: TCB = $4,000,000,000
+ $5,000,000QB + $62,500Q2B MCB = ΔTCB/ΔQB = $5,000,000 + $125,000QB The industry demand curve for this type of jet
aircraft is: Q=910 – 0.000017P Assume throughout this problem that the Airbus and Embraer aircraft are perfect substitutes for
Boeing's Model 737–600, and that each total cost function includes a risk–adjusted normal rate of return on investment. A. Determine
the supply curves for Airbus and Embraer aircraft, assuming that the firms operate as price takers. B. What is the demand curve faced
by Boeing? C. Calculate Boeing's profit–maximizing price and output levels. (Hint: Boeing's total and marginal revenue relations are
TRB = $50,000,000QB – $50,000Q2B, and MRB =ΔTRB/ΔQB = $50,000,000 – $100,000QB.) D. Calculate profit–maximizing
output levels for the Airbus and Embraer aircraft. E. Is the market for aircraft from these three firms in short–run or long–run
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Jetblue: Managing Growth
JetBlue
Managing Growth
JetBlue Case JetBlue's main strategy is to be a low cost carrier (LCC) and use differentiation as a competitive advantage. The main
problem that concerns this case is that JetBlue has the need for slower capacity growth but the exact size of the cuts from each of the
airlines' two aircrafts was far from obvious. The contents of this case analysis will show how they managed to get to this point
through the use of business strategy tools. Also I will give some recommendations on how to resolve the issue at hand. First, let's take
a look at the SWOT analysis (strengths, weaknesses, opportunities, threats). This strategic planning method should give us an overall
understanding of all the aspects of JetBlue ... Show more content on Helpwriting.net ...
Threat of Substitutes: High
– Lots of different airlines to choose from
– Trains, buses, boats, cars can be used instead of short flights.
Bargaining Power of Suppliers: High
– Airbus has a lot of power because they supply to many other airlines
– Embraer has less bargaining power because JetBlue is the only airline to purchase the E190
Threat of New Entrants: Low
– Cost is high
– Hard to compete against the large airlines not only for customers but space at the airports for their airplanes.
Rivalry: High
– Especially high with Southwest
– Always in competition to retain the best employees and not lose them to other airlines
– Always looking for that edge to attract and retain customers
Let us now take a look at the Value Chain Model for JetBlue to see how they create value for the customer.
Value Chain Activity How it creates value for the customer
Inbound Logistics E– boooking creates better seat sale management
Operations Two aircrafts gives customers the choice to fly short distances
Outbound Logistics A320 has a quick turnaround and spends more time in the air as compared to the E190
Marketing and Sales Distribution Channel: e–ticketing. Effective low cost pricing
Service Bill of Rights
Considering all the analysis above I would recommend that JetBlue should cut the more of the E190s than the A320's. With the cost of
fuel steadily on the rise, the more fuel efficient A320 makes more sense
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The Need, Idea, And Tested Concept
Edgar Hasbun
Entrepreneurship
Instructor – Dr. Susan Smith Kuczmarski
August 4, 2014
The Need, Idea, and Tested Concept Today, businesses play a major role in our world. It is an innovative and competitive activity that
shapes society. It is all about satisfying the wants and needs people cannot satisfy themselves. Creating its costumers the center of
their business. Business is not about the profits but rather it is about satisfying your costumer. Young visionary entrepreneurs attack
the market by looking at the untouched or abandoned spots. Bridging North America and South America, Central America including
El Salvador, Guatemala, Honduras, Belize, Nicaragua, Costa Rica and Panama have a population of 31 million people. Seventy five
prevent of these people travel by land and twenty five prevent travel by air. Violent crime in Central America is reaching breathtaking
levels. Murder rates in the region are among the highest in the world. The majority of people traveling by road are exposed to danger
in the borders of these countries. So if a tourist would like to travel within the Central American countries, it would be most likely on
air. The problem with traveling on air are the prices. Ten years ago, where there was more competition, prices were medium low.
Through the years, one airline bought all of the small airlines in the region becoming the biggest airline. Avianca Airlines is now the
king of Central America and part of South America. Although their service
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Country Notebook
Doris Chow
Part IV: Sections 1(D) & (E)
Promotion Mix (D) **You will need to delete in RED as it helps you piece it together as whole Brazil boasts having a reputation of
fabricating some of the world's most creative advertising especially when it is entertaining which includes familiar venues like the
United States but in addition evening soap operas known as telenovelas and sporting events are popular and coveted advertising space
(O'Barr, 2008). Since the average Brazilian tends to watch an average of five hours of television per day, television comprises of 59%
of the media mix and the Brazilians are overtly loyal to their evening news and telenovelas so to center their time around those events
(Millwardbrown, n.d). Other ... Show more content on Helpwriting.net ...
Costs and premiums vary depending on the product and strategy but there are three types of ad agencies in Brazil which include
multi–national agencies that also service local accounts as well, smaller home–grown agencies that service primarily local clients and
a small number of "extraordinary successful Brazilian agencies that grew up in the last two decades and enjoy distinction as some of
the world's most creative" (O'Barr, 2008). Personal selling is usually preferred when there is an expensive higher end product that
would be best sold on a one on one personalized contact but is often costly to train the salesperson. According to Onkvisit and Shaw
(2009), personal selling is often taught in trade or vocational schools and is not seen as a prestigious occupation and in Brazil,
salespeople are not trained well in comparison to U.S. standards. Door to door selling is allowed in Brazil like in the U.S but for it to
be successful, requires support in terms of training and information (Onkvisit and Shaw, 2009). It could be considered as one of the
more difficult methods of promotion as excellent communication and persuasion skills are necessary. Sales promotions customarily
used in Brazil include social media groups 'twitting' about latest sales as 63 millions Brazilians have access to
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Embraer Case Essay
Q1.How has Embraer managed to succeed as a global competitor from within the confines of an emerging economy? Advantages and
disadvantages Embraer has derived from the Brazilian context.
Strong government support created competitive advantages in the aircraft industry and led Embraer to become a global player. As a
factor condition in the determination of national competitive advantage by Porter (Exhibit 1), the government established an
environment where Embraer was able to procure raw materials easily through no tax or duty on imports.
To support Embraer's business, related and supporting industries were developed by the Brazilian government setting aeronautics as a
priority to grow the nation's economy. The government tried to ... Show more content on Helpwriting.net ...
Many of the aviation companies within Brazil were suppliers and not direct competition.
Disadvantages:
Interest rates in Brazil were higher than other advanced countries (where their competitors operated). This imbalance in interest rates
was the root of WTO claims that were brought against Embraer.
On the other hand, a disadvantage is to be easily affected by the nation's economy. In the late 1980's and early 1990's, large deficits
constrained the government's export support, and the decrease on national credibility caused by the deficit affected Embraer's sales
and profit.
Q2. To what extent can Embraer's success be ascribed to the Brazilian government?
Embraer was first founded in 1969 by the Brazilian government because of their focus on aeronautics owing to their vast landscape
and geography. The government continued to support Embraer by setting up technological facilities such as the CTA, ITA, and IPD to
provide technological advances and support for innovative advances.
Embraer also enjoyed privileges such as having federal agencies being instructed to purchase from them instead of competitors where
possible, not having to pay taxes on imported raw materials, parts and equipment, and having the opportunity to raise capital through
investments from other Brazilian corporations.
The government further supported the privatization of Embraer by assuming $700 million of
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Embraer Executive Summary
Company description Embraer SA is one of the largest aircraft manufacturers in the world specialized in mainly manufacturing
aircraft for the commercial and executive aviation markets. In fact, they are the third largest and desire to increase their market share
by expanding to the South African market. Their workforce consists of 19,167 employees, 17,094 are based in Brazil and the
remaining 2,073 abroad. The company was established on August 19, 1969 in Brazil. Here is an overview of their net profits and net
revenues over the past 3 years; 2014: Net profit 796.1m Brazilian reais Net revenue 14,935.9m Brazilian reais 2013: Net profit
777.7m Brazilian reais Net revenue 13,635.8m Brazilian reais 2012: Net profit 697.8m Brazilian reais Net revenue 12,201.7m
Brazilian reais Embraer manufactures ... Show more content on Helpwriting.net ...
They don't know exactly which market to enter and what the business opportunities are. Also, the uncertainty of how to enter the
market and how to exploit these opportunities plays a role. Desired situation Embraer's desired future situation is that they have the
proper knowledge on how to enter the market successfully with having the right knowledge on their business opportunities and what
exactly their export potential is in the south of Africa. Research topic The aerospace market of South Africa will be investigated
together with which competition it will face. Also detailed research/analysis about the distribution, market size and growth and the
main opportunities and threats in the microenvironment will be carried out. Furthermore, there will be an analysis of the company's
products whether they meet the needs/wants of the South African market. Lastly, research will be conducted on which entry strategy
will be most favourable for entering that
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Describe What Conditions Made An Erp Implementation...
1. At the start of the case, describe what conditions made an ERP implementation desirable for Bombardier Aerospace. After reading
the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As
quoted in the case study by a senior project manager that 'Organization has become a textbook silo organization' because of its
acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company
they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information
system ownership increased due to the increased number of systems. There were process delays, sequential ... Show more content on
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2. Bombardier did several things well to help ensure the success of its ERP implementation. In particular, the case discusses "creating
a vision," the project team, and "creating a blueprint." What does each of these things mean in terms of successfully implementing an
ERP system and how did Bombardier Aerospace address these issues. In the case of "Creating a vision" , Vice President of the
company created a vision 'One Company' where he meant to integrate organization where the employees would share common data
using single set of combined systems and processes. In terms of successfully implementing an ERP system, all the functions i.e.
Methods, Quality, Production, Work and Material Planning and Procurement needed to identify their key performance indicators
required to run the business and the skills required for the function to realize their proposed vision. A need to reduce the clerical task
and paperwork and increase analytical focus was emerged and also to align the outputs of the visioning process with the overall
project vision to address this issue the Bombardier Aerospace, vice president of the operations and the Project Sponsor participated in
the road shows and the presentation where the employees were explained the implementation of the BMIS and their effects in their
everyday working lives. Everyone was included i.e. all levels of the management were included while passing
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Jetblue Swot Analysis
SWOT Analysis: JetBlue Airways
DeVry University Online by Keith Escher
Organizational History
Known as one of the very few airlines which has actually managed to make a profit since the downturn in the travel business, which
was a result of the
September 11th attacks, JetBlue Airways continues to pride itself by living up to its dedication of "bringing humanity back to air
travel"(JetBlue Bill of Rights).
JetBlue was incorporated in Delaware in August 1998 and was founded by David
Neeleman, a former Southwest Airlines employee and practicing Mormon man with nine children in February of 1999(JetBlue
Airways). The vision of the airline was to provide low cost air travel with certain amenities, including TV's on ... Show more content
on Helpwriting.net ...
The company learned early on that it was more of a cost effective approach when employees are used in a variety of job roles, as
opposed to having employees who are specialized in one area only and that are not permitted to work outside of their job expertise.
In addition to their wonderful staff and customer service, JetBlue also offers their passengers "comfortable seating, with lots of leg
room. They actually are able to offer their taller passengers some extra leg room with 4 more inches of space available"(JetBlue's Bill
of Rights Info). Along with the seating options,
JetBlue also operates with a fleet of newer jets, as compared to some of the other budget airlines.
Now, the weaknesses of JetBlue happen to be first of all, that they continue to expand, however, at a slow rate. They currently only
offer flights to 61 cities in the US and to a few other countries, with their home base airport, JFK, having the highest congestion in the
country. Plans for global expansion are also on the drawing board, however, this is also happening at a slow pace. In order for the
airline to remain competitive, they must expand their horizons and soon.
Another issue which came up recently and happened to be a weakness, is that
JetBlue received some negative press. "What had happened was that in May of
2010, one of their pilots threatened to harm himself a few hours before takeoff.
Also, in August of 2010, one of
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Bombardier
BOMBARDIER Trevor Davies Steve Bernier Paul Gos Jeff Cosentino Bombardier Bombardier Inc., a diversified manufacturing
and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment. It is also a
provider of financial services and asset management. The Corporation employs 79,000 people in 24 countries in the Americas, Europe
and AsiaPacific Objective The goal of Bombardier is that the company and management team wish to downsize the company in
order to have financing for other projects that they are currently researching. That's why they sold the recreational division
(snowmobiles). Joseph–Armand Bombardier History of Bombardier 1942 – Joseph–Armand Bombardier ... Show more content
on Helpwriting.net ...
31, 2003, stood at $23.7 billion Canadian. Financial Overview (cont) Has created some 9,300 jobs since 1992, and carries a 1.6
billion dollar payroll (1.2 billion US) Provides business to more than 5,200 Canadian suppliers At Bombardier, 90 percent of there
revenues come from contracts outside Canada Financial Overview (cont) Bombardier created 9,265 jobs in Canada since 1992, to
bring its current Canadian workforce to 24,495 employees. The Canadian payroll represents $1.6 billion in 2002, and Bombardier
employees earn salaries well above the Canadian average. Provides business to over 5,200 Canadian suppliers all across Canada, who
have in turn created thousands of jobs Canadian Economy The Canadian aerospace industry faces formidable and ferocious
competitive forces worldwide. Teller said "Canada is one of the most trade–oriented economies in the world." More than 40 percent
of Canada's Gross Domestic Product is trade–generated. One in three jobs in Canada is directly dependent on the ability to sell
products elsewhere. Canadian companies have made significant investments to develop high technology products such as
Bombardier's family of regional jets. Global Competitors Main Direct Aerospace Competitors: Embraer– Brazilian Airbus–UK and
France Boeing–American Global Market The company has sold several Bombardier Global Express aircraft to customers in
Australia, China, Japan, Korea and Malaysia in recent years and the
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Deregulation Act Of 1978 Essay
I. Summary
The Deregulation Act of 1978 was signed by President Carter on October 24th, 1978. This would begin the dismemberment of the
Civil Aeronautics Board, which regulated the airline industry since 1938 with the signing of The Civil Aeronautics Authority Act. Up
until that point, airline fares, carriers and many other things were all regulated by the government. After the Deregulation Act became
law, the airline industry was now free to choose their own destiny.
II. Problem
The problem was people in smaller cities were losing route options with the airlines. Many less favorable routes to smaller cities were
dropped with the airlines now having the freedom to choose their own routes. Before deregulation the Civil Aeronautics Board would
... Show more content on Helpwriting.net ...
This was greatly affecting business travelers that frequented these routes prior to deregulation. Some individuals would have to travel
long distances in order to take flights out of larger destinations.
IV. Development of Alternative Actions
Alternative action 1. Bombardier, and Embraer developed what is now known in the industry as the regional jet.
Advantages. These aircraft were much smaller, carrying from 30 to 122 passengers. With smaller capacity and less fuel used, these
jets were much more efficient at servicing the demand for flights in smaller cities. Airlines now had an advantage to serve the smaller
regions.
Disadvantages. The regional airlines have newer pilots who are not payed nearly as much as the major airline pilots. These more
inexperienced pilots, and other contributing factors, were believed to be the reason for accidents becoming more numerous with the
regional airlines. This was a cause for concern regarding the safety of passengers on regional airlines.
Alternative action 2. Some of the major airlines were starting to use these regional jets in a hub and spoke
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Dreamliner Swot Analysis
Strengths The Dreamliner is a new plane new is good in China Composite lighter and more fuel efficient Size small size, great for
commuter business and point–to–point routes popular in China Price Competitive price point Weaknesses New plane no reputation,
could have design flaws or mechanical problems Unknowns there are a lot of unknowns that could worry potential buyers Production
Capacity always limited in this business. A backlog could drive potential customers to Airbus. Opportunities China has a rapidly
growing aviation sector from 2600 aircraft to 4500 in the next five years (GTIN, 2011) Government banned carbon trading schemes,
creating demand for more fuel efficient aircraft as a way to save money (BBC, 2012). Threats Heavy government intervention in the
industry could curb growth (BBC, 2012). Competition Not just Airbus, but new competitors from the world's largest emerging
markets like China, India and even Japan (Nolan, 2009). Economy airlines suffer during down economies and reduce their orders, and
the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010). Fast Trains
are now providing competition for airlines in China on key routes (Finighan, 2011). The implications of this analysis are that the
focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid
growth and the increased demand for
... Get more on HelpWriting.net ...
Swot & Pest Analysis
SWOT & PEST analysis
Strengths
UK's largest full service scheduled airline – this makes it a popular company with customers which brings in more business which
will then bring in more money for the company.
Caribbean routes are new and selling well – as they are selling well, the sales will be up on the flights which will bring in more
money and more popularity with the customers which will then mean more and more people will use the company rather than their
rivals which will then bring in more money and make rival companies miss out on money
Head office is situated near Gatwick which is convenient – it is convenient because customers and/or staff will easily be able to get
there if they need to as it is situated near the ... Show more content on Helpwriting.net ...
Customers will become unhappy with the company and may use rivals from then on
Because half of the Airbus and Embraer fleet has been bought new in 2002, it has been a major expense – as it has been a big
expense, there is a massive drop in the profits that the company are making so there is less money to spend on other things, although
the money has been spent well
Opportunities
The airline would like to expand operations from Heathrow – with more operations the company would bring in more money which
will add to the profits.
Considering becoming a member of Star Alliance
Considering new measures including sponsorship and developing
... Get more on HelpWriting.net ...
Essay about The Emergence of a Global Aircraft...
In the article which I have chosen, the author discusses one of Latin American's most successful business stories in the last 20 years.
This success comes despite the fact that the company is from an emerging market and developing country. The Brazilian company
Embraer may not be known to the general public but it is known to those who make decisions on aircraft purchases including:
international airlines, business jet owners, and military contractors. To build the reputation of the company and to become a success,
there had to be an adequate knowledge of foreign markets and how to enter them. No aircraft manufacturer has been successful over
the long run by staying in a home domestic market. Airline manufacturers such as Tupolev ... Show more content on Helpwriting.net
...
If most passengers have flown to any smaller market airport in the United States, such as Monroe, Louisiana, most probably they have
flown on an Embraer product. For the past decade, the manufacturer has engaged in an aggressive strategy to make this happen and
gain the presence which it has established. To do so, the company will have had to decide what foreign market tactics to use and have
a thorough understanding of all the topics discussed in Chapter 9 of Global Business by Peng. The topics they would have had to deal
with include: overcoming the liability of foreignness, where, when and how to enter. Embraer, in becoming a worldwide brand, has
had to overcome the liability of its own foreignness. It has been noted that foreign firms start at a disadvantage and are often
"discriminated against, sometimes formally and other times informally" (Global Business). When some of the airlines from various
developed nations were looking at buying new aircraft, some questions may have arisen as it relates to the quality of a Brazilian made
aircraft. After all, airplanes are very complex, large equipment that contains with millions of components. If any one of them is
constructed incorrectly this could cause a crash. To by pass this, the company has had to look at both the institution and resource view
and make sure they covered their basis before they even went to the various international
... Get more on HelpWriting.net ...

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Business Plan For A New Entrant Airline

  • 1. Business Plan for a New Entrant Airline ATRN701 Airline Economics Business Plan for a new–­ ‐entrant airline by Cem Ersöz w14191741 March 2013 Company Profile FlyLikeUs is a new entrant airline financed by a team of businessmen from the UK and Finland. Its headquarters and main facilities are in Helsinki. London City Airport –where business travel is highly common but the demand for leisure travel continuously increases– is considered as our future hub as soon as required maintenance facilities are employed at the airport. FlyLikeUs wants to bring an innovative approach to regional market in Europe by operating a fleet of brand new high–tech Embraer E–Jets. Mission ... Show more content on Helpwriting.net ... (source: skyscanner.com) 1.4 In–­ ‐flight Services BA&AY Economy class seat pitch length is between 31–34 inches and Business class seat pitch is fixed at 34 inches. A variety of complimentary food and beverages are offered, based on the time of day and departure location. Business class passengers take advantage of an enhanced meal service. Short TV programs are shown on some flights. Norwegian offers a 29–inch seat pitch for all passengers. It accepts one hand baggage for low fare and check in baggage and seat reservation are available for purchase. Flexible fare includes check in baggage and seat reservation. Free Wi–Fi is offered on all Norwegian flights for the use of passengers but no complimentary food or meal is available. (source: www.seatguru.com, www.norwegian.com/) 1.5 Background to the market London, the capital of United Kingdom, is a huge metropolis, which consists of diverse range of cultures, with a population of 15 million people. It is located in South East England along the River Thames. It attracts leisure travellers from all parts off the world for its sightseeing, nightlife, restaurants, museums, hotels etc. Being the centre of culture, music, education, finance and trade, London is a leading destination for business travellers, students, artists and so on. It is ... Get more on HelpWriting.net ...
  • 2.
  • 3. The Internal Environment Of Embraer This paper is a progressive writing for a group business report. In this paper, the internal environment of the South African airline company, Embraer, will be analysed. For this, a resource–based model will be used to analyse Embraer's internal resources, capabilities and core competencies that helped Embraer gain a sustained competitive advantage. This will be followed by discussion on VRIO framework to identify aptitude of resources that assisted Embraer to perform superior over its counterparts. Included in the paper will also be discussion on the concept of value chain analysis which is a model companies use to analyse their activities that help them generate more value over its cost. In conclusion, the paper will state the strategic position of Embraer with a hint of recommendation for it to sustain competitive advantage. ... Show more content on Helpwriting.net ... 2016). Companies in the same industry can also struggle maintaining its competitive advantage because of their exposure to similar opportunities and threats in their market area (Rothaermel 2017). Hence, it is necessary for the companies to analyse their internal resources and capabilities that form their core competencies (Rothaermel 2017). It has been studied that a company's differentiating internal environment accounts for more than half of its success (Rothaermel 2017). This resource–based view enables the company to identify their strength and weaknesses for strategic competitiveness (Rothaermel 2017). An analysis of a company's external opportunities and threats in combination with its resources and capabilities propels activities for strategic manoeuvre (Hanson et al. 2016). This, in–turn, creates pathway for above–average returns (AAR) (Hanson et al. ... Get more on HelpWriting.net ...
  • 4.
  • 5. Essay about Bombardier Case Study 1. Introduction: Problem Statement The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders. It has now become unclear to investors what Bombardier's future strategy will be within the aerospace industry. 2. External analysis Technological: Due to the competitive nature of the industry, it is important to stay ahead of the pact in term of technology; continuously improving energy efficiency of the carriers. Economic: The industry's performance is highly tied in with the economy. A weak economy will mean weak sales. Industry analysis: Porter's five forces model Bombardier Aerospace's industry would be most clearly defined as the airline industry. * ... Show more content on Helpwriting.net ... (See exhibit A) Intangible Resources Innovation Resources: Bombardier designed the model C110 that would compete with the Airbus and Boeing at a significantly lower operational costs and significant fuel consumption improvements. Reputational Resources: Bombardier has been known to be the world leader in business and regional aircraft manufacturing. * Capabilities: Manufacturing* * Design and production skills yielding reliable products. * Product & design quality Research & Development * Innovative technology * Core competencies: Innovative Technologies: Valuable: Yes, it is valuable to Bombardier because it gives them an edge over the competition. Rare: Yes, it's not easy to innovate Costly to Imitate: Yes, Millions in resources should be spent on innovation. Non–substitutable: Yes, there are no strategic equivalents. * Value chain analysis: what are the activities that should be improved? Should be outsourced? Given the state of the financial analysis, it is evident that their resources are not being distributed properly and therefore their operation efficiencies need to be reviewed. * What are the firm's business–level and corporate–level strategies? Business–Level: Cost leadership, because the demand of aircrafts requires Bombardier to create more operationally efficient and fuel efficient aircrafts due to the rising level of demand of low cost carriers. ... Get more on HelpWriting.net ...
  • 6.
  • 7. Air Canada Future Plan Essay Air Canada being the largest airline service provider in Canada has a lot of plans for the future in term of regulatory practices, economics, technological advancement, social responsibilities, and positive and healthy competition. In the next five years or so, Air Canada will put a lot of focuses on the Asian Markets. In regards to this future plans, the main targeted hubs of Asia will be some of the biggest economies nations such as China and Japan where Air Canada has already had flights from Vancouver to Tokyo's Narita Airport and Vancouver to Shanghai using the 251–seat Boeing 787 Dreamliner. This plan will mean developing bigger and newer Boeing as the prediction indicates that travel demand will surge in Asia over the next decades. This is partly due to an increase in the ... Show more content on Helpwriting.net ... It is also in the mind of the Air Canada managers to plan a cost–cutting efforts with plan to cut 15% from efficiencies as well as labor savings by transferring more regional fling to SKY Regional Another major effort will be reducing fuel consumption on the ground by using ground power at the gate to using a lighter paint which will reduce ancillary revenues, the fees airline charge for services from checked baggage to internet connection Air Canada also had a plan of purchasing fuel efficiencies and simplified airline fleet in the future to boost the existence orders for 33737 MAX 8 and 28737 MAX 9 aircraft Air Canada continues to evaluates the potential replacement of its Embraer E190 fleet with more cost efficient, larger narrow body aircraft that are better suited to its current and future network strategies. In consistence with this future plan, Air Canada made agreement with Boeing which will purchase up to 20 of the Air Canada's existing 45 Embraer E190 aircrafts currently in the Air Canada's ... Get more on HelpWriting.net ...
  • 8.
  • 9. Aircraft Scheduling and Fleet Management The primary considerations for airline scheduling are routes that "provide optimum public service...consistent with the financial health of the carrier" (Wensveen, 2011). In addition to that, there are numerous other factors that must be taken into account. These factors include: equipment maintenance, crews, facilities, marketing factors, and other factors such as wind patterns and what I would call "rush hour". The aircraft must be scheduled so as to allow adequate time for routine maintenance, as well as a buffer to meet unscheduled maintenance requirements. Crews must be scheduled with adequate crew rest periods allowed, as well as avoiding over– flying the maximum hours as directed by the Federal Aviation Regulations. Facilities ... Show more content on Helpwriting.net ... To accomplish this, Great Lakes Airlines relies heavily on the EAS program. After deregulation, the EAS was established so that the small, rural areas that had reaped the benefits of air service prior to 1978 would continue to do so. Because these small routes are not profitable for airlines to provide service to, they are heavily subsidized by the government. Since 2001, the percentage of revenue from the EAS program (as a percentage of gross revenue) has been as low as 19% and as high as 50%. In 2013 this number was at 42% (Nickerson, 2013). Great Lakes is also able to rely on these subsidies to keep their pricing competitive with other airlines. They also reap the benefits of being able to offer access to United's and Frontier's frequent flyer programs as a method of keeping themselves competitive. For the promotion portion, Great Lakes relies on its "internet website, code–share partners' websites, the Delta.com website, global distributions systems (travel agencies and travel agent websites) and our reservation system's call center" (US SEC, 2013). As for place, Great Lakes services the small regional airports that the majors don't fly into. Because it just would not be profitable for the larger airlines to operate into these smaller airports, Great Lakes (along with the other small regionals) have carved out a niche. ... Get more on HelpWriting.net ...
  • 10.
  • 11. Swot Analysis Of Southwest Airlines Routes Summary The Northeastern airlines route presented the connectivity to numerous cities offered by the airline and the profits in United States Dollars value for each passenger are presented for each of the routes serviced by the airline. For example the route between the cities Boston and Providence and between Providence and Boston deliver only US Dollar nine for each passenger as profits to the airline. For delivering its service for these routes, the airline makes use or operates a fleet of sixteen airplanes. All these airplanes are of the model 122 Passenger Embraer E–195 Jets. These 122 Passenger Embraer E–195 jets, which were manufactured by Embraer which were first introduced in the market during the year 2004. These airplanes have helped Northeastern Airline to sustain profitability for a long period. As presented in the case, Northeastern Airline started facing drop in its success and profit margins. In light of this situation the Northeastern airline is exposed to the possible risk of bankruptcy unless it downsizes its airline operations. The management team of the Northeastern Airlines has been assessing and evaluating various options to bring down costs and improve profitability. As per the regulations of the airline regulatory body, i.e., Federal Aviation Administration, the airline company has to continue its operations by serving at least nine cities. However the regulation does not specify anything on thestrategy and other aspects related to the operation. ... Get more on HelpWriting.net ...
  • 12.
  • 13. The Contingency Paradigm, The Resource Dependence And... ntroduction: In 1989, Compsis was established in São José dos Campos by Ailton and others from the aircraft manufacturer company Embraer where they were software developers. At the beginning, the founders planned to develop and integrate aircraft embedded systems. After they decided that the plan would not be profitable the company decided to develop new applications by using their own software technologies. The most important invention was their SICAT, which helped their business with the Brazil government in ETC. In this paper, the company will be analyzed by using three paradigms which are: the contingency paradigm, the resource dependence and transaction cost paradigm, and the institutional and population ecology paradigm. The Contingency Paradigm Complexity: Compsis can be described as a company with little complexity. This does not mean that they do not have variance within the company, but because of their size they operate using a limited horizontal form of complexity. Decisions are made among the five members and the means ends outcomes are predictable for the company. Closed Systems Approach: There are two ways that the structure of businesses are analyzed. They are viewed from either a closed system approach or an open system approach. Therefore, since Compsis does not have the ability to create much complexity within its business structure, it is based in Brazil, and has little influence outside of Brazil. Compsis seems to operate on a closed systems approach. ... Get more on HelpWriting.net ...
  • 14.
  • 15. Strengths And Weaknesses Of Boeing Strengths and Weaknesses of Boeing (SWOT) The ideal way for any company to analyze their strengths and weaknesses is to review the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By understanding the SWOT model, a company can see factors that can affect their future. Both strengths and weaknesses are internal to the company. Opportunities and threats are external factors and the company cannot control these. Strengths Over the years Boeing has always held a strong presence in the domestic and international market. Boeing is the second largest Department of Defense contractor. This means that they will most likely always have ongoing business. Boeing also holds many commercial airliners such as the ... Show more content on Helpwriting.net ... (Schmidt 2015) Threats One of the biggest threats to Boeing is its international competitors. Airbus, Bombardier, and Embraer are all in global competition with Boeing. Lastly, government continued sequestration could limit and reduce the number of government contracts for Boeing. Since defense contracting makes up a lot of Boeing's revenue, this could hurt the company tremendously. (Schmidt 2015) Boeing's Competitors As stated above, Airbus, Bombardier, and Embraer are Boeing's biggest competitors. Airbus, a French competitor, is Boeing's biggest rival on the global market. Airbus has become famous by implementing a digital fly–by–wire aircraft, the Airbus A320, into the market. They are also known for creating the largest passenger airliner, the Airbus A380. Airbus has also been reaching their hands into the defense contract pocket. They currently have the A400M aircraft in service. The A400M is a cross hybrid aircraft between the C–17, and the C–130 aircraft. While this aircraft is only currently used by NATO countries, the United States could one day implement this aircraft due to its versatility. This would mean that Boeing could potentially loose defense contracts. According to Jon Ostrower from CNN Money, "Airbus, however, maintains an edge over Boeing in its total backlog. That 's the number of airliners that have yet to be produced and delivered. The two manufacturers ... Get more on HelpWriting.net ...
  • 16.
  • 17. Boeing Executive Summary Considering our analysis of the company, it is recommended that shares of Boeing should be bought or held. This recommendation is based on factors such as company valuation, financial analysis of comparable firms, and a sensitivity analysis. In using the CAPM, the value of the stock calculated is equal to $192.48, which is more than the current trading value of $153.24 (Apr 13, 2015). In addition, the shares are also undervalued when using EV/EBITDA and P/E ratio analysis. Every analysis and calculation used for Boeing has implied that the company's stock is undervalued, so we are confident this is would be a safe and profitable investment. Boeing faces aggressive competition in two of the five principal segments: Commercial Airplanes, along ... Get more on HelpWriting.net ...
  • 18.
  • 19. A Report On The Company Embraer The company Embraer has made a major investment in the Phenom 300. It's "design life is 28,000 cycles or 35,000 hours, assuring it will have a 30– to 40 year economic life even with heavy economical use" (Pilot Report). In order to have a more reliable aircraft Embraer improved the Phenom 100 to produce the Phenom 300. The Phenom 300 contains a trimmable horizontal stabilizer to provide a better pitch control, and fly–by–wire multifunction spoilers. These panels "provide pilot–commanded inflight speed brake, automatic ground spoiler and automatic differential roll spoiler actuation to augment roll control authority." (Pilot Report). If engine failure occurs, the Phenom 300 has a spring–loaded rudder boost system that automatically is used ... Show more content on Helpwriting.net ... Aircraft has to not only be designed for reliability but also for maintenance. Basic maintenance intervals are 12 months or 600 flight hours. The aircraft's "MSG 3" maintenance–friendly design allows windshields replacement in two hours. The third–generation "L–3 SmartProbes" eliminate unneeded tubes and pipes between probes and ADC boxes. All antennas and other external sensors can be easily replaced from outside the airplane. Gel gaskets eliminate the use liquid sealants that are necessary before flight. All flight control cables are designed to minimized reversal during the installation. The dual batteries that were mentioned earlier slide out on trays for easy access and replacement. One type of grease is used for the aircraft. The "fuel boost pumps have brushless motors for long life and they are mounted in dry canisters so they may be changed without defueling the aircraft" (Pilot Report). The winglets uses screws to make them easy to remove and replace. A central maintenance computer can check autopilot servo torque which eliminates removal for bench tests. The oxygen bottle may be refilled through a port in the nose baggage compartment. The Phenom 300 has the downside of having fresh water reservoirs must be replenished internally because the systems weren't installed in the flight test aircraft. This would change workload issues if accessed externally. The use of ground power allow all the ... Get more on HelpWriting.net ...
  • 20.
  • 21. Ryanair History History ATR–42 in 1991 Ryanair has grown since its establishment in 1985 from a small airline flying a short hop from Waterford to London into one of Europe's largest carriers. After the rapidly growing airline was taken public in 1997, the money raised was used to expand the airline into a pan–European carrier. Revenues have risen from €231 million in 1998, to €1843 million in 2003 and €3013 million in 2010. Similarly net profits have increased from €48 million to €339 million over the same period.[3] [edit]Early years Ryanair was founded in 1985 by Christopher Ryan, Liam Lonergan (owner of Irish travel agent Club Travel) and Irish businessman Tony Ryan (after whom the company is named), founder of Guinness Peat Aviation and father ... Show more content on Helpwriting.net ... However, the airline recovered posting profits soon after. The enlargement of the European Union on 1 May 2004 opened the way to more new routes as Ryanair and other budget airlines tapped the markets of the EU accession countries.[16] In February 2005, Ryanair announced an order for a further 70 Boeing 737–800 aircraft, along with an option for a further 70. This was expected at the time to allow Ryanair to increase passenger numbers from the 34 million expected in 2005 to 70 million in 2011. Some of these aircraft would be deployed at Ryanair's 12 European bases, others to 10 new bases the company intended to establish over the next seven years.[17] In June 2006, the company announced that in the quarter ending 30 June 2006, its average yields were 13% higher than the same quarter of the previous year[18] and its passenger numbers were up by 25% to 10.7 million, although year–on–year comparison was difficult, because of the movement of Easter from first quarter 2005 to second quarter 2006. Net profits (€115.7 m) increased by 80% over the same quarter in 2005. Management indicated that the level of growth may not be sustained for the remainder of that year, despite adding 27 new aircraft and opening new routes.[19] Ryanair's passenger numbers have grown by up to 25% a year for most of the last decade. Carrying under ... Get more on HelpWriting.net ...
  • 22.
  • 23. S&S Air Inc. Mini Case – Ch 3 Question 1 Current Ratio = Current assets/current liabilities = $1,561,800/$2,085,000 = 0.75 Quick (or acid–test) Ratio = (Current Assets – Inventory)/Current liabilities = ($1,561,800 – 740,800) /$2,085,000 = 0.39 Cash Ratio = Cash + Cash equivalents/Current Liabilities = $315,000/$2,085,000 = 0.15 Total asset turnover = Sales/Total assets = $21,785,300/$13,077,800 = 1.67 times Inventory turnover = Cost of goods sold/Inventory = $15,874,700/740,800 = 21.43 times Receivables turnover = Sales/Accounts receivable = $21,785,300/$506,000 = 43.05 times Total debt ratio = [Total assets – Total equity]/Total assets = [$13,077,800 – $7,192,800]/$13,077,800 = 0.45 Debt/equity ... Show more content on Helpwriting.net ... When compared with the industry, the inventory turnover of S&S Air of 21.43 times is well above the industry upper quartile of 10.89 times. This indicates that S&S Air is much more efficient than the industry average at inventory management. When compared with the industry, the receivables turnover of S&S Air of 43.05 times is well over the industry upper quartile of 14.11 times. This shows that the collection of accounts receivable is a major strength of S&S Air when compared to the rest of the industry. Long–term Solvency Measures When compared with the industry, the total debt ratio of S&S Air of 0.45 is just above the industry lower quartile of 0.44. This indicates that S&S Air has less debt than the industry average and may be less likely to experience credit problems, but may not have an increase in shareholders return. When compared with the industry, the debt/equity ratio of S&S Air of 0.82 is just over the industry lower quartile of 0.79. Again, this indicates that S&S Air has less debt than the industry average of 1.08. When compared with the industry, the equity multiplier of S&S Air of 1.82 is just over the industry lower quartile of 1.79. This once again indicates that S&S Air has less debt than the industry average and may be less susceptible to credit problems. When compared with the industry, the times interest earned ratio of S&S Air of 6.36 times is between the industry lower quartile of 5.18 times and the median of 8.06 ... Get more on HelpWriting.net ...
  • 24.
  • 25. Case Study Bombardier CASE STUDY Bombardier Aerospace: The CSeries Dilemma Propaedeutics in Strategy 70–450–12A FOROUGH ENSANDOUST MARTICULE 11142559 1. Current Performance As of September 30, 2012, the total number of 138 units of CSeries100 and CSeries300 commercial jets are ordered, while it now expects the first delayed delivery before the end of next June, a delay that had been anticipated due to high performance milestones set by company .According to Pierre Beaudoin CEO ,company requires more time to meet certain CSeries program targets but others had been met and the company and its suppliers have "now fully harmonized all commitments to the program's schedule." 2. Current Strategy Since July 2004, Bombardier is working on new family of ... Show more content on Helpwriting.net ... According to Stakeholder mapping9next page) the highest impact is reserved for Government and investors because of the importance of financial and legal–political support in this industry, while industry partnerships and suppliers play the next important rule by contribution in technological and manufacture aspect. STAKEHOLDER MAPPING HIGH HIGH POWER Government Shareholders Investors Suppliers Employees LOW LOW Communities LOW Non–Government Organizations LOW INTERESTS HIGH Academia Industry Partnerships HIGH STRATEGIC ISSUES 1–Bombardier is mostly famous for business–military 2– High dependence on financial stability of airlines can aircraft while CSeries are commercials in competition be a problem.IT was the main reason of stopping the with giants like Airbus, Boeing and Embraer. This makes project at 2006 due to failing to secure significant airlines more cautious in ordering CSeries, because they orders to that point question Bombardier's technology and experience in commercials 3–The ... Get more on HelpWriting.net ...
  • 26.
  • 27. Taking a Look at Embraer 1. Perform a brief SWOT analysis of Embraer. A SWOT analysis is a structured planning method used in order to evaluate the strengths, weaknesses, opportunities, and threats involved in a project as well as in a business venture. Strength (S) The Embraer was created in1969 by a military government. It hold several strengths in manners that it strategically placed as well as being advantageous in having smaller and less costly jets, not forgotten their structure of production that plays a role in being competitively advantageous. It was located in San Jose dos Campos in Sao Paulo or simply known as "Technology Valley", consisting of industrial cluster in aerospace telecommunication, auto mobile and petroleum sector. It was what that gave Embraer distinctive competency areas to run their R&D, design, product development, system integration, and assembly as well as technical assistance in aircraft manufacturing. Aside from having a strategic place, Embraer holds a competitive advantage by having jets which are smaller in size and are less costly. By introducing a 35–seat ERJ 135 and 50–seat ERJ 145, Embraer was able to meet increasing demand for jets that replaces their turboprop model. The production structure is also one of the mentioned strengths. Their network consists of three levels by which risk partners or strategic partners at the first level carries most innovation and risk endeavors and operate based on a long term contract. The second level is their ... Get more on HelpWriting.net ...
  • 28.
  • 29. Boeing Market Analysis The Boeing Company is a major player in the aerospace and defense industry with over 150,000 employees. As of 2006 they led the commercial and defense aircraft market as the company with the largest total revenue. (Defense News , 2007). The corporation is divided into five separate business units/services. Commercial Airplanes and Integrated Defense Systems are the two major components. The other three units span control over research and development, services and financial services; Phantom Works, Shared Services Group and Boeing Capital Corp, respectively. As of 2006, these three smaller units contributed only 2% of the revenue for the Boeing Company, but played a valuable role in their various supporting contributions to the main ... Show more content on Helpwriting.net ... It also splits targeted market segments through the use of different versions. The 777, –200LR and –300ER are the long range leaders of aircraft in service. Boeing compliments this range with a large passenger base and at a competitive price. It has been the market leader in this category over the recent years, but its market share has recently been cannibalized by the lighter, less costly, more fuel efficient 787–8/9. However, the 777s still hold passenger capabilities over the new jets' offerings. The –200ER, and –300 models are arranged in the mid–sized competition group, and offer competitive ranges and passenger capability, but are more expensive than their closest Airbus competitor. (Boeing, 2007) Competition Company Model 2006 Deliveries % segment Total Unfilled Orders 2007 Orders (As of 16 Oct 07) % seg 2007 Deliveries (as of 16 Oct 07) Price ($Million) Range (nm) Seating Current Status Mid–Sized Boeing 767 12 12% 55 36 18% 9 141–169 5200–6600 218–375 Operational Mid–Sized Ilyushin IL–96 2 2% 7* est. 6 3% 2 120–140 est ... Get more on HelpWriting.net ...
  • 30.
  • 31. Fire In The Air-Personal Narrative The Lockheed C–5 Galaxy casts an aluminum eclipse over Washington's Dulles runway 01, bringing wet weather in tow. The incoming clouds begin to release drops, creating a wet, dusty scent in the air. Within five minutes, the C–5's four General Electric engines begin to whine down and its 28 wheels come to a slow, but poignant stop on the water speckled tarmac. A black SUV pulls near and waits with flashers blinking. On the C–5's forward quarter, a large step door swings down and Ben Erikson exits the behemoth. Two men quickly escort him to the waiting truck, now fending off a downpour with its wipers. The short, hushed drive departs the military section of the airport and enters to where the smaller, civil aircraft operate. Sitting among ... Show more content on Helpwriting.net ... We saw the dog was aggravating the now cornered young bear, so we elected to tranquilize the dog, while preparing the gun, Erikson became agitated at this action. The situation was becoming dangerous with Erikson, the dog, the bear and the sow bear in the area. I reloaded down the gun's dosage for a man and shot Erikson in the thigh, the dog then became agitated at me, so Weatherby shot the dog in the hip with his tranquilizer gun. The bear ran off out in to the brush. No one attempted to shoot the bear. We then immediately placed both Erikson and the dog into the helicopter and flew back to our departure point at the Flagstaff location. A Doctor was radioed ahead of our arrival, to check both Erikson and the dog's medical condition. The medical report is attached. The summation is that they were both pronounced medically healthy and would awaken within five or ten minutes at the time. Which they did without incident." Ben closes the folder and looks at Covertt, "They're a real A–Team aren't they? It's all very nice and tidy. Let's just pretend none of this ever happened and I'll be on my way." Ben stands and looks at Covertt in the eyes. "Next time when you wish to talk to me, just ask me." Ben turns and moves to the door as the jet's two engines begin to whine at a higher ... Get more on HelpWriting.net ...
  • 32.
  • 33. Embraer and Cessna Market Segmentation Embraer is a Brazilian aerospace company that produces commercial, military, executive, agricultural aircraft and provides aeronautical services. The Cessna Aircraft Company is an American general aviation aircraft manufacturing corporation headquartered in Wichita, Kansas. Best known for small, piston–powered aircraft, Cessna also produces business jets. Market Segmentation Cessna Aircraft are sold to private businesses, governments, individuals, freight airlines, charter airlines, and air taxi companies. Cessna has several competitors domestically and internationally in various market segments. Cessna's aircraft compete with other aircraft that vary in size, speed, range, capacity and handling characteristics on the basis of ... Show more content on Helpwriting.net ... Responsiveness, Access, Courtesy, Credibility, Understanding the customer and Communication: Cessna's Citation service "No matter where you fly, you're always close to home. Our extensive worldwide network ensures the maximum uptime for your aircraft and the utmost safety for its occupants" shows the willingness of the company to help the customers at the time of need, they are readily accessible to provide customer service. Cessna is known to builds very good long–term relationships with its customers. Embraer's value of We are here to serve our customers shows company's readiness to provide service to its customers also its Helpline which says it's a "Direct channel to raise concern" ensures customers that Embaaer employees are available when needed. Competency: Cessna's Engineering and design feature shows that their aeronautical engineers have imagined hundreds of original aircraft concepts into clean sheet designs advancing to the latest computer–enhanced technology and flight–simulation tools and, finally, to prototype. Embraer's value of striving for company excellence shows that the company believes that technological progress means continually striving for perfection. Company actions are aimed at simplicity, agility, flexibility and safety, while constantly striving for improvement and excellence. Cessna (with the Citation Mustang) and Embraer (with the Phenom 100) both offer ... Get more on HelpWriting.net ...
  • 34.
  • 35. Boeing Mission Statement The company I choose as my focus in this Marketing Management assignment is Boeing. Boeing was founded by William Boeing and is the world's largest multinational aerospace company. Boeing is also the leading manufacturer of commercial jetliners and defense, space and security systems ("Boeing," 1995–2015). With its headquarters in Chicago, Illinois, Boeing employs more than 165,000 people across the United States in more than 65 countries. Moreover, Boeing's mission statement is being "committed to working in partnership to ensure that innovative/creative solutions are developed and implemented to improve health and safety, employee development, and quality and productivity in the workplace" ("Boeing," 1995–2015). Nevertheless, in 2012, Boeing ... Show more content on Helpwriting.net ... These prices start from 371 million for a commercial aircraft and 63 million for a freighter. As previously mentioned, all Boeing aircrafts can be delivered to a location of choice and promotion is done via television ads, photos, videos and sponsoring selective major events that resonates with the company's business and brand strategies. Still, customers will perceive quality based advantage as an advantage for Boeing's product over its competitors because the Boeing Production System and the Boeing Quality Management System are inextricably linked, as manufacturing and quality organizations work together to achieve total customer satisfaction through a lean production system. All in all, research shows "Boeing builds the best products in the world, and its standards are second to none" ("Boeing," 1995–2015). Yet, Boeing has made certain that input from all significant stakeholders are factored into its products lifecycle. Albeit challenging, Boeing must ensure that the systems and processed designated by the company is integrated and used correctly by all employees. Therefore, it is always possible to make changes and or modifications to a company's existing product lifecycle, but not necessary if it's not needed or required at that given ... Get more on HelpWriting.net ...
  • 36.
  • 37. Black Women In America Research Paper Do You Know Which Country has an Airline Started by a Black Woman? The United States prides itself on being a land of opportunities, and in many ways it is. We look at countries like South Africa, which not long ago was segregated through the laws of Apartheid, and we are glad that we are so much further along than the land of Mandela. However, every now and then we need to stop and ask ourselves just how far along we really are, and we have to wonder if many of the once oppressed countries we helped free are not passing us up in the area of civil rights and opportunity. For example, one thing that South Africa now has that America does not is a black female owner of an airline. According to Timeslive, the country's newest airline, Fly Blue Crane, was started by the company's CEO, Siza Mzimela, who say a ... Show more content on Helpwriting.net ... By using just one aircraft type with the same configuration, the crews will be able to use interchangeable parts, the same tools, and so forth. Jerome Simelane, the airline's Commercial GM, "By using what we have learned over the years about international airline best practice‚ we have also created a cost structure which allows us to offer competitive fares without cutting any corners on quality‚ safety and reliability." During the initial phase of the airline, the flights will originate from OR Tambo International Airport in Johannesburg and fly to Bloemfontein, Kimberley, and Nelspruit. According to the airline's details, flights will go to Bloemfontein five times a day during the week‚ twice on Saturdays, and three times on Sundays. Kimberley will be served three times a day during the week, once on Saturdays, and twice on Sundays. Flights to Nelspruit will leave twice daily Monday to Friday‚ with one flight on Saturday and one on Sunday. ... Get more on HelpWriting.net ...
  • 38.
  • 39. Aviation Industry Essay Introduction As an industry, aviation is not immune to changing economics, low demands, and threats. Throughout the history, there have been hundreds of airlines formed, but some have already disappeared and some are still going strong. Aviation industry is constantly being challenged by economic status, organizations, and individuals which affect the revenue, growth and profitability of each airline. Tragic events that took place on September 11, 2001 put a huge dent in the industry but currently in the process of recovering slowly and steadily. Demands for air transportation is constantly on the rise even with occasional sets backs encountered by the industry such as; terrorism, changing economics, skyrocketing fuel prices, demand changes, and increasing competition. Current Status of the Company In the early days, the airline was struggling to perform financially. It took about five years to post its first profits. Today, the airline operates 10 hubs and 9 maintenance bases which are located mostly on the west coast. Current hubs are also served by the partner airlines. Hub Location Departures Denver International Airport (DEN) 157 Houston International Airport (IAH) 47 Los Angeles International Airport (LAX) 163 Minneapolis St. Paul International Airport (MSP) 66 Chicago International Airport (ORD) 134 Portland International Airport (PDX) 26 Phoenix International Airport (PHX) 67 Seattle Tacoma International Airport (SEA) 25 San Francisco International ... Get more on HelpWriting.net ...
  • 40.
  • 41. Risk Sharing With Suppliers Risk Sharing with Suppliers – Embraer Model Introduction Supply Chain Management Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Risk Sharing Partnerships Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx About Embraer Embraer is a Brazilian company with global presence that designs, develops, manufactures and sells aircraft, systems and solutions for Commercial Aviation, Executive Aviation, and Defense & Security. It also provides support and after–sales services for customers in more than 100 countries. With expertise in all stages of its complex activities, it is the world's largest manufacturer of commercial aircraft with up to 130 seats, and one of the leaders in the aerospace sector – a position achieved thanks to the constant pursuit of entrepreneurial excellence and the complete satisfaction of its customers (Embraer, 2016). Vision and Values Vision Embraer will further consolidate its position as one of the leading forces in the global aerospace and defense and security industries. Embraer is a market leader in the segments in which it operates and commands a reputation for excellence. Values Embraer's values unite and model the attitudes of its workforce, strengthening its results and ensuring the Company's long–term future. These are the set of beliefs that guide business and strategic decisions on a daily basis, at all levels (Embraer, ... Get more on HelpWriting.net ...
  • 42.
  • 43. American Airlines Swot Analysis Paper American Airlines is the world's largest legacy airline (Taube, 2014), operating nearly 6,700 flights daily to 350 destinations across 50 countries (American Airlines, 2017). American Airlines operates out of 10 main hubs and numerous spoke cities throughout the United States and Internationally. American Airlines business model is aimed at the premium customer market of business and international travelers as well as leisure travelers who want to enjoy the flying experience and the comforts of flying. American Airlines offers main cabin and first class (for transcontinental flights) and business class (short–distance international flights) structures for their flights. On long distance international flights, flagship first and flagship business classes are offered for "elevated" and "personalized" experiences. American Airlines offers bundled ticket pricing which includes the price of the ticket, seat assignment of the passenger's choice, basic ancillary service of snacks and beverages, in–flight entertainment (if available) and Wireless Internet (if available). One piece of carry–on baggage and one personal item, such as a purse, backpack or laptop bag are allowed in the cabin at no charge to the passenger. Passengers are given the option for upgraded seats with more legroom within the main cabin, or upgrade to first class. American Airlines offers easy booking through their website. ... Show more content on Helpwriting.net ... American Airlines however reports total revenues of 9.789 billion dollars and a gross profit of 5.691 billion dollars (YCharts, 2017). The latest gross profit margin (quarterly) for American Airlines is 58.14 percent and an overall profit margin (quarterly) of 2.95 percent (YCharts, 2017). Spirit Airlines reports a 58.34 percent gross profit margin and a 8.38 overall profit margin (YCharts, ... Get more on HelpWriting.net ...
  • 44.
  • 45. Differences Between Cesna And Embraer Cessna and Embraer offer aircraft for commuter, business and private use. Currently, Cessna offers 9 business jets in their fleet. A 10th aircraft is in production, with an unknown maximum passenger capacity and the longest distance capability of 4,500 nautical miles. The Citation Mustang, the smallest of the Cessna aircraft, carries a maximum of 5 passengers at a maximum distance of 1,200 nautical miles. The largest aircraft in the Cessna fleet, the Citation Longitude has a capacity of 12 passengers and a range of 3,400 nautical miles. (Cessna 2016). Embraer offers 7 executive jets for purchase, ranging from 4 to 19 passengers. The largest of the fleet, the Lineage 1000E is able to fly a maximum of 4,600 nautical miles, with 13 to 19 passengers on board; the smaller aircraft, the Phenom 100 is able to fly 4–7 passengers, based on configuration, a maximum of 1,178 nautical miles (Embraer 2016). Each manufacturer provides the highest quality of furnishings and avionics in each aircraft. Both offer living quarters in the larger aircraft, as well as a food preparation area. Cabin entertainment and communication networks are supplied in ... Show more content on Helpwriting.net ... However, both Cessna and Embraer are very competitive with the other high–end luxury brands of Gulfstream and Dassault Aviation. While the Gulfstream G650 and the Dassault Falcon 2000LXS are larger aircraft with a heftier price tags ($65 million and $33 million, respectively), the operating costs are higher compared to Cessna and Embraer. (Cessna 2016, Embraer 2016). The Cessna and Embraer aircraft are capable of flying at the same cruising altitudes as their competitors, as well as flying at relatively same operating speeds of 0.8 Mach (Cessna 2016, Embraer 2016); Dassault (Dassault 2016) and Gulfstream (Gulfstream 2016) are capable of 0.9 and 0.8 Mach, ... Get more on HelpWriting.net ...
  • 46.
  • 47. JET BLUE ; PREPARING FOR FINANCING PAU/LBS/2011/10/024 FINANCE – 2 EXAM ANALYSIS OF JET BLUE CASE: PREPARING FOR FINANCING SYNOPSIS OF THE CASE JetBlue Airways Corporation was formed in August 1998 as a low–fare, low–cost but high service passenger airline serving select United States market. JetBlue's operations strategy was designed to achieve a low cost, whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period, and performed well in comparison to other airline companies in the US during the period between 2000 and 2003. It had been the only other airline apart from Southwest airlines, to have been profitable during the aftermath of the September 11, 2001 ... Show more content on Helpwriting.net ... Therefore, the company depends on its operating cash flow to finance its short–term obligations The new capital will be required to finance working capital requirement of Jetblue, Working capital is the short term resources that are used to manage the business on a daily basis. This is otherwise referred to as current asset. The financing decision which is aimed at securing the purchase of the new 100–seat Embraer E190 aircraft would allow JetBlue to enter smaller markets while maintaining low operating costs, and increase flight frequency on existing routes. The low fares offered by JetBlue would allow it to attract new passengers who might otherwise not fly. Earnings from this market segment is expected to contribute to the profitability and positive financial performance of the company IMPACT ON FUTURE PERFORMANCE OF THE COMPANY The additional capital is expected to strengthen the company's balance sheet at a time when JetBlue will be shouldering a significant amount of debt related to new aircraft deliveries. The decision on financing method would result in a strong capital structure for Jetblue which would ensure that the company would continue to grow while avoiding financial problems. The new cash inflow which is directed at ensuring JetBlue achieves its expansion activities. It is expected that the company will be in a position to purchase larger volumes of jet fuel and would thus have more leverage in procuring fuel than today. The company ... Get more on HelpWriting.net ...
  • 48.
  • 49. Skywest Case Study Brandon Cisco 15 March 2013 GBA 490 Case Analysis SkyWest, Inc. Competitive Analysis Table of Contents 1. Executive Summary....................................................................................3 2. Competitive Analysis..................................................................................5 3. Recommendations.....................................................................................7 4. Appendix................................................................................................9 5. Sources................................................................................................22 Executive Summary This report examines the factors pertaining to SkyWest, Inc. (referred to in this document as SkyWest) and its response to all forces present in the airline industry. Analytical tools used in this report are: * An analysis of the airline industry macro–environment * A Five–Forces model of the pressures in the airline industry * A ... Show more content on Helpwriting.net ... It is very important that SkyWest stay ahead in terms of being competitive regarding the industry's key success factors. As noted in Exhibit 6 brand image is an important factor in the key success model. SkyWest's current engine upgrade plan will enhance reliability in their fleet which will help boost the way passengers and investors view the company. One factor that could have a negative effect is the recent acquisition of Atlantic Southeast Airlines and Express Jet. Both companies have been known to be poor performers in the industry. SkyWest must successfully merge their operations in order to boost performance across their entire business operation. Recommendations SkyWest will need to continue to grow their brand through acquisitions. With the economy on such a slow rise, many of the smaller regional airlines will find it difficult to turn enough profit to continue business. When the aviation was booming, there was incentive to enter the market based on rising profits. Many of the smaller regional companies that entered the market did so by accepting contracts that in times of economic difficulties would not cover costs. SkyWest has been known to be at the top of the industry in regards to running their business. By continuing to keep successful business practices at the forefront of their operations, there will be opportunities to acquire those companies that are struggling now. As they expand into more markets, SkyWest can ensure that their ... Get more on HelpWriting.net ...
  • 50.
  • 51. Assignment 3 DEPARTMENT OF ECONOMICS Economics 340H – FA 07 OSH Assignment #3 Instructor: Christopher Michael Due Date: Dec 6, 2007 Question 1 – Perfect Competition and Monopolistic Competition Superior Metals Company has seen its sales volume DECLINE over the last few years as the result of rising foreign imports. In order to INCREASE sales (and hopefully, profits), the firm is considering a price reduction on luranium, a metal that it produces and sells. The firm currently sells 60,000 kilos of luranium a year at an average price of $10 per kilo. Fixed costs of producing luranium are $250,000. Current variable costs per kilo are $5. The firm has determined that the variable cost per kilo could be reduced by $0.50 if production ... Show more content on Helpwriting.net ... As a niche manufacturer, Embraer makes aircraft that offer excellent reliability and cost effectiveness. To illustrate the price leadership concept, assume that total and marginal cost functions for Airbus (A) and Embraer (E) aircraft are as follows: TCA = $10,000,000 + $35,000,000QA + $250,000QA2 MCA = $35,000,000 + $500,000QA TCE = $200,000,000 + $20,000,000QE + $500,000QE2 MCE = $20,000,000 + $1,000,000QE Boeing's total and marginal cost relations are as follows: TCB = $4,000,000,000 + $5,000,000QB + $62,500Q2B MCB = ΔTCB/ΔQB = $5,000,000 + $125,000QB The industry demand curve for this type of jet aircraft is: Q=910 – 0.000017P Assume throughout this problem that the Airbus and Embraer aircraft are perfect substitutes for Boeing's Model 737–600, and that each total cost function includes a risk–adjusted normal rate of return on investment. A. Determine the supply curves for Airbus and Embraer aircraft, assuming that the firms operate as price takers. B. What is the demand curve faced by Boeing? C. Calculate Boeing's profit–maximizing price and output levels. (Hint: Boeing's total and marginal revenue relations are TRB = $50,000,000QB – $50,000Q2B, and MRB =ΔTRB/ΔQB = $50,000,000 – $100,000QB.) D. Calculate profit–maximizing output levels for the Airbus and Embraer aircraft. E. Is the market for aircraft from these three firms in short–run or long–run ... Get more on HelpWriting.net ...
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  • 53. Jetblue: Managing Growth JetBlue Managing Growth JetBlue Case JetBlue's main strategy is to be a low cost carrier (LCC) and use differentiation as a competitive advantage. The main problem that concerns this case is that JetBlue has the need for slower capacity growth but the exact size of the cuts from each of the airlines' two aircrafts was far from obvious. The contents of this case analysis will show how they managed to get to this point through the use of business strategy tools. Also I will give some recommendations on how to resolve the issue at hand. First, let's take a look at the SWOT analysis (strengths, weaknesses, opportunities, threats). This strategic planning method should give us an overall understanding of all the aspects of JetBlue ... Show more content on Helpwriting.net ... Threat of Substitutes: High – Lots of different airlines to choose from – Trains, buses, boats, cars can be used instead of short flights. Bargaining Power of Suppliers: High – Airbus has a lot of power because they supply to many other airlines – Embraer has less bargaining power because JetBlue is the only airline to purchase the E190 Threat of New Entrants: Low – Cost is high – Hard to compete against the large airlines not only for customers but space at the airports for their airplanes. Rivalry: High – Especially high with Southwest – Always in competition to retain the best employees and not lose them to other airlines – Always looking for that edge to attract and retain customers Let us now take a look at the Value Chain Model for JetBlue to see how they create value for the customer. Value Chain Activity How it creates value for the customer Inbound Logistics E– boooking creates better seat sale management Operations Two aircrafts gives customers the choice to fly short distances Outbound Logistics A320 has a quick turnaround and spends more time in the air as compared to the E190 Marketing and Sales Distribution Channel: e–ticketing. Effective low cost pricing Service Bill of Rights Considering all the analysis above I would recommend that JetBlue should cut the more of the E190s than the A320's. With the cost of fuel steadily on the rise, the more fuel efficient A320 makes more sense ... Get more on HelpWriting.net ...
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  • 55. The Need, Idea, And Tested Concept Edgar Hasbun Entrepreneurship Instructor – Dr. Susan Smith Kuczmarski August 4, 2014 The Need, Idea, and Tested Concept Today, businesses play a major role in our world. It is an innovative and competitive activity that shapes society. It is all about satisfying the wants and needs people cannot satisfy themselves. Creating its costumers the center of their business. Business is not about the profits but rather it is about satisfying your costumer. Young visionary entrepreneurs attack the market by looking at the untouched or abandoned spots. Bridging North America and South America, Central America including El Salvador, Guatemala, Honduras, Belize, Nicaragua, Costa Rica and Panama have a population of 31 million people. Seventy five prevent of these people travel by land and twenty five prevent travel by air. Violent crime in Central America is reaching breathtaking levels. Murder rates in the region are among the highest in the world. The majority of people traveling by road are exposed to danger in the borders of these countries. So if a tourist would like to travel within the Central American countries, it would be most likely on air. The problem with traveling on air are the prices. Ten years ago, where there was more competition, prices were medium low. Through the years, one airline bought all of the small airlines in the region becoming the biggest airline. Avianca Airlines is now the king of Central America and part of South America. Although their service ... Get more on HelpWriting.net ...
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  • 57. Country Notebook Doris Chow Part IV: Sections 1(D) & (E) Promotion Mix (D) **You will need to delete in RED as it helps you piece it together as whole Brazil boasts having a reputation of fabricating some of the world's most creative advertising especially when it is entertaining which includes familiar venues like the United States but in addition evening soap operas known as telenovelas and sporting events are popular and coveted advertising space (O'Barr, 2008). Since the average Brazilian tends to watch an average of five hours of television per day, television comprises of 59% of the media mix and the Brazilians are overtly loyal to their evening news and telenovelas so to center their time around those events (Millwardbrown, n.d). Other ... Show more content on Helpwriting.net ... Costs and premiums vary depending on the product and strategy but there are three types of ad agencies in Brazil which include multi–national agencies that also service local accounts as well, smaller home–grown agencies that service primarily local clients and a small number of "extraordinary successful Brazilian agencies that grew up in the last two decades and enjoy distinction as some of the world's most creative" (O'Barr, 2008). Personal selling is usually preferred when there is an expensive higher end product that would be best sold on a one on one personalized contact but is often costly to train the salesperson. According to Onkvisit and Shaw (2009), personal selling is often taught in trade or vocational schools and is not seen as a prestigious occupation and in Brazil, salespeople are not trained well in comparison to U.S. standards. Door to door selling is allowed in Brazil like in the U.S but for it to be successful, requires support in terms of training and information (Onkvisit and Shaw, 2009). It could be considered as one of the more difficult methods of promotion as excellent communication and persuasion skills are necessary. Sales promotions customarily used in Brazil include social media groups 'twitting' about latest sales as 63 millions Brazilians have access to ... Get more on HelpWriting.net ...
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  • 59. Embraer Case Essay Q1.How has Embraer managed to succeed as a global competitor from within the confines of an emerging economy? Advantages and disadvantages Embraer has derived from the Brazilian context. Strong government support created competitive advantages in the aircraft industry and led Embraer to become a global player. As a factor condition in the determination of national competitive advantage by Porter (Exhibit 1), the government established an environment where Embraer was able to procure raw materials easily through no tax or duty on imports. To support Embraer's business, related and supporting industries were developed by the Brazilian government setting aeronautics as a priority to grow the nation's economy. The government tried to ... Show more content on Helpwriting.net ... Many of the aviation companies within Brazil were suppliers and not direct competition. Disadvantages: Interest rates in Brazil were higher than other advanced countries (where their competitors operated). This imbalance in interest rates was the root of WTO claims that were brought against Embraer. On the other hand, a disadvantage is to be easily affected by the nation's economy. In the late 1980's and early 1990's, large deficits constrained the government's export support, and the decrease on national credibility caused by the deficit affected Embraer's sales and profit. Q2. To what extent can Embraer's success be ascribed to the Brazilian government? Embraer was first founded in 1969 by the Brazilian government because of their focus on aeronautics owing to their vast landscape and geography. The government continued to support Embraer by setting up technological facilities such as the CTA, ITA, and IPD to provide technological advances and support for innovative advances. Embraer also enjoyed privileges such as having federal agencies being instructed to purchase from them instead of competitors where possible, not having to pay taxes on imported raw materials, parts and equipment, and having the opportunity to raise capital through investments from other Brazilian corporations. The government further supported the privatization of Embraer by assuming $700 million of ... Get more on HelpWriting.net ...
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  • 61. Embraer Executive Summary Company description Embraer SA is one of the largest aircraft manufacturers in the world specialized in mainly manufacturing aircraft for the commercial and executive aviation markets. In fact, they are the third largest and desire to increase their market share by expanding to the South African market. Their workforce consists of 19,167 employees, 17,094 are based in Brazil and the remaining 2,073 abroad. The company was established on August 19, 1969 in Brazil. Here is an overview of their net profits and net revenues over the past 3 years; 2014: Net profit 796.1m Brazilian reais Net revenue 14,935.9m Brazilian reais 2013: Net profit 777.7m Brazilian reais Net revenue 13,635.8m Brazilian reais 2012: Net profit 697.8m Brazilian reais Net revenue 12,201.7m Brazilian reais Embraer manufactures ... Show more content on Helpwriting.net ... They don't know exactly which market to enter and what the business opportunities are. Also, the uncertainty of how to enter the market and how to exploit these opportunities plays a role. Desired situation Embraer's desired future situation is that they have the proper knowledge on how to enter the market successfully with having the right knowledge on their business opportunities and what exactly their export potential is in the south of Africa. Research topic The aerospace market of South Africa will be investigated together with which competition it will face. Also detailed research/analysis about the distribution, market size and growth and the main opportunities and threats in the microenvironment will be carried out. Furthermore, there will be an analysis of the company's products whether they meet the needs/wants of the South African market. Lastly, research will be conducted on which entry strategy will be most favourable for entering that ... Get more on HelpWriting.net ...
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  • 63. Describe What Conditions Made An Erp Implementation... 1. At the start of the case, describe what conditions made an ERP implementation desirable for Bombardier Aerospace. After reading the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As quoted in the case study by a senior project manager that 'Organization has become a textbook silo organization' because of its acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information system ownership increased due to the increased number of systems. There were process delays, sequential ... Show more content on Helpwriting.net ... 2. Bombardier did several things well to help ensure the success of its ERP implementation. In particular, the case discusses "creating a vision," the project team, and "creating a blueprint." What does each of these things mean in terms of successfully implementing an ERP system and how did Bombardier Aerospace address these issues. In the case of "Creating a vision" , Vice President of the company created a vision 'One Company' where he meant to integrate organization where the employees would share common data using single set of combined systems and processes. In terms of successfully implementing an ERP system, all the functions i.e. Methods, Quality, Production, Work and Material Planning and Procurement needed to identify their key performance indicators required to run the business and the skills required for the function to realize their proposed vision. A need to reduce the clerical task and paperwork and increase analytical focus was emerged and also to align the outputs of the visioning process with the overall project vision to address this issue the Bombardier Aerospace, vice president of the operations and the Project Sponsor participated in the road shows and the presentation where the employees were explained the implementation of the BMIS and their effects in their everyday working lives. Everyone was included i.e. all levels of the management were included while passing ... Get more on HelpWriting.net ...
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  • 65. Jetblue Swot Analysis SWOT Analysis: JetBlue Airways DeVry University Online by Keith Escher Organizational History Known as one of the very few airlines which has actually managed to make a profit since the downturn in the travel business, which was a result of the September 11th attacks, JetBlue Airways continues to pride itself by living up to its dedication of "bringing humanity back to air travel"(JetBlue Bill of Rights). JetBlue was incorporated in Delaware in August 1998 and was founded by David Neeleman, a former Southwest Airlines employee and practicing Mormon man with nine children in February of 1999(JetBlue Airways). The vision of the airline was to provide low cost air travel with certain amenities, including TV's on ... Show more content on Helpwriting.net ... The company learned early on that it was more of a cost effective approach when employees are used in a variety of job roles, as opposed to having employees who are specialized in one area only and that are not permitted to work outside of their job expertise. In addition to their wonderful staff and customer service, JetBlue also offers their passengers "comfortable seating, with lots of leg room. They actually are able to offer their taller passengers some extra leg room with 4 more inches of space available"(JetBlue's Bill of Rights Info). Along with the seating options, JetBlue also operates with a fleet of newer jets, as compared to some of the other budget airlines. Now, the weaknesses of JetBlue happen to be first of all, that they continue to expand, however, at a slow rate. They currently only offer flights to 61 cities in the US and to a few other countries, with their home base airport, JFK, having the highest congestion in the country. Plans for global expansion are also on the drawing board, however, this is also happening at a slow pace. In order for the airline to remain competitive, they must expand their horizons and soon. Another issue which came up recently and happened to be a weakness, is that JetBlue received some negative press. "What had happened was that in May of 2010, one of their pilots threatened to harm himself a few hours before takeoff. Also, in August of 2010, one of ... Get more on HelpWriting.net ...
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  • 67. Bombardier BOMBARDIER Trevor Davies Steve Bernier Paul Gos Jeff Cosentino Bombardier Bombardier Inc., a diversified manufacturing and service company, is a world leading manufacturer of business jets, regional aircraft, rail transportation equipment. It is also a provider of financial services and asset management. The Corporation employs 79,000 people in 24 countries in the Americas, Europe and AsiaPacific Objective The goal of Bombardier is that the company and management team wish to downsize the company in order to have financing for other projects that they are currently researching. That's why they sold the recreational division (snowmobiles). Joseph–Armand Bombardier History of Bombardier 1942 – Joseph–Armand Bombardier ... Show more content on Helpwriting.net ... 31, 2003, stood at $23.7 billion Canadian. Financial Overview (cont) Has created some 9,300 jobs since 1992, and carries a 1.6 billion dollar payroll (1.2 billion US) Provides business to more than 5,200 Canadian suppliers At Bombardier, 90 percent of there revenues come from contracts outside Canada Financial Overview (cont) Bombardier created 9,265 jobs in Canada since 1992, to bring its current Canadian workforce to 24,495 employees. The Canadian payroll represents $1.6 billion in 2002, and Bombardier employees earn salaries well above the Canadian average. Provides business to over 5,200 Canadian suppliers all across Canada, who have in turn created thousands of jobs Canadian Economy The Canadian aerospace industry faces formidable and ferocious competitive forces worldwide. Teller said "Canada is one of the most trade–oriented economies in the world." More than 40 percent of Canada's Gross Domestic Product is trade–generated. One in three jobs in Canada is directly dependent on the ability to sell products elsewhere. Canadian companies have made significant investments to develop high technology products such as Bombardier's family of regional jets. Global Competitors Main Direct Aerospace Competitors: Embraer– Brazilian Airbus–UK and France Boeing–American Global Market The company has sold several Bombardier Global Express aircraft to customers in Australia, China, Japan, Korea and Malaysia in recent years and the ... Get more on HelpWriting.net ...
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  • 69. Deregulation Act Of 1978 Essay I. Summary The Deregulation Act of 1978 was signed by President Carter on October 24th, 1978. This would begin the dismemberment of the Civil Aeronautics Board, which regulated the airline industry since 1938 with the signing of The Civil Aeronautics Authority Act. Up until that point, airline fares, carriers and many other things were all regulated by the government. After the Deregulation Act became law, the airline industry was now free to choose their own destiny. II. Problem The problem was people in smaller cities were losing route options with the airlines. Many less favorable routes to smaller cities were dropped with the airlines now having the freedom to choose their own routes. Before deregulation the Civil Aeronautics Board would ... Show more content on Helpwriting.net ... This was greatly affecting business travelers that frequented these routes prior to deregulation. Some individuals would have to travel long distances in order to take flights out of larger destinations. IV. Development of Alternative Actions Alternative action 1. Bombardier, and Embraer developed what is now known in the industry as the regional jet. Advantages. These aircraft were much smaller, carrying from 30 to 122 passengers. With smaller capacity and less fuel used, these jets were much more efficient at servicing the demand for flights in smaller cities. Airlines now had an advantage to serve the smaller regions. Disadvantages. The regional airlines have newer pilots who are not payed nearly as much as the major airline pilots. These more inexperienced pilots, and other contributing factors, were believed to be the reason for accidents becoming more numerous with the regional airlines. This was a cause for concern regarding the safety of passengers on regional airlines. Alternative action 2. Some of the major airlines were starting to use these regional jets in a hub and spoke ... Get more on HelpWriting.net ...
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  • 71. Dreamliner Swot Analysis Strengths The Dreamliner is a new plane new is good in China Composite lighter and more fuel efficient Size small size, great for commuter business and point–to–point routes popular in China Price Competitive price point Weaknesses New plane no reputation, could have design flaws or mechanical problems Unknowns there are a lot of unknowns that could worry potential buyers Production Capacity always limited in this business. A backlog could drive potential customers to Airbus. Opportunities China has a rapidly growing aviation sector from 2600 aircraft to 4500 in the next five years (GTIN, 2011) Government banned carbon trading schemes, creating demand for more fuel efficient aircraft as a way to save money (BBC, 2012). Threats Heavy government intervention in the industry could curb growth (BBC, 2012). Competition Not just Airbus, but new competitors from the world's largest emerging markets like China, India and even Japan (Nolan, 2009). Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010). Fast Trains are now providing competition for airlines in China on key routes (Finighan, 2011). The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for ... Get more on HelpWriting.net ...
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  • 73. Swot & Pest Analysis SWOT & PEST analysis Strengths UK's largest full service scheduled airline – this makes it a popular company with customers which brings in more business which will then bring in more money for the company. Caribbean routes are new and selling well – as they are selling well, the sales will be up on the flights which will bring in more money and more popularity with the customers which will then mean more and more people will use the company rather than their rivals which will then bring in more money and make rival companies miss out on money Head office is situated near Gatwick which is convenient – it is convenient because customers and/or staff will easily be able to get there if they need to as it is situated near the ... Show more content on Helpwriting.net ... Customers will become unhappy with the company and may use rivals from then on Because half of the Airbus and Embraer fleet has been bought new in 2002, it has been a major expense – as it has been a big expense, there is a massive drop in the profits that the company are making so there is less money to spend on other things, although the money has been spent well Opportunities The airline would like to expand operations from Heathrow – with more operations the company would bring in more money which will add to the profits. Considering becoming a member of Star Alliance Considering new measures including sponsorship and developing ... Get more on HelpWriting.net ...
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  • 75. Essay about The Emergence of a Global Aircraft... In the article which I have chosen, the author discusses one of Latin American's most successful business stories in the last 20 years. This success comes despite the fact that the company is from an emerging market and developing country. The Brazilian company Embraer may not be known to the general public but it is known to those who make decisions on aircraft purchases including: international airlines, business jet owners, and military contractors. To build the reputation of the company and to become a success, there had to be an adequate knowledge of foreign markets and how to enter them. No aircraft manufacturer has been successful over the long run by staying in a home domestic market. Airline manufacturers such as Tupolev ... Show more content on Helpwriting.net ... If most passengers have flown to any smaller market airport in the United States, such as Monroe, Louisiana, most probably they have flown on an Embraer product. For the past decade, the manufacturer has engaged in an aggressive strategy to make this happen and gain the presence which it has established. To do so, the company will have had to decide what foreign market tactics to use and have a thorough understanding of all the topics discussed in Chapter 9 of Global Business by Peng. The topics they would have had to deal with include: overcoming the liability of foreignness, where, when and how to enter. Embraer, in becoming a worldwide brand, has had to overcome the liability of its own foreignness. It has been noted that foreign firms start at a disadvantage and are often "discriminated against, sometimes formally and other times informally" (Global Business). When some of the airlines from various developed nations were looking at buying new aircraft, some questions may have arisen as it relates to the quality of a Brazilian made aircraft. After all, airplanes are very complex, large equipment that contains with millions of components. If any one of them is constructed incorrectly this could cause a crash. To by pass this, the company has had to look at both the institution and resource view and make sure they covered their basis before they even went to the various international ... Get more on HelpWriting.net ...