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Airbus 2-4

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There have been four cases described through the case 2-4, Kuwaiti Kickbacks, India ink, Syrian Scandal, and Mounties and Bank. For sure, all of decisions were made for the company’s profit but, at the same time, the company also suffered too because of the problems inside their decision. All the competitors were benefitted somehow while Airbus was suffering.
Firstly, in Kuwaiti Kickbacks, El Fekih (ALAFCO) and Al Mishari (KAC) benefitted through this case, for sure Airbus was benefitted too but only for the first few deals at the beginning. However, Bader Mallah, the chief financial officer, sent people to monitor and provided Ministry of Finance ALAFCO’s orders for the cargo planes. This made them lose whole deal.
With the deal from India Ink., Rajiv Gandhi and his Indian Airlines associates and again, Airbus Ind. were benefitted. Rajiv Gandhi got Bribes from Airbus for the deal in 1985. However, Airbus had a crisis when they lost a deal with 43 planes which worth $2 billion. In the Syrian Scandal, Airbus was the only benefitted one who earned $240 million through that and denied the deal between the company and Syrian officials. Syrian Air had big financial lost and people, who were in charge of the case, were fined $268 million and sent to prison for 10 years. Mounties and Banks case had IAL and the Canadian PM Brian Mulroney benefitted. Air Canada suffered. Since the case was pretty complicated because it was related to the prime minister of Canada, the investigation took a long time. Therefore, they need a long time to find a place to invest. News agencies released these cases all around media which influences on the perception of the company among investors and partners. Moreover, The Damage of Airbus’s public image will give Boeing a big opportunity to take over the market. Public relation staffs of the Airbus should have a research about this and protect the image through press releases. Beyond repairing the image, it will be good to have a new positive image to the public through new campaign. Even though, Airbus and Boeing are dominating the market in oligopoly because of the characteristic of market, they kept having a lot of competition. Both had their own strategy for Marketing. Boeing mostly concentrated on price and quality. Their political connection was mostly U.S government. However, Airbus had an approach with having relationship with middleman through giving them high commission.

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