...Boeing Case Study Group 2 Embry Riddle Aeronautical University Question 1 The benefits of Boeing outsourcing are; cost in manufacturing 787 parts and labor, finding experts that make specific parts, and introducing the 787 to different countries expecting to increase sales. The risks of having different manufactures to make one plane include; delays in manufacturing parts, factories having to move or close, costs of resources in different parts of the world can fluctuate, and taxes and tariffs can change during the course of manufacturing. If the company can produce the 787 cheaper by outsourcing then, yes the benefits do outweigh the risk. However, from the scenario there are several drawbacks of the foreign companies and the risk is too high. Boeing should do the work themselves. Question 2 Boeing failed to ensure that the other nations brought onboard to manufacture certain components of their aircraft were properly set up and prepared to start manufacturing. Boeing should have had more oversight of Italy’s issues with building a factory and they should have required proof that Italy already had adequate property to build the factory. Boeing also should have verified that there would be no local government interference that would hinder the ability to meet delivery deadlines. The other issue was one of their suppliers, Vought, outsourced to a different nation. Boeing should have had a clause in their contract with Vought, stating that if they outsourced...
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...the center of the Boeing situation. Explain your choice. I chose the 7 S Framework and the six box organizational model. The models are most often used as a tool to assess and monitor changes in the internal situation of an organization. 7S Framework 1. Strategy- Boeings strategy was to update the technology systems, downsize their operations and reestablish relationships with their suppliers and the only chance of cutting operating cost. 2. Structure- the problem of 1994 was the Airbus ( their main rival-booked more orders). This shocked the management executives and began a series changes that were implemented to overcome the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that reportedly changed. 3. Systems-Boeing adopted the principles of creating more value for customers with fewer resources. 4. Style-the decision was made to diversify from the traditional commercial airline industry and that many acquisitions that were made createe integration issues for the company. They were trying to add more stability to the business by entering the space industry and information services. 5. Staff-According to The CEO of Airbus( Noel Foregeard), the process of diversification was demoralizing for Boeing employees. Boeings vice-president of marketing contradicted Foregeard and said “what affects morale right now is that we are in a down cycle” (Palmer, 2009). Regardless of why the employees morale was low, Boeing had to take steps...
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...Building the Boeing 787 1. What are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? What are the potential risks? Do the benefits outweigh the risk? There are many benefits of outsourcing the work on the Boeing 787, they include: 1) reducing the risks associated with technological gamble (always up-to-date with the latest designs and innovations), 2) being able to negotiate development costs from different manufacturing partners in return for a share of the work, 3) cutting down delivery costs by having access and expertise from efficient suppliers/developers, and 4) reducing product development time (from 6 years to 4 years). Potential risks may include a conflict of delivery schedules (some outsource manufacturers and/or partners may not meet Boeings due dates), loss of revenue due to penalty costs and fees caused by late delivery, and parts not being assembled or labeled correctly due to language barriers. Also, partners may outsource Boeing's technology and design to other companies who may find it hard to meet the quality standards specified by the company. Since this other company most likely reports back to Boeing’s initial manufacturing partner, it may take a longer time for the company to even hear about potential product problems. In respect to the evidence presented in the case study, the benefits of outsourcing outweigh the risks provided that Boeing enforce a strict management oversight and overhead amongst its foreign...
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...1. How does e-Enabled create value for Boeing? In the “Essentials of information systems for managers”, Piccoli does not only define value creation as the genesis of worthwhile things that did not exist before (Pic, 214), but also explains the two major ways with which added value could be created (Pic, 222): either increasing customer willingness to pay by doing something of value for customers, or decreasing supplier opportunity cost by working with the firms’ suppliers on providing the needed resources for less money. The former (CWP) is defined as the maximum amount the customers are ready to spend on the firm’s product or service (Pic, 215), whereas the latter (SOC) is defined as the minimum amount of money the suppliers are willing to accept before providing the needed resources (Pic, 215). As far as Boeing is concerned, the new e-Enabled strategy focused on increasing the customer willingness to pay, and I quote from the case (LYN, 1): “Boeing unveiled a new strategy that executives believed would help its airline customers improve efficiency and profitability and also differentiate its products in the market place.” If we analyze this quoted statement, we will see that the way Boeing intended its customers to create added value from e-Enabled is twofold: First, from e-Enabled’s potential to reduce costs complexity, provide real-time situational awareness for both flight crews and airline operations centers, improve operational efficiency, enhance the travel experience...
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...Introduction In this case Boeing faces a number of challenges in determiningthe viability of bringing forth the 7E7 aircraft series. Aircraft manufacturersbringing forth a new product has to take extra care since a miss in this assessment can place a company in a position to fail the result of huge cash outflows required. Boeing faced stiff competition from French based Airbus and had not brought forth a successful new product in recent years. Since the September 11th attacks travel had taken a drop in general and Boeing was making assumptions regarding future needs and opportunities. This included the willingness of travelers to pay 5% more for efficiency and the increase of hub and spoke travel for airlines requiring flexibility in mid-sized aircraft. To assess the validity of the 7E7 series extra care will be taken to look at all the measurements to reduce the risk inherent in new product introductions in the aircraft business. Question 1 a. What is an appropriate required rate of return against which to evaluate the prospective IRRs from the Boeing 7E7? Please use the capital asset pricing model to estimate the cost of equity. At the date of the case, the 74-year equity market risk premium (EMRP) as estimated to be (see below). Which beta and risk-free rate did you use? Why? Applying the Capital Asset Pricing Model estimate the required rate of return for Boeing equity for the last 74 years: RBA= RF+ β(RM-RF)in which: * Market Risk Premium 74 year period...
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...Why employ off-the-shelf application-specific software? Why host and operate company software? a. Using off-the-shelf software would save time so that the company may focus on its product development rather than specific business needs. b. Saves money by using software that fits the needs of the company best instead of employing individuals or firms to create specialized software. c. Hosting its own software allows Boeing to keep its product and contract information secure. Being a leading aerospace/aviation company many of the internal information is most likely confidential. d. By hosting its own core business software, Boeing can only hold itself responsible for any lost data or security breaches. This is better than relying on an outside company that may be unreliable. e. Off-the-shelf software usually has larger support from a company that creates it. There are more known problems with commercial software, so easy to fix redundant problems. (2) Why develop in-house software for applications used with products? a. Boeing can design and analyze their products using company specific techniques that other software may not be able to do. b. Allows the company to implement and take ownership of software that competitors will not be able to use. c. Easier to train on software that is created by the company. Do not need external software support. d. Do not need to hire outside firm. Saves on outsourcing and communication costs ...
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...Case Study – The Boeing 7E7 In early 2003, Boeing announced its “Dreamliner” plan to design and sell a new, “super-efficient” jet -- “7E7”. However, the overall market for aircrafts was negatively affected by several shock news: the United States went to war against Iraq, a deadly illness called SARS resulted in global travel warnings. These negative news made airline profits the worst seen in a generation. Michael Bair, the leader of the 7E7 project, announced that Boeing was making “excellent progress on the development of the 7E7 and continues to be on track to seek authority to offer the airplane.” on June 16, 2003, at the prestigious Paris Air Show. In order to proceed with the project, Bair sought a firm commitment from Boeing’s board of directors in early 2004. If the board approved the plan, he could start collecting orders from airlines and expect passengers to start flying on the new jets in 2008. Between now and his recommendation to the board, he would need to complete a valuation of the 7E7 project and gain the support of Boeing’s CEO, Philip Condit, and the other senior managers. Two aspects should be considered to solve the problem. The first aspect is whether this project can bring strategic advantage to the company. The second aspect is whether the cost of capital is less than the estimated rate of return. 7E7 is twin-aisle aircraft. Exhibit 4 shows aircraft distribution forecast of Boeing and Airbus (Boeing and Airbus almost occupies the global commercial aircraft...
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...1. the forgotten group member case study www.scribd.com/doc/.../the-forgotten-group-member-case-study You +1'd this publicly. Undo Sep 19, 2011 – ► 2. Online Cases - Wiley www.wiley.com/college/man/schermerhorn332879/.../frame00.htmCached You +1'd this publicly. Undo 10+ items – Online Cases are updated versions of the textbook case studies ... * • Sun Microsystems – Ch. 2 High Performance Organizations – Human resource ... * • Harley Davidson – Ch. 3 Global Dimensions – Leading; corporate culture ... * • Steinway Piano – Ch. 9 The Nature of Groups – Job design; quality; innovation ... 3. Case 9 The Forgotten Group Member Essay, Case 9 The ... - Essays essaysbank.com/search/Case+9...Forgotten+Group+Member/9Cached You +1'd this publicly. Undo 250.000 FREE Case 9 The Forgotten Group Member Papers & Case 9 The Forgotten Group Member Essays at ... Case Study Of Carnival Corporation, 6 / 1450 ... 4. Case 9 The Forgotten Group Member Essay, Case 9 The Forgotten ... essaysbank.com/search/Case+9++The+Forgotten+Group+MemberCached You +1'd this publicly. Undo 200+ items – 250.000 FREE Case 9 The Forgotten Group Member Papers & Case ... * • Case 9 ? The Forgotten Group Member – 2 / 526 * • A leader or member of the group – 1 / 223 * • Journal Entry Of A Subordinate Group Member – 3 / 796 Show more results from essaysbank.com 5. Free Reports on You Have Forgotten Yourself And That | 91 through ... www.essaydepot...
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...European energy markets. - Ongoing research in General Management, Organizational Behavior, Technology and Operations Management, and Entrepreneurial Management. - ERC case interviews and field research in Austria, Belgium, Denmark, France, Spain, Sweden, and Switzerland, Selected events: Glocoll Program on campus; MBA events in Munich, Frankfurt, Paris and London; the European Area Conference; CSR Conference in Brussels; EAB meeting in Milan; L'Etudiant Conference in Paris; ELC Meeting in Geneva. It is with mixed feelings that we say farewell to our Research Associate, Mr. Karol Misztal. Karol first joined the ERC in 2010, and quickly became a valuable member of our team. We are thankful for his contributions to our organization and, undeniably, he will be deeply missed. Please join us in wishing Karol the very best of luck and success in all his future endeavors. We were also very fortunate to welcome two outstanding Harvard College students to the ERC team for a two-month internship: Ms. Nina Chen and Mr. Roland Yang. We would like to thank them for their great work and we wish them all the best for their future careers! br> And to all of you, Happy Holidays and best wishes for 2014! Newly Released Cases Case study "FX Risk Hedging at EADS" Co-authored with Professor Carl Kester, FIN, this case describes how, in 2008, EADS, the European aerospace group that owns Airbus, was faced with the decision of how best to hedge against the risks stemming from a large and...
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...Boeing Software Procurement Case Study Questions: Why would a large and complex company like Boeing employ off-the-shelf application-specific software for accounting, human resources, supply chain management and other core business processes? And why do they choose to own, host and operate all of their own software rather than to for example outsource payroll to ADP Corporation or sales force management to Salesforce.com? [list] a) It can better meet their specific needs through the customization facilities saves time since processes are similar among the companies greater possibility of free errors in the application software because it has been tested plenty of times. easier for end users to acquire, use and install the software package less training required to employees availability of obtaining a good quality software b) dominant large corporation so is capable of managing the work security management and control is essential in keeping their information private and under control better off managing their own software no need to get involved with outsourcing contract less involved in law conflicts salesforce could presents threat for data management 2. On the other hand, why would Boeing develop in-house some of the software applications used in conjunction with its products? [list] can provide the service and performance the way they exactly want it, by customizing their applications better network communication and can build...
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...Question 1 Annual fixed cost: $950 million Variable cost per plane: $45 million Q1 Break-even point in unit= $950 million $25 million Break-even point in unit= 38 units Break-even point in sale dollars= $950 million $25 million $70 million Break-even point in sale dollars= $950 million 0.357 Break-even point in sale dollars= $ 2660 Million Q2 ------------------------------------------------- Revenue for 42 airline= $70 million * 42 airlines ------------------------------------------------- Total = $2940 million Sale revenue – Variable expense – Fixed expense = Profit $2940 million- $45 million - $950 million= $100 million PROFIT = $100 million Q3 ------------------------------------------------- Fixed cost ------------------------------------------------- New fixed cost = $950 million + $84 million ------------------------------------------------- Total New fixed cost= 1034 million ------------------------------------------------- Variable cost ------------------------------------------------- New Variable cost = 45 million – $2 million ------------------------------------------------- Total new variable cost= $43 million a) ------------------------------------------------- Sale= $2940 million ------------------------------------------------- Variable expense= $1806 million ------------------------------------------------- ...
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...PREPARATION - When it came to resume building, I mentioned my internship (which was in Samsung), projects I did and the co-curricular activities - I was confident about my aptitude and was focussing mainly core and analytics. - I didn’t prepare for GD but finally had to give GD in Coca Cola, ITC and Schlumberger. So you can never be too sure of what comes your way during the placements. PLACEMENT EXPERIENCE - I started my placement journey by getting shortlisted in Capital One on Day 1. They shortlisted 125 candidates on the basis of resume. Then they took a case study interview and reduced the number to 30. Then again took an aptitude test but finally didn’t give offer to anyone. - Then came Coca Cola on Day 2. They organised GD in the groups of ten each and then there was a single interview of about half an hour which mainly consisted of HR based questions. The topic of the GD was “Are Engineering students wasting time in studies ?”. The interview mainly focussed on the commitment to work with them and asked whether I did any activity depicting leadership skills. - Coca Cola shortlisted candidates with medium profile like moderate CPI with few extracurrecs. I had a target of gettng placed in Qualcomm from second year itself. It came on Day 2 and I got a call from Qualcomm in the middle of the interview of Coca Cola so I could not take their call. Immediately after this I went for the Qualcomm interview but they were not happy and asked me to leave without much interrogation. The...
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...Outsourcing 1/60 ABSTRACT: The main focus of this project is investigating and exploring the impact of outsourcing on one of the most iconic Danish companies (LEGO), which attracted our attention during the preparation of this project. We decided to focus on a single case study, because we felt that dividing our efforts by investigating more than one company, would not allow us to focus in sufficient detail on the domino effects that outsourcing can have on a singular institution. The main question of this project is “How could LEGO improve the Make-or-buy- decision and the relationship management when it comes to outsourcing”? In order to answer the main question, we must consider two sub-questions stemming from the main issue, namely: “How could LEGO improve the decision-making-process to outsource by taking more influencing factors into consideration?” and “What could LEGO have done differently in its relationship to the outsourcing vendor Flextronics”. We used the Case Study Research method to work on these questions. Doing that, we reviewed theories, which explained the phenomenon of outsourcing on a theoretical basis. After creating a theoretical framework and the database, we analyzed the case (LEGO) for parallels between the theories and their practical experience. Finally, we were able to drawn some conclusions to both the central and subsidiary questions initially posed. In summary, it can be said that LEGO did not take all aspects into consideration...
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...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges...
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...CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5 Data Governance at InsuraCorp CASE STUDY I-6 H.H. Gregg’s Appliances, Inc.: Deciding on a New Information Technology Platform CASE STUDY I-7 Midsouth Chamber of Commerce (B): Cleaning Up an Information Systems Debacle CASE STUDY II-1 Vendor-Managed Inventory at NIBCO CASE STUDY II-2 Real-Time Business Intelligence at Continental Airlines CASE STUDY II-3 Norfolk Southern Railway: The Business Intelligence Journey CASE STUDY II-4 Mining Data to Increase State Tax Revenues in California CASE STUDY II-5 The Cliptomania™ Web Store: An E-Tailing Start-up Survival Story CASE STUDY II-6 Rock Island Chocolate Company, Inc.: Building a Social Networking Strategy CASE STUDY III-1 Managing a Systems Development Project at Consumer and Industrial Products, Inc. CASE STUDY III-2 A Make-or-Buy Decision at Baxter Manufacturing Company CASE STUDY III-3 ERP Purchase Decision at Benton Manufacturing Company, Inc. CASE STUDY III-4 ...
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