Search results

In the traditional executive suite, the chief financial officer’s (CFO’s) role was to keep tabs on the money and then make sense of that information for the board of directors, top management, and the investment community. And while the CFO’s fiefdom was large, few ventured beyond these purely financial domains. But times have changed. Today, CFOs must take on dynamic leadership roles in four important areas of the business. First, they have exemplary strategic management capabilities. Second, they are able to provide line management with detailed, real‐time information that improves the quality of strategic decision‐making and execution. Third, they transform the traditional investor‐relations function into a source of competitive advantage. And fourth, their leadership transcends the finance function and carries over into all areas of the company.

This paper aims to address the questions of different outsourcing strategies between Airbus and Boeing and point out the theoretical limits of the resource-based view (RBV) approach that must be broadened with a finance perspective. Owing to the complexity of systems, the aircraft industry is nowadays structured around a well-organised value chain of product development and manufacturing. However, according to the RBV, capabilities attached to some systems and components are strategic resources and must be kept in house to maintain competitive advantage. In commercial aircraft avionics, critical systems such as flight controls fall directly under this rule, due to substantial risks of passenger safety they deal with.

This study is based on two comparative studies concerning the A330/340 and A350 programmes at Airbus and their equivalents at Boeing, the B777 and the B787. The data are both primary (financial and patent data) and secondary (semi-structured interviews and documentation.

The main result highlights the limits of the RBV model to understand why Airbus has chosen to re-internalise the development and production of flight control systems contrary to Boeing. For both, cost reduction is the main objective of outsourcing, but European firms are more careful with critical resources. The financialisation of aircraft manufacturers’ strategies is another explanatory factor relevant to understand why Boeing outsources strategic resources such as flight controls.

The authors demonstrate the potential of multiplication of research methods to address a question. Second, they try to bring together different theories in a preliminary effort, which gives them some promising stuffy perspective for future works.

By addressing both the RBV and the financialisation perspectives, the authors provide an interesting view of the COmplex Products and Systems (CoPS) challenges.

The findings of this research must provide key of interpretation for business managers, which may consider the two faces, knowledge management and financial, to explain corporate performance.

Several originalities are relevant in this work. From a methodological point of view, the authors offer a comparison between the two main players of commercial aircraft manufacturing, an oligopolistic industry. Second, the data they choose to rely on are both qualitative and quantitative to strengthen the results. Third, at a micro level, this study is original in its approach of linking outsourcing to financialisation.

At the dawn of the twenty-first century, Boeing and Airbus, the leading manufacturers of large aircraft, were locked in a battle for market share that drove down prices for their new planes. At about the same time, the two industry heavyweights began developing new aircraft families to address the future market needs they each projected.

Aircraft take many years to develop, so by the time the new planes made their inaugural flights, significant changes had occurred in the global environment. First, emerging economies in the Asia-Pacific region and elsewhere were growing rapidly, spawning immediate and long-term demand for more aircraft. At the same time, changes to the market for air travel had created opportunities for new products. These opportunities had not gone unnoticed by potential new entrants, which were positioning themselves to compete against the market leaders.

In October 2007, the Airbus superjumbo A380 made its first flight. The A380 carried more passengers than any other plane in history and had been touted as a solution to increased congestion at global mega-hub airports. Four years later the Boeing 787, a smaller long-range aircraft, was launched to service secondary cities in a point-to-point network.

The case provides students with an opportunity to analyze the profit potential of the global aircraft manufacturing industry in 2002 and in 2011. Students can also identify the actions of participants that weakened or intensified the pressure on profits within the industry.

Audio format (.mp3 file) available with purchase of PDF. Contact cases@kellogg.northwestern.edu for access.

Delta Airlines, in a major fleet decis‐ion recently announced it will acquire 33 new Boeing advanced 737–200s with deliveries from October 1983 through the end of 1984.

It is used on more daily scheduled flights than any other propeller driven aircraft and is exceeded by only the Boeing 727, 737 and DC‐9. In continuous production since 1966, this aircraft has amassed more than seven million flying hours and its order book has now exceeded 800 units.

AEM will be exhibiting in Hall 4, Stand G1. The exhibit will illustrate AEM's comprehensive range of accessory repair and overhaul services for electrical, hydraulic, avionic and safety equipment. Farnborough will also be used as the official launch of AEM's Boeing 737 Landing Gear Total Support Pro‐gramme, which encompasses a complete exchange and overhaul service. Copies of Aviation Accessory News will be available on the stand.

The purpose of this paper is to review how lean through the Boeing Production System impacted the production of civil aircraft in Boeing.

The paper engages the usage of literature on lean from researchers, book authors and the Boeing Company. These literatures were studied to ascertain why Boeing pursued the lean journey and the transformations it attained.

The outcomes disclose lean offers Boeing an all-inclusive approach in managing the value-stream of a company. It further presents a sustainable business model that prioritizes customer and industry demands, births innovative ways of satisfying them and keeps Boeing in business.

This research is useful to upcoming aircraft manufacturers who seek to optimize their production as well as satisfy their customers.