Airbus Manufacturing Industry Page |1

TOPIC :

With reference to the aircraft manufacturing industry, discuss the elements that make up the

external environment that it faces and how an individual aeroplane manufacturer might take

these elements into account in its strategic and operations management. Based on your analysis,

explain what you think the company’s strategy should be in order to continue expanding its

business.

Course: PMP Please put these in full

Tutor: VIV in full

Class: SOM in full

NAME: ABDUL MOEEZ

STUDENT NO: 2180634

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Table of Contents

Class: SOM in full.........................................................................................................................................1

NAME: ABDUL MOEEZ.................................................................................................................................1
STUDENT NO: 2180634................................................................................................................................1
Add word count when completed...............................................................................................................1
Where is your table of contents page?........................................................................................................1
Introduction.................................................................................................................................................4
Background..................................................................................................................................................5
Internal And External Analysis/ SWOT.........................................................................................................6
Strength...................................................................................................................................................7
Weakness................................................................................................................................................7
Opportunity.............................................................................................................................................8
Threats.....................................................................................................................................................8
Strategic model...........................................................................................................................................8
Operational Strategies.................................................................................................................................9
Conclusion And Summary..........................................................................................................................10
References.................................................................................................................................................11
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Introduction
The need for aircraft and related services to fulfil the demands of human, social and economic

development is increasing. After the two years of the pandemic, the world Airbuses announced

strategies for its commercial aircraft activity by adjusting the global workforce in response to the

COVID-19 crisis. Compared to the same months in 2019, air travel was down 10–15% in April

and May of 2020. This unusual drop in demand has impacted airbuses manufacturers. Many

people avoid using airplanes because of the spread of the virus and because they have not been

allowed travel due to lockdowns. Airbuses manufacturers have lost millions of dollars due to

fewer flights, resulting in fewer aircraft being produced. (T&E, Greenpeace & Carbon Market

Watch, 2020). (ICAO, 2020). This report evaluates how to overcome these drawbacks.

Another debate comes in light about boosting environmental sustainability and strategic

modification in the aircraft sector, which has already received large subsidies. Other issues such

as aircraft’s increasing role as a CO2 gas emitter due to low aeroplane manufacturing frequently

impact climate. Its long-term reliance on government assistance demands more strategical

attention—operational and management strategic approach required to control the manufacturing

industry how to reduce the emission of CO2. Questions about aviation’s expansion, its reliance

on state funding, its unsolved environmental implications, and the fundamental assumptions on

which it functions will be difficult to answer. In order for the sector’s long-term resilience to

increase, however, risks and vulnerabilities must be evaluated against short-term benefits. Make

a framework that uses to analyse the possible causes that influence the airbus industry (these

possible causes are lack of funds due to Covid and external factor influence on the macro

environment strategies). This report will analyse the external environmental factor and evaluate

the specific management and operational strategies for the airbus industry.
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Background
As one of the company’s four home markets (together with France, Germany, and Spain), The

company’s 130,000-strong global workforce includes 12,500 people in the United Kingdom.

Airbus, Helicopters, and Airbus Defence are all industry leaders of British. Thanks to a unique

combination of British expertise, cutting-edge technology, and state-of-art facilities spread across

more than 25 locations from Aberdeen to Portsmouth.

A key aspect of airbus is the global impact in the fields of space and defence. There is also the

fact that airbus contributes £6 billion to the UK economy. Today, airbus is the largest

commercial aerospace firm in the world and the leading global exporter of civil aircraft. The vast

majority of airbus commercial aeroplane wings are created and constructed in Toulouse. The

A400M Atlas and the A330 MRTT Voyager are two of the main aircraft suppliers to the RAF,

and airbus is also the largest space firm globally.

Airbus is a major supplier to the Ministry of Defense, accounting for about half of the UK’s civil

helicopter fleet. Boeing is the second-largest plane manufacturer in the world, behind airbus.

Harry Breach, a Stifel analyst, said that airbus had hit an average of 46 per cent of its annual

target after the first six months of each year since 2000, making the 52 per cent achieved so far in

2021 look optimistic. There is currently no way to predict the detrimental effects of COVID-19

on the industry. Airbus has claimed a decrease in deliveries at the greater level in the year’s first

half because of the coronavirus pandemic’s consequences. During the first half of 2021, airbus

said it had delivered 297 aircraft to 67 customers, up from 196 at the same time last year. During

the month of June, 77 deliveries were made to 44 customers.

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If necessary, airbus will engage with its social partners to lessen the effect of this strategy by

utilising all available social measures, which may include voluntary departures, high-quality

manufacturing,, or longer-term strategies. “Airbus facing the gravest crisis has ever encountered

before.” The measures taken by the airbus industry has empowered them to absorb the opening

shock of this global pandemic.  Now, the industry must ensure that our organisation can survive

and emerge from the crisis as a robust, global aerospace leader by adapting the solution to

customers’ tremendous difficulties. We must now implement more extensive steps in order to

face this reality. Management and board members are totally dedicated to minimising the impact

of this transition on society by gaining the trust of customers toward travelling. The Airbus

industry has played an essential role in helping to preserve knowledge by know-how. The

industry helped to minimise the impact on society of this crisis and climate changes of co2

emission. To achieve our goal of pioneering a sustainable future for aerospace, the Airbus teams

talents and expertise are essential to take new modified steps.

The usual response has been to either disregard (Covid 19) or downplay (climate change) these

issues, despite the fact that these hazards are widely documented. Cost-benefit evaluations

should take into account the spread of Covid during transportation via airbuses, especially since

air industry advocacy groups frequently trumpet the “induced benefits” of flying (Aviation

Benefits, 2020). CORSIA (the Carbon Offsetting and Reduction Scheme for International

Aviation, which was presented in 2016) is another example of this (ICAO, 2016).

Internal And External Analysis/ SWOT

Coronavirus pandemic forced a halt to demand air travel and damaged the aviation industry in

the first part of this year. The COVID-19 outbreak, however, considerably increases

organisational environmental strategies, albeit reducing the consumer economy and presenting
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issues for the management of the industrial workforce by applying the SWOT analysis and

evaluating the external factor (Strouhal, M.,2020).

Strength

In order to provide safe and efficient airbuses, dedicated aircraft are necessary (Budd and

Ison, 2017). In the airbus sector, 170 aeroplanes are already modified according to the

current pandemic and control of CO2 emission that specialises in tackling both concerns

(pandemic & climate). A number of companies with a wide range of ownership have

entered globally in the airbus market (Chow, 2010). Airbus subsidiaries Stelia in France

and Premium AEROTEC in Germany have already settled on the airbuses industry.

Premium AEROTEC in Germany, which now be adjusted and implemented within this

universal adaptation strategy (Song, W. et al., 2020). and have grown very fast. Air

logistics is now a focus for seven E-commerce firms represented by JD and Cainiao. In

the future, The worldwide combination airlines are more likely to pursue a subsidiary

model for airbus firms (Doganis, 2020). Airbus have strong momentum in aircraft. The

airbus industry has strategic fields of action in ramp-up.

Weakness
While mandatory steps cannot be ruled out exactly at this time, airbus industry will need

to engage with its social partners to mitigate the impact of this plan by utilising all

available social measures, such as maintaince of high level manufacturing, and minimum

effect of climate schemes as needed (Alla, A. et al., 2016). In the airbus need to need to

retire their airplane and aircrafts which have a high efficiency of emission of CO2,
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lacklustre has performed admirably. Airbuses demand is sluggish. Irregularities in

compliance have resulted in investigations of corruption. A minimum participation of

international resources because the airbus market is affected globally. In point is that

through government coordination, a green channel was needed for global airlines

emergency for the airbuses emergency relief manufacturing materials to enhance the

engine’s efficiency (Airbus SWOT, 2020).

Opportunity
Growth opportunities are developed, which are neglected for a long time. Achieve the

global market attention to work on the climate-friendly engine for today and according to

the upcoming future climate. The new opportunity is introduced to the Unnamed Aerial

System (UAS) development. Developing multiple opportunities to work on the

development of the airbus industry by adopting new technologies. The fast-growing

demand for the reduction of CO2 from the engine has encouraged manufacturing new

modified engines and introducing new technologies accordingly (Strouhal, M. (2020).

Threats
Cyber security risks are increasing rapidly day by day.

There is very stiff competition in the global market after the increasing trend of

international players. The GLOBAL airbus industry over depends on the outsider

suppliers. In the airbus manufacturing market, GLOBAL airlines currently face more

fierce competition than they did in 2003, and the epidemic control measures add to

control the price of for meeting these criteria. Many businesses have a tense financial

situation as well.

Strategic model
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The Airbus industry will need to apply the Ansoff matrix to overcome the loss and growth of the

airbus manufacturing industry due to covid. One of the most effective Ansoff strategies will

increase manufacturing capacity. After the Covid, the demand for airbus is wholly stopped,

leading to macroeconomic loss. By applying Increased manufacturing capacity, control the

overhead costs, which leads to more effectiveness in manufacturing growth. One of the strategies

of the Ansoff matrix is competitive. Pricing Competitive pricing will be a medium of

competitive advantage for the airbus industry and will lead to enhanced consumer trust toward

the airbus industry, which is a great challenge after covid how to regain customer trust.

Partnerships and joint ventures is another effective Ansoff matrix strategy. After covid

company resources decrease at the prominent level joint Venture and partnership, the Airbus

industry will mitigate risk factors through limited investment, compensating against potential

losses and regaining manufacturing growth (Cordell, A., 2021).

A strategic planning tool, the Ansoff product/market growth matrix, is also known as the Ansoff

matrix and is used to examine and generate four potential options for the strategic development

of an airbus industry. This tool is used by business leaders, managers, and marketers to analyse

strategic possibilities for climate change while taking into account what risks are associated with

the emission of CO2. Ansoff Matrix decision-makers will use to control the extent of the

company’s impact of climate. Managers and executives must choose which of four different

tactics is more advantageous to overcome the emission of CO2 and maybe less dangerous for the

climate. “Global Carbon Footprint Management Market (2020-2025) applied Ansoff matrix to

analyse the level of risk and give solution accordingly. By under considering the airbus industry

demand, required Component, Arrangement, sustainability, Competitive Analysis and the Impact

of Covid-19 with Ansoff Analysis”(business implication, 2021).

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Operational Strategies
When it comes to manufacturing operational strategy, use the six sigma technology in the airbus

manufacturing industry for quality enhancements and productivity. Six sigma can be an

invaluable tool that can measure, assess, analyse, define and control the manufacturing process.

Due to covid, airbus’s manufacturing growth is badly affected because of zero demand for

airbuses (Karwande, R. L. (2020). covid hit the economic sector of the airbus industry very

badly, which forced to stop further manufacturing. Management jargon Six Sigma

institutionalises applied a precise, fact-based approach and highly controlled to deliver more

attention to the bottom line through process improvement and design initiatives. It is the goal of

these design projects will produce optimal products, processes, and services; all will be aligned

with the needs of customers that are picked by top management (Larin, O.,2020)

The second major concern is the emission of CO2 from the airbuses that badly impacted the

environment. We will apply the Six Sigma methodology to the airbus industry, allowing it to

enhance the efficiency of its manufacturing procedure and decrease energy consumption by

reducing defects. After the pandemic year, the airbus industry implemented Six sigma to

supervise energy consumption in their manufacturing procedure effectively. Consequently, they

have minimised the reduction of CO2 emissions by using Six sigma since 1999 to recover

multiple features of their manufacturing processes for the control of the co2 (Roye, T. ,2021).

Conclusion And Summary

Different management discussed in this study in which Covid may affect long-term aircraft

demand and emissions of CO2 gasses to affect the climate; Expected economic growth offsets

lead to a decrease in demand, which has the greatest immediate impact on the airbus industry.
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Fuel burn impacts from the retired aircraft were the primary concern and gave a possible solution

to meet these challenges. COVID-19 cases lead to the lower demand growth resulting from

slower fleet turnover; reduced pandemic period demand increases the demand of new aircraft

displacement. To better understand how changes in attitudes toward aviation may enhance and

control the aircraft market, more research is needed to examine how this affects global and

regional income levels by trip purpose can control and induced new operational strategies for

this purpose.

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