ASSIGNMENT OF UNDERSTANDING BUSINESS

Submitted by
Pawar Rohit Dilip
Reg. No. 1527121
Section B
CUIM Kengeri
Case Study: EADS/AIRBUS: VISION 2020
Synopsis
This case study emphasizes mainly on EADS (European Aeronautical
Defense and space Company), its ventured programs, its goal, political
issues and competition. It is one of the leading aircraft manufacturers in the
world. EADS unites four major companies Airbus, Astrium, Cassidian and
Eurocopter. It also describes the global business scenario that is being
affected by these aircraft manufacturers while competing with each other.
Key markets of these firms are also describrd in this case in detail, what was
their initial interests, how they became predominant over their competitors
and their allies. It also throws light on the business segments of these
manufacturers along with their shareholding structure which is influenced by
the governments in various cases. The relation between the shareholding
structure and the corruption cases that are involved in the past years also
contributes the study. The case study also involves the environmental laws
and the various factors that are to be considered for the competition. To
accomplish the goal of becoming the global leader in the air and space
platforms and system, the management team of EADS has come up with a
program called VISION 2020.
SWOT Analysis
Strengths:
EADS is worlds second largest aerospace industry with revenues of
49.1 billion in 2011 and more than 130000 employees in 47 countries
around the world.
It unites four major companies Airbus, Astrium, Cassidian and
Eurocoptor.
Weaknesses:
Over dependency on Airbus for its revenue generation. Airbus
contributes around one third of EADS revenues.
Influence of German and French governments on EADSs business.

Opportunities:
To be the worldwide leader in air and space platforms and systems.
To generate more revenues from BRIC market as it is growing fast.
Threats:
Corruption in the defense industry is one of the biggest threats to
EADS.
Increase in R&D spending of Russian aerospace industry may become
a threat in future as it is coming up with numerous states of arts
products.
Problem Identification
There are certain problems that need to be addressed which are being
faced by the EADS in the recent years, are as follows:
Company unites four major companies, multiple headings is one of the
major problem that company is facing now a days. EADS is unable to
integrate them together.
Corruption is no more a rare issue for EADS, publicly recognized
scandal will also be problematic for its business.
To examine the grass route cause of the merger failure between EADS
and BAE systems.
The major problem is to reduce governments influence on EADS to
simplify business and increase its efficiency.
Solution