The Investment Decision Of Airbus And Boeing Essay

The Investment Decision Of Airbus And Boeing - Essay Example Both Boeing and Airbus are being supported by the government of their respective countries and the financial aid given by the government has a major role to play in making sure that these firms are able to meet the demands of the stakeholders. The case reveals how the Boeing’s 787 Dreamliner stage was set up and how things were before the Boeing introduced Dreamliner in the market. The reactions from the airline industry for previously launched planes by Airbus and Boeing have also been discussed and then the opportunities that 787 has, have been the main point of the study. This report basically has been divided into four sections. In the first part of the report, important variables that could influence the decision of Airbus and Boeing have been discussed in detail. In the second part of the report, the risks faced by both these firms have been discussed and how the risks faced by Airbus and Boeing are identified and analysed and then model has been used to know how firms should manage risk (McLaney, 2009). In the third part of the report, stakeholders of both Airbus and Boeing have been discussed and how these stakeholders could influence the firm have been described in detail. However, in the fourth section of the report, critical financial analysis about Boeing has been discussed as it introduces the Dreamliner in the market. In the end, conclusion of the report along with recommendations have been discussed. ... In the second part of the report, the risks faced by both these firms have been discussed and how the risks faced by Airbus and Boeing are identified and analysed and then model has been used to know how firms should manage risk (McLaney, 2009). In the third part of the report, stakeholders of both Airbus and Boeing have been discussed and how these stakeholders could influence the firm have been described in detail. However, in the fourth section of the report, critical financial analysis about Boeing has been discussed as it introduces the Dreamliner in the market. In the end, conclusion of the report along with recommendations have been discussed. Introduction The report is about Airbus and Boeing and it is primarily based on a case when Boeing introduced its Dreamliner. The case discusses the background and how things shaped up that lead towards a fuel efficient aircraft, 787 Dreamliner. The report discusses how the management feels and what variables they considered when they we re preparing the feasibility of introducing a new fuel efficient plane as well as variables that influenced their decision to not go for a jumbo sized aircraft, 747. The second section of the report discusses about the risks that the company faces and how Airbus and Boeing need to manage their risk properly in order to have consistent profits in the long run. The importance of managing and identifying risks has been described in this section. The third section of the report discusses important stakeholders of both the aircraft manufacturing firms; Boeing and Airbus and analyses how they could impact the firm’s operations. Also stakeholders have been prioritised using a theoretical framework to identify the level of their impact and their power to influence