Week 5 Strategy Milestone Two

1/30/22, 12:46 PM Milestone Two Guidelines and Rubric – MBA-540-X3553 Org Strategy in Global Env 22TW3

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Milestone Two Guidelines and Rubric

Overview

Congratula�ons! You are off to a good start. You successfully completed an analysis of the company’s internal business environment.

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To quickly recap, as the director of strategic planning, you are crea�ng a new strategic planning proposal to help the

company

explore at least one new growth opportunity and increase its revenue or market share in the industry.

As you con�nue crea�ng your proposal, in this assignment you will analyze your company’s external business environment and

explain its influence on revenue or market share.

Prompt

Perform an external environment analysis of your company to iden�fy the company’s compe��ve environment and find an

opportunity the company can u�lize to grow its revenue or market share in the industry. Use resources such as the company

website, which will have per�nent informa�on including its most recent sustainability report, and other relevant sources to help

complete this presenta�on. You can also use the resources in the MBA Library Research Guide to conduct further research about

your

company.

Create a Microso� PowerPoint presenta�on to show the results of your analysis. Use both on-screen text and speaker notes to

convey your informa�on effec�vely. For example, you can use brief bulleted lists summarizing the highlights of your analysis on the

slides, and include more detailed explana�ons where needed in your speaker notes.

Specifically, you must address the following rubric criteria:

A. Compe�tors (slide 1): Iden�fy at least two of your company’s top compe�tors and explain how they compete with your

company.

B. Compe��ve advantages (slides 2–7): Evaluate your company’s compe��ve advantages.

i. Summarize the unique skill sets, products, loca�on, and values of your company.

ii. Use Porter’s five forces to analyze your company’s compe��veness and growth poten�al in its industry. Assign a ra�ng to

your company for each of Porter’s five forces as very high (VH), high (H), low (L), or very low (VL). Jus�fy your ra�ngs.

iii. Area of opportunity (slides 8–9): Iden�fy one area of opportunity that will help your company increase its

revenue or market

share over the next five years. Explain how this opportunity can lead to an increase in revenue or market share.

Guidelines for Submission

Create a PowerPoint presenta�on with 9–12 slides. Sources should be cited according to APA style. Consult the Shapiro Library

APA Style Guide for more informa�on on cita�ons.

Criteria Exemplary (100%) Proficient (90%)
Needs Improvement

(70%)
Not Evident (0%) Value

Compe��on

Exceeds proficiency

in an excep�onally

clear, insigh�ul,

sophis�cated, or

crea�ve manner

Iden�fies two or

more of the

company’s top

compe�tors;

explains how they

Shows progress

toward proficiency,

but with errors or

omissions; areas for

improvement may

Does not a�empt

criterion

2

5

Milestone Two Rubric



MBA-540-X3553 Org Strategy in Global Env 22TW3 TM

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crea�ve manner explains how they

compete with the

company
improvement may

include iden�fying at

least two top

compe�tors or

explaining how they

compete with the

company using

sound reasoning and

relevant data

Compe��ve

Advantages

Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner

Summarizes the

unique skill sets,

products, loca�on,

and values of the

company; assigns a

credible ra�ng to the

company for each of

Porter’s five forces

with relevant

jus�fica�on

Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may

include summarizing

the skill sets,

products, and values

correctly or assigning

credible ra�ngs using

sound reasoning

Does not a�empt
criterion

30

Area of

Opportunity

Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner

Iden�fies one area of

opportunity that will

help increase

revenue or market

share over the next

five years; explains

how this opportunity

can lead to an

increase in revenue

or

market share

Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may

include iden�fying a

valid area of

opportunity or

explaining the

impact on revenue or

market share

appropriately

Does not a�empt
criterion
30

Ar�cula�on of

Response

Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner

Clearly conveys

meaning with correct

grammar, sentence

structure, and

spelling,

demonstra�ng an

understanding of

audience and

purpose

Shows progress
toward proficiency,

but with errors in

grammar, sentence
structure, and

spelling, nega�vely

impac�ng readability

Submission has

cri�cal errors in

grammar, sentence
structure, and

spelling, preven�ng

understanding of

ideas

10

Cita�ons and

A�ribu�ons

Uses cita�ons for

ideas requiring

a�ribu�on, with few

or no minor

errors

Uses cita�ons for
ideas requiring

a�ribu�on, with

consistent minor

errors
Uses cita�ons for
ideas requiring
a�ribu�on, with

major errors

Does not use

cita�ons for ideas

requiring a�ribu�on

5

Total 100%

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2

Company Research and Selection

Terrell McGhee

Southern New Hampshire University

Organizational Strategy in a Global Environment Inographic

Clarence Clark

1/9/2022

Airbus SE has a technological and innovation track record of over fifty years, and the company is the leading producer and manufacturer of aerospace products, solutions, and services globally (Aibus.com, 2021). The company has its headquarters in Leiden, Netherlands, but Toulouse, France, is the head office. The company is a European multinational corporation producing commercial helicopters, aircraft, space, defense, and security, the main civil business is conducted by a French company Airbus S.A.S with other facilities distributed across European Union countries, China, and the United Kingdom. According to Airbus (2019) release, the company was the leading airline manufacturer taking the most order for airline production, surpassing its immediate competitor Boeing. Airbus SE manufacturers, designs, and sells military and civil aerospace products in the UK and globally, thus, apart from airline construction, it manufactures products such as advanced satellites and telecommunication systems, navigation and science, and earth observation programs.

Airbus SE is a multinational company leading global aerospace that produces and delivers aerospace solutions to customers intending to create a safe and more prosperous world (Airbus.com, 2021). The company’s customer base is mainly businesses in the airline industry across the globe. It serves airlines in India, Malaysia, France, China, Turkey, among other countries, the airline companies order aircraft, and they are delivered by the company as ordered. Airbus SE is a multinational aerospace corporation. Therefore, it does not sell its products to individuals but conducts most of its business with companies operating international airlines such as IndiGo, Air Asia Malaysia, Lufthansa, EasyJet, Delta Air Lines, Jetblue Airways, Turkish Airlines, China Eastern Airlines, and China Southern Airlines. These airline companies have one of the highest numbers of operating airlines and have historically placed many orders with Airbus SE making them its top customers.

According to the Airbus newsroom, COVID-19 has affected its business operations globally over the last two years. On their official website, the company announced a reduction in business activity with a 40% decrease in its operations due to the effect of the pandemic (Airbus.com, 2021). COVID-19 has significantly impacted the company’s business operations, and this trend is expected to continue for the next few years as the global economy recovers from the effects of the pandemic. According to the company, this challenge is expected to result in a reduction in the number of employees by 15,000 by the end of 2021, this measure has been agreed upon the realization that the company may not recover to the pre-COVID-19 levels before 2023, and the process of recovery may extend until 2025. Thus the measures are taken to restructure the company and focus on a global adaptation plan, however, as a multinational company, it will work with various social experts to limit the impacts of those affected through programs such as voluntary departures, long-term partial unemployment, and early retirements where appropriate (Airbus.com, 2021).

According to Guedhami et al. (2021), COVID-19 has resulted in an economic crisis globally, large multinational companies have suffered a decline in firm value due to the stock market crisis. Airbus SE is not an exemption, and over the last two years, the company has underperformed with its operations decreasing drastically. According to Euronews (2021), the company reported a loss of €1.1 billion as a result of COVID-19 in 2020, this impact has been caused by grounding on numerous planes resulting from international travel restrictions, which continue to create uncertainties in the industry as new variants of the coronavirus are discovered every year. According to Garrow and Lurkin (2021), never before has the airline industry witnessed and sustained such a dramatic decline in air passengers. Thus, over the next few years, Airbus SE will experience a significant reduction in its revenue and market share as the world recovers from the devastating impacts of COVID-19.

References

Airbus.com. (2021). Airbus plans to further adapt to COVID-19 environment | Airbus. Retrieved 30 December 2021, from https://www.airbus.com/en/newsroom/press-releases/2020-06-airbus-plans-to-further-adapt-to-covid-19-environment

Garrow, L., & Lurkin, V. (2021). How COVID-19 is impacting and reshaping the airline industry? Journal of Revenue and Pricing Management, 20(1), 3-9. https://doi.org/10.1057/s41272-020-00271-1

Guedhami, O., Knill, A., Megginson, W., & Senbet, L. (2021). The Dark Side of Globalization: Evidence from the Impact of COVID-19 on Multinational Companies. SSRN Electronic Journal. DOI: 10.2139/ssrn.3868449

Airbus.com. (2021). Innovation | Airbus. Retrieved 30 December 2021, from https://www.airbus.com/en/innovation

Airbus.com. (2021). Who we are | Airbus. Retrieved 30 December 2021, from https://www.airbus.com/en/who-we-are

Euronews. (2021). Airbus reports €1.1 billion in losses due to COVID-19 pandemic. Retrieved 30 December 2021, from https://www.euronews.com/2021/02/18/airbus-reports-1-1-billion-in-losses-due-to-covid-19-pandemic

Airbus SE

Terrell McGhee

SNHU

Org Strategy in Global Env

Internal Environment Analysis

1/23/2022

Products, Services and Customer
Aerospace solution
Produces commercial aircraft helicopters etc.
Relied for cutting-edge products
Constantly developing
Sustainable future
Aviation training
Maintenance
Sells products to global airlines

Airbus SE produces innovative solutions and delivers sustainable aerospace solutions through decades of wide-range expertise and experience. The company produces commercial aircraft, space and security segments, helicopters, and defense. The company produces cutting-edge products that are relied on by customers globally. Airbus innovations are constantly developing with improved features to pioneering a safe and united aerospace world. The company’s services include enhancing safety in the aviation industry, contributing to a more sustainable future, strengthening customer relationships through training, flight operations, and maintenance, dismantling, and recycling the machines (Airbus.com, 2022). Airbus SE is a multinational company operating globally with over 130,000 employees and the largest aeronautics and Space Company in the world. The company’s biggest customers are international airlines such as IndiGo, AirAsia Malaysia, Lufthansa, Jetblue, and Easyjet airlines, among others.
2

Partners and Mergers
Partnered with Bombardier
Aims to produce 6,000 100-150 seats segment
C series production partnership
Airbus SE has selling, marketing and
procurement rights
Expand market sector

Airbus SE sealed a partnership with Bombardier Inc. by owning 50.01% of the majority stake in the C Series Aircraft partnership. The partnership brought together the two complementary product companies to produce 100-150 seat segments in more than 6,000 new aircraft over the next 20 years (Airbus.com, 2022). The partnership for the C series production is a cost-saving initiative by leveraging the Airbus supply chain. Airbus SE owns the right to procure, sell and market and provide customer support to the C Series Aircraft Limited Partnership. The company at expanding its market sector by partnering with the C series, which has a state-of-art-design and great economics that fit in Airbus SE’s existing single-aisle.
3

Cont., FACC
Partnered with FACC
FACC provides rudders and elevators
The equipment stabilize aircraft
It’s a high-logistic company
Rudders and elevators require utmost precision

Ford Aerospace and Communications Corporation (FACC) expanded its partnership with Airbus SE to establish innovative, stable, and reliable services. FACC provides elevators and rudders to A220; the two companies have joined hands to provide future innovations to remain competitive. The partnership focuses on manufacturing and assembling rudders that control and stabilize aircraft in the air, and they are significant in the operations of A220. Airbus SE welcomed this partnership because FACC has established itself as a high-level logistic company with highly qualified management. Rudders and elevators require utmost precision in their production; they are complex and demanding, with a length of 6.4 meters and 1.91 meters in width (Airbus.com, 2022).
4

Five Year achievements
More advanced aerospace
Connect more people
Aircraft that will serve the world
Maintain its integrity
Incorporating new ideas, passion and creativity
Maintain reliability
Keep its reputation

In the next five years, the company aims to design more advanced aerospace by manufacturing and to deliver products and services globally. The company seeks to connect more people through aerospace technological innovation, creating a safer and more prosperous world. The company focuses on improving its values in the next five years. First, customer focus is critical in developing aircraft to serve the world. Secondly, integrity is a core value where the company vows to speak where unethical conduct of the company is not respected. The company hopes to maintain ultimate respect in the future, which has been the guiding tool for its interactions by building transparent and honest communications with the customers. Airbus SE values creativity; therefore, in the next five years, the company aims at incorporating ideas, imagination, and passion for creating more advanced aerospace. The company expects to maintain its reliability over time, the company has been dependable and trusted in the past, and they hope to cement and keep this reputation in the future.
5

Cont.,
Being responsible
Prioritize engagements
Balance relationship with society
Responsible and sustainable charter
Environmentally friendly products

Airbus is dedicated to being a responsible business that balances the needs and expectations of society. Over the next five years, the company intends to prioritize its engagement with the stakeholder to identify materiality issues. These issues will help balance the relationship between the company and society by maintaining a responsible and sustainable charter that guides the business’s operations and controls its practices. The company wishes to produce more environmentally friendly products that are safe and do not pose health issues to the population. Thus, the company plans to mitigate environmental impact and raise sustainability.
6

References
Airbus.com. (2022). Airbus and Bombardier Announce C Series Partnership | Airbus. Airbus.com. Retrieved 16 January 2022, from https://www.airbus.com/en/newsroom/press-releases/2017-10-airbus-and-bombardier-announce-c-series-partnership.
Airbus.com. (2022). Airbus Services | Airbus Aircraft. Aircraft.airbus.com. Retrieved 16 January 2022, from https://aircraft.airbus.com/en/services.
Airbus.com. (2022). FACC expands partnership with Airbus – Aerospace Manufacturing. Aero-mag.com. Retrieved 16 January 2022, from https://www.aero-mag.com/facc-airbus-20092021.
Airbus.com. (2022). Products & Services | Airbus. Airbus.com. Retrieved 16 January 2022, from https://www.airbus.com/en/products-services.

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