Business Level Strategies : B / E Aerospace

2095 Words Oct 25th, 2016 9 Pages
Organization-level strategies. B/E Aerospace applies a related link diversification strategy since most of its sales revenues directly come from the airline and leasing companies as buyer furnished equipment (BFE) (“2015 Annual Report,” 2015). The company mainly operates in two divisions: commercial aircraft segment and business jets segment. In 2015, the revenues of each division account for 76.9 percent and 23.1 percent respectively. The benefits of using diversification allow the company to reduce costs and increase revenues while implementing its business-level strategies effectively (Hitt et al., 2014). Based on the annual report, the company’s general objectives are to maintain a leadership position and provide an excellent customer service by (1) offering most innovative products and services, (2) offering numerous engineered services such as design, integration, and installation, (3) pursuing the highest quality and safety in every facet, (4) pursuing aggressively continuous improvement in all facets of the business, and (5) pursuing a global support from airline and general aviation manufacturers (“2015 Annual Report,” 2015). The company plans to acquire several companies in the future in an effort to diversify products, increase market power through its related acquisition, and develop new capabilities. In December 2014, B/E Aerospace announced it would restructure the businesses by separating its Consumables Management Segment into KLX, Inc. The spin-off company…

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