Strategic Management

20602 Words Nov 11th, 2011 83 Pages
Part 1
Chapter 1 Chapter 2 Chapter 3
© Don Hammond/Design Pics/Corbis

Strategic Management Inputs

Strategic Management and Strategic Competitiveness, 2

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis, 32

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages, 68

Strategic Management and Strategic Competitiveness

Studying this chapter should provide you with the strategic management knowledge needed to:
1. Define strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process. 2. Describe the competitive landscape and explain how globalization and technological changes shape
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Also, Airbus has been forced to produce more of its plane parts in European countries because governments have significant ownership and provide subsidies to Airbus. Accordingly, these governments—Spain, France, Germany, and the United Kingdom—want to maintain employment levels in these countries, and thus Airbus must continue to produce primarily in European countries. “Boeing outsources 85 percent of the work for its 787 ‘Dreamliner’ aircraft. The corresponding figure for Airbus’s A380 is 15 percent. As a result of the design ” and development delays, Airbus’s development costs for the A-380 have risen to $14 billion versus the $8 billion invested by Boeing for the 787 . In making its decision to move ahead with the 787 Dreamliner versus a more jumbo aircraft comparable to the A-380, Boeing made a more concerted effort in connecting and getting input from its airline customers, as well as the ultimate customers, the passengers. Overwhelmingly the passengers in particular, and thereby the airlines, preferred smaller aircraft which would enable them to get to smaller airports quickly, without as many transfers on a point-to-point system. Additionally, Boeing followed up with the ultimate creditors, the leasing agents, and asked what they would prefer as far as risks were concerned. Again, the leasing agents preferred a smaller
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