Simplified Valuation Analysis for the Airbus A3XX Key Assumptions as of 2008 Price per Plane Number of Planes Operating Margin $225 40 17.5% Discount Rate Assumptions (a) Risk-free Rate 6.0% 10-year US Treasury yield (p. 8) Asset Beta 0.84 Risk Premium 6.0% Discount Rate 11.0% in millions General Assumptions as of 2000 Inflation Rate 2.0% Tax Rate 38.0% Results from the Model NPV = After-tax IRR = Pre-tax IRR = # planes sold by 2019 Capacity Constraint Violated? Required Investment as of 2000
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Rachel White The Challenger On January 28th‚ 1986‚ the Challenger‚ a space shuttle‚ was to make an important journey into outer space. The challenger launch took the attention from many Americans. A woman named Christa McAuliffe‚ an average American school teacher was also on the journey. Christa McAuliffe was going to give school lessons to students from space. Children were anxious to Learn from space‚ and adults everywhere were fascinated. The morning of January 28‚ 1986 was going to be
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Week 6 Assignment: Airbus Duy Pham MGT 3303 Chris Zigrossi 10/11/2012 Airbus is a well-known commercial and military aircraft manufacturer throughout the world. Airbus prides itself on quality and safety. According to Airbus‚ “Airbus’ mission is to meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market‚ complemented by the highest standard of product
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MREJEN Corentin Wednesday‚ October 10 2012 Case Analysis: Airbus in China 1. Identify the key management issues facing Airbus in China. Since 1985‚ cooperation between Airbus and China covers the commercial‚ industry and research sectors. Laurence Barron‚ president of Airbus China since January 2004 is willing to expand this cooperation with Chinese aviation industry. Heading this way‚ a joint venture was launched in September 2008 owned by the European aircraft-maker for 51%‚ with the
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2/7/2014 Airbus case study Airbus case study Introduction (Facts). Airbus is the company that deals with the manufacturing of aircrafts in the market. It was formally established in 1970 as a European consortium. It has a head office in Toulouse; France operates out of over 160 international locations. It include 16 main development and manufacturing sites in France‚ UK‚ Germany & Spain and three wholly owned subsidiaries in China‚ Japan and North America. The Airbus benefits from a unique
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Case Analysis: THE RISE OF AIRBUS‚ 1970-2005 I. Brief Summary of the Case Airbus’s early history dates back to 1960s. Unable to develop a commercially viable passenger jet during the post war years‚ French aircraft manufacturers decided to form alliance with other aircraft manufacturers to compete with the American jet makers. During the Paris Air Show of June 1965 the French aircraft executives initiated a series of informal meetings between representatives of the major European airline
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A key attributed to much of Airbus’s success has been it’s employment of over 55‚000 employees from over 80 different nations. This has however caused some issues within the organization also‚ as was the case in this case study. This particular case highlights the problems that arose within Airbus during the construction of it’s line of A380 Aircrafts where Airbus lost 2 Billion euros. Cross-cultural differences between French and German workers created an atmosphere of dis-trust amongst workers
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Case Study: Airbus A3XX 1. Airbus considers building the A3XX a great opportunity to help the company enters VLA market‚ in order to increase competitive ability and make profits. There are three main perspectives to support this project: (1). A3XXX is the solution to meet increasing demand; As for increasing the according carrying capacity‚ Airbus believes that it is more realistic to develop “Very Large Aircraft” rather than to increase aircrafts frequency or to enlarge airport size. Industry
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Structure and Process: 1. Organizational Structure: Airbus utilizes a vertical hierarchical configuration of departments‚ authority and job within the company. Refer to figure 9.1. Airbus organizational structure “aims to fully integrate the functions at Airbus‚ by implementing transnational organizations for industrial operations‚ programs and procurement” (Karp). According to the C.E.O he state that his structures objective is “to make Airbus a real ’architect and integrator’ in airliner development
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Rhetorical Analysis In the early spring of 1986‚ The Challenger was scheduled to launch in the morning from the Kennedy Space Center. The Challenger had seven passengers. One of these passengers was a Christa McAuliffe‚ a social studies teacher from New Hampshire. She was the first ordinary citizen to be going to space. The social studies teacher had won the opportunity through NASA’s Teachers in space program. The spacecraft was in the air only seventy-three seconds before it exploded and broke
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