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Airbus 380 launch Case

Related course: Organizational DesignThe External Environment is composed of two sectors, the task and general environments. The task environment includes sectors with which the organization interacts directly and that have a direct impact on the organization's ability to achieve its goals. Task environment sectors include the international, industry, raw materials, human resources, and market sectors. The general environment includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it. General environment sectors include the financial resources, technology, economic conditions, government, and socio-cultural sectors. Airbus operates in an unstable, extremely complex environment. So, there is a high level of uncertainty. To discuss this uncertainty we first have to describe the environment. First, we will discuss the task environment. The first sector is the industry sector. Airbus has one major competitor, Boeing. Boeing has an advantage over Airbus in that it utilizes a massive, complex manufacturing process. Its assembly line system is second-to-none.


Fourth, Airbus must utilize the latest in high technology. This technology increases efficiency and productivity, and ultimately reduces defects. Airbus can enjoy the benefits of transportation due to the short distances to deliver materials, but it has a limitation to reduce cost when it manufactures matured products. Heralding a "new era" for BCC in a press release, Boeing's then CFO, Michael Sears, confirmed that BCC's status was being downgraded. Some engineers travel abroad occasionally on brief business trips, some live in another country for several months or even years, and countless others correspond with colleagues and engineering associates around the world without ever leaving home. First, they must take on organic characteristics. Airbus can negotiate a deal with these airlines allowing them to co-design the aircrafts to their specifications. Finally, there is a growing threat from political instability and terrorism after the 911 tragedy. From the organizational structure one can see that Airbus utilizes a vertical, functional mechanistic structure. Airbus must satisfy the needs of these airlines and the needs of the passengers. Fourth, there has developed new, hi-tech, computerized design equipment. There are currently 500 suppliers of airplane parts and materials. Resource dependence means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence. Airbus invested lots of money and many resources such as human resources, cooperative alliances and financial resources. Second, concerning the socio-cultural sector, Airbus must be environment conscious.

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