1.1 Methodology
Primary sources:
In this report, our studies are based on the internal brainstorming meeting within our
group. For example, we came up with the idea of developing a tailor-made scheme in out
ten years plan. Also, through the Q&A panel with Rolls Royce, we are able to control more
information about this project.
Secondary sources:
We have collected information from various secondary sources. Through the electronic
resources, such as the official website of Airbus and EADS, have provided us the essential
information about the business structure of Airbus. Together with the academic knowledge
learnt from the lectures and tutorials, combining with the relevant journal articles and core
textbooks, we are able to construct the follow report on top of a sound academic
foundation.
1.2 Background
Airbus is the world’s leading aircraft manufacturer. The company mission is to meet the
needs of airlines and operators by producing the most modern and comprehensive aircraft
family in the market, complemented by the highest standard of product support. (Airbus,
2013) The company’s product lines comprise families of aircraft ranging from 107 to 525
seats to the ultra-long range and double-decker A380. With this colossal product portfolio,
Airbus can confirm the wide market coverage. In particular, the success of A380 allows
Airbus to overbid its largest competitor, Boeing, in the aircraft manufacturing industry.
Airbus’s image of being an industrial giant can be further established.
Generally speaking, through delivering eco-efficient solutions, creating added value while
minimizing environmental impact, as well as designing and investing in new aircraft,
Airbus can enhance its competitive advantage and secure its position as an industrial leader
in the future. In the coming decade, the major challenges of Airbus are coming from the
aspects of competitive environment, economic, environmental, social, and technological.
To cope with the fast changing global market trends and increasingly challenging
environment, a ten year plan focusing on increasing competitive advantages through
promoting company’s uniqueness and attractiveness as well as enhancing the operation and
supply chain management system will be introduced.
Details of the Ten Years Plan (2013-2023) are provided as follows.
1.3 Operation and Supply Chain Management
ERP structure of Airbus:
With growing business needs, Airbus experienced an exponentially growing travel cost.
(SAP AG, 2005) Therefore, system concerning overall cost cutting is needed. As a result,
Airbus implements the SAP Travel Management application, which comes with the SAP
ERP application. (Figure 1)
Generally, SAP ERP consists of several modules, including utilities for marketing and
sales, field service, product design and development, production and inventory control,
