Making of Boeing 777 1 THE NEED FOR BOEING 777 When the US-based airplane manufacturer‚ Boeing Airplane Company (Boeing)‚ announced the development of a new airplane model – Boeing 777 – in the late 1980s‚ many aviation experts wondered about the rationale behind the decision. They questioned the need for a new model since Boeing‟s highly successful 747 model had been flying successfully for over 30 years (refer to note 1 for a description of Boeing 747). Aviation experts argued that Boeing was
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for very large aircraft (VLA) which is forecasted to be around 1550 planes including passenger jumbo jets and freight carriers in the next 20 year period provides an opportunity for Airbus to capture this market with its A3XX. The cash flow and commercial viability is analysed below. Discount Rate: 6% + 0.84*6 = 11.04% Growth Rate: 2% = inflation Tax Rate = 38% Year Units Sold Free Cash Flow PV of Cash Flow 2001 0 $ -682.00 $ -682.00 2002 0 $ -1‚457.00 $ -1‚312.14 2003 0 $ -1‚525.00 $ -1
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(Investopedia‚ 2009). The cost of equity(COE) of the discount rate is: R = Rf + β*(E - Rf) (1) Rf = Risk free rate of return‚ usually U.S. treasury bonds β = Beta for a company E = Expected return of the market (commercial airlines market) (E - Rf) = Sometimes referred to as the risk premium The following table shows the average annual arithmetic returns investors earned on various asset classes over the period 1900 to 2003. (Source: Table 7.1 in Brealey/Myers/Allen)
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Boeing and the Four Components of Business Dwight N. Evans Jr. Grantham University BUSINESS Boeing is the largest aerospace company in the world; as well as the leading manufacturer of commercial planes and defense and security systems. It has approximately 170‚000 employees; located primarily at its headquarters in Renton‚ Washington. Additional U.S. offices are located in Los Angeles‚ California‚ along with international offices in Hong Kong and Moscow. (Boeing‚ 2011) Boeing is one of the
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Introduction For this analysis of Boeing and Airbus‚ only the commercial planes are taken into consideration. Thus‚ we will not analyze the military aspect as well as the private jet market. Value proposition This part is going to analyse Airbus and Boeing value proposition: targeting audience‚ main value provided through services‚ the company’s major competitors‚ and how LinkedIn differs from them. From a customer perspective‚ value proposition is a statement of a specific target customer group
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Boeing 787 Dreamliner Risk Management Plan February 17‚ 2013 Table of Contents I. Introduction II. Sources of Construction Project Risk III. Systems to Address Construction Project Risk IV. Catastrophic Failure Fault Tree V. Course Project Part 1 VI. Fault Tree One VII. Fault Tree Two VIII. Project Risk Summary IX. Conclusions X. Works Cited
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anniversary‚ The Boeing Company was founded in 1916 and had 28 people on its payroll. Today‚ The Boeing Company has more than 170‚000 employees‚ in 50 states and 70 countries and is the largest manufacturer of commercial airplanes and military aircraft (“The Boeing Company‚” 2012). Boeing is structured around a business model that sets it apart from other companies. This model consists of six parts. They are chart the course‚ set high expectations‚ inspire others‚ find a way‚ live Boeing values‚ and
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Currently the only competitor or Airbus is Boeing. Both of these companies gain market share from each other using prices‚ product design‚ advertising‚ and direct selling efforts. Due to the intensity of the rivalry among Boeing and Airbus‚ the profits are squeezed. The Bargaining power of buyers – The aviation industry depends on airlines and governments for almost the all of its total orders. Also‚ due to the intense rivalry among Airbus and Boeing‚ the bargaining power of buyers must be moderately
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The Airline Industry has its origin with the first scheduled service by the St Petersburg-Tampa Airboat Line on January 1‚ 1914. The plane‚ a Benoist XIV‚ conducted 1205 commercial flights across the Tampa bay in Florida‚ USA. The airline discontinued the service after three months‚ as the service proved to be unprofitable (Kaufmann‚ 2008). The Benoist XIV was able to transport one passenger up to 135 km‚ almost one hundred
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Economic Trends The Boeing company (Boeing) has done a good job of keeping sales and market share high through the recent economic downturn. Much of this has been due to the increase of demand in air travel internationally. In 2011‚ about 50% of Boeing’s revenues came from international markets (Boeing‚ 2011). Countries like China and India have a growing middle class‚ with greater opportunity for travel. With this greater demand for travel opportunities in these areas‚ new commercial airlines have started
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