Airbus Case Summary - Free Essay Example

Sample details Pages: 3 Words: 978 Downloads: 4 Date added: 2017/09/26 Category Technology Essay Type Analytical essay Tags: Budget Essay Did you like this example? In the Airbus case we are faced with a capital budgeting decision. It is the planning process used to determine whether a firms long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures. Capital budgeting decisions are crucial to a firms success for several reasons. First, capital expenditures typically require large outlays of funds. Second, firms must ascertain the best way to raise and repay these funds. Third, most capital budgeting decisions require a long-term commitment. Finally, the timing of capital budgeting decisions is important. When large amounts of funds are raised, firms must pay close attention to the financial markets because the cost of capital is directly related to the current interest rate. In the case of Airbus the company is facing the decision of developing the world’s largest commercial jet in order to compete on the very large aircraft market with Boeing 747. In order to calculate whether the investment is worth taking, a discounted cash flow analysis is used. How many aircraft does Airbus need to sell in order to break even on its investment? After making some assumption and calculation of the Net Present Value, Airbus would need to sell about 45 aircrafts in order to break even. (Please see excel file). If the Net present value is negative, then the investment is not worth taking and the project is not able to cover its investment. When the NPV is equal to zero, it is the point at which the project will beak-even. If the NPV is positive, the project is worth taking and it is able to cover all the investment costs and make a profit. What is Airbus’ maximum exposure in taking on the A3XX project? Undertaking this project has very high risk, since the investment made by the company is very high. The maximum exposure that the company is taking on the project is to loose all the investments made up to now, which is approximately $13 billion. This may lead to jeopardizing the future of the company and even bankruptcy. Other problems that they might face are during the manufacturing process, they may have difficulty keeping up with the deadlines and thus this may lead to penalty fees for late deliveries of aircrafts. This may cause a reduction in orders and customers turning to the competitors. Since there are significant risks involved in the situation, discuss at least 5 risk mitigation strategies that Airbus could undertake? Developing the world’s largest commercial jet may face significant risks, and for this reason Airbus should undertake mitigation strategies to cope with the risks. Some of those risks include: if Airbus is not being able to meet manufacturing deadlines, low demand for the aircrafts due to high prices and problems with suppliers. What can Airbus do, well they could impose strict regulations on controlling t he manufacturing process. Airbus could make some discount for advance orders in order to stimulate demand. Establishment of good relationships with suppliers by trying to negotiate long-term contracts on prices and delivery. How do you expect Boeing to respond to a decision by Airbus to proceed with its decision to build the A3XX? It is very unlikely that Boeing will invest in the development of a competing aircraft since this decision is related to huge investments. If Boeing wanted to make this investment they would not have withdrawn from the project in 1995, when Airbus and Boeing were working together on a feasibility study for the plane. It is possible that Boeing might take a decision to cut its prices on the Boeing 747 and compete with its existing plane, while for Airbus would be difficult to compete with the low prices since they have other cost to cover such as development, marketing, etc. This strategy may divert sales from the A3XX. Ignoring the threat from the ne w Airbus aircraft would be also a possible solution for Boeing since they have the power to compete with its existing planes and they can concentrate on the production of its existing product line. The development of a stretch version of the 747, was also a solution for Boeing, which is what they actually did. Boeing 747 got an efficient make over to challenge A3XX. The new 747-8 may look like just another 747, but in addition to the new engines and swept wings, the new airplane is stretched more than 18 feet, increasing the volume by 16 percent. With the extra size and most importantly, extra efficiency Boeing may attract customers away from the Airbus A3XX. But with a first flight still ahead of them, Boeing has some catching up to do. In an effort to bring down those seat per-mile costs, and offer the maximum number of routes for the airlines, Boeing opted not to challenge the Airbus A3XX directly with a new super jumbo. Instead, the company opted for the smaller, point-to- point efficiency with the 787 Dreamliner. But the company didn’t want to give away the jumbo jet crown without a fight. So instead of developing an all-new airplane to compete in the relatively small jumbo jet market, the company decided to give the iconic 747 a makeover. The new 747-8 is a stretched version of the most recent 747 model, the -400. The extra space can accommodate 51 more seats than the -400. Though even with the new room, the new Boeing airplane still won’t be able to carry as many passengers as the A3XX. So the A3XX will remain the king of the jumbos for the foreseeable future. It will be the biggest airliner, carrying the most passengers of any airplane in the world. But when the new 747-8 lifts off the runway sometime soon, it might just demonstrate that you don’t have to be the biggest to win the fight. Don’t waste time! Our writers will create an original "Airbus Case Summary" essay for you Create order

Global Issues Profile Essay Human Rights - 1191 Words

Global Issues Profile Essay Cuba: Human Rights Yasamin Saaed Ms. Pang, Per: 3 10 December 2015 Everyone has the right to life, freedom, and security. Human rights are the basic freedoms and rights that people are entitled to. All around the world people are being mistreated and the authorities are not respecting people and their human rights. Human rights are essential in order to have equality, freedom, and order. These rights, such as freedom of speech, the right to be free from prejudice, and simply the right to live are being violated all over the world. People everywhere are being imprisoned and punished for just trying to live free, be who they are, and expressing themselves. This is a big issue all around. Everyone around the†¦show more content†¦Women faced major oppression, as well as the poor. As the Borgen Project states, â€Å" Females and the poor†¦ often denied legal rights and knowingly oppressed by the country’s political entities.† Women and the poor were not treated equally with the men and the rich. Sudan also faced drastic issues involving human rights. Bloody massacres occurred, taking the lives of 100,000 refugees. Also, Sudanese officers continued to violently disband protests and arrested activists and protesters. By the law enforcement officers doing this, they disrespected the Sudanese people’s right to freedom of speech. These are just a few of the many places where human rights are being violated by authoritative figures. Human rights are not being handled well by police officials, but what about the country as a whole? Several countries around the world have signed human rights treaties but the most influential country seems to be the United States. The U.S. is known for having a lot of police brutality, especially to African American males. Even with all this going on, the United States, as a nation is big on promoting equality and human rights. The U.S. is also supporting one of the most basic human rights, the right to live. Many states in the past couple of years have gotten rid of the death penalty. According to the Death Penalty Information Center, 19 states have abolished the death penalty. Hopefully, this will influence many more places to get rid of the death penalty,

Purchasing Policy of the San Bernardino IT Department Personal Statement

Essays on Purchasing Policy of the San Bernardino IT Department Personal Statement ï » ¿ Purchasing Policy The San Bernardino IT Department will purchase the products and services needed by the different departments. The policy is divided into four areas. The areas are purchasing requisition, supplier selection, store room or supply room inventory, and payment of products and services. A. Purchase requisition. The IT department’s policy is for the line and staff employees to initiate the processing of the required medical and other supplies. The procedures are plain and simple. First, the staff shall fill up the purchase requisition form. Second, the staff’s immediate superior will approve the purchase requisition after verifying the staff’s reasons for processing the purchase request. Third, the staff brings the approved requisition form to the company’s storeroom or supply room for processing. Fourth, if the store room or supply room officer finds the requested product in the supply room, the supply room or storeroom will release the stored supply part to the staff, retaining a copy of the approved supply request form. Fifth, the supply officer lets the staff sign the storeroom or supply room records to indicate the staff had received the requested product or service. Sixth, if the store room or supply room does not have the requested product or service requested by the staff, the supply officer shall submit the purchase request to the purchasing officer. Lastly, the purchasing officer shall contact the bids committee. The bids committee will process the purchasing of the required product or service from external sources (suppliers). B. Supplier selection. The IT department’s policy is for the bids committee to manage the purchase of the required IT department’s products from the winning bidders. The procedure can be easily introduced to the concerned company employees. First, the company’s bids committee shall request the suppliers to submit bids for each product purchase. Second, the bids committee evaluates the offers of the different suppliers. Third, the winning bidder is the supplier offering the best quality product or service at reasonable prices. Fifth, the bids committee awards the purchase contract to the winning bidder who will permit a 30 pay payment credit term (purchases are paid within 30 days from the date of the purchase or delivery of the goods to the buyer company). C. Store room or supply room inventory. The IT department policy is for the store room or supply room inventory to ensure that there is an ample supply of normally requested company products. The procedure can be easily understood. First, the store room officer shall request the different departments to submit their next business period’s projected product or service requirement. Second, the store room officer shall conduct a count of the current quantity of products or service requirements stored in the supply room or store room. Third, the store room officer shall submit a request to the bids committee to purchase the next period’s required product or service supply demands in case the store room or supply room stocks are not enough to meet the projected requirements. D. Payment of purchases. The IT department’s policy is to ensure the suppliers agree to 30 day payment policy. The procedure can be clearly understood by the concerned line and staff personnel. First, the accounting department receives the winning suppliers’ statement of account. Second, the statement of account includes the suppliers’ delivery receipt. Fourth, the accounting department prepares the disbursement vouchers and the check after confirming that the stocks were delivered to the company. Sixth, the budget officer signs the voucher to affirm that the company has sufficient budget (funds) to pay for the purchased supply or service. Lastly, the accounting department calls the supplier to collect the approved check.

Case Study on Green IT

Question: Case Study on Green IT. Answer: Introduction Green IT is the process which involves the effective usage of all the resources involved in IT department also by increasing the total performance. In order to have the sustainable Green IT, the following should work in integration, power management, fundamental, technology to improve cooling, recycling, completeupsurgingof the IT sector. Recent studies have revealed that power consumption alone by the IT department is nearly 50% of the total consumption of theorganization. With the Green IT itis expectedthat the costwill be reduced, butactually,very less efforthas been made. The aim of the Green IT is to create awarenessandencourage the IT industries to adopt the policies for encouraging the environment-friendly technologies.The Australian Information Industries Association (AIIA) and the Australasian Association for Information Systems (AAIS) have shown their support inSIGsActivities. The Conceptualization of Green IT is toincorporatetheeco-sustainabilityat various levels in the ex isting IT department. The major aim in adopting Green IT is toincorporatethe present generations needs without negotiating with the future generations environmental conditions. The three sustainability pillars are theenvironment, society and economy (Rao Holt , 2006). In order to understand the clear meaning of GreenITlets havea look at the literature review of theinfrastructureof IT department. There is a green supply chain which involvesthe integration ofthe environment in designing the product, its resource, the manufacture of the product, distribution and management ofthe destruction ofthe product all thisshould beeco-friendly (Srivastava, 2007).The IT companys main focus is to deal with the output of the data center. IT companies have been taking the initiative for Green IT by improving technologies, decreasing the power consumption, cooling and the cost of real estate involved in data center operation. Instead,Green IT is more than thisrather thanjust focusing only on technologies relatedhardware, practicesshould beacquired for soft businesses also (Rasmussen Williams, 2006). So Green IT is not justthe application ofgreening on ITartifacts, but also using the IT for achieving sustainability in the enterprise. It is actually involving of the environmental factor during formation of policies at various levels of operation, at the human infrastructure than at managerial level also. Discussion As the Internet based business is growingat a rapid ratenow, which ismetamorphicallytermed as Cloud IT. The energyutilizedfor running these upgraded technologies are the major cause for industries turning toward Green IT. In the past few years with the excessive use of environmental, energy which has further led to increased carbon generation, both these above factors have led to have Green IT. With the growing demand, there has been the rapid expansion of the data centers at an increased cost of IT, which has, in turn, caused the excessive increase in energy consumption resulting in having adetrimentaleffect on the environment. The data centers of the IT companies accounts forapproximately50 % of the power consumption bill of the total company bill and accounting nearly half of the waste in the form of corporate carbon. Even though the rate at which energy is consumed and the cost involved is the keyfactorfor Green IT, but the risk involved along with it of climatic change has alar med the issue globally (Society, 2016). Now the government has become aware and increasingly forcing the industries to adopt more and more Green IT practices in their system. No doubt the use of Green IT has its impact on business so companies will keep its focus on reducing the costand alsofocus on improving its technology of energy consumption in data centers. The first initiative toward this changewill not becompleted towards the end of ecological damage. The first wave will be more driven to reduce the cost of the business and making the potential for Green IT products. As more and more ecological issuesare being raisedwith the IT products and its complete process needs totakecare of. Even though the market seemsto bechanging as now vendors are also distinguishing the product and their services on the basis of energy consumed and its costs. Definitely, the benefitwill be deliveredwith time when the company itself willrealizethe environmental and social responsibility. Then came the second wave, which was more focused onthe sustainability ofthe product and its services. In this, companies have made an effort to bring the change in Green IT by adopting the strategies for the benefit of ecology (Rouse, 2016). The changed business model includes, change in behavior and the culture of the organization,new innovationsin the technology is the demand of the hour, redefine market all this will work in unison for new business models for integrating its environmental and civil responsibility. Factors responsible for adopting Green IT Improved Technology at rapid rate With the growing facility, the dependency has also increased for electronic data, which in turn demanding a number of data centers. At very fast pace, people adopted this new technology of communication and transferring data. Its usage has increased and reached to every sector involved in the government sector storing large data, legal documents have made the process simpler and easier. Not only this entertainment sector has completely seen vast change, industries like banking, healthcare, real estate, transportation etc have seen large benefits because of this evolution. Not only this many federal, local and state government agencieswere seenchanging the strategies by implying the web services for their work (Mortleman, 2010). Development in Equipment Advance CPUs were introduced of higher performances with decreased power consumption capacity per CPU, but there was the flaw in this development, such CPUs require more servers with higher performances with an enhanced memory space. Which resulted in more power consumption. Not only this, more servers needed more space to be placed. Further development was introduced which invented smaller servers with larger capacity. Now by increasing the packaging density it led to an increase of power density. This increased power density led to more power consumption, it was much more than in comparison to the previous one it was nearly more than ten folds. Earlier which was 300 watts for each square foot in 1996 in 2007 it reached to 4000 watts for each square foot. Demand for increased cooling As the power density of the server was increased, the demand for increased cooling came as complimentary with this development as each data center started experiencing increased heat density (O'Flynn, 2011). Enhanced energy cost As the power consumption and cooling expenditure have increased for the data centers. More expenditure will be required by the increase in energy consumption at each data center. With the increase in the number of server and data centers and with the latest ongoing approach followed by the industries for carbon capping and marketing scheme, the cost tends to increase tremendously (Nguyen, 2011). Decreased server application The efficiency of the data has become the major problem. On an average, only 5-10 % of the server was utilized at big data centers. Which means actualutilizationis very less and power consumption compared to its effective usage is quite large for servers, which means companies are paying a huge amount as compared to little work done. The Impact of IT on an environment Carbon is emitted as the by-product of the IT product usage, which is directly proportional to the amount of energy used. In 2007 nearly 45 million servers were working worldwide, consuming approximately 0.52 % of total electricity. It is expected if the scenario continues like this than by every year carbon emission will grow by more than 11.1%, which will lead to 342 metric megatons till 2020 (Olson, 2008). Strategy Guideline The transition of IT to Green IT is a comprehensive process as it involves various strategies of applying different approaches toamendthe current working policies and condition in order to improve the efficiency of the operations at the data centers. The main aim is to focus on lowering the cost along with reducing the impingement on the environment caused by computing. Undoubtedly, this transition is a comprehensive approach which involves integration at various levels of power, then cooling with more efficient hardware, improved softwares etc. Infrastructure of the Data Centers Infrastructure includes the following equipment storage devices, network equipment, chillers, pumps, power supplies, fans, etc. The data centers whose infrastructureswere madepast ten years, theirequipmenthas reached the end life so they neededto bechanged. As the outdatedequipmentsare inefficient and they consume more energy (Bose Luo, 2011). The outdated data centers consume nearly double or three times more power and they also need more cooling. So here the strategy is to set up a new datacenter with the latest and more efficiently designedequipmentsor recycle the existing one. Managing the Power Effective managing softwares for the power and distribution of the workload can actually save nearly $60-80 on each desktop per month and this is more for servers. Power management softwares are designed to regulate the processor by understanding its power states so that it can distribute the workload according to the desired requirement. Processor power act like a good manager who understand the need of the server when the workload is less it conserves the power (Bose, 2011 ). Companies have understood that the laptop has better power management ability as compared to the desktop. Management of heat Technology has improved and has become compact because of which power density has raised in data centers, whichhas leadto the need for efficient andSkillful heat dissipation equipments (Wrong, 2005). Emblematic strategies whichhave been followedfor the thermal managementofmore effective cooling equipment, smart thermostats, also data centerswere designedwith raised floor. Product designing Latest products are designed with improved technologies, like microprocessor which was introduced in 2002 was having nearly 50% better performance from the processor in 1982. Even though energy consumption by the server continued to upsurge relatively in proportion with the new improved server. Multi-core microprocessor were introduced which runs on low voltage and at low speed than to those compared to the processors which run faster and consume more energy. A scaling component of the microprocessor helps to manage the fluctuating workload. Still the existing microprocessor which works at low level consumes more energy. The strategy is to have the microprocessor which works in accordance with work the performance (UNSW Business School, 2011). Virtualization Virtualization is the support system on which latest computing system relies upon. Virtualization in data center affects the following areas: hardware of the server and its operating system, network, storing capacity, type of infrastructure (Molla, 2009). Visualization works by enhancing the server utilization by incorporating the more applications on few servers. Conclusion As the business is increasing, government and NGOs have started realizing the problem caused to the environment by the IT sector. Now the consumers are becoming more responsible and aware about the current condition so they support the use of sustainable product and its usage. So now IT companies were initially forced to to have Green IT product now they themselves have started taking the initiative for the same. Virtualization has great impact on technology as well as on the business processes. Implementing the new advanced techniques with less energy consumption with more power and increased in space microprocessor. As to plan better environment for our future generation. Bibliography Bose, R., 2011 . Integrative framework for assessing firms' potential to undertake Green IT initiatives via virtualization - A theoretical perspective. The Journal of Strategic Information Systems , March, 20(1), pp. 38-54 . Bose, R. Luo, X., 2011. Integrative framework for assessing firms potential to undertake Green IT initiatives via virtualization A theoretical perspective. The Journal of Strategic Information Systems , March, 20(1), p. 3854. Molla, A., 2009. GREEN IT DIFFUSION: AN INTERNATIONAL COMPARISON Mortleman, J., 2010. Weighing the benefits of green IT. Weighing the benefits of green IT, 12 February. Nguyen, D., 2011. Australia lagging on Green IT: Report. Australia lagging on Green IT: Report, 20 September. O'Flynn, A., 2011. GREEN IT: THE GLOBAL BENCHMARK Olson, E., 2008. Creating an enterpriseà ¢Ã¢â€š ¬Ã‚ level green strategy. Journal of Business Strategy, 29(2), pp. 22 - 30. Rao, P. Holt , D., 2006. Do green supply chains lead to competitiveness and economic performance?. International Journal of Operations Production Management, 25(9), pp. 898 - 916. Rasmussen, C. E. Williams, C., 2006. Gaussian Processes for Machine Learning: MIT Press. Rouse, M., 2016. Green IT (green information technology). Green IT (green information technology) . Society, A. C., 2016. Green IT: Mission and objectives. Green IT. Srivastava, S. K., 2007. Green supply-chain management: A state-of-the-art literature review. IJMR, 28 February, 9(1), p. 5380. UNSW Business School, 2011. Green IT: A Costcutting Strategy Beyond Switching Off the Screensaver. Green IT: A Costcutting Strategy Beyond Switching Off the Screensaver, 19 July. Wrong, V., 2005. Marketing Strategies and Market Prospects for Environmentally-Friendly Consumer Products. BJM, 21 March, 7(3), p. 263281.