Boeing 7E7 - Dreamliner
The Boeing 7E7
To develop or not to develop? that is the question
Executive MBA in Business & IT
Class of 2014
Module 5 – Risk & Finance - Assignment
Author: Luís Faria
Reviewer: Prof. Dr. Christoph Kaserer
The Boeing 7E7
Subject
Page
Module 5 – Risk & Finance - Assignment
2/15
Abstract
With Airbus surpassing Boeing's commercial aircraft market share, and revenues falling since the terrorist attacks on September 11, the key question in this assignment is whether Boeing should proceed with developing the 7E7 to stimulate revenue growth and market response.
Central to any decision is an assessment of the economic profitability of the 7E7 project at the given circumstances. However, taking into account the magnitude of risks posed by the launching of a major new aircraft, a risk analysis must be evaluated to determine what the chances are that the project will cause greater financial harm than good.
Table of Content
Abstract ..................................................................................................................................... 2
1 Executive Summary ......................................................................................................... 3
2 Strategic Background ...................................................................................................... 4
2.1
Two competitors for one market............................................................................ 4
2.1.1 Boeing ................................................................................................................. 4
2.1.2 Airbus................................................................................................................... 4
2.2
Two diverging strategies......................................................................................... 4
Boeing’s Forecast (large-size aircrafts vs mid-size aircraft)...................................... 4
Boeing’s sense of urgency
To develop or not to develop? that is the question
Executive MBA in Business & IT
Class of 2014
Module 5 – Risk & Finance - Assignment
Author: Luís Faria
Reviewer: Prof. Dr. Christoph Kaserer
The Boeing 7E7
Subject
Page
Module 5 – Risk & Finance - Assignment
2/15
Abstract
With Airbus surpassing Boeing's commercial aircraft market share, and revenues falling since the terrorist attacks on September 11, the key question in this assignment is whether Boeing should proceed with developing the 7E7 to stimulate revenue growth and market response.
Central to any decision is an assessment of the economic profitability of the 7E7 project at the given circumstances. However, taking into account the magnitude of risks posed by the launching of a major new aircraft, a risk analysis must be evaluated to determine what the chances are that the project will cause greater financial harm than good.
Table of Content
Abstract ..................................................................................................................................... 2
1 Executive Summary ......................................................................................................... 3
2 Strategic Background ...................................................................................................... 4
2.1
Two competitors for one market............................................................................ 4
2.1.1 Boeing ................................................................................................................. 4
2.1.2 Airbus................................................................................................................... 4
2.2
Two diverging strategies......................................................................................... 4
Boeing’s Forecast (large-size aircrafts vs mid-size aircraft)...................................... 4
Boeing’s sense of urgency