Airbus

To what extent has Airbus become a transnational company?

Motivations, means and mentalities

Traditional motivations:

• secure key suppliers
• seek new markets
• low cost production
• advanced technology innovation

Emerging motivations:

• increasing scale economies
• ballooning R&D investments
• scanning & learning
• competitive positioning

From traditional to emerging motivations

Is Airbus a MNE?

Two conditions:

1. Entities in two or more countries

• all over the world
• following a common strategy

2. Linked entities

• worksharing (spare part centers)

Conclusion

• transformation within the last decades
• MNE
• traditional as well as emerging motivations to expand
• successful joint ventures
• multidimensional capabilities - transnational organization
• responsive to local needs
• capturing benefits of global efficiency
• high focus on CSR

Thank you for your attention!

Questions?

Agenda

1. Introduction to Airbus

2. Motivations and Means

3. Toulouse as a Cluster

4. Cross-Border Collaboration

5. Joint Ventures

6. Organizational Model

7. Global Responsibilities

8. Transnational?

Toulouse as a cluster

Toulouse

Advantages

• Unique nature of aeronautics industry
• Support of institutions and public goods
• Airbus stimulated growth

• Global efficiency
• Flexibility
• Innovation

• Access to suppliers
• Proximity
• Specialization
• Continuous innovation
• Access to information and technology
• Complementarities
• Access to institutions and public goods

Saint Mazaire

• two production sites
• 2300 employees
• assembly, equipping, testing

(Hydraulic, and metallic sub assemblies)

A320, A330 and A340

Nantes:

• production of centre wing box
• 2000 employees

Headquarter

A320, A330, A380 and A350XWB

• Key departments
• Final assembly line
• Additional sites (St.Eloi and Blagnac)
• Flight and ground testing
• R&D

Introduction

• Subsidiary of EADS
• 1970-2003:
• European based
• 2003-2012:
• fully owned subsidiaries
• spare parts centers
• training centers
• Global network of suppliers

Cross-Border collaboration

• Superior ideas
• learning
• Improvement of CSR
• Governmental investment

Goal: Developing sustainable biofuels

Benefits:

• Environmental impacts
• Economies of scale
• Global efficiency
• Global responsiveness
• Acceleration in availability

Joint ventures

• Tianjin Free Trade Zone
• China Aviation Industry Corporation

• eliminate future competitors
• greater efficiency
• local responsiveness
• take products to emerging markets

Organizational configuration model

Decentralized federation

Coordinated federation

+fully owned subsidiaries abroad

+ ability to adapt airplane interior to local needs

+ decentralized resources: Centers of Excellence

-Key innovative asset still centralized: Toulouse

+ Key assets and resources decentralized but controlled from center: CoEs are decentralized but Toulouse remains controller

- independent subsidiaries vs. home country expansions

Transnational organization

Centralized hub

+ centralized knowledge in Toulouse

- Other knowledge centers (CoE, Joint ventures)

Takes advantage of all models:

• Decentralized federation: responsiveness
• Coordinated federation: learning through cluster formation
• Centralized hub: efficiency

Airbus' global responsibility

• 2 bio. R&D 90% for environment
• ethical standards
• EADS Vision 2020
• Flight Plan 2050
• Airbus Corporate Foundation
• Global ISO14001 certification

• Constant engagement in society and environment
• more than just fulfillment of legal standards
• good citizen
• BUT no broad change and NGOs still demanding

RESPONSIVE MNE