Case Details: |
Price: |
| Case Code |
: |
BSTR243 |
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges
ThemesTurnaround |
| Case Length |
: |
31 Pages |
| Period |
: |
1969-2006 |
| Pub Date |
: |
2007 |
| Teaching Note |
: |
Available |
| Organization |
: |
Empresa
Brasileira de Aeronáutica S.A |
| Industry |
: |
Aerospace |
| Countries
|
: |
Brazil |
Abstract:
|
Brazil-based Embraer was the fourth largest aircraft manufacturer in the world
behind Airbus, Boeing, and Bombardier Aerospace. Embraer was set up as a
government company in 1969, and privatized in 1994.
This case examines Embraer's turnaround and growth after its privatization. It
discusses the steps taken by Mauricio Botelho (who became the CEO after the
privatization) to return the company to profitability, as well his handling of
various strategic and human resource issues during and after the turnaround. The
case then explores Embraer's entry into the regional jet market, where it had to
compete against Canadian aircraft major Bombardier.
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It also talks about Embraer's use of
international strategic alliances to gain expertise in aircraft
manufacture, and its aggressive marketing of its new regional
jets to various airlines.
A section of the case discusses the various facets of Embraer's
competition with Bombardier in the regional passenger jet
market. The implications of the dispute between the two
companies - which went before the WTO - and its impact on the
political and economic relations between their home countries
are also mentioned. The rest of the case includes a commentary
on Embraer's future prospects, where issues like airline scope
clauses, the resurgence of turboprops in the early 2000s,
Embraer's problems with its E-Jets, and the company's excessive
dependence on revenues from the export of passenger jets are
discussed. The case ends with a description of Embraer's
restructuring efforts in early 2006, including the company's new
capital structure.
Issues:
» To examine and understand the issues involved in the turnaround of a company
» To understand the differences in the business environments of developing and
developed countries
» To analyze the competitive advantages and disadvantages of an aircraft
manufacturer based in a developing country
» To understand the strategies adopted by a company based in a developing
country to compete in a highly volatile global market
» To examine the impact of a successful company on the economic development in
its home country
» To understand the role of strategic alliances and international partnerships
in a highly competitive and technology-intensive industry
» To study the implications of international competition on the political and
economic relations between countries
» To analyze the characteristics, structure and future prospects of the global
aircraft manufacturing industry, with a special focus on regional passenger
aircraft
Contents:
Keywords:
Empresa Brasileira de Aeronáutica S.A, Embraer, Brazil,
Aircraft manufacturer, Aerospace industry, Regional jets, Bombardier, Mauricio
Botelho, Bonazo Group, Turnaround, E-Jets, Strategic alliances, Microjets,
Boeing, Airbus
Embraer Launches New Business Jet - Next Page>>
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