Financial analysis Essay Example | Topics and Well Written Essays - 1500 words

Financial analysis - Essay Example Its Critical success factors are looked upon along with the strategies that it has followed over the years to maintain its Market Share in such a competitive industry. Background â€Å"Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Toulouse, France, and with significant activity across Europe, the company produces around half of the world's jet airliners. Some figures about Airbus are that is it’s a global company having 9 engineering design centers, 15 manufacturing sites, 20 languages, 24 hour customer support (365 days a year), 50 flight simulators, 88 nationalities and more than 5,300 aircraft delivered† (Linkedin, Airbus). American airline manufactures were the first ones to produce aircrafts in bulk quantity hence a competitor was required in Europe. As a response, three of the major European countries; France, United Kingdom and Germany joined together and built up the Airbus Industry. This was a government init iative of the above three countries to built up an organization that can give a proper competition to the American Airline Manufacturers such as Boeing, Lockheed, etc. Airbus came up with A300 as their first product; it was later modified to increase passenger capacity to more than 300 passengers and was known as A380. It was clearly evident that it was collaboration of three countries working together. Airbus’s engines were to be manufactured by Rolls Royce. Initially the company had to bear high development costs as their engines were produced by Rolls Royce. The engine designed by Rolls Royce was also facing major difficulties and delays. Gradually, the company has increased its competition by creating modern aircrafts which are dominating the market (Davies, 2001; Airbus - Gathering Clouds, 2008). The Airbus jetliner products line consists of 14 different aircraft models. All these models are diversified with respect to size, specification and capacity (Airbus.com). Revie w of Management Accounting According to CIMA, Management accounting â€Å"is the practical science of value creation within organizations in both the private and public sectors. It combines accounting, finance and management with the leading edge techniques needed to drive successful businesses. Management accountants operate in financial and non-financial roles throughout organizations and carry out all their training and experience requirements within business itself, providing them with a unique insight into how their organizations operate.† (CIMA Official Website) Management accounting, hence, plays a vital role in the success of any organization. It helps in giving an insight to the managers about the problem areas, risk factors and performance determinants which can be controlled by managerial decisions and processes. Critical Success Factor - Airbus Critical Success Factors in an airline manufacturing industry are the passenger capacity that the company has to offer, i ts performance, the organization’s reputation, etc. Airbus has been a leader in civil aircraft manufacturing for a decade or so in Europe and globally too it is recognized as a market leader along with Boeing, Lockheed, etc. All this is because Airbus has been very good when it comes to