Case 2-4 Ethics and Airbus

SABINA ACERO NICOLAS TORRES JHOANA SANCHEZ MERCADEO INTERNACIONAL 1. In each of the cases who benefits and who suffers from the alleged ethical and legal lapses of Airbus? Politic plays a major role on how the company operates. This is

according

to

the

influence

of

the

politics

on

placing

orders of aircrafts direct from the manufactures. Airbus Company benefited simply because Sabena increased its order and on the other hand, Sabena Company suffered due to unplanned purchase that led to the collapse of the company. On the case Kuwaiti Kickbacks, Airbus Company suffered simply because Kuwait Airways Corporation did not honor the order that it had planned to place with the company. The reason as to why the company suffered was due to the $ 450, 000 it had chipped in to the operations of the company, 2. How should the public relations staff at Airbus respond to the articles appearing in The Economist and the Guardian? It is true that both companies have political influence on how they make their sale. Since the public people are there to show how the companies operate with political influence, the company should ensure that the picture has been cleaned. In

order

company

to

have

should

the

ensure

image that

of

they

the have

company managed

changed, to

show

the the

public relation people that management has changed. It should let the public relation know that the entire management that was

influenced

by

political

thoughts

has

been

changed

and

that it operates under new management that is dedicated to work in the right direction. 3. What steps might Boeing take to defend itself from this sort of competition?

SABINA ACERO NICOLAS TORRES JHOANA SANCHEZ MERCADEO INTERNACIONAL

Boeing Company is required to develop a strategy on how to deal

with

the

competition.

The

first

approach

the

company

should employ is lowering its cost. Since other companies’ prices are higher Boeing should focus on working with minimum cost such as making its manufacturing orders from suppliers who are cheaper. 4.

Do you think that Boeing and Airbus behave differently in marketing their aircraft around the globe? How and  why?

I believe that the two aircraft companies behave differently in marketing their products around the globe.

Airbus

Company

use

political

influence

in

marketing

its

aircrafts. This is to attract more customers for they will get some discounts on the quantity they will purchase from the company. On

contrary

Boeing

uses

another

method

in

marketing

its

aircrafts to the consumers. The use of another strategy is to ensure that areas that the other company has not touched have been provided with whatever they want