By Robert M. Grant

Circumstances to Accompany modern approach research, fifth variation

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Throughout the Group, our overheads are too high, partly as a result of the complexity of the business and partly due to the weakness of our systems which require significant investment. Some steps have been taken to reduce costs but greater progress will need to be made in 1998. As a first step to simplifying our business we announced, in January 1998, our intention to sell our manufacturing operations with a continuing supply agreement. ᭿ PHASE III ᭿ We have significant opportunities to expand our franchise, license and wholesale activities internationally.

Over the past 20 years the number of manufacturers of large jets declined from four to two. Lockheed ceased civilian jet manufacture in 1984; McDonnell Douglas was acquired by Boeing in 1997. The leading suppliers of regional jets were Bombardier of Canada and Embraer of Brazil. In 2002, the third regional jet manufacturer, Fairchild Dornier, went bankrupt and was acquired by D’Long, a Chinese investment firm. airport facilities Airports play a critical role in the US aviation industry. They are hugely complex, expensive facilities and few in number.

G. between Washington, New York, and Boston) did trains provide a viable alternative to air. Most forecasts pointed to continued growth in the demand for air travel – probably below the 5% annual trend rate of the past two decades, but most likely faster than the rate of population growth. The chances of any significant shift of demand to alternative modes of transport seemed slight. With Amtrak mired in financial and political difficulties, there seemed little chance that the US would develop high-speed train services similar to those of Europe and Japan.

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Cases to Accompany Contemporary Strategy Analysis (5th Edition) by Robert M. Grant


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