British Aerospace Plc (A)

British Aerospace Plc (A) Description

In the summer of 1991, the chairman of this diversified company is contemplating whether to proceed to raise (in British pounds) GBP32 million in new equity following the surprising news that the firm will produce losses for the calendar year. This news represents a dramatic departure from analysts' expectations for the firm. Should British Aerospace issue shares immediately, before the entire impact of the news is absorbed by investors, or wait? The case can be used to introduce students to the rights-offering method of selling shares of common stock, the principal method of share issuance in Europe. This case is also an excellent vehicle for exploring the moral hazard inherent in the information asymmetry between managers and investors; the situation presented here illustrates the potential for opportunism theorized by Myers and Majluf. The B case (UVA-F-1048) presents the epilogue, in which investors react violently to the adverse news and the announced rights offering. The chairman loses his job; the share price settles at half its former value. Ultimately, this case series permits students to explore the possible definitions of success in securities issuance.

Case Description British Aerospace Plc (A)

Strategic Managment Tools Used in Case Study Analysis of British Aerospace Plc (A)

STEP 1. Problem Identification in British Aerospace Plc (A) case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of British Aerospace Plc (A) case study

STEP 3. Industry Specific / Porter Five Forces Analysis of British Aerospace Plc (A) case study

STEP 4. Evaluating Alternatives / SWOT Analysis of British Aerospace Plc (A) case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis British Aerospace Plc (A) case study

STEP 6. Recommendations British Aerospace Plc (A) case study

STEP 7. Basis of Recommendations for British Aerospace Plc (A) case study

Case Analysis of British Aerospace Plc (A)

British Aerospace Plc (A) is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. British Aerospace Plc (A) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. British Aerospace Plc (A) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. British Aerospace Plc (A) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

British Aerospace Plc (A) case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of British Aerospace Plc (A), is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The British Aerospace Plc (A) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, British Aerospace Plc (A) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – British Aerospace Plc (A)

Step 1 – Problem Identification of British Aerospace Plc (A) - Harvard Business School Case Study

The first step to solve HBR British Aerospace Plc (A) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that News British is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in News British, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the British Aerospace Plc (A).

The external environment analysis of British Aerospace Plc (A) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in British Aerospace Plc (A) case study. PESTEL analysis of " British Aerospace Plc (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with British Aerospace Plc (A) macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for British Aerospace Plc (A)

To do comprehensive PESTEL analysis of case study – British Aerospace Plc (A) , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact British Aerospace Plc (A)

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on British Aerospace Plc (A)

Government policies have significant impact on the business environment of any country. The firm in “ British Aerospace Plc (A) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which News British is operating, firms are required to store customer data within the premises of the country. News British needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. British Aerospace Plc (A) has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, News British in case study British Aerospace Plc (A)" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. News British in case study “ British Aerospace Plc (A) ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, News British in case study “ British Aerospace Plc (A) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on British Aerospace Plc (A)

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ British Aerospace Plc (A) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then News British can compete against other competitors.

Government Scheme & Subsidies Impact on British Aerospace Plc (A)

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at British Aerospace Plc (A) case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on British Aerospace Plc (A)

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – News British needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact British Aerospace Plc (A)

Social Factors that Impact British Aerospace Plc (A)

Technological Factors that Impact British Aerospace Plc (A)

Environmental Factors that Impact British Aerospace Plc (A)

Legal Factors that Impact British Aerospace Plc (A)

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in British Aerospace Plc (A) case study. PESTEL analysis of " British Aerospace Plc (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: British Aerospace Plc (A) case study solution