Global Strategy
INSTRUCTIONS
Reports submitted should be in either MS word or pdf format.
COMAC- The Commercial Aircraft Corporation of China,
No company exists in a vacuum; each is part of an ecosystem.”
― Steven J. Bowen, Total Value Optimization: Transforming Your Global Business
OVERVIEW OF COMAC
Mission: To let China-made large aircraft fly in the blue sky.
Vision: To deliver safer, cost-effective, comfortable and environment-friendly commercial aircraft.
Commercial Aircraft Corporation of China, Ltd. (COMAC) functions as the main vehicle in implementing large passenger aircraft PROGRAMS in China. It is also mandated with the overall planning of developing trunk liner and regional jet programs and realizing the industrialization of civil aircraft in China. COMAC is engaged in the research, manufacture and flight tests of civil aircraft and related products, as well as marketing, servicing, leasing and operations of civil aircraft.
COMAC, headquartered in Shanghai, was founded on May 11th, 2008. It is jointly invested by State-Owned Assets Supervision and Administration Commission (SASAC) of the State Council, Shanghai Guo Sheng (Group) Co., Ltd., Aviation Industry Corporation of China (AVIC), Aluminum Corporation of China Limited (CHALCO), China Baowu Steel Group Corporation Limited, and Sinochem Corporation. At the end of 2018, new shareholder units including China National Building Materials Group Co., Ltd. (CNBM), China Electronics Technology Group Corporation (CETC), and China Reform Holdings Corporation Ltd. joined in. The present Secretary of the Party Committee and Chairman of the Company is Mr. He Dongfeng, and the present Deputy Secretary of the Party Committee and President of the Company is Mr. Zhao Yuerang.
COMAC owns the following member organizations: Design and Research Center (Shanghai Aircraft Design and Research Institute), Assembly Manufacturing Center (Shanghai Aircraft Manufacturing Co., Ltd.), Customer Service Center (Shanghai Aircraft Customer Service Co., Ltd.), Beijing Research Center (Beijing Aeronautical Science & Technology Research Institute), COMAC Flight Test Center, Capability & Supporting Center (Shanghai Aviation Industrial (Group) Co., Ltd.), Press Center (Shanghai Commercial Aircraft Magazine Co., Ltd.), COMAC University (Party School of COMAC Committee of CPC), COMAC Sichuan, American Corporation, COMAC Capital Co., Ltd., and COMAC Finance Limited Liability Company. The company also has its American Office and European Office in Los Angeles and Paris respectively. COMAC is a shareholder of China-Russia Commercial Aircraft International Co., Ltd., Chengdu Airlines Co., Ltd. and SPDBank Financial Leasing Co., Ltd.
TASK
COMAC has been at the forefront of establishing a viable business in a highly competitive market. As a company it is uniquely placed to design and execute one- This notwithstanding the firm has faced several challenges over the years in its quest to attain relevant success. To this end, provide a 2000-word report that offers them a clear path for continued growth post 2021. The recommendations must critically evaluate the following:-
• Examine the strategic Vision of the Firm
• Analyze the type of aircraft selected as the initial product- Why?
• Examine the internal capabilities of the firm
• Explore the supply chain- understand the nature of the commercial contracts
• Technological transfer: where parts would be designed and built
• Who the customers? Is there a particular growth plan- if so, what is it?
• Explore the dynamics of the industry- how do competitors grow their business?
• Examine the sales funnel dynamics- what time leads are there on the order books?
• How does this affect Comac’s strategy?
• Examine the issues of pilots- operational issues- training, certification etc.
• Explore geopolitical issues- aligned to competition, government regulation etc.
Note-
Avoid descriptive narratives- Endeavour to develop analytical arguments that blend theoretical concepts and practical interpretations
Acknowledge or ensure you demonstrate an understanding of the sector
Use a critical lens throughout the report and offer meaningful recommendations.
ACADEMIC INTEGRITY
Any work submitted by a student in this course for academic credit must be the student’s own work. If you present, as your own idea, any material copied, paraphrased, or extensively drawn upon, you are plagiarizing—unless you give full citations for your sources. Of course, you may make full use of ideas, arguments and information obtained from books etc. but you must make clear which portion of your paper is not your own and provide a detailed reference to the original source.
Assignments which violate Hult’s Honor code may not be revised. In the first instance of plagiarism, the plagiarized assessment will be given a grade of zero and will result in automatic Disciplinary Probation. You may also be required to rewrite the plagiarized assignment for no additional credit.
Subsequent violations of the Honor code are assessed on a case by case basis before the Academic Standards Committee and may result in sanctions up to and including dismissal from the program.
You are responsible for ensuring that you have read and understood the section entitled “Academic Integrity” in the Student Handbook. If you have any questions about that material, please speak to your instructor.