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EADS/AIRBUS: VISION 20201

Rosi Ji, Thorsten Knauer, Momo Schafer Friedrich Sommer and Jil Wehlmann wrote this case solely to provide material for class discussion, The authors do not intend to illustrate either effective or ineffective handling of a managerial situation The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School Western University, London, Ontario, Canada, N6G ON 1, (t) 519.661.3208: (e) cases@ivey.ca, www iveycases.com Copyright © 2014, Richard Ivey School of Business Foundation Version 2014-05-02

On December 5, v„ 2012, EADS announced to the media the upcoming changes to its shareholdin structure and governance.', But despite EM )S's success in reducing governmental influence On its inanztgement. the firm continued to face problems and challenges that needed further consideration. (Ille planned merger with BAE SYstems, which had failed only twoeonths earlier, had delayed EADS's goal of becoming the world's biggest aerospace and defence company) Thus, the chief executive officer (CEO►, tom Filders. and the management team needed to determine the company's next steps to pursue this goal or becoming the worldwide leader in air and space platforms and systems.

In the course of pursuing this goal. EADS's management had already worked out a program called Vision 2020. which defined the compan\ 's challenges, responsibilities and strategic goals. But \■,aS this j,►0.,:ralll still feasible? Would it be enough? Airbus played a critical role in EADS's business.' \\ irh its contribution of two-thirds of the company's revenue in the past year, .Airbus had functioned as DS's primary source of success. The firm's high dependency on that revenue seemed to increase the impact that might result from the current production issues at Airbus.' Additionally, Eurocopter had also been tacitly, production and quality issues.6 As if these problems were not enough, Enders also needed to consider the current corruption investigation, which once again (as it did after the 2t)07 corruption scandal) was casting a shadow over the defence industry.

ABOUT EADS N.V.

Historical Background 1 he idea of an integrated 1-..uropcan aerospace company began in the 1990s .and rkas a response to the consolidation process taking place in the U.S. aerospace industry, European uoverninents inented EtIrOpealt aerospace industr■ could no hmger and delence-industr> executives agreed that a trag he competitive in the viorld ranee, The international merger plan started vkith the intention by the ft.r "Airbu. oetmow, and ()teat Britain -- to form the intevrated European Aerospace wid Delence ompany. ( A DC' ) 1 he intet.,.ratioil of. A iihki;s production activities into one independent Airbti,. eon-wan> was

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