Chapter 1, Problem 2CDQ

Summary Introduction

Case summary:

The case deals with building of Airliner B 787. Company B is the largest exporter in Country U and they are building the largest aircraft. Forty five years ago, the largest parts of the aircraft is manufactured by three companies. For Airliner B 787, 65 percent of the value of the aircraft is produced by 50 outside suppliers around the world.

Company B would do all the engineering design, final assembly, and marketing and sales by itself and they could approach a supplier for these kind of activities. The case further deals with the outsourcing techniques of Company B and the risks and benefits associated with the process.

To determine: The potential costs and risks of outsourcing to Company B.

Introduction:

Globalization is the process used by the company to influence their business internationally and the process of doing business globally.