buy custom Textron Aviation Company essay

buy custom Textron Aviation Company essay History of Textron Aviation under One Banner after Merging With Beechcraft and Cessna Textron is an American aircraft company that was strengthened economically after the economic merger of Beechcraft and Cessna incorporations. Immediately after these companies merged together, they began to fly under one banner Textron Aviation. Business that related to the Beechcraft and Cessna were halted on March, 2014 since the two companies had worked under one umbrella. These companies brought together a combined more than 200 years of experience in aviation. This fact was enough to market a combined customer base that exceeded total number of plane that exceeded 250,000 globally. The combined total revenue of Beech and Cessna added up to around $4.6 billion in the 2013. Fruition of the merging process meant that the new founded Textron Aviation possessed the capability of a robust competitor in the Aviation industry. Equity totaling to an approximate of $1.4 billion were bought by the new Textron Aviation from the Beech Holdings (Pope, Par.2). The Structural Formation of Textron Aviation The structure of the Textron can be defined as a conglomerate of various aviation companies. Some of these companies include the E-Z-GO, Bell Helicopters, Cessna Aircrafts, and Greenlee. Textron was established in the 1923 before it merged with the other companies to form the banner aviation company. Its headquarters are located at Rhodes Island in Textron Towers in United States of America. Its total revenue is estimated to be $14.2 billion. It can be said to be a multinational aviation company that has made an investment to over 29 countries with an approximate of over 37,000 employees. The company was ranked at position number 220 according to the Fortune magazine in the year 2010 (Shetty, par.1). Supply And Demand of Textron Aviation Upon merging of Beech incorporation and the Textron Company to join Textron there was consolidation of United States aviation industry. There was a strong calculation move of controlling supply and demand within the aviation industry not only in American but also globally. Demand of Textron is usually quite high in Europe due to its global appeal of hot and high. Moreover, it is famous for its high speed as well as for comfort ability to its passengers. It capability to operate in mountainous among others remote areas on a global basis and helped rise global appeal, consequently, increasing its demand. It is for a reason that it has established itself as the ideal answer for people who want to travel safely with their cargoes. Textron is able to provide its customers with the largest aviation service in general globally. It has supplied its customer with over 200,000 aircrafts. These include 155,000 airplanes that piston that s single spaced. Caravan supply ranges to a total of 2,200 while military jets are estimated to be 1,000. Business jets are cited to be ranging from 6,000-6,600 in number. This fact makes Textron aviation the most efficient aviation companies in terms of supplying private jets. Its service networks of aviation add up to more than 15 citation centers of services. In addition, it has more than 42 service platforms that are mobile. Its complacent authorities are distributed among 25 countries and above. The record was broken during the year 2013 when visits in the mobile services surpassed a record of 10,000. The strong supply chain of this company has helped to raise its global appeal hence raising its demand. Beechcraft aviation supply and demand cannot be somewhere comparable to that of Textron. The company has been struggling from bankruptcy and for this reason it had to merge with Textron to form the overall banner of aviation. In the 2012, the company thought of selling its property completely. However, the plan did not succeed, a move that prompted them to be ordered to cease from producing jets. This depicts the Beech aviation as one of those that had less global appeal iin terms of providing aviation services. Therefore, the indication is that after the two company merged to form the Textron aviation, there is an extremely high possibility of forming a single aviation body that has global appeal. The new body is capable of responding to the ever increasing demand of global services through supplying of quality services and aircrafts (Siebemmark, par. 16). Externalities Threats Facing Textron Aviation There are various externalities that have continued to affected operation of the Textron Aviation. For instance, its capitation was changed by recent great recession. The aviation reacted to this by cutting down its workforce by an extremely great percentage. This was especially felt in the midsize and light markets of business-jets. Another major externality blow was the Boeings decision to close its defense facility locally. The incidence affected the profit level of the aviation company. However, with the finalization of the merging, the company expected to registered tremendous improvement in the future. The management expected the merger company to act as a giant aviation company that withers any negative effect of the merger company (McCoy, par. 7). Textron Aviation Cost Structure According to Trimble Textron AirLand Scorpion launched unsolicited demonstrators. They were offered to the military at low-cost. Acquisition of a scorpion is priced at $20 million. Operating cost for operating these planes is targeted to go up to $3,000. Hence, his depicts a great reduction of the same cost by a total of $9,000 from the previous plane. Fairchild Republic operated at a total cost of $12,000 on an hourly basis. The decision of Textron to purchase Beechcraft came with thoughts of optimization and restructuring of costs (McMillin, par.8). The management team agreed that there was a need to carry out constructive strategies that could lead to lower its operating cost while in unison increasing its profit. Buy custom Textron Aviation Company essay