Airbus is facing an investigation into possible fraudulent financial activities from 2007 to 2010. The company seeks consulting assistance to address ensuing government actions. Airbus designs and manufactures commercial and military aircraft, with over 50% global market share. It has a board of directors and executive committees that oversee regulatory compliance. Key stakeholders include investors, employees, and governments. Currently, Airbus is financially healthy despite the allegations under investigation.

1. Running head: MEMO OVERVIEW 1
MEMO OVERVIEW
2
Memo Overview: Airbus
March 11, 2018
Milestone Two
MBA-665: Government Impact on Business
Southern New Hampshire University
Abstract
This memo addresses the business profile and government
actions as they relate to Airbus corporate governance structure.
Stakeholders, organizational team impact and the current
financial and overall health of the organization and how the
company addressed critical situations is explored.
Table of Contents
Introduction…………………………………………………………
…………………………..…4
Overview………………………………………………………………
…………………………..4

2. Business
Profile…………………………………………………………………
………...4
Governmental
Action…………………………………………………………………
…..6
Organization and
Teams………………………………………………………………….
7
Stakeholders……………………………………………………
……….………………... 9
Current
Environment…………………………………………………………
……….…. 9
Conclusion……………………………………………………………
….………………………10
References…………………………………………………………….
………………………….11
TO: Jack Harris, President Crisis Consulting
FROM: Gerette Bednarz, Vice President, Governmental Affairs
DATE: March 11, 2018
SUBJECT: Company Overview
Introduction
Airbus is currently facing internal and external
investigations into possible fraudulent financial activities from
2007 to 2010. The company is accused of using secret firms and
middlemen while dealing with the British government. These
activities were not known to the Board or executives at the time

3. and known involved parties have since been terminated. The
organization is seeking your consult and assistance to directly
address ensuing government actions.
Overview
Business Profile
Airbus is an international corporation that designs,
manufactures and delivers commercial, private and government
aviation and aerospace product. Corporate locations and plants
span North America, Europe, Asia, Africa and the Middle East
and Australia (Airbus Home, 2018).
The business proposal will be the development, production and
use of an unmanned commercial passenger aircraft that will be
and comprise the entire fleet of an airline also named
AirVahana. The product name is Airbus AirVahana. The aircraft
will be larger, faster and able to travel longer distances and
fueled by sustainable means.
The commercial passenger aircraft market is a highly
competitive a duopoly. Airbus holds about 50% of the market
share, slightly above Boeing (Airbus Home, 2018). Market
entrants in China, Russia and Canada, if successful, are likely
to impact and transform competition in the coming years (Wall,
2017). In addition to market share Global Horizons (Airbus
Home, 2018) forecasts global passenger travel to increase 4.4
per cent annually for the next 20 years, with 35,000 new
passenger and freight aircraft dedicated deliveries and a
potential 5.3 trillion USD revenue over the 20 year period.
As globalization evolves and progresses air travel will be
used more as a means in the corporate world. Also, if the
economy is stable and strong domestically and internationally,
leisure travel will increase. This will be an opportune time for a
faster, sustainable, cost effective and time efficient means to
travel. The plan is for the unmanned fleet and airline
AirVahana to be fully operational by 2023. An important
component in the entire process of introducing new product and
technology into the commercial passenger aircraft market is to
consider current and potential government actions that impact

4. the market and Airbus.
Global terrorism is on threat the company and industry
faces. The public’s reaction to global terrorism can significantly
decrease leisure travel worldwide due to fears of personal safety
and security. If air travel decreases, airlines may not invest in
new aircraft due to a decrease in cash flow and capital.
Another threat to Airbus is the highly competitive market with
Boeing, as explained earlier. Also, if the aircraft does not
acquire Federal Aviation Administration approval, there will
not be an opportunity for an airline that only provides pilotless
flights. Competition with Boeing in the duopoly poses a threat
to Airbus as well. If Boeing launces a product similar to the one
proposed it can alter the direction and plan to extend the
product to an airline service.
Governmental Action
FAA
The concept of flying passengers all over the country in
unmanned commercial aircraft will not be possible without
meeting regulations and standards of agencies such as the
Federal Aviation Administration (FAA). An aircraft cannot fly
commercially in the United States without FAA approval (FAA,
2018). The Airbus A350-1000, for example, received FAA
approval and certification just six months after application
submittal and enduring intensive flight testing in November
2017 (Airbus Home, 2018).
FAA regulations of Unmanned Aircraft Systems (UAS), or
drones, have been developed for vessels that do not carry
passengers. Certified drones are used in the military, privately
and commercially (FAA, 2018). One obstacle unmanned
commercial passenger aircraft like AirVahana and helicopter
passenger drones face is the development of certification and
standards from these entities has yet to occur. Without
certification the aircraft and airlines cannot operate
commercially.
SEC
The Securities and Exchange Commission (SEC) is a federal

5. governmental agency in the United States that provides
oversight for companies and investors in the securities markets.
The SEC works to ensure investors are provided with
meaningful financial information by the public company prior to
investing (SEC Home, 2018). Airbus is a public company and
files with the SEC, providing necessary financial documents and
disclosures for investors. While Airbus is in the process of
developing and launch this new product and airline it is
essential to ensure all necessary financial documents ae filed
with the SEC. If the company fails to comply, there are costly
legal and financial consequences.
Organization and Teams
Airbus’s organizational structure is designed to ensure the
organization is managed in accordance with regulatory laws and
standards and articles of association. This organizational
governance structure includes a board of directors and executive
committee. Corporate structure designed to adapt and change
while managing growth, projects and obligations (Airbus Home,
2018).
Board of Directors and Executive Committees
The Board of Directors for Airbus is required to adhere to
laws associated with the company’s Articles of Association and
is responsible for the management of the company, which is
delegated to the Chief Executive Officer (CEO) to manage and
oversee day to day operations. The Board is also responsible for
ensuring all regulatory laws, articles and standards are met
legally. The Board is comprised of committee to ensure ethical
and regulatory standards are met and in compliance: the Audit
Committee, Ethics and Compliance Committee, The
Remuneration, Nomination and Governance Committee and the
Executive Committee. (Airbus Home, 2018)
The Executive Committee is a group of company
executives tasked with supporting the CEO with day to day
management of the company. The Executive Committee is
comprised of company leaders from key operational
departments: Human Resources, Military Aircraft and Defense,

6. Commercial Aircraft and Helicopters, General Counsel, Airbus
Americas, Commercial Operations, Finance, Procurement and
Airbus China (Airbus Home, 2018).
The Board of Directors and Executive Committee are and
have been essential in ensuring legal and appropriate
investments are disclosed and sought out, defending the
company in legal and liable suits that arise and have arisen, and
compliance and oversight of regulatory standards (Wall, 2018).
One example of the Board’s oversight is the Board’s response to
alleged financial improprieties in 2014; reported publicly
suspended payments to business partners while investigating
compliance infractions through a payment review and disclosure
of the internal investigation and ethical and financial
compliance outcomes and processes (Airbus Home, 2018).
Operational Committees
Operational committees at Airbus are structured to manage
and oversee operations and connectedness of the various sectors
within the company. The Operational Executive Committee is
comprised of leaders from each segment of the company’s
operational structure: Human Resources, Commercial Aircraft,
Strategy and International Relations, Engineering, Programs,
Legal, Industrial, Commercial Aircraft, Commercial,
Procurement, and Financial. The operational Executive
Committee works alongside company subsidiary committees:
Helicopter, Defense and Space, and Commercial Aircraft
divisions. Within the operational structure are teams and
subcommittees, regionally and globally designed to ensure
ethical and financial compliance and adherence to regulatory
and securities laws and standards as well as sharing and
creation of technological and production designs and processes.
(Airbus Home, 2018)
Stakeholders
Internal stakeholders for Airbus include investors,
employees, board of directors and business partners. External

7. stakeholders include customers, consumers that utilize product,
communities, suppliers, vendors, and local and national
governments. One example of stakeholder actions taken to
influence and advocate for Airbus currently taking place. Airbus
is seeking regulatory approval from China to deliver aircraft.
Some obstacles that are slowing the approval process are
political in nature and impact Germany and France operations.
Both German and French leaders have met with China’s leaders
to come to a political agreement in an attempt to perpetuate the
approval process. Internally, top Airbus executives have met
with China’s governmental officials to seek approval. To date
the aircraft have not been released or approved for delivery to
China (Ostrower, 2018). This scenario is one example of how
stakeholders of a global operation are impacted and act in the
best interests of the company.
Current Environment
Full Year 2017 Results (2018) reported, in Euros (EUR),
that the company is financially healthy with 2017 revenues of
67 billion EUR. Net income in 2017 was 2.8 billion EUR, up
from 995 million EUR in 2016. Free cash flow was 3.7 billion
EUR in 2017 an increase from 2016 3.1 billion EUR. Also
reported was an increased order backlog worth 158 billion EUR
of aircraft orders (Full Year 2017 Results, 2018). Stock market
shares have increased to 1.99 USD per share (Airbus SE ADR,
2018).
Response by Airbus Board and executives to address
allegations of fraudulent financial activities was launched in
2017, according to Pegg (2017) and Airbus Home (2018). The
company was allegedly involved in secret deals and money
exchanges from 2007 to 2012 resulting in SEC and other
regulatory investigations (Pegg, 2017). Airbus Board of
Directors separated key personnel involved in the activities as
well as launched a full internal investigation in 2017. The Board
and Airbus has also fully cooperated with the SEC and involved
officials (Airbus Home, 2018).
Conclusion

8. Airbus has to interact operationally and financially with
regulatory and governmental bodies throughout the world. The
organizational structure is implemented to provide checks and
balances as well as to remain attached and informed of business
dealings. There are times that the corporate leaders are not
informed of questionable activities. Governing bodies like the
FAA and SEC provide oversight to ensure regulations and laws
are complied with by the company. Stakeholders impact and are
affected by corporate decisions and activities and have
influenced or attempted to influence government officials in the
certification and approval processes. Currently the organization
is financially healthy despite allegations of fraudulent financial
activities from 2007-2010. The company’s leadership is seeking
consultation assistance in order to maintain and continue
financial health as well as design and manufacturing operations.
References
Airbus Home. (2018). Retrieved from http://www.airbus.com/
Airbus SE ADR. (2018). Retrieved from
https://www.marketwatch.com/investing/stock/eadsy/financials
Federal Aviation Administration. (2018). Retrieved from
https://www.faa.gov/
Full-Year 2017 results: Airbus overachieved on all key
performance indicators. (2018, February 15). Retrieved from
http://company.airbus.com/news-media/press-releases/Airbus-
Group/Financial_Communication/2018/02/AirbusFY2017
Ostrower, J. (2018, January 12). Airbus built a lot of planes for
China last year. Retrieved from
http://money.cnn.com/2018/01/12/news/companies/airbus-china-
certification-delivery-delays/index.html
Pegg, D., & Evans, R. (2017, September 18). Airbus launches
internal corruption investigation after Guardian exposé.

9. Retrieved from
https://www.theguardian.com/business/2017/sep/18/airbus-
launches-internal-corruption-investigation-after-guardian-
expose
SEC Home. (2018). Retrieved from https://www.sec.gov/
Wall, R. (2018, January 13). Airbus Seeks Resolution to
Germany Corruption Probe. Retrieved from
https://www.wsj.com/articles/airbus-seeks-resolution-to-
germany-corruption-probe-1515869310
Wall, R. (2017, July 16). New Jets Threaten Airbus and Boeing
Duopoly. Wall Street Journal. Retrieved from
https://www.wsj.com/articles/new-jets-threaten-airbus-and-
boeing-duopoly-1500202802
Steiner, J., & Steiner, G. (2012). Business, government, and
society. Los Angeles: McGraw Hill.
MBA 665 Final Project Milestone Two Guidelines and Rubric
Prompt: The final project for this course is the creation of an
impact of governmental action on a business paper. For
Milestone Two, you will submit the
Overview section of your final project, which continues
building on what you started in Milestone One to complete
Section I of the final project critical elements.
You will provide the business profile and governmental action,
revised according to feedback received on Milestone One, then
add organization and teams,
stakeholders, and current environment. Be sure to support all
factual claims/positions with appropriate citations to your

10. research materials.
Specifically, the following critical elements must be addressed:
I. Overview: In your role as vice president of governmental
affairs, your boss, the business’s CEO, is considering retaining
an outside consulting firm to
assist the company with a government issue that it is facing.
Jack Harris is the president of that firm, which is called Crisis
Consulting. Jack has told your
boss that he will not know if he can help until he learns more
information about your company and the issue it faces. Your
CEO has asked you to prepare
a memo that will provide a detailed overview of your company
as well as the government action that is it facing. Address the
following:
A. Business Profile: Provide a brief profile of the business and
the industry it occupies, including the business’s market share
and competitors, as
well as opportunities and threats facing the business and
industry outside of the particular governmental action now
facing the business.
B. Governmental Action: Analyze the potential governmental
action or political challenge that will affect the business in this
particular situation.
C. Organization and Teams: Describe the organization of the
company, including divisions and project teams, and the manner
in which the company
has used these teams to respond to government regulations in
the past.
D. Stakeholders: Describe the company’s internal and external
stakeholders. In your description, include the actions taken by

11. the stakeholders to
date to influence the political process and advocate for the
business’s interests.
E. Current Environment: Describe the current business
environment, both financial and otherwise, including the initial
reaction of the company to
the situation and the initial position taken by political actors
and other stakeholders.
Guidelines for Submission: Your paper must be submitted as an
8-10 page Microsoft Word document with double spacing, 12-
point Times New Roman font, one-
inch margins, and sources cited in APA format.
Rubric
Critical Elements Proficient (100%) Needs Improvement (70%)
Not Evident (0%) Value
Overview:
Business Profile
Briefly profiles selected business
and industry it occupies, including
market share, competitors,
opportunities, and threats
Profiles selected business and
industry it occupies, including
market share, competitors,
opportunities, and threats, but

12. response is wordy or vague
Does not profile selected business
and industry it occupies
15
Overview:
Governmental
Action
Accurately analyzes potential
governmental action or political
challenge that will affect business
Analyzes potential governmental
action or political challenge that
will affect business, but with gaps
in accuracy or detail
Does not analyze potential
governmental action or political
challenge that will affect business
15
Overview:
Organization and
Teams
Comprehensively describes the
organization of the company,
including divisions and project
teams, and the manner in which

13. the company has used teams to
respond to past government
regulations
Describes the organization of the
company, including divisions and
project teams, and the manner in
which the company has used teams
to respond to past government
regulations, but description is
cursory or inaccurate
Does not describe the organization
of the company and the manner in
which the company has used teams
to respond to past government
regulations
20
Overview:
Stakeholders
Comprehensively describes
company’s internal and external
stakeholders, including actions
taken by stakeholders to influence
political process and advocate for
business interests
Describes company’s internal and
external stakeholders, including
actions taken by stakeholders to
influence political process and
advocate for business interests, but
description is cursory or inaccurate

14. Does not describe company’s
internal and external stakeholders
20
Overview: Current
Environment
Comprehensively describes current
business environment, including
financial status, initial reaction of
company to situation, and initial
position taken by stakeholders
Describes current business
environment, including financial
status, initial reaction of company
to situation, and initial position
taken by stakeholders, but
description is cursory or inaccurate
Does not describe current business
environment
20
Articulation of
Response
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors

15. related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Total 100%
Running head: STARBUCKS CLOSING STORES DUE TO
MINIMUM WAGE INCREASE 1
TOPIC SELECTION 5
Starbucks’s Corporation and the decision to close Stores due to
increase in Minimum Wage
Carmen Hendrickson
MBA 665 Mod 2
Business Profile
Company Description and Market Share
Starbucks Corporation is an organization that is involved

16. in the development, marketing, retailing, and sale of specialty
coffee. The company has built stores and outlets that provide a
choice of coffee and tea beverages, and premium coffee, tea and
related beverage products. These include packaged roasted
whole beans and ground coffees, a wide range of premium
single-serve and ready-to-drink coffee and tea products, juices
and bottled water (Starbucks Corporation, 2019).The company
also has stores that provide a collection of fresh foods and
snack offerings. In addition, Starbucks generates and sells a
broad range of ready-to-drink beverages, including Frappuccino
coffee drinks. In the last five years, the organization has been
producing soft drink beverages known as Refreshers, and child
multi-serve beverages through several channels, such as grocery
company store outlets.
Starbucks is one of the multinational coffee corporations that
have established their presence in different parts of the world.
Headquartered in Seattle, Washington, the organization has
expanded its operations across different foreign markets. For
instance, the company operates in regions such as Asia Pacific,
Africa, Europe, Middle East, and North America. In 2018, the
organization recorded revenue of $ 24,719.5 million (Starbucks
Corporation, 2019).This figure re[presents a 10.4 percent
increase from 2017. Furthermore, the organization is the leading
coffee brand in the world. As such, its market share is about
21.9 percent. Therefore, the company is the leading player in
the out-of-the-home coffee market.
Opportunities and Threats
Starbucks has various opportunities that provide it with
potentials for growth in the present and the future. These
opportunities include: growing foodservice sector in the United
States, growing presence in the emerging and key Asian
markets, as well as the company’s growing office coffee
marketplace. Indeed, the restaurant sector in the United States is
projected to witness a strong growth. This is especially true for
the restaurant and foodservice sales, which will was estimated
to $800 billion in 2017 alone (Starbucks Corporation, 2019). In

17. addition, Starbucks has been growing and expanding in the
Asian Markets, especially in China and India. The high pace of
economic progressing China has brought with it opportunities
for the company to optimize sales and profits in these target
Asian markets.
There are various threats that threaten to cripple the
organization’s performance and productivity. One such threat
stems from strict government regulations. In the American
market alone, the government has been passing policies that are
geared towards increasing the federal minimum wage (Starbucks
Corporation, 2019).This policy has resulted in increase in the
company’s labor costs. As a consequence, the organization has
been closing down its operations in some of its branches in the
United States. The cost of labor is a vital component in the day-
to-day running of a business. Without labor an organization can
neither produce or sell its products to the target market.
Equally, a high cost of labor makes it impossible for a business
to generate profits. Another potential threat stems from intense
rivalry from other key players that are serving the same market.
The specialty coffee sector is characterized by stiff competition
as firms scramble for the already exhausted market share.
Government Action
In 2018 and 2019, the federal government has been
increasing minimum wage. Presently, the federal minimum wage
stands at $15. In response to this problem, Starbucks reported to
the media that it would close about 150 American stores. This
report happened at a time when voters in Washington voted for
the minimum wage to be increased to $15 (Bartash, 2019). The
targeted zones for closures are mainly in metropolitan areas
where the increments in minimum wage and occupancy, coupled
with other requirements, have the potential to cripple the
company’s operations (Bartash. 2019). However, the
government has cautioned Starbucks not to close down its
stores, stating that such efforts would cause job loss and
increase unemployment rates.

18. ReferencesBartash, J. (2019). Starbucks closures and D.C.
restaurant minimum-wage hike are two sides of same coin.
Market Watch. Retrieved from
https://www.marketwatch.com/story/starbucks-store-closures-
and-dc-restaurant-pay-initiative-are-two-sides-of-the-same-
story-2018-06-20Starbucks Corporation. (2019). Company
profile: Starbucks corporation. Marketline, 1-9.
Running head: STARBUCKS CLOSING STORES DUE TO
MINIMUM WAGE
INCREASE
1
Starbucks’s Corporation and the decision to close Stores due to
increa
se in Minimum Wage
Carmen Hendrickson
MBA 665 Mod 2
Running head: STARBUCKS CLOSING STORES DUE TO

19. MINIMUM WAGE
INCREASE 1
Starbucks’s Corporation and the decision to close Stores due to
increase in Minimum Wage
Carmen Hendrickson
MBA 665 Mod 2