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The Development of the Firms Profitability

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More specifically, although the rate of increase of the firm’s performance is extremely high, the challenges that the industry faced the last years especially under the events of September 11th in the USA have created severe obstacles towards the stabilization of growth of the firms operating in the specific industry. For this reason, a series of measures are proposed through this paper in order to help towards the improvement of the firm’s performance mainly through the alteration of existing practices. The current firm’s practices are analytically examined and explained trying to identify the reasons for the delay in the firm’s further growth. Finally, appropriate theoretical models are proposed as their application could help towards the increase of the firm’s profitability. In any case, it should be noticed that the current position of Airbus in its market is considered to be satisfactory. however appropriate measures need to be taken in order for the firm to secure its existence in the industry in the long term.

The development of the firm’s profitability within the modern market is usually depended on a series of factors. Generally, it is noticed by Schuler et al. (1998, p.159) that all firms should take into consideration the following issues when developing their strategic plans: ‘a) the business structure, b) the legislative and employment relationship context, c) the patterns of HRM competence and decision-making and d) the national culture’. From a different point of view, it is suggested by Pritsker (1997, 32) that ‘industry analysis typically focuses on a company’s external dimensions such as its markets, customers, and competitors’. The above view refers especially to industry analysis as part of the corporate planning procedure. In fact, before formulating its strategic plan, any firm within the&nbsp.modern market has to proceed to the appropriate examination and analysis of each environment (internal and external).