This is an evaluation of Embraer's global strategies and structure, written from an international business strategy standpoint. The presentation is meant to supplement a written analysis (available at www.scribd.com/jessekedy)

1. © 2007, Jesse Kedy

2. The Aircraft Production Industry
Challenges (1/2)
• Technological
– Weight & Volume Restrictions
– Balance state-of-the-art tech with cost restrictions
• Regulatory
– Separate certification from each importing country
© 2007, Jesse Kedy

3. The Aircraft Production Industry
Challenges (2/2)
• Strategic
– Long time-to-market (need near flawless planning)
– Global flexibility (variations in the airline industry)
• Competitive (Governmental Support)
– Other National Champions (key employers)
– Able to compete on price (regardless of efficiency)
© 2007, Jesse Kedy

4. Embraer: Core Competencies (1/2)
Truly Global Truly Innovative
• 95% International Sales • Forecasted Demand
• Global Operations • Double Bubble Design
Truly Efficient Underdog Tenacity
• Wages • Ugly Duckling
• China Facility • Entrepreneurialism
• Common Platforms • Underestimated
© 2007, Jesse Kedy

5. Embraer: Core Competencies (1/2)
Truly Truly
Global Innovative
Truly Truly
Efficient Tenacious
© 2007, Jesse Kedy

6. Embraer: Global Strategy
2 Dimensions
Business Drivers Corporate Culture
(Hard Strategy) (Soft Strategy)
1. Growth (Capital) 1. Local Compliance
2. Operations (New Market 2. Customer Focus
Presence) 3. Transparency
3. Strategic Markets 4. Recognition
(Executive Aviation) 5. Result Sharing
4. Partnerships 6. Social Responsibility
© 2007, Jesse Kedy

7. Industry Competitiveness
Aircraft Manufacturing (1/5)
Global
Integration
•Not Very Responsive
•Least Innovative
•Most Globally
Integrated
Product Local
Innovation Responsiveness
© 2007, Jesse Kedy

8. Industry Competitiveness
Aircraft Manufacturing (2/5)
Global
Integration
•Not Very Responsive
•Somewhat Innovative
•Highly globally
integrated
Product Local
Innovation Responsiveness
© 2007, Jesse Kedy

9. Industry Competitiveness
Aircraft Manufacturing (3/5)
Global
Integration
•Not Very Responsive
•Slightly Innovative
•Somewhat Globally
Integrated
Product Local
Innovation Responsiveness
© 2007, Jesse Kedy

10. Industry Competitiveness
Aircraft Manufacturing (4/5)
Global
Integration
•Most Responsive
•Most Innovative
•Working towards
Global Integration
Product Local
Innovation Responsiveness
© 2007, Jesse Kedy

11. Industry Competitiveness
Aircraft Manufacturing (5/5)
Global
Integration
Product Local
Innovation Responsiveness
© 2007, Jesse Kedy

12. Embraer Customers (170/190 model)
© 2007, Jesse Kedy