All Theses, Dissertations, and Capstone Projects

Year of Award

1991

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

government, aerospace, contract, development

Abstract

With the demise of the military threat to most of the free world, the aerospace companies are faced with the removal of large sources of capital to fund research and development. One of the ways to circumvent this problem is for the various companies to form consortiums to pool their money and talents to get the most for the dollar. With this procedure, there are many potential problem areas that can develop. There are the problems that can occur when the two different continents try to exchange data and engineering drawings that have been developed on separate computer ’ systems and- different measuring systems (Metric versus English). The division of the workshare is another area where there can be difficulties. This would be the result of the self-esteem that plagues every corporation when it comes to solving the problem of who will lead the team in their endeavors. With this goes the prestige and admiration of the rest of the industry and could cause potential trouble down the road for the consortium leader. In every project, labor issues seem to surface. • In this arena, it is no different. Every country in the world, let alone regions of a country, there are different work ethics. This can be the month long vacation in Germany, "tea time" in Great Britain, to the different labor contracts that every union negotiates in the United States.

As with every contract, there will be disputes in the interpretation of the requirements. The effect of law suits and the World Court are far reaching in the day to day workings of the multinational consortium. And with contracts, there must also be payments. The monetary standards that are to be used in the fulfillment of the contract can be disastrous to a corporation that is on an unsteady base.

After the agreement to co-develop a project, there now comes a new set of issues that can effect the consortium. Things such as marketing the product, what international regulations govern which countries, the transfer of technology from a developed corporation to another that is in need of the technology to become a player, in the world market, to finally, can the governments of the member consortiums lend a hand to unbalance the scales in favor of their respected companies?

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