Gulfstream G650 Program Research Paper Example | Topics and Well Written Essays - 3000 words

Gulfstream G650 Program - Research Paper Example The airline industry is growing rapidly in the globalised business environment.With advancement of technology,modes of transportation have improved significantly.In the global village,transportation and communications occupies a key position in the business front as well as in the personal lives of individuals. Hence, the private jet sector is expanding rapidly. A number of companies are competing steeply with one another in the international market. In this paper, the case of Gulfstream Aerospace Corporation has been presented with reference to the benefits accrued to the company by adopting activity based costing strategies. The research design provides an overview of the pattern of research made in this paper. Research design is the basic framework that is used to collect information and evidence for exploring the research question (Bryman & Bell, 2007). In this research, the deductive approach to research has been adopted, in which the researcher studies theories existing on the benefits of activity based costing and verifies them by testing them in the context of a selected airline company.Secondary data for the study has been collected from existing sources, such as newspapers, magazine articles and company annual reports published in the print media as well as on the internet. It has also been explored in this paper whether the company would benefit by using standard costs and its consequence in international business scenario. This paper also provides an over view on how decision making in the firm is affected by these approach to measure costs. The factors that encourage incorporation of standard cost in the company’s costing structure have been discussed. Implications of standard cost on price variance and quantity variance have been explored. Benefits of expansion, consolidation and downsizing for the firm have been explained in the paper. Finally, it has been discussed how the firm might benefit by implementing the relevant method of costing in its future projects. Company background Gulfstream Aerospace Corporation is one leading airlines service provider in the United States. It is a subsidiary firm of General Dynamics (Gulfstream, 2012). Gulfstream is one segment of the parent company; the four main segments of the company are aerospace, marine systems, combat systems and information systems and technology. Gulfstream designs, develops, manufactures and sells some of the most technologically-advanced jet aircrafts (Gulfstream, 2012). The aircrafts are designed for both commercial and also defense purposes. Besides innovating, designing and manufacturing their own vehicles, the company also has pre-owned aircrafts that it lets out to customers for contract ownership. The company has its headquarters in Virginia, but operates in several countries across the world. Some of the best skills and talents from different countries are possessed by Gulfstream. More than 11,500 people employees work with Gulfstream in 11 locati ons in different countries. The company is a market leader in all the segments in which it operates. Gulfstream has reached this position by following a disciplined approach towards growth. The company has developed its profile very carefully and selected its product and service portfolio in sync with its target markets. It