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MGMT 436 Module 9.3 | Embraer S.A.: Strategic Audit Report | 2025 Update with complete
solution.
Embraer S.A.: Strategic Audit Report
Luke Stone
Embry-Riddle Aeronautical University
Strategic Management – MGMT 436
Professor Dr. Patricia Smaltz
March 16, 2025
, 2
Embraer S.A.: Strategic Audit Report
I – Executive Summary
Executive Summary
The provided analysis of Embraer S.A. (EMB) highlights a dynamic and adaptive
organization that has successfully transformed its business model in response to evolving market
conditions. Embraer has shown exceptional agility in shifting its focus from traditional domestic
government contracts to addressing global market demands and ensuring all their products are
“unveiled for the civil market” (Pandey, 2017). The company's pivot toward regional and charter
aircraft, particularly targeting emerging markets in Asia, Africa, and Latin America, has allowed
it to capture niche opportunities overlooked by major competitors such as Boeing and Airbus.
Recent financial metrics paint a picture of a growing turnaround with long-term upward
trajectory. Most notably, the 150 percent increase in stock price and 14 percent rise in aircraft
deliveries in 2024 reflect strong investor confidence and operational success (Lucena, 2024).
Enhanced performance in the defense and executive sectors further emphasizes the company’s
diverse revenue streams and market resilience. EMB’s success is also attributed to its integrated
approach to operational controls and its commitment to innovation. By leveraging lean
manufacturing principles, advanced digital systems like SAP Analytics Cloud, and a culture that
promotes continuous improvement, Embraer has significantly enhanced its efficiency and quality
control (SAP, n.d.).
The review reveals a corporate culture deeply rooted in innovation, technical excellence,
and employee empowerment. EMB’s internal training programs and strategic initiatives, such as
the Embraer Design Program (Embraer, 2025) or their energized Global Procurement initiative
(Embraer, 2023), are reflective of a company that not only adapts to but also anticipates market
, 3
trends. Overall, the findings present Embraer as a well-positioned industry leader with a
balanced focus on strategic market penetration, robust financial health, and operational
innovation.
Introduction/Overview
Embraer S.A. is a multinational aerospace corporation headquartered in Sao Paulo,
Brazil. The company was founded in 1969 as an effort by the Brazilian government to bolster
their national aerospace infrastructure (Jackson, 2015). EMB’s early workload consisted solely
of domestic government contracts, and the company did not enter the foreign market until 1975.
Since then, Embraer has taken a large chunk out of the global commercial aircraft market, often
finding themselves in the top five in aircraft sales globally (Cheema, 2024). In 2017, over half of
the regional commercial aircraft in the world were manufactured by Embraer (Costa & Prates,
2018).
Near the turn of the century, Embraer started to center their attention towards regional
and charter aircraft. As American interests and military presences increased in the Middle East,
site of many foreign EMB aircraft users, Embraer was met with a drastic decrease in orders
(Organisation for Economic Co-operation and Development, 2007). Embraer began to target
regional and low-cost airliners looking for efficient, lower- and medium-capacity aircraft. By
paying attention to countries like Portugal, Singapore, and Mozambique Embraer identified and
focused on niche markets which were under-served by larger competitors like Boeing and Airbus
(TradersHuddle, 2011). Embraer successfully positioned itself as a global leader in affordable,
scalable solutions for regional connectivity.
Embraer’s success in strategic management lies in its ability to adapt, occupy niche
markets, and innovate across product lines. The aviation staples have prioritized understanding
MGMT 436 Module 9.3 | Embraer S.A.: Strategic Audit Report | 2025 Update with complete
solution.
Embraer S.A.: Strategic Audit Report
Luke Stone
Embry-Riddle Aeronautical University
Strategic Management – MGMT 436
Professor Dr. Patricia Smaltz
March 16, 2025
, 2
Embraer S.A.: Strategic Audit Report
I – Executive Summary
Executive Summary
The provided analysis of Embraer S.A. (EMB) highlights a dynamic and adaptive
organization that has successfully transformed its business model in response to evolving market
conditions. Embraer has shown exceptional agility in shifting its focus from traditional domestic
government contracts to addressing global market demands and ensuring all their products are
“unveiled for the civil market” (Pandey, 2017). The company's pivot toward regional and charter
aircraft, particularly targeting emerging markets in Asia, Africa, and Latin America, has allowed
it to capture niche opportunities overlooked by major competitors such as Boeing and Airbus.
Recent financial metrics paint a picture of a growing turnaround with long-term upward
trajectory. Most notably, the 150 percent increase in stock price and 14 percent rise in aircraft
deliveries in 2024 reflect strong investor confidence and operational success (Lucena, 2024).
Enhanced performance in the defense and executive sectors further emphasizes the company’s
diverse revenue streams and market resilience. EMB’s success is also attributed to its integrated
approach to operational controls and its commitment to innovation. By leveraging lean
manufacturing principles, advanced digital systems like SAP Analytics Cloud, and a culture that
promotes continuous improvement, Embraer has significantly enhanced its efficiency and quality
control (SAP, n.d.).
The review reveals a corporate culture deeply rooted in innovation, technical excellence,
and employee empowerment. EMB’s internal training programs and strategic initiatives, such as
the Embraer Design Program (Embraer, 2025) or their energized Global Procurement initiative
(Embraer, 2023), are reflective of a company that not only adapts to but also anticipates market
, 3
trends. Overall, the findings present Embraer as a well-positioned industry leader with a
balanced focus on strategic market penetration, robust financial health, and operational
innovation.
Introduction/Overview
Embraer S.A. is a multinational aerospace corporation headquartered in Sao Paulo,
Brazil. The company was founded in 1969 as an effort by the Brazilian government to bolster
their national aerospace infrastructure (Jackson, 2015). EMB’s early workload consisted solely
of domestic government contracts, and the company did not enter the foreign market until 1975.
Since then, Embraer has taken a large chunk out of the global commercial aircraft market, often
finding themselves in the top five in aircraft sales globally (Cheema, 2024). In 2017, over half of
the regional commercial aircraft in the world were manufactured by Embraer (Costa & Prates,
2018).
Near the turn of the century, Embraer started to center their attention towards regional
and charter aircraft. As American interests and military presences increased in the Middle East,
site of many foreign EMB aircraft users, Embraer was met with a drastic decrease in orders
(Organisation for Economic Co-operation and Development, 2007). Embraer began to target
regional and low-cost airliners looking for efficient, lower- and medium-capacity aircraft. By
paying attention to countries like Portugal, Singapore, and Mozambique Embraer identified and
focused on niche markets which were under-served by larger competitors like Boeing and Airbus
(TradersHuddle, 2011). Embraer successfully positioned itself as a global leader in affordable,
scalable solutions for regional connectivity.
Embraer’s success in strategic management lies in its ability to adapt, occupy niche
markets, and innovate across product lines. The aviation staples have prioritized understanding
