...1.0 Back ground of the study America and China are two major names in the business industry. Both of it have their own character and ways in handling the business. Understanding the cultural background of these two countries will help us understands the style of each countries in managing the leadership culture. Due to globalization, organizations face many changes. It is such as changes in behaviour and technology. Steffi Biester had said that “Value the differences but also discover the similarities and then learn from one another, start to understand each other and start to change perspectives.” Leaders need to change their style for a certain purpose. By investigating two different cultures, we can see the ways that the organizations adapt the culture in their organization. It is important for multinational companies (MNCs) to be knowledgeable and improve their working strategy to stay in the right side with the cultural changes. 2.0 Introduction to Leadership And Culture Leadership come from the word leader which means an individual who are the leaders in an organization. Leadership also is the process of influencing the members of the organization. It may involve goal setting and become the person who give information and guide the employees in achieving those goals. In the process of achieving goals, the leader must lead the employees to make sure they are in the right path in doing their task. A quote from John Maxwell, “Leader become great not because of their...
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...ITT Tech Group Dynamics – Virtual Library Assignment The nonprofit Partnership for Public Service and The Washington Post's On Leadership site jointly produce the Federal Coach, hosted by Tom Fox, director of the partnership's Center for Government Leadership. The goal is to "engage, inspire and learn from you, the federal worker, whether you are a new hire, a contractor or a manager at the highest level." What kids can teach us about leadership Every Friday during the summer, the author of the article and his wife has a massive pizza party with our neighbors; it's as much for the adults as for the kids. As the author is usually getting home from work; he is not yet in weekend mode so he sits and analyzes the group dynamics of about two dozen kids. As a result, I find myself analyzing the group dynamics among the dozen or so neighborhood kids playing together. You might think that the oldest kids run the group, or perhaps the most vocal and outgoing kids are the leaders. In reality, a different leader surfaces weekly, and the author realized that there may be something to learn about leadership from these kids. Given that much of leadership in government is peer leadership and more than command-and-control, here are some lessons learned on how to best lead your peers. First off, one of the kids usually steps up to take responsibility for coming up with ideas among the group. According to the author, to see a group of kids, all younger than 10, facilitate a brainstorm...
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...------------------------------------------------- American airlines leadership American Airlines Leadership American Airlines has a very unique history being the first “major airline” in the United States. The original name of the company was American Airways, which was conceived through the acquisition of 80 different airlines in 1930. The smaller airlines that were acquired included, Southern Air Transport in Texas, Southern Air Fast Express (SAFE) in the western United States, Universal Aviation in the Midwest, amongst a few others. With the airlines working under one name they were able to provide a much simpler way to travel and like many early carriers then, American earned it’s the most by carrying U.S. Mail. By 1933 American Airways operated a transcontinental route network serving 72 cities. In 1934 American Airlines was created by E.L. Cord who acquired American Airways and renamed it. The new owner, E.L Cord, hired C. R. Smith a Texas businessman. Smith began to work Donald Douglas in a project where they would pioneer a new phase of airline industry. Smith and Douglas worked and developed the DC-3, exclusively for American Airlines. This new plane was known as the flagships and the American Airlines’ DC-3 allowed for the company to be made the first airline to be able to operate a route that could earn a profit solely by transporting passengers, instead of relying solely in mail transportation. American Airlines was not only the first to profit from...
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...decision to merge or to acquire / be acquired was made. The two airlines American Airlines and US Airways merged on December 9th, 2013 to form the American Airline Group that became the biggest airline in the world. This merger was formed by the increased competition that airlines are facing in the business today. The merger presented an opportunity for both airlines to exploit the benefits of an extended network that would result after merging as opposed to when each operates independently. One of the main circumstances that surrounded the merger was the impending bankruptcy of American Airlines. The company had filed for bankruptcy in 2011 although it reverted to profitability in July the same year. The merger would increase access to business opportunities for both airlines, especially American Airlines that would reduce its exposure to financial risks, which was the initial cause for the company filing for bankruptcy. The merger would create increased synergies that would be evident through increased financial strength and flexibility in the market (DePamphilis, 2008). Each of the merged entities would have access to more destinations and larger clientele. Each of them would access an increased network of destinations i.e. 330 destinations around the world. They also had a code share agreement where customers would seamlessly book their flights from either American Airlines or US Airways networks. Such leverages are an improvement to each of the airline’s capability and...
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...The main cause that makes a company have to make changes is the external environment. It usually forces organizations to make changes to its mission, culture, leadership, and operating strategies. Changes in the 12 drivers bring a series of change to the overall structure. Changing anyone of the 12 “pillars” will influence the adjoining ones. But, changing the entire structure may or may not affect the entire system. These changes are influenced by the motivation of the individuals. They will impact the change to the entire organization. They all interact with each driver on the model. The Burke-Litwin Model has these basic parts that make up an overall change for a company. Change effect one part and then affect the overall performance of the model. 1. External environment: The key external cause on the organization must be identified and clearly established. 2. Mission and Strategy: The overall “vision” should be seen through the eyes of the employee. 3. Leadership: Leadership should be understood. 4. Organizational Culture: This should understand implied rules, regulations, customs, principles, and values. 5. Structure: The function based structure should be understood, such as responsibility, authority, communication, decision, making, and control structure. 6. Systems: This includes all the policies and procedures. 7. Management Practices: How the management accepts and conforms to the overall concept of the organizations strategy. ...
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...Case on- US Airways Cost Structure US Airways Corporation (formerly US Air) was formed with the merger of several diverse regional airlines including Allegheny Airlines, Mohawk Airlines, Lake Central Airlines, Pacific Southwest Airlines and Piedmont Airlines. The mergers that ultimately led to the establishment of US Airways did not come without difficulties. US Airways possesses a diverse fleet of aircraft, unlike the much more successful Southwest Airlines, which flies only one type of plane, the Boeing 737. US Airways’ diversity results in higher costs of maintenance and crew training and in a much more complex crew scheduling problem.Because of the traditionally week competition in its Northeast market stronghold, US Airways had the highest yield in the airline industry in 1993. The combination of high yields and very high costs per available seat mile invited competition. With the cloud of a potential bankruptcy hanging over it, US Airways looked for ways to control its costs in order to restore its financial health. Cost control is a difficult problem in any corporation. It is, however, especially difficult in a capital-intensive industry such as this. Case on- Rising Marginal Cost of 747s Boeing and Airbus provide all the wide-bodied jets the world needs. Boeing 747, 767 and 777s typically have a 60-70 percent share of the worldwide market, but Airbus accepted the majority of the new orders in 1994-1995 and doubled their output rate from 126 to 232 planes per year...
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...new E190 planes. The CEO, David Barger must decide on the best way to slow down the capacity growth of the airlines, so that the company won't grow itself to death. External Environment Industry The airline industry is a part of the overall transportation industry and it encompasses of low-cost carriers (LCC) and legacy carriers. JetBlue mainly compete in the category of low-cost carriers and it conducts both domestic and regional operations. It is a very competitive industry to enter or exit because of the expensive nature of the industry. A firm that tries to enter the industry will have to make substantial capital investments in order to compete in the industry Key Success Factors * Cost leadership - Cost leadership in this industry is vital. By obtaining cost leadership, an airline is able to offer its customers lower rates. * Customer service - Offering an excellent customer service is crucial in the airline industry. This also includes trying to accommodate all customer needs and wants, in relation to his/her travel requirements. * Employee relations - A firm's human capital can be considered the most important resources of that firm. Employees are in charge of making sure that the company functions properly. It is the duty of the company to educate the workforce and it is the responsibility of the employee to be knowledgeable in his/her area of work. * High utilization of planes - An airline company to be successful, needs to utilize all its planes...
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...biggest airline in Germany- Lufthansa is one of the leading airline companies in the world, but it suffered from the danger of bankruptcy in 1991. However, the flexible strategic change programs made it survive. Thus, the implementation and effects of those programs are obviously attractive and deserve further study. Moreover, current business environment is full of opportunities and challenges, which poses Lufthansa to identify relative challenges and adopt some reaction to respond. Therefore, this report will discuss two parts: one is strategic change programs and the other is current strategic challenges for Lufthansa. In the first part, it will evaluate the strategic change programs which Lufthansa applied and also cover the effects of leadership and politics. The second part of this report will analyse the strategic challenges for Lufthansa based on current and future business environment. I. Strategic changes for Lufthansa Strategy is argued to be a useful tool for an organization to achieve its target in the long term, and its contribution to development of the organization is evident. However, it is impossible to use one strategy to respond the changeable demand due to the dynamic external environment, so the organization should change their strategies to adapt the market. 1. Strategic change program According to Balogun and Hailey (1999), reconstruction is one of strategic changes for organizations, and it “may be rapid and could involve a good deal of...
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...Merger between American Airlines and US Airways The two airlines American Airlines and US Airways merged on December 9th, 2013 to form the American Airline Group that became the biggest airline in the world. This merger was formed by the increased competition that airlines are facing in the business today. The merger presented an opportunity for both airlines to exploit the benefits of an extended network that would result after merging as opposed to when each operates independently. One of the main circumstances that surrounded the merger was the impending bankruptcy of American Airlines. The company had filed for bankruptcy in 2011 although it reverted to profitability in July the same year. The merger would increase access to business opportunities for both airlines, especially American Airlines that would reduce its exposure to financial risks, which was the initial cause for the company filing for bankruptcy. The merger would create increased synergies that would be evident through increased financial strength and flexibility in the market (DePamphilis, 2008). Each of the merged entities would have access to more destinations and larger clientele. Each of them would access an increased network of destinations i.e. 330 destinations around the world. They also had a code share agreement where customers would seamlessly book their flights from either American Airlines or US Airways networks. Such leverages are an improvement to each of the airline’s capability and results...
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...his house and using up his savings. He also brought-in three of his associates that is Datuk Pahamin A. Rajab, Abdul Aziz Abu Bakar and Kamarudin Meranun to start a low cost airline in Malaysia. Tony with the three as mentioned formed a partnership and set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00 with RM40 million worth of debts. AirAsia was remodeled into a low cost carrier and by January 2002, their vision to make air travel more affordable for Malaysians had taken off. Tony turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting the former monopoly held by the national airline operator, Malaysia Airlines with promotional fares as low as RM1.00 (US$0.27). In 2003, AirAsia opened a second hub at Senai International Airport, Johor Bahru and launched its first international flight to Bangkok. Valued at RM2.3 billion, AirAsia is today an award winning and the...
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...which determines if the organizational objectives were achieved. This dissertation will compare and contrast two companies one international (Lufthansa Airlines) and the second national (Southwest Airlines). Southwest Airlines executed a strategy constructed to achieve a favorable outcome for the organization. The calculated plan starts with the directive to contribute to each aspect of the business: consumers, technology, facilities, and aircrafts. Southwest Airlines plan to gather consumer devotion by offering low cost merchandise and amenities for corporate America and for vacationing individuals seeking to cut cost. The strategy offers a less expensive value to consumers who do not have resources to use other airlines like Delta or US Airways. The organization is determined to hire and service humorous people. Southwest Airlines does not pre-assign seating to consumers, which allows faster boarding at the terminal. Quickly boarding consumers allows Southwest to offer more flights daily. This strategy allows the company to offer people low prices while generating yield. Southwest currently...
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...September 11, 2001, and suffering major wage and benefit cuts, workers are in shock and looking for new leadership. The recent U.S. invasion and occupation of Iraq, the outbreak of the SARS epidemic and the economic downturn exacerbate the impact of the crisis on labor. Airline workers are in the forefront of discussions about their own industry and more general questions as political and social consciousness changes under the impact of the restructuring crisis. These experiences are valuable for all workers. While 9/11 and subsequent events greatly worsened the crisis, the dire state of this industry pre-dated the 9/11 attacks. The major carriers were losing millions of dollars and facing possible bankruptcy filings because of broken business models that were no longer profitable. In the capitalist system that generally means businesses fold. Bankruptcy as a Weapon Government aid still flows to the airlines, as it did after 9/11. But Wall Street and Washington are pushing the restructuring process. Meanwhile some important facts indicate the depth of the crisis and the challenge facing rank-and-file workers and their unions. Last summer US Airways, the seventh largest carrier, filed for bankruptcy and began slashing jobs, wages and benefits. It emerged from bankruptcy in the spring as a smaller carrier with lower labor costs than most of its competitors, but US Airways is still not out of turbulent skies. "They've basically changed every little thing, and all those...
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...Sub : Northwest Airlines and the Detroit Snowstorm Analysis in January’1999. ------------------------------------------------- Date : March 17, 2014 The incident involving the Detroit snowstorm and Northwest Airlines is the quintessential of a failure to deliver a “Now you're flying smart" experience for our travelers. The course of events detail the experience of travelers, mis-calculated decisions by the ground staff and the lack of an effective emergency response plan that should have been implemented to provide the promise of delivering passengers from point A to point B. The “act of god” and the associated repercussions in this case could have been managed and avoided with the following recommendations: a. The passengers aboard the NW 1829 to Detroit had already been through the agony of a layover in Tampa, FL. (The experience involved waiting in long lines to check-in and eat at the buffets at the selected layover hotels.) This was coupled with an all over the place approach to accommodate their not too smooth transition to the next flight. After reaching their hotels at midnight, the passengers were made to arrive at the airport by 05.30 am for a flight that eventually took off only at 11.00 am. Recommendation: A probable solution in the case above could have been having adequate staff to manage the experience of the passengers at the hotel and answer queries related to the delay. If the consumers were made aware that their concerns were being handled, they would...
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...THE 7’S FRAMEWORK OF THE INDIGO AIRLINES. Strategy - three key tenets for success of indigo are affordable fares, on-time performance and hassel-free travel. These may seem like big words, but I personally experienced this while flying the airline. The fare was the second-lowest on the sector I flew, and I picked the flight because of its superior on-time performance as compared to others on the same route. In fact, even in-flight, there was emphasis on these three tenets, especially on-time performance. As for hassle free travel, I found the planes to be extremely clean and soothing music was being played upon boarding and alighting from the plane. Focus on excellent customer service pays off It’s Indigo’s emphasis on ensuring a great customer experience during interactions with the airline that is doing wonders for the brand. Special attention is paid to ensuring consistency in service across the A320 fleet and the experience at the airport matches that on-board the plane. In congested Indian airports, Indigo has roving “check-in counters” where passengers with only cabin baggage can check-in with an Indigo official with a handheld device, rather than lining up at the check-in counter. Another simple, yet effective measure. Style - Being a low-cost carrier, all of IndiGo's flights have no Business class or First class sections. It offers only Economy class seating. To keep fares always affordable, IndiGo has designed a clean, comfortable and reliable airline without...
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...Contemporary Developments in Business and Management 1.0 Executive Summary This report is about the growth of a Malaysian brand low cost carrier - AirAsia Berhad on how they started this business and bring a huge change in the low cost carrier history globally. This report will discuss on how AirAsia business structure is, what is their culture and the expectation to maintain as well as get into the right track of tough time in airline services. The concept of low cost air travel was then new in Malaysia and how does they turned a loss to profit just in seven years? 2.0 Organization Overview AirAsia is the world most leading low cost carrier airline now as their name had earned a lot of recognition worldwide because consumer as their TOP priority with the tagline of "Now Everyone Can Fly", AirAsia has made flying affordable for more than 61million guest. AirAsia started their business in year 2001 with only MYR1.00 with the partnership with Tune Air Sdn Bhd and AirAsia was remodeled into a low cost carrier by January 2002 where their mission is to make air travel much more affordable for Malaysians took flight.Valued at MYR2.3 billion, AirAsia is today award winning and the largest low cost carrier in Asia. From a two aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 78 aircraft that flies to over 60 domestic and international destinations. The airline has carried, thus far, over 61 million guests since its first day of operation. Low fares...
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