ALIZEE AIRLINES CASE Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
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    4
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    2706

Alizee Airlines Case

Executive Summary

This report considers the different online channels in Brazil, Malaysia, and the USA to critically assess and compare the buying behaviors of the online clientele for Alizee Airlines’ services. In essence, this report purposes to evaluate more effective and competitive approaches to enhancing the online business performance of the Alizee Airlines. Indeed, Alizee Airlines has come to the acknowledgment that the use of online platforms to access services in the airline industry is on the increase. As such, the company realizes the essentiality of understanding all the key factors and diversities that impact on consumer behavior particularly within the context of digital platforms. The main issue, in this case, is how the company can maintain and advance its online marketing. Accordingly, this study employs the cultural dimensions benchmarks provided in the GLOBE study with the aim of attaining ways of enhancing and benefiting from online consumer behavior.

In particular, the report offers a background of the company, Alizee Airlines, bringing out the issues that it faces. The report then provides a theoretical evaluation of the cultural dimensions brought out in the GLOBE Study to highlight the importance of studying the behavior of online consumers in Malaysia, Brazil, and the USA. The report goes on to compare the data regarding culture for the three countries followed by a critical assessment. Ultimately, the report offers appropriate recommendations that include the innovation of different profile-raising activities, services, and pricing in the bid to meet the diverse demands that feature due to the difference in cultural contexts.

Table of Contents

2Executive Summary

41.0 Introduction

52.0 An Analysis of the Cultural Dimensions in the GLOBE Study

62.1 Power Distance

72.2 Uncertainty Avoidance

82.3 Humane Orientation

82.4 Collectivism I: (Institutional)

82.5 Collectivism II: (In-Group)

92.6 Assertiveness

92.7 Gender Egalitarianism

102.8 Future Orientation

102.9 Performance Orientation

113.0 Recommendation

114.0 Conclusion

13References

1.0 Introduction

Globalization has primarily been beneficial as it has opened up access to markets where individuals, corporations, and nations can easily export and import goods and services at reasonable prices. Indeed, globalization advances free trade that consequently translates to reduced barriers including tariffs, subsidies, and value added taxes, among other international barriers. The increase of this phenomenon and its associated benefits has also led to a heightened essentiality of the worldwide aviation industry. Indeed, the aviation industry has provided excellent and convenient transportation that has led to a significant facilitation of economic development across the globe. Additionally, the increased emergence of online platforms and channels has also added to the opportunities that the airline industry can utilize. Alizee Airline has thus far employed some online campaigns and operations in Malaysia, Brazil, and the USA. However, many additional steps are required in the company’s case to increase its competitiveness in this important but challenging digital business context within these three countries. The cultural dimensions in the GLOBE study are, therefore, useful in enhancing the online business performance of Alizee Airlines. The main intention of this report is to analyze the company’s online business operations and the management of cross-cultural aspects in the three countries. This analysis can help provide hints for effective approaches to advancing the online behaviors of the clientele base for the company while also impacting on its commercial performance. Accordingly, the report consists a theoretical evaluation of the essentiality and significance of the cultural dimensions to determine the impact they have on the online culture in the three countries. Finally, it provides some recommendations for promoting the company’s clients’ online behaviors.

2.0 An Analysis of the Cultural Dimensions in the GLOBE Study

Culture has no standard definition but consists of some fundamental foundations that involve the negotiation of learned and patterned attitudes, beliefs, and behaviors. Indeed, the foundations include negotiation and dynamism[ CITATION Sag07 l 1033 ]. This means that culture is unstable and constantly changing. Additionally, culture is patterned meaning that there are obvious and widespread similarities within a cultural group. These patterns are dynamic and change from time to time. Ultimately, culture influences people’s attitudes, likes and dislikes, beliefs, and decision-making. Culture serves the international business as a framework for understanding the different consumer markets. It influences all business transactions and impacts the strategic decision-making. Culture also helps in effective communication and interaction between different employees or consumer groups.

Cross-cultural management, therefore, references the management of the diversities that manifest in different cultures especially with regards marketing as well as production and supply[ CITATION Mos13 l 1033 ]. It mainly involves the engagement of several management mechanisms combined with a functional organization within the different cultural contexts. It also consists the proper dealing with cultural conflicts. The most popular cross-cultural project, the GLOBE project attempts at exploring and examining the validity and effectiveness of leadership approaches in different cultural contexts. In this project, the GLOBE team encompassed about 17,000 managers sourced from 950 institutions in 62 societies across the globe[ CITATION Hou10 l 1033 ]. The project consists nine cultural dimensions that measure cultural diversities across different countries. In essence, these dimensions serve as an expansion of the five dimensions highlighted by Hofstede offering a more comprehensive indulgent of diversity in culture. As such, Alizee Airlines can maximize its potential with regards competitiveness in the online business by an analysis of the consumer behavior on online platforms across the three countries using the cultural dimensions from the GLOBE project. This analysis can also maximize the company’s probability of attaining its strategic goals. Ultimately, the nine dimensions have a crucial effect on Alizee Airline’s case and are analyzed as follows:

2.1 Power Distance

This element references the level, or degree of a power gap different members of a particular organization or society expect the equal distribution of power[ CITATION Shi11 l 1033 ]. In essence, people with reduced power in the society expect and even accept inequality in the power distribution. An organization’s or society’s value system can, indeed, be employed to explain such a power gap. The distribution of power can additionally affect the overall or distinct behavior of people. This particular dimension of power distance is different across different cultures in the various countries. Indeed, different countries and societies feature different levels of empowerment hence the differences in power distance.

In Alizee Airlines’ particular case, Brazil seemingly features a similar power gap between the consumers of the company’s services and citizens who are non-clients. Indeed, Brazil featured only young people using the airline’s applications and other social media platforms. Conversely, Malaysia featured only business people using the airline’s mobile applications and social media pages. In the United States, on the other hand, saw the use of the company’s mobile applications and social media platforms by frequent flyers.

On the other hand, a difference manifests in the perception of power distance between the airline’s client base and non-clients in Brazil. For instance, consumers of Alizee services perceive the promotional emails and newsletters as being targeted at larger audiences. Conversely, non-clients regarded the company’s online promotional activities as being targeted at business people and rich people. In the United States’ case, non-clients perceived the airline as catering for business people’s needs. Clients also thought the company primarily targeted business people or everybody.

2.2 Uncertainty Avoidance

This element references the scope which collectives are reliant on social guidelines, standards, and ways in the bid for alleviating unpredictability of events in the future. Uncertainty avoidance primarily includes those from religion, law, and technology. In particular, people employ technology in resisting the uncertainty of nature. The law helps in avoiding the uncertainty of resistance of other society members. Religion, on the other hand, helps avoid uncertainty about the afterlife and the occurrence of death[ CITATION Dou16 l 1033 ]. As such, this element references the threat degree of uncertainty brought about by social ambiguity. As such, the main issue here concerns an organization’s provision of occupational safety through the establishment of formal rules or non-tolerance to deviant behavior or views so as to avoid uncertainties. Alizee airline’s case seemingly demonstrates the conclusion that clients and non-clients in Brazil show similar online behavior in that they purchase tickets online through websites. Both consumers and non-consumers in the United States mirror the behavior in Brazil while only Malaysian consumers show more comprehensive online platforms use through the purchase of tickets on smartphones and other online means in addition to websites. Some of the proposed uncertainty avoidance approaches include the use of mobile applications on tablets and smartphones as in the case of Brazil.

2.3 Humane Orientation

This element references the extent to which a group, organization, or society encourages and applauds individuals for generosity, fairness, kindness, and care for other people. These emotions are particularly pertinent in cases involving a limited resource such as time. Indeed, time features limitations in all cultures. However, some cultures have no time patience and, sometimes, prioritize long-term trends. In some other cultures, people perceive time as an unlimited resource hence people in these cultures demonstrate extra patience[ CITATION Die161 l 1033 ]. In such cases where the culture demonstrates short-term bias, the requirements with regards customer service reaction-time are greater. These cultures also manifest more demanding processing of service recovery.

2.4 Collectivism I: (Institutional)

This element references the extent to which societal, group or organizational practices advance and applaud collective action as well as collective resource distribution. This element considers collectivism versus individualism. In particular, whether an organization prioritizes individual or collective interests. A diverse global culture focuses on delineating the differences between these two cultural dimensions[ CITATION Fra15 l 1033 ]. As such, with regards this institutional collectivism, Alisee clients in Brazil show a liking for the company’s campaign video on trip planning as well as the airline’s prices. Conversely, non-consumers here prioritize the company’s innovations and reliability. In the United States, non-clients also regard the campaigns as positive while the consumers regard the campaign as diverse.

2.5 Collectivism II: (In-Group)

This element references the scope which individuals demonstrate outward allegiance, pride, and togetherness in their groups or organizations. Within this aspect, the tendency for collectivism or individualism is calculated using the individualism index[ CITATION ONe16 l 1033 ]. In essence, the higher the value of the index, the more obvious the individualism tendency is while, the lower the value, the more obvious the tendency for collectivism.

In the context of Alizee, collectivism manifests in Brazil where people make their decisions by involving the opinion of their friends. Conversely, in the United States, people’s decision making is either on the individualistic front of founded on in-group collectivism by involving friends or family.

2.6 Assertiveness

This element is the extent to which individuals demonstrate confrontation, assertiveness, and aggression in the context of their association and interaction with other people. In essence, this element contrasts the societal perspectives either from the masculine front where there is increased assertiveness and competition or from the female perspective that features more humility. In a macho environment, people demonstrate higher expectations for quality service and demand higher value.

2.7 Gender Egalitarianism

This element references the extent to which a group, organization, or society minimizes the occurrences of gender inequality. This aspect considers the freedoms afforded to all people, male or female, to make their personal decisions and model their individual capacities. The prominence of gender equality in the context of this element manifests in the respect for both women and men in all societal contexts and within all aspects of personal and group life. In essence, both genders should be afforded equal opportunity for enjoying social, economic, political, cultural, and other aspects such as healthcare. Alizee Airlines considers the social regulations and associated practices in aiming for change that affords both genders equality in their services across all three countries.

2.8 Future Orientation

This element references the degree to which people participate in behavior that is oriented towards the future including behavior such as planning, delayed gratification, and future investments. Indeed, this dimension demonstrates essentiality in the advancement of Alizee Airlines. In particular, it impacts on the cross-cultural management of USA’s Amsterdam Schiphol, Brazil’s Sao Paulo, and Malaysia’s Kuala Lumpur. This impact arises from the airline’s diversity with regards the direct impacts of the future orientation of the three most important airports across the three countries. In Brazil, for instance, the basis for future orientation consists the services on offer, the cost, the preferred locations, and the prior planning of trips. Conversely, the United States features the prior planning as the main determinant of future orientation. Malaysia’s future orientation mirrors that of Brazil.

2.9 Performance Orientation

This element references the extent to which a group, organization, or society advances and applauds members for improving on their performances and excellence. Brazilians perceive the Alizee’s innovation as the main element of the performance orientation. Conversely, the people of the United States consider safety and reliability as the main measures of performance excellence. Malaysians, on the flip side, regard the main performance measures as reliability and ease of use of the airline’s services. In the case of Alizee’s clientele, high standards, performance excellence, and innovation work as the leading factors to performance orientation. Non-consumers, on the flip side, perceive wealth management, promotion, the difference in pricing, and the pursuance of gratification as the important elements.

3.0 Recommendation

Ultimately, the GLOBE cultural dimensions act as essential elements in the understanding of the diverse cultural views of citizens of the three specific countries. This study reveals that in-group collectivism and power distance demonstrate greater pertinence in all three countries. More specifically, Malaysia and Brazil demonstrate a higher prioritization of in-group collectivism in comparison to the United States. Accordingly, this fact reveals that Brazil and Malaysia value their families and prefer and prioritize achievement as a group in the family or an organization. As such, the airline can exploit this particular dimension to enhance its attractiveness to both non-consumers and existing clientele. In particular, Alizee can model its services to cater for family or group needs and preferences to include offers such as better-priced travel packages for family holidays. Such an approach can attract an individual client and his or her associated friends and family who could be non-consumers at first ultimately growing Alizee’s sales.

4.0 Conclusion

Globalization has ensued in more global connectivity and increased interaction across different countries globally. Large corporations and business recognize the need for global investments in the bid for enhancing their market share and profitability. As such, the obligation to understand the workings of several diverse cultures manifests. This report prioritized the analysis of the leadership and cultural dimensions in three countries, Malaysia, Brazil, and the United States. The cultural analysis is essential to the effective and beneficial business performance of international organizations. The GLOBE project offers a foundation for such cultural evaluation studies in determining approaches for enhancing the capacities for decision making in international companies. Alizee airlines can, therefore, use these findings to comprehend the needs and preferences of the online-oriented clients and non-clients in the bid for profitability and overall sales volume increase.

References

Diehl, S., Terlutter, R., & Muller, B. (2016). Doing good matters to consumers: The effectiveness of humane-oriented CSR appeals in cross-cultural standardized advertising campaigns. International Journal of Advertising, 35(4), 730-757.

Dou, P., Truong, C., & Veeraraghavan, M. (2016). Individualism, Uncertainty Avoidance, and Earnings Momentum in International Markets. Contemporary Accounting Research, 35(4), 851-881.

Frank, B., Enkawa, T., & Schcaneveldt, S. J. (2015). The role of individualism vs. collectivism in the formation of repurchase intent: A cross-industry comparison of the effects of cultural and personal values. Journal of Economic Psychology, 51, 261-278.

House, R. J., Quigley, N. R., & Luque, M. S. (2010). Insights from Project GLOBE. International Journal of Advertising, 29(1), 111-139.

Moseley, J. L. (2013). Understanding Cross‐Cultural Management. Performance Improvement, 52(1), 43-45.

O’Neill, T. A., McLarnon, M. W., Xiu, L., & Law, S. J. (2016). Core self-evaluations, perceptions of group potency, and job performance: The moderating role of individualism and collectivism cultural profiles. Journal of Occupational & Organizational Psychology, 89(3), 447-473.

Sagiv, L., & Schwartz, S. H. (2007). Cultural values in organizations: insights for Europe. European Journal of International Management, 1(3), 176-190.

Shi, X., & Wang, J. (2011). Interpreting Hofstede model and globe model: which way to go for cross-cultural research? International journal of business and management, 6(5), 93.