University of Phoenix Material
Norwegian Air Worksheet
Provide a 150- to 200-word response for each of the following. Include references where appropriate.
the biggest challenges Norwegian Air experienced in trying to expand its airline across the globe.
Norwegian Air undoubtedly faces many challenges in itself in trying to expand its reach to other parts of the globe and most importantly the increasing number of middle class people who opt for an air ticket. Their approximated number is 500 million and Norwegian Airlines is trying to tap into them. The constantly increasing gas prices per gallon hinders the airline from achieving its goal and as time goes by, they are making losses. The low pay that the airline pays its pilots hinders them as workers who are not motivated will never deliver their best for the company hence hindering its expansion. Boeng on the other side has issues with their planes and has once left Norwegian Airline’s passengers grounded. This is not a good track record as possible passengers will opt for better services in future from reliable Airlines. Competition on the other hand keeps hindering it from making expand to other places of the globe just like the US rejection.
Identify examples of ethnocentric, polycentric, or geocentric attitudes in this case. Explain why your selected examples illustrate these attitudes.
Airline management opting for Non Norwegian pilots since they are considered cheap. Taking assumption that nonunion pilots will automatically deliver because they have no union isn’t necessarily the case. Cheap pay for cabin crews doesn’t apply everywhere. The euro crisis mentioned helped them get better terms. This is a financial centralized financial meltdown is what helped the Norwegian Airline. Geocentric attitudes manifests itself here when the US wants to keep all its profits and eliminate the Norwegian Airline from invading into their territory with cheap airline prices. Though it is not put that way, it is clear that US airlines are likely to lose market when it makes a landing in this this market successfully. The examples above clearly shows how each and every issue is centered along one idea. The idea circumnavigating across a point as illustrated in the examples. The illustration after each and every one of them gives an idea of their manifestation.
Explain cultural differences that are likely to arise between Norwegian employees working in Denmark and Sweden, and Thailand. How might these differences affect interpersonal interactions, and what can the company do to reduce any unintended conflict from these differences? Refer to Table 4.3.
When someone moves to a different place to seek service, work or any other thing, there is likely going to be an issue of cultural difference that will arise and thus affect their relationships. More often than not, they will find themselves not fitting to the place easily and will lead to a reduction in their output performance. The unions that these employees probably relied on to air out their issues like the strike they undertook in Norway to have their pay increased. Denmark, Sweden and Thailand have their own rules that might not be favorable for the people who are going to work in these countries. This will pose a great trying to adjust and fit into this system. Language difference will affect their interpersonal relationships as they will have a hard time communicating with one another. Language for the most basic part of communication and this will hinder them towards achieving their full potential. The low pay that the airline is paying them will affect their travelling to and from their workplaces. Their relationship with the families will be affected a great deal.
Evalute the most important lessons to be learned about global management in this case
This case provides a lot of lessons to be learnt. The most important being the risk the people leading the company takes. Acquiring new more airlines led to a double in profit and reduced fuel consumption. Risk taken clearly show how it can turn things around for a company. The other most important issue that can be learnt from this is a clear plan that will steer to company towards achieving its final goal. When Norwegian Airlines realized that their travelling tickets were stolen by a different airline and used for their pricing, they decided to see them because their company pricing secrets had been stolen and were at risk of being overthrown. A clear sound plan is the most important global management lessons to be learnt. Global management also requires a sound plan and careful educated prediction of the market trend. Norwegian airlines clearly know that in the next decade, nearly held a billion people will prefer air transport and wants to be part of this. Global trends and social dynamics is very important in global management.
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MGT 521 WEEK 2 Norwegian Air Worksheet.docx