Question

Please read the Management in Action case “Norwegian Air Shuttle Aspires to Become the Cheapest Global Airline” at the end of Chapter 4 “Global Management” available in your textbook Management: A Practical Approach 7^th edition by Kinicki, A., & Williams, B., and answer the following questions:

Assignment Question(s):

1. What are the biggest challenges Norwegian experienced in trying to expand its airline across the globe?
2. To what extent did you observe examples of ethnocentric, polycentric, or geocentric attitudes in this case? Provide examples to support your conclusions.

3. Use Table 4.4 (Given below) to identify 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?

4. What are the most important lessons to be learned about global management from this case? Discuss

DIMENSION	HIGHEST	LOWEST
Power distance	Morocco, Argentina, Thailand, Spain, Russia	Denmark, Netherlands, South Africa (black sample), Israel, Costa Rica
Uncertainty avoidance	Switzerland, Sweden, Germany (former West), Denmark, Austria	Russia, Hungary, Bolivia, Greece, Venezuela
Institutional collectivism	Sweden, South Korea, Japan, Singapore, Denmark	Greece, Hungary, Germany (former East), Argentina, Italy
In-group collectivism	Iran, India, Morocco, China, Egypt	Denmark, Sweden, New Zealand, Netherlands, Finland
Gender egalitarianism	Hungary, Poland, Slovenia, Denmark, Sweden	South Korea, Egypt, Morocco, India, China
Assertiveness	Germany (former East), Austria, Greece, United States, Spain	Sweden, New Zealand, Switzerland, Japan, Kuwait
Future orientation	Singapore, Switzerland, Netherlands, Canada (English speaking), Denmark	Russia, Argentina, Poland, Italy, Kuwait
Performance orientation	Singapore, Hong Kong, New Zealand, Taiwan, United States	Russia, Argentina, Greece, Venezuela, Italy
Human orientation	Philippines, Ireland, Malaysia, Egypt, Indonesia	Germany (former West), Spain, France, Singapore, Brazil

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What are the biggest challenges Norwegian experienced in trying to expand its airline across the globe?

Norwegian Air is facing toughest problems with the budget airlines that have to compete with other rivals including Ryanair, EasyJet in Britain and Air Berlin in Germany. Next, United States airlines are attempting to avoid the United State Transport Department (DOT), as they worry about the foreign rivals starting a war on their rates that they describe as unfair. The Norwegians would then rule the international routes because their aircraft burned a lot of gas. Then the Kjos also count the lower personal costs which attempt to cope with this through the use of low-wage flights. Norwegian is also met with resistance in the United States, which urges the federal government to refuse a offer from Norwegian Air International by American Airlines, Delta Airlin, United Airliners, and United Airways. First, Boeing was ordered by the United States Federal Administration to avoid shipping the lithium batteries which had caught fire last year when it placed them. Finally, Norwegian Dreamliners have a lot of problems in Bangkok, for instance because of pump issues with their passengers.

To what extent did you observe examples of ethnocentric, polycentric, or geocentric attitudes in this case? Provide examples to support your conclusions.

Second, ethnocentric attitudes are foreign recruiting approaches in which human resources hire the best individual for an international business position, as well as the basis for the skills necessary and the candidate's readiness to fit into the culture of the company. There is a case in point of ethnocentric actions in this scenario, where current staff want to see only Norway flights. First, workers in other countries did not want to endanger their work. Eventually, an example can also be used from the United States as the United States did not want Norwegian flights.Secondly, the geocentric mentality is that, whatever the ethnicity, the planet is full of talently trained workers and the most skilled candidate who has an efficient sector. The businesses that are truly multinational, as they follow the integrated global business strategy, follow these attitudes. In this case, the Norwegian airline has an example of geocentric attitudes as the company models were questioned, as Southwest did the same thing, but was not successful. Next, Norway's solution to evaluating foreign facilities is to be in Thailand, such as having some of its staff and other teams in different countries.Finally, polycentric attitudes are the international recruitment process from which the workers of foreign organizations employ. Attitudes polycentric are named to oversee the activities of a subsidiary company by citizens of the host country. The explanation for this is that the locals in the host country are more familiar with their culture and can operate the company more effectively than their international counterparts. The mindset of Norwegian Air Shuttle in this situation can be seen as the locations where flights and staff can be introduced to areas like Thailand that help minimize costs by offering low salaries and raise revenue by adding flights. Finally, direct flights will offer more pilots and flight agents incentives, who would need to handle long flights and Norwegian Air hopes to reduce staff expenditure.

Use Table 4.4 (Given below) to identify 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?

Culture is the shared collection of beliefs, principles, information and behavioral behaviors shared to a group of individuals. It is possible that cultural discrepancies emerged, and connections with all the parties involved, when individuals are to move to another country for recreation, service or work. It is not easy to move into a new position that can have an effect on the overall good working conditions of the employee. It may result in a decrease in working ability if difficult to adapt to foreign cultures and practices. The individual business approach of Denmark, Sweden and Thailand is not always desirable in the eyes of new workers from another region. A few important factors in a foreign country are: language, interpersonal space, connectivity, time orientation, faith, law and stability.

When one or the other may not understand their partner, language and communication in the workplace can be seriously impaired. Misunderstandings and misunderstandings arise sometimes because people don't grasp the other side's perceptions. This will stress interpersonal relations and hinder the achievement of specific objectives. The standard of the job will be influenced by the worker using a different language rather than using one language. The employee can not grasp the company's objectives.

When one or the other may not understand their partner, language and communication in the workplace can be seriously impaired. Misunderstandings and misunderstandings arise sometimes because people don't grasp the other side's perceptions. This will stress interpersonal relations and hinder the achievement of specific objectives. The standard of the job will be influenced by the worker using a different language rather than using one language. The employee can not grasp the company's objectives.

Cultural dimension divided by two such items as culture with low-context and culture with a high context. A major difference is the power gap which represents the degree of unequal sharing of power by members of a society. Norwegian workers can have less control than Thai workers. Norwegian will educate its workers about this and make them understand that managers in Thailand have a lot of influence.

This is important to remember when talking to Thai employees Demark has a lower power base, high avoidance of confusion, low Group communism and high forward-looking outlook .. This is significant. If we look at this from the Netherlands 'dimension we can see many matches which indicate that cultures will mesh well, but when we look at Swedish measurements, there are many differences that indicate that cultures are likely to clash.

Such differences can affect interpersonal relationships, as different people's groups have different views, behaviors and beliefs. The company will perform cultural training in the places where it can work with others in order to may the tension created by the differences.

Moreover, religion can impact the working people's relationship. Managers in Thailand should consider the religious differences. Each worker and manager must know their peer religion and understand it. Since all religions are open to themselves. Islam, for instance, forbids Muslims from drinking alcohol and must play alone five times a day. Managers must know, therefore, that each faith is forbidden by itself. Buddha is the main religion in Thailand. In order to prevent disputes, management should take care of the workers

Moreover, religion can impact the working people's relationship. Managers in Thailand should consider the religious differences. Each worker and manager must know their peer religion and understand it. Since all religions are open to themselves. Islam, for instance, forbids Muslims from drinking alcohol and must play alone five times a day. Managers must know, therefore, that each faith is forbidden by itself. Buddha is the main religion in Thailand. In order to prevent disputes, management should take care of the workers

Monochronic time chooses one thing at a time. The preference for more than one thing at a time is polychronic time. For example is when Kjos buy 42 new jets from boeing even though they couldn’t afford it.they might be bankrupt. But their revenue and benefit multiplied, with the Norwegian flying twice.  

In addition, each nation has its own legislation and stability. When you come to another country, the rules of that nation must be observed. Each company trying to set up abroad has to deal with law and business practices in other countries that often include measuring the political risk that could lead to the loss of an asset in the company. For instance, Norwegians sued SAS for unlawful use of their trade secrets and eventually won a courtroom judgment of 160 million in 2010. This shows that the legislation is in effect. However, the government controls SAS. The staff must not do something that can break the law

In conclusion, cultural differences with different working styles will affect the work. The business needs to learn the obstacle and other cultural elements to make sure it is successful at foreign country management. Moreover, the management of the company must consider its staff to ensure that there is no dispute.

What are the most important lessons to be learned about global management from this case? Discuss.

Companies with staff ranging from technicians to managers located outside of France who are armed with an appreciation of how companies operate in international shores are subject to global management. The most important leçon to benefit from the global management is that of always creating fresh ideas, taking into account the prospects and take chances, if Norwegian Air Shuttles are researching to become the cheapest global airline. CEO Bjorn Kjos 'work continues to be a step forward.

Companies with staff ranging from technicians to managers located outside of France who are armed with an appreciation of how companies operate in international shores are subject to global management. The most important leçon to benefit from the global management is that of always creating fresh ideas, taking into account the prospects and take chances, if Norwegian Air Shuttles are researching to become the cheapest global airline. CEO Bjorn Kjos 'work continues to be a step forward.

The possibilities and consequences of a business should also be clear to you. In order for the company to be handled. Predict the issue and we have to have an emergency plan or survival opportunity. Kjos predicted that many other airlines attempted and struggled to start up. Kjos says Norwegian will thrive because Dreamliner and a new party have to travel. In the next decade, he is anticipating 500 million new passengers and intends to draw passengers at low fares. He's so positive every time he's up to something. This will, of course, contribute to the implementation of a strategic management approach.

Every organization often has a problem with external factors. Example here how Kjos manages and tackles the economic question of Scandinavian airlines(SAS). Norwegian sued SAS for using its commercial secrets unlawfully, and subsequently won a settlement of 160 million in 2010 SAS. When it comes to global management, you must think carefully and make the right decision. Soon Kjos was worried about rising petroleum prices. Yet they never give up and risk buying 42 Boeing jets for 3 billion dollars.

They can't afford it, but they take the risk of surviving. In fact, global management helps them to stay aware of consumer demands and emerging technology. Kjos will therefore find a Dreamliner solution which combuses less energy than previously. Customers also find themselves at low prices. It also has to do with lower labor costs. He also worked through US Airlines, Delta Airlines, United Airlines and US Airways to advance his approach. A crisis with issue Kjos in the Dreamliners reacted by doubling the last crisis. He told Norwegian he would still rent two other Dreamliners in December.

The lessons learned from this case study are that you have a good idea of what you are going to do. You must take the gamble and go one step ahead of rivals to make things happen. In industry, there are always challenges, but that's the way you handle it and not give up. You have to keep up with other rivals in order to survive.