• Internal Code :
  • Subject Code : GSBS6009
  • University :
  • Subject Name : Management

Cross Cultural Management 

Executive Summary of Alizee Airline Industry Analysis

Online channels in the past have increased significantly. It has increased the source of revenue by engaging consumers. Alizee airline industry is facing challenges to increase their consumer base digitally. It is due to this reason the industry needs to understand consumer behaviour in the online environment so that the company can capture maximum consumers from Brazil, Malaysia and USA. It can be done by understanding cultural differences between the countries through cultural dimensions. The findings from the result along with recommendation will help the airline industry to overcome challenges experienced.

Contents

Executive Summary.

Introduction.

Globe study cultural dimension analysis.

Comparison tables for the GLOBE Study's culture data for Brazil, Malaysia and the USA..

Power distance Index.

Recommendation.

Conclusion.

References.

Introduction to Alizee Airline Industry Analysis

Consumers behaviour has changed in past few years. There are a lot of factors that affect online consumers in the digital environment. This assignment is about Alizee Airlines who are trying to increase the digital sale to earn revenue from the digital market but things are not easy as it seems (Calvin, Beale & Moore, 2017). This assignment aims to understand the issues faced by Alizee Airline industry to enhance the online behaviour of consumers and non-consumers. This assignment thus discusses different cultural dimensions and analyse differences and similarities and provide recommendations for what Alizee should do to enhance online marketing business performance from a cultural perspective.

Globe Study Cultural Dimension Analysis

Globe leadership and organizational behaviour effectiveness is a framework which helps the leaders of the organization to see the performance of their organization in the international market through a different lens. This framework is used for understanding cultural dimensions between different countries (Bird & Mendenhall, 2016). This framework was developed in the 1990s and is similar to Hofstede's cultural dimension analysis. Though Hofstede has less number of dimensions in comparison to Globe framework. It was also identified in research that there are some traits which are endorsed irrespective of the national culture. These include honesty, trustworthiness, positivity and so on.

Significance of Globe

It is very important to conduct Globe analysis because the understanding culture of different counties is difficult and filled with ambiguity. The difference in language, value, interpretations are the cause of a poor relationship and this results in a loss in business (Ahammad, Tarba, Liu & Glaister, 2016). Alizee does not have large online consumer base thus if the company wants to capture the audience towards them then it needs to overcome the barriers in the consumer behaviour of all the three countries that are chosen for increasing digital sales. Globe framework help to understand the leadership of the people by conducting three phases of the project. These include the development of research instrument, assessment of nine cultural attributes and the study of the behaviour of the leaders.

Comparison Tables for The Globe Study's Culture Data for Brazil, Malaysia and the USA

Dimensions

USA

Brazil

Malaysia

Power distance index

High

High

High

Uncertainty avoidance

Low

High

Low

Human orientation

Low

Low

High

Collectivism I

Low

High (Beugelsdijk & Welzel, 2018).

Low

Collectivism II

Low

High

Low

Assertiveness

High

Low

Low

Gender Egalitarianism

Low

Low

High

Future orientation

High

Low

High

Performance Orientation

High

Low

High

Power Distance Index

  • Power distance Index

The power distance index measures inequality and power that is tolerated by the consumers. Generally, it is stated that the power distance index is low. However, after analysing the data from Brazil, Malaysia and the USA, it has been identified that all the three countries power distance index is very high. This indicates that high power index encourages bureaucracy and give respect to the consumers based on the ranks and authority given to the people. Low power index creates a culture of a flat structured organization in which every person has the power to take decisions (Dietz et al. 2017). It gives the participative style of management and thus Alizee airline industry needs to work upon it to lower down the power index of all the three countries so that one same method can be applied to all the online consumer of the countries. It also states that the company must provide good services to the people in Brazil and USA as consumers in this country would not ignore quality at all.

  • Uncertainty Avoidance

It has been identified that Brazil has the highest uncertainty avoidance with an index of 76 whereas the USA has 46 and Malaysia has the least of both the countries that are 36. Uncertainty avoidance is a process which initiates the society to work despite not knowing the future. It is often seen that counties try to control the future and Brazil is one of them. It tries to control the way the future of the country would unfold. It is due to this reason the country has a high bureaucratic society with the observance of the law (Gelfand, Aycan, Erez & Leung, 2017). An uncertainty avoidance index is low in the USA and this is why the country is occupied in meeting the uncertainties caused due to terrorism. This is the reason the country comes up with strict laws so that it can control the uncertainties in the country. On the other hand, Malaysia is just like any other Asian country having low uncertainty avoidance index. It does not have the same aspirations as the other two countries. Alizee airline needs to understand this area as well for understanding its consumers as Brazilians would prefer a website which has well-detailed information while the other two countries emphasize more on quality of service. 

  • Humane Orientation

It has been found that all three countries are the same in Human orientation. It is due to this fact the people of the country reward others with kindness, generosity and fairness in the society. This indicates that all the three countries are human-oriented and contain moral values towards the others (Lamb, Hsu & Lemanski, 2019). This indicates that Alizee must take care of this dimension when attracting consumers and non –consumers towards the company.

  • Collectivism I: (Institutional)

In the research, it was revealed that Brazil and Malaysia have a very low level of individualism that is 38 and 26 respectively whereas the USA has the highest level of individualism that is 91. The idealism here refers to how much the people in the country are free from any sort of dependence on the others. The exact opposite of individualism is collectivism (Reiche, Stahl, Mendenhall & Oddou, 2016). The united states are capitalistic country and people of the country thus expect justice and liberty for everyone. On the other hand, Brazil has a strong affinity towards groups and this is why the country people strongly identify with the groups. They have a responsibility towards one another and this is the reason they always take care of each other. This is almost the same in Malaysia.

  • Collectivism II: (In-Group)

It is observed that people in Malaysia and Brazil give importance to the people and try to maintain a fellow relationship with the others even at the workplace but this is entirely different in USA (Stahl, Miska, Lee & De Luque, 2017). They do not try to maintain relationship rather are keen towards their job. They do not even refer to each other and does not try to improve their social ties. This indicates that the collectivism level in the USA as per the group is low in comparison to the other two countries.

  • Assertiveness

It has been found that assertiveness is more USA in comparison to Brazil and Malaysia. People in the USA are generally more aggressive to the people at work and in society when compared with the individuals of the other two countries (Calvin, Beale & Moore, 2017). This is further affected by gender and religion of the country.

  • Gender Egalitarianism

In the case of gender egalitarianism, it is found that Malaysia and United states have almost the same level of gender equality (Reiche, Stahl, Mendenhall & Oddou, 2016). However, this is not the case in Brazil. This indicates that gender egalitarianism is not well embraced in all the three countries and thus the Alize must take the decision for the consumer based on this finding.

  • Future Orientation

It has been identified in research that future orientation is below average in all the three countries. It is lowest in the united states followed by Malaysia and Brazil with 26, 41 and 44 respectively. This index helps the industry to understand how the country creates a link with the past while maintaining present and dealing challenges and gratification in future. It has been found that people in Brazil focus more on the past to change the present and future. In the country, people are suspicious about the change. It cannot be compared with the other countries which have an above-average (Calvin, Beale & Moore, 2017). It can be started from the findings that all the three countries are in perpetual change. These country have a strong tradition and this is why they have created modern society. People of this country use the past to continue doing things in future. It can be started from the finding that in the USA the consumers will focus more on what the company can provide to them whereas in Malaysia and Brazil focus more on the people who are serving.

  • Performance Orientation

In all the three countries, it has been analysed that the score of masculinity is high that is 49 of Brazil, 62 of the USA and 50 of Malaysia. This means all the three countries have acceptability for competition in society. For all of them, it is very important to win as this helps them in measuring their success level (Stahl, Miska, Lee & De Luque, 2017). These country have a capitalist form of government which also states that the country has a high level of competitiveness. This indicates that Alizee needs to provide a product with the quality of the product higher than the competitors.

Recommendation on Alizee Airline Industry Analysis

In this section effectiveness of the cultural dimensions are mentioned to enhance the online behaviour of the consumers and non-consumers of Alizee airlines. The online behaviour can be studied by assisting the behaviour of the three countries as it is the behaviour of the consumer which affects the sales of the industry. It is recommended that Alizee must create a different website for different countries and customize it as per the consumers there so that it can attract consumers on online portals which are a very difficult task. Alizee must prepare that it will not reproduce the webpages for the country rather create an entirely new website for the consumers. Furthermore, the company also need to emphasis on the language used by the countries for the website. Like the USA will prefer English and Spanish based website whereas Brazil would favour Brazilian language and Malaysia would want Malay on the webpages. The GLOBE dimensions play a very significant role in understanding the cultural differences of the people in their respective countries (Noe, Hollenbeck, Gerhart & Wright, 2017). It has been identified in the analysis that group collectivism has high relevance in two countries which include Brazil and Malaysia. This indicates that these two countries value their families and they get immense power when they are with family members to accomplish the goals set by them. This is not the case with the USA. This is why Alizee must use this dimension to attract the consumers and non-consumers of both countries. The airline must craft the services to the people such that it in line with the family needs such as the company must bring family holiday package. These packages can attract consumer and person's relatives as well as family and friends. This will enhance the sale of the company and gain the benefits of attracting non-consumers towards them. 

Conclusion on Alizee Airline Industry Analysis

It can be concluded from the findings that globalization has increased connectivity among different countries in the entire world. Many business organizations are investing in the international market to sell their products to increase the profitability of the organization. Alizee Airline is also trying to do the same. The report does focus on analysing the culture and leadership dimensions on Brazil, Malasia and USA. To study these cultures Globe framework has provided a stepping stone on the importance of the study and it also helps in enhancing the decision-making capabilities in multinational. Alizee airline can use the findings of the study to attract customers in the digital environment.

References for Alizee Airline Industry Analysis

Ahammad, M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention. International business review, 25(1), 66-75.

Beugelsdijk, S., & Welzel, C. (2018). Dimensions and dynamics of national culture: Synthesizing Hofstede with Inglehart. Journal of Cross-Cultural Psychology49(10), 1469-1505.

Bird, A., & Mendenhall, M. E. (2016). From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), 115-126.

Calvin, J. R., Beale, R. L., & Moore, K. (2017). Acculturation and allied contributing factors that further advance cross-cultural management learning and education: A conceptual approach. Journal of Organizational Culture, Communications and Conflict, 21(2), 1-11.

Dietz, J., Fitzsimmons, S. R., Aycan, Z., Francesco, A. M., Jonsen, K., Osland, J., Sackmann, S.A., Lee, J. H. & Boyacigiller, N. A. (2017). Cross-cultural management education rebooted: creating positive value through scientific mindfulness. Cross Cultural & Strategic Management, 24(1), 125-151.

Gelfand, M. J., Aycan, Z., Erez, M., & Leung, K. (2017). Cross-cultural industrial organizational psychology and organizational behavior: A hundred-year journey. Journal of Applied Psychology, 102(3), 514.

Lamb, P., Hsu, S. W., & Lemanski, M. (2020). A threshold concept and capability approach to the cross-cultural contextualization of western management education. Journal of Management Education, 44(1), 101-120.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

Reiche, B. S., Stahl, G. K., Mendenhall, M. E., & Oddou, G. R. (Eds.). (2016). Readings and cases in international human resource management. Taylor & Francis.

Stahl, G. K., Miska, C., Lee, H. J., & De Luque, M. S. (2017). The upside of cultural differences: Towards a more balanced treatment of culture in cross-cultural management research. Cross Cultural & Strategic Management, 24(1), 2-12.

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