1. Using Delta Airlines domestic and global environments identify the economic environment of each and compare and contrast it using Rostow and Galbraith
2. Which are the limitations? Why?
Must be at least 400 words and have at least 4 academic sources cited in APA
DOMESTIC ENVIRONMENT OF DELTA AIRLINES
Delta Air Lines, Inc. is commonly known as Delta. It is among the major airlines of the United States that are operating today. Delta Airlines operates in the airline industry and it’s headquartered is in Atlanta, Georgia. The environment of the US airline industry can be regarded as the domestic environment of Delta Airlines. However, the existing reports reveal that Delta Airlines has transformed its business in a marvelous way. The US airline industry is broad such that more than one hundred airlines operate therein, and approximately eleven million flights depart annually. Moreover, Delta Airlines is a large part of the US Airline industry and it carries the one-third of the world’s air traffic (Swiercz et al 15).
It is also realized that there are various reasons that impact the business of the Delta Airlines including employees, profitability, and issues of the aircraft manufacturing industry (Netessine et al 38). But the point of consideration is that Delta Airlines has survived throughout history even when the largest airways were remained failed including, Eastern, TWA, Pan Am, etc. By the vision of business theorists, Delta Airlines can be envisioned as the machine bureaucracies.
According to the current data, Delta Airlines is the largest passenger carrier because the company has overcome all domestic problems. By analyzing the information about the Delta Airlines it is realized that the smartest decision made by the organization is the decision to merge with Northwest Airlines (Swiercz et al 15). That is why the Delta Airline competed successfully with the government rules and regulations and has become the world’s largest airline. The business theorist added that Delta Airline is highly competitive and volatile which is generating a high profit, but the current operating model cannot guarantee future success. Beside the machine bureaucracy further, handy tools are required to compete with the domestic challenges and HRM issues.
Netessine, Serguei, and Robert Shumsky. “Introduction to the theory and practice of yield management.” INFORMS transactions on education 3.1 (2002): 34-44.
Swiercz, Paul Michael, and Barbara A. Spencer. “HRM and Sustainable Competitive Advantage: Lessons from Delta Air Lines.” Human Resource Planning 15.2 (1992).
GLOBAL ENVIRONMENT OF DELTA AIRLINES
For Delta, sustainability is meeting the financial goals and growth of a company including its profitability with time, via innovative means and business practices which could, in turn, curtail the environmental impact of Delta operations and foster the welfare, health, and productivity of the individuals and communities which are employed to serve. This depicts the Delta Airline’s commitment to corporate social responsibility. The most favorable global environment for Delta Airlines is in Europe particularly the United Kingdom. The characteristics of the United Kingdom which best aligns with Delta Airlines are the cultural similarities, language, religion, the technological innovation and economic status as both countries are developed (Delta Airlines, n.d.).
All these factors are deemed to have a positive impact on the growth of Delta Airlines. They could prove to be apt exogenous factors. Delta Airlines focused on the environmental, social and governance sustainability. Besides being a plausible location for Delta Airlines, the United Kingdom also offer some barriers for Delta Airlines to operate in their country. First and a foremost barrier to consider is a geographical location. Delta Airlines is an American airline, they have to establish a business in other continents which are far away from America. Delta Airlines will also have to conduct thorough research to fathom the target market of the host country.
In terms of geography, Delta Airlines will have to pay whatever it cost to start its operations in the UK which is part of Europe. However, Delta Airlines could start a joint venture with British Airways to start its operation in the United Kingdom or they could collaborate with any other local airline. In addition, extensive research of the market and population would be helpful. Here, Delta Airlines could take an outright advantage of the similarities between them and the host countries. All these strategies could help to overcome the preceding barriers (Business in a Global Environment, n.d.).
Business in a Global Environment. (n.d.). Retrieved from https://saylordotorg.github.io/text_exploring-business-v2.0/s07-business-in-a-global-environme.html
Delta Airlines. (n.d.). Environmental, Social and Governance Sustainability. Retrieved from https://www.delta.com/us/en/about-delta/sustainability
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