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Portfolio Project Part 2: Delta Airlines, Inc.
Alishia Coleman
American Public University
BUSN 601: Global Management Perspective
Dr. Evelyn Paschal
March 6, 2022
Question 1
Delta Air Lines, Inc. mainly operates in China, Italy, and Canada. From Hofstede’s six dimensions of culture, China has a high-power distance index and a collectivist culture. On the other hand, masculinity is strong with low uncertainty avoidance. Moreover, China is a short-term-oriented society with a low restraint score (Alberici, 2016). Unlike China, Canada has a low-power distance index and an individualist culture. Neither masculinity nor femininity is strong in Canada, with high uncertainties avoidance index (Willoughby, 2020). Additionally, Canada is a long-term-oriented society with a high restraint score. Finally, Italy has a low-power distance index and an individualist culture. In addition, the country balances masculinity and femininity dominance with high uncertainties avoidance score (Furxhi, 2021). Also, Italy is a long-term-oriented nation with a high restraint index.
Question 2
When communicating with Delta Airlines’ business associates from China, a U.S manager should view them as collectivists. This means that, unlike in the U.S, the manager should consider and acknowledge the roles and positions of the Chinese business associate (Alberici, 2016). The manager should allow a collective decision-making process for effective leadership between him and the Chinese associate. The U.S manager should also consider the imbalance between the roles and positions of males and females and the short-term oriented culture in China (Alberici, 2016). This will allow the manager to strictly follow Chinese business associates’ values, rules, and expectations to achieve the desired leadership goals.
Question 3
The economically and politically risky nations in which Delta Airlines operates include Ukraine and Russia. According to FOX 5 Atlanta (2022) and Josephs (2022) reports, the company suspended its operations in these nations because of political and economic battles. Currently, Ukraine and Russia are in a political war that affects their economic productivity and environments. The businesses in these nations, including airline ventures, are failing because of unfavorable economic and political environments. As a result, Delta Airlines will be among the countries that will suffer from negative consequences of hostile economic and political environments in Russia and Ukraine.
Question 4
Based on 5 Atlanta (2022) and Josephs (2022) information, Delta Airlines does not operate in nations experiencing civil wars and conflicts. These include nations such as Bangladesh and the Bahamas. When Delta airlines realize a nation is prone to political instabilities and wars, the company terminates or suspends business operations for security and sustainability reasons. Moreover, based on 5 Atlanta (2022) and Josephs (2022) reports, Delta Airlines does not operate in nations with common law systems of governance apart from those with stable political and economic environments such as Australia. This is evident from Delta Air Lines, Inc.’s (2020) booking report that indicates the company has flights in the city of Melbourne.
Question 5
Yes, Delta Airlines purchases insurance from development finance corporations (DFCs). The insurance covers Delta acquires from DFCs allows the firm to implement the travel protection plans and travel protection pluses for its customers. These programs enable Delta to cover the costs of canceled flights for substantial reasons on behalf of customers. In illustration, these reasons include sickness, death, et cetera, as depicted by Delta Air Lines, Inc. (2022a). Additionally, the insurance gotten from DFCs promotes business insurance at Delta Airlines. These include insurance covers for the company’s tangible and non-tangible assets.
Question 6
The key intellectual property (I.P.) rights and protections for Delta Airlines include Mr. Nelson’s invention and U.S. Patent collectively known as the “Delta Patents.” Mr. Nelson’s invention I.P. rights protect Delta’s information technology innovations from activities that might benefit competitors in the industry (Overhauser Law Offices, LLC, 2021). On the other hand, the “Delta Patents” protect the company’s most valuable business ideas that create and sustain quality in the company’s business operations.
Question 7
According to Transparency International. (2022), Canada and China have 74 and 45 corruption perceptions indexes. Globally, the countries are number 13 and 66. The Cashore et al. (2021) CBC News indicated that KPMG, a Canadian firm, engaged in investor finance fraud with Shashqua, Katar, Sceax, and Spatha, Shell companies. The company shielded offshore accounts that promoted the loss of nearly $ 1 billion. The courts probed and convicted the defendants for the lost corporate funds.
In another news at Reuters, created by Arnold and Jones (2021), World Bank officials corrupted officials to increase China’s ranking regarding the conduciveness of their business environments. The goal of the unethical event was to promote investors’ interest in China from the international community. The risk of corruption that Delta might face when operating in corrupted China and Canada is the loss of business resources. Besides, Delta may have damaged public images and ethical and legal risks because of conducting business in corrupt environments in Canada and China.
Question 8
The international expansion strategy for Delta involves the strategic partnership approach. The company engages in Partnership agreements with reputable and well-performing companies for global relevance. These multinational companies that partner with Delta for global expansion include Virgin Atlantic Airways, China Eastern, Aeromexico, et cetera (Delta Air Lines, Inc., 2022b). These partnerships allowed Delta to expand to U.K, China, and Mexico, respectively.
Question 9
Delta’s exit strategy involves product differentiation and innovation strategies. Anderson’s (2021) Harvard Business Review report shows that the company uses these strategies to revitalize customers’ interests in a different market after realizing their existing one is non-profitable. In demonstration, the company leaves market X by promoting affordable and unique products in a different market, Y.
Question 10
Delta Airlines is a responsible and accountable citizen, according to Delta Air Lines, Inc. (2022c). The company’s sustainability report indicates that the company supports the fight against climate change. In addition, the firm has been revitalizing its operations to reduce carbon emissions since 2020, as shown by Delta Air Lines, Inc. (2022c).
Question 11
Delta Air Lines, Inc. (2022d) shows that the company’s mission statement is “We, Delta’s employees, customers, {…} the environment where we and our customers live and work.” The mission aligns with Delta’s global operations of creating excellent local and international corporate relationships. The mission also aligns with the firm’s CSR activities of promoting environmental health by reducing carbon emissions.
Question 12
Delta integrates the Shareholder and Stakeholder models of business and corporate governance. This is because the company promotes the interests of investors from profitability and business performance perspectives. At the same time, the firm supports stakeholders’ interests that are different from performance and monetary issues (Delta Air Lines, Inc., 2022e). These include interests related to environmental sustainability and ethical business practices that stakeholder’s value.
Question 13
Yes, Delta is a stateless nation. However, the company has major branches globally, supporting its global expansion strategy. In general, the company does not concentrate its operations in one nation. Instead, it engages in partnerships for global growth, success, and sustainability. The Delta Air Lines, Inc. (2022f) governance report shows that the company has a departmental organizational structure based on unit roles, functions, and operations.
Question 14
I think Delta would benefit from a hybrid organizational structure. This is because the structure promotes collective decision-making, flexibility, and collaboration of leaders and followers (Ahmady et al., 2016). Moreover, the firm would benefit from the structure since it supports open communication among seniors, leaders, managers, juniors, and subordinates.
References
Ahmady, G. A., Mehrpour, M., & Nikooravesh, A. (2016). Organizational structure. Procedia-Social and Behavioral Sciences, 230, 455-462. https://doi.org/10.1016/j.sbspro.2016.09.057
Alberici, C. (2016). China in respect to Hofstede’s Cultural dimensions model, lesson 10. Penn State University. Retrieved from https://sites.psu.edu/global/2016/10/29/china-in-respect-to-hofstedes-cultural-dimensions-model-lesson-10/
Anderson, R. H. (2021). Delta’s CEO on Using Innovative Thinking to Revive a Bankrupt Airline. Harvard Business Review. https://hbr.org/2014/12/deltas-ceo-on-using-innovative-thinking-to-revive-a-bankrupt-airline
Arnold, T., & Jones, M. (2021). Bad For Business: World Bank China Rigging Scandal Rattles Investors. Reuters. Retrieved from https://www.reuters.com/business/finance/bad-business-world-bank-china-rigging-scandal-rattles-investors-2021-09-17/
Bad for business: World Bank China rigging scandal rattles investors
Cashore, H., Zalac, F., d’Entremont, P. E., Kelley, M., Choi, C., & Fortune, L. (2021). KPMG Disputes Leaked Emails Linking Firm To Offshore Companies Suspected In Massive Ponzi Scheme. CBC. Retrieved from https://www.cbc.ca/news/canada/kpmg-emails-denial-shell-companies-isle-of-man-1.5998374
Delta Air Lines, Inc. (2022). Flights to Melbourne. Retrieved from https://www.delta.com/us/en/flight-deals/pacific-flights/flights-to-melbourne
Delta Air Lines, Inc. (2022a). Delta Vacations Travel Protection Plan & Travel Protection Plus. Retrieved from https://www.delta.com/us/en/delta-vacations/travel-protection-plan
Delta Air Lines, Inc. (2022b). Global strategy: A nimble network of partnerships. Retrieved from https://news.delta.com/global-strategy-nimble-network-partnerships
Delta Air Lines, Inc. (2022c). Carbon Neutral from March 2020 Onward. Retrieved from https://www.delta.com/us/en/about-delta/sustainability
Delta Air Lines, Inc. (2022d). Delta Airlines Mission and Vision Statements Analysis. Retrieved from https://mission-statement.com/delta-airlines/#:~:text=DeltaAirlinesmissionstatementis,allaboutthebenefitsof
Delta Air Lines, Inc. (2022e). 2016 Corporate Responsibility Report. Retrieved from https://news.delta.com/sites/default/files/Delta_2016_CSR_0.pdf
Delta Air Lines, Inc. (2022f). Governance. Retrieved from https://ir.delta.com/governance/default.aspx
FOX 5 Atlanta. (2022). Ukraine-Russia crisis: Delta Air Lines dissolves ties with Russian-national airline. Retrieved from https://www.fox5atlanta.com/news/ukraine-russia-crisis-delta-air-lines-dissolves-ties-with-russian-national-airline
Furxhi, G. (2021). International Business and Country’s Culture Impact. European Journal of Business and Management Research, 6(1), 125-127. https://doi.org/10.24018/ejbmr.2021.6.1.719
Josephs, L. (2022). AIRLINES. Delta Cuts Aeroflot Ties as Fallout From Russia’s Invasion Of Ukraine Spreads In Air Travel. CNBC. Retrieved from https://www.cnbc.com/2022/02/25/delta-air-lines-cuts-ties-with-aeroflot-after-russia-attacks-ukraine.html
Overhauser Law Offices, LLC. (2021). Delta Faucet Sues Kohler Co. for Alleged Patent Infringement. Retrieved from https://www.iniplaw.org/delta-faucet-sues-kohler-co-for-alleged-patent-infringement/
Transparency International. (2022). Corruption Perceptions Index-2021. Retrieved from https://www.transparency.org/en/cpi/2021
Willoughby, D. (2020). Hofstede’s Cultural Dimensions. Middle Sex University. Retrieved from https://www.play.mdx.ac.uk/media/Hofstedes+Cultural+Dimensions/1_7j5452sp