LUFTHANSA- Case Study- by Andhika Galih Pinanditha

Views:
 
Category: Education
     
 

Presentation Description

Global Business

Comments

Presentation Transcript

LUFTHANSA The Challenge of Globalisation:

LUFTHANSA The Challenge of Globalisation Case Analysis by : Team 2 5/6/2012 Global Business Environment - Team 2 1 LUFTHANSA: The Challenge of Globalization

Company History:

Company History 5/6/2012 Global Business Environment - Team 2 2 1926 : Aero Lloyd & Junkers Luftverkehr AG formed German Lufthansa (Flag Carrier) 1930 : Open route to far east : Eurasia Aviation cooperation founded in China 1938 : Air Continental, Lufthansa flew non-stop Berlin to New York 1945 : Lufthansa ordered to shut down operation by the allies at the end of2 nd world war 1955 : First scheduled service began : International Operations (Europe, NY & South Atlantic) 1960 : Introduction of Boeing 707 : The Jet Age Rhein Main Airport (Frankfurt) became the hub of Lufthansa International network 1970 : Introduction of Boeing 747 : The Jumbo Jet 1990-91 : Crisis due to Reunification, Gulf War, Economic recession 1992-95 : The 1 st & 2 nd Turnaround 1996 : Alliance network (SAS, Thai Airways)

Deutsche Lufthansa- The Company:

Deutsche Lufthansa- The Company 5/6/2012 Global Business Environment - Team 2 3

The Turnaround:

The Turnaround 5/6/2012 Global Business Environment - Team 2 4

Statement of Problem:

Statement of Problem 5/6/2012 Global Business Environment - Team 2 5 “Managing Lufthansa transformation challenges towards globalisation to remain competitive global player in the future airline industry”

Causes of Problem:

Causes of Problem 5/6/2012 Global Business Environment - Team 2 6 Deregulation give rise to ever increased competition Communication & transfer knowledge among subsidiaries becomes limited due to Interdependencies Unprepared mental changes of the Lufthansa managers to become global The increasing diversity of customer gives different customer service expectations. Internationalisation of management caused cultural barrier for the German and Non-German managers.

Case Analysis:

Case Analysis 5/6/2012 Global Business Environment - Team 2 7 Deregulation completed in 1997, eliminate price fixing & European airlines access to all European country & freedom to operate within European country and between any two European countries New organizational structure was form in 1995, 6 independent companies were created. All subsidiaries report to the main Lufthansa Executive Board, each subsidiary is wholly accountable for its result, set their own business strategy and focus on their own target. Re-structuring causes subsidiary to keep it’s own people and restricting moves, therefore individuals felt lack of transfer knowledge or experience from different subsidiaries. Lufthansa seeking to globalize by forming Alliance with Thai Airways & SAS, the partnership implementation is not simple. Customer expect similar services from all of the partner, the alliance network brings broader customer base with wide variety of expectations

Case Analysis:

Case Analysis 5/6/2012 Global Business Environment - Team 2 8 Managers unaware and unwilling to work abroad because the majority of Lufthansa managers are German and have only worked in German, currently management training courses are conducted in German Lufthansa current service culture are more concern and emphasis on the basic of technical aspects such as reliability, punctuality and safety, this kind of service objectives became insufficient to meet demands of current diverse customer

Conclusion:

Conclusion 5/6/2012 Global Business Environment - Team 2 9 Transnational form of organization is needed in order to build and legitimizes multiple diverse internal perspectives. Integrated management structure as an effective coordination. Voluntary execution is needed in order to actualize global learning or transfer of knowledge between subsidiaries to individuals. Lufthansa have to shift its service formation from mechanism to customer orientation Lufthansa needs to develop organizational psychology such as shared management understanding to overcome cultural barriers. Alliance building to broaden external relationships “growth through partnership”

Conclusion:

Conclusion 5/6/2012 Global Business Environment - Team 2 10 27 Airlines offering more than 21,000 flights a day 1,160 destinations in 181 countries

Conclusion:

Conclusion 5/6/2012 Global Business Environment - Team 2 11

Conclusion:

Conclusion 5/6/2012 Global Business Environment - Team 2 12

Recommendation:

Recommendation 5/6/2012 Global Business Environment - Team 2 13 To continue step ahead and compete as a global player in the airline industry through highly motivated and qualified team from different nations to prepare them from future challenges. Improve its service culture and make it competitive advantage. Appropriate adaptation is needed for service strategy such as Customer Relationship Management (CRM) Continue communicating momentum of change & conduct trainings for the for employees & managers Form a broader strategic Alliances as a global strategy with efficient operations across network to increase market share and profit

authorStream Live Help