Pressure for Local Responsiveness
Emirates Airlines’ Subsidiaries
Emirates Airlines Global Business Goals and Objectives
Global Operational Integration
A driving force in globalisation is Technology
The Virtual Office – The Internet
In-Flight mobile & Internet Access
Pressure for Global Integration
Enrolment of Global Workforce
Determining the balance of Global Integration vs. Local Responsiveness Global consistent customer service
Creating value and achieving goals
Global Aviation Strategy
Emirates aim to redraw the world aviation map
In today’s competitive global market the success of multinational enterprises (MNEs) rely heavily on their differentiated geographically dispersed subsidiaries being fully or partially owned subsidiaries, regional offices, representative offices etc...
Given the increasing globalisation of the competitive environment, the dual imperatives of global integration and local responsiveness are becoming more critical than ever before for the survival and growth of MNEs (Access My Library, 2001).
A fast growing multinational enterprise in the world is Emirates Airlines which forms part of Emirates Group. Emirates Group is based in Dubai and is primarily composed of Emirates Airlines, Emirates Holidays and Emirates SkyCargo. Emirates Group was founded in 1985 and today they operate globally in over 100 destinations in 62 countries with a new location added on average every two months. Emirates Airlines is a fast-growing global airline with one of the youngest fleets in the sky and with more than 300 awards for excellence worldwide. Emirates Airlines operates a fleet of aircraft to various destinations in Europe, the Middle East, the Far East, Africa, Asia, Australasia, and North America; literally in all continents of the world.
Global integration concerns the coordination of activities across countries in an attempt to build efficient operations networks and to take maximum advantage of similarities across locations. A multinational solution that combines both global integration and local responsiveness is essential for economic growth and this can be achieved through the orchestration of operations on a global level i.e. striking a balance between global integration and local responsiveness of operations. Local responsiveness concerns the attempt to respond to specific needs within a variety of host countries while foreign subsidiaries must be differentiated enough to successfully confront cultures, markets, and business practices that contrast distinctly with those of the home country. This flexibility must be accommodated within a structure that will provide maximum contribution to corporate performance, thus, an asymmetrical treatment of various subsidiaries is necessary for coordinating worldwide businesses within an intra-organisational network (University of Alabama, 2005).
"The forces of globalisation create tension just as they create opportunities. These tensions must be managed." - Nemir A. Kirdar Founder, President and Chief Executive Officer, Investcorp.
Local responsiveness is all about attempting to understand and to respond to specific needs and to adapt to host country conditions. Local decisions and policies pertaining to foreign subsidiaries should be geared to the unique parameters of the local environments such as business culture, consumer demands, competition, government regulations etc... In other words MNEs need to employ strategies that align properly with the structural attributes of the host industry.
Local responsiveness in a dynamic environment can be classified into three categories:
National environmental factors within a host country
Industrial structural factors which determine the conduct,...