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MGMT 601: Assignment #3 – Cross Cultural Differences in Leadership Case Study: Answer the questions from the case using APA. Maximum 6 pages Star Alliance 2020 Assume you are the Director General of the STAR Alliance organizarion, what challenges do you anticipate and how would you deal with them with the CEOS of the member airlines and the regulatory authorities in the countries where the airlines fly.? Before you start working on your report, you should thoroughly explore the grading rubric at the end of this instruction and clearly identify key elements based on which your report will be assessed. Requirements: · Write the paper using APA style with 8-12 citations and references in addition to the textbook, including several peer reviewed references. All sources must have: authors, publication dates, and publishers. “Anonymous” authors, undated sources will not be accepted as valid sources and marks will be deducted. · The paper should be at least 2500 words (10 pages), should follow a formal business report format including an introduction, main body, conclusion and recommendations, and must exhibit good writing, research, and analytical skills. · Report should be written in the formal style; avoid using personal pronouns and sharing personal experience for this assignment; avoid/limit usage of charts, diagrams and other visual components, instead concentrate on making your ideas coherent, relevant and convincing. · Submit your paper via Turnitin before the due date; late submissions are penalized by 10%/day This assignment holds a value of 20% of your final mark. Marks are assigned as per the Grading Rubric in this instruction. Grading Rubric for Assignment #3 Criteria Unacceptable Excellent Report Introduction · Stated purpose & objectives of report (clear and logical) · Provided background detail/identified problems · Clarified any limitations of report 0 1 2 3 4 5 6 7 8 9 10 Main decision making models · Discussed several models outlined above · Chose one model as the best and provided solid reasons for the choice · Outlined key components of the chosen model · Discussed each supporting point thoroughly and clearly · Supported assertions with research 0-17 18-24 25-30 Explanation of how chosen model is linked to leadership effectiveness · Gave situational analysis of model use · Explained how model is linked to leadership effectiveness · Gave real-life example of connection · Supported assertions with research · Tied model components, examples & research together 0-12 13-16 17-20 Report Conclusion and Recommendations · Addressed purpose & objectives of report · Provided a response to each problem identified Each recommendation was: · action-oriented, concise and clearly written · realistic and feasible · supported by research 0 1 2 3 4 5 6 7 8 9 10 Integration of concepts from the textbook/other sources · Used multiple sources in each section · Used sources to support personal thought/opinion/idea · Cited sources match concepts discussed · Balanced personal thought/opinion/idea and research 0-12 13-16 18-20 Professionalism of the document Grammar, formatting, length Paper had all required components References were accurate and were all used in the report 0 1 2 3 4 5 6 7 8 9 10 /100 Star Alliance in 2020 9B21M010 STAR ALLIANCE IN 20201 Professor Benjamin Gomes-Casseres and Jacob Judd wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e)
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[email protected]. i1v2e5y5pubs Copyright © 2021, Ivey Business School Foundation Version: 2021-01-28 Since its founding in 1997, Star Alliance had developed an expertly organized and managed network of global airlines over the course of 23 years.2 In 2020, however, the airline faced a new and unforeseen challenge: the COVID-19 pandemic and its aftermath. Suddenly, the world’s airline industry had to decide how to respond to a global crisis. Even before the outbreak of the COVID-19 pandemic, Star Alliance was already facing critical issues related to its organization and strategy. Its success had always depended on effective management of the network’s member airlines. That factor would prove even more critical during the pandemic, when airline travel suddenly and unexpectedly dropped to half of its original volume across the world, and was not expected to regain its status for some time. For over 20 years, Star Alliance members had contributed value to the alliance and reaped numerous benefits in return that helped them become strong competitors. Other airlines, recognizing the value and strength of an alliance, had formed their own rival airline networks. Would this strategy help airlines survive the COVID-19 crisis? Was group-based competition needed to thrive during a pandemic? THE GLOBAL AIRLINE INDUSTRY The COVID-19 pandemic started in early 2020 and spread across the globe. In response, severe travel restrictions were introduced in all countries. As demand for travel plummeted, passenger occupancy in planes declined, and health and safety costs mounted. All airlines sought emergency funding wherever they could, usually from their home governments. Observers recognized that the future of the industry was being reshaped, although what new form it would take was unclear. Before attempting to accurately predict the airline industry’s future, understanding its history and economic fundamentals was necessary. During the preceding decades, the global airline industry had been transformed by new regulatory policies and company strategies. The United States deregulated pricing and domestic routes in 1978 and the European Union followed suit in 1997. Although regulatory hurdles still prevented cross-border mergers in many countries,3 airlines were able to pursue various new strategies. One strategy global airlines used to extend their global reach was a bilateral and multi-partner alliance, known in the industry as a “constellation.”4 Star Alliance was created in May 1997 by an agreement among five international airlines: Deutsche Lufthansa AG (Lufthansa), United Airlines Inc. (United), Air Canada, Thai Airways International Public Co, and Scandinavian Airways System. The following year, four more airlines joined the alliance: Varig, A ut ho riz ed fo r us e on ly in th e co ur se M gm t 6 01 L ea de rs hi p in a G lo ba l C on te xt a t U ni ve rs ity C an ad a W es t t au gh t b y R og er C ha rle s fr om A pr 1 2, 2 02 1 to J ul 0 4, 2 02 1. U se o ut si de th es e pa ra m et er s is a c op yr ig ht v io la tio n. Page 2 9B21M010 Air New Zealand Limited, Ansett Australia, and All Nippon Airways Co. Ltd.. Expansion continued regularly and steadily from that point. The main goal of the founding members was to expand their global network of service and attain many of the synergies that a merger provided, while maintaining their independent identities. Two years later, two new airline alliances emerged with a plan to reap the same benefits that Star Alliance seemed to be enjoying. Oneworld was formed by founding members American Airlines Inc. (American) and British Airways, and SkyTeam was formed the next year by Delta Air Lines Inc. (Delta), Air France, and KLM Royal Dutch Airlines.5 The Rise of Airline Constellations Star Alliance was a new type of organizational structure in the airline industry but one that would soon become relatively common. This structure consisted of multiple member airlines enabling collaboration in certain activities, within limits. Antitrust rules did not allow sharing specific types of information, coordinating pricing, or sharing profits.6 However, each member paid a share of the costs of the organization and had specific rights in the governance of joint activities. Historically, airline alliances had been bilateral—that is, between two companies. In 1998, for example, Air France was part of 24 different bilateral alliances with different airlines across the globe—all of them remaining distinct and separate.7 Star Alliance, however, grouped such relationships into one network and coordinated bilateral arrangements between member companies. Multi-partner alliances established common branding and standards for the various member airlines. In some cases, the alliance helped its members aggregate large aircraft purchases. Initially, Star Alliance relied mainly on its two largest members—United and Lufthansa. In 1999, these two airlines together served 578 destinations in 106 countries. By 2020, Star Alliance had grown its membership to 26 airlines and served over 1,300