All Nippon Airways’ Internal Analysis

Executive Summary

All Nippon Airways is a multinational company holding various interests in air-related services. Holding the fact that All Nippon Airways Company operates in three different business segments, i.e. air transportation segment, information communications, among others; moreover, the traveling segment has made the internal environment of this company complex (Audi, 2009, p. 56). Diversification of operations and interests has created a pool of interests between the company stakeholders internally, hence promoting organizational culture in the company (Kerin, 2009, p. 6). Holding all factors constant, All Nippon Airways Company’s internal environment has been changing both positively and negatively due to the developments in the various areas of operation (Flouris TG & Oswald SL, 2006, p. 81).

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Technology, labor sector, management, legal issues, and cultural and social developments in various regions of interest have brought changes in one way or the other. To sum up, the company has tremendously gained important financial strides due to the prevailing conducive internal business and social environment within the company as well as the availability of the technology and the willingness of the insiders to embrace technology as their business tool.

With this development at hand, the company’s internal organization culture has gone a notch higher as well as promoting the company profitability. This has been a reality mainly because All Nippon Airways Company has managed to manage and control the company operation, finance, and marketing areas as well as the labor section. These four sections are vital as far as the business internal environment is concerned (Shaw, 2007, p. 41).

Nippon Airways Operational Management

Nippon Airways Company Management has been enhancing prudency as the only way to achieve financial goals (Smith, 2008, p. 54). Holding the fact that this company operates in three different business offers, it means that the company management decision-making is sound. The ability to coordinate activities within the company has enhanced organizational culture within the organization. The business stakeholder’s coexistence and understanding are mostly generated by the ability of the company management to coordinate and supervise all the activities within the company (Bearden, 2011, p. 23).

To facilitate a good business environment, the company management team has devolved the decision-making process that comes up with workable solutions, hence making them more efficient and consuming less time. This exposure has necessitated a possible and realistic development within the company holding the fact that the main challenges are sorted easily and swiftly (Bearden, 2011, p. 20). Considering this crucial development within the organization, organization culture and communication within the company are assured. All stakeholders are, therefore, believed to confirm with the company agenda as well as associate themselves fully with the company. This is a key area that enhances a good and conducive working environment within the company as well as motivates various stakeholders who might in one way or the other be interested to make their own decision within their area of exposure (Scarborough, 2009, p. 56).

Nippon Airways Financial Position

The company has taken the advantage of the prevailing globalization where air service is needed to help those who are doing business with the rest of the world to be able to meet their objectives in time (All Nippon Airways Co., Ltd. 2010, p. 11).

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The company also has formed a well-spread portfolio whereby it has spread the risk of operating in one area of concentration to three interrelated areas. This development has made it possible for the company to make more profit. In the year 2011, the company opened subsidiaries in various regions with an interest to secure a big market share a dream that was realized by the China air services. Such development made it possible for the company to double its profit as well as secure a big market share in the region. Currently, the company’s financial position is stable whereby it has consistently been able to meet its profits targets at ease.

The company capitation has been growing with the increase of subsidiaries and stockholding agenda adopted by the company as a way of extending its interests. The company shares prices have been improving as compared to other shares in the same market. This proves a stable financial position of the company irrespective of the international financial crisis. In the future, the company stands to be more profitable holding the fact that its customer base is increasing among other economic moves like the ability to use technology as a business tool. With the help of the technology, the company cost of production has been minimized, hence increasing the company profitability (Flouris & Oswald, 2006, p. 81).

Marketing

The current company expansion can be credited to the company’s ability to market itself within the region. The company has a sound marketing team which has helped the company expand its market share irrespective of stiff competition with other multinational companies (Campbell, 2011, p. 21).

It is noted that this company has packaged its self as a price-effective company to a rational service offered. The ability also to offer different services in the same industry has enhanced the company reputation hence encouraging more to associate with the company. There is a tendency to the targeted customers that if one is satisfied by the company services, there is a possibility of that particular customer to seek another service for the same company. Diversification, therefore, has promoted the company’s marketing strategy mainly because most of the targeted customers experience the company offers in the market (All Nippon Airways Co., Ltd. 2010, p.12).

The company has managed to identify various groups of targeted customers with price discrimination and quality as their points of strength. This has been applied to all areas of concern hence creating a big pool of customers. In the air service, for example, the company has identified various classes of customers based on the financial position of the targeted customers. This ensures that all are given expected services within their economic capability (Scarborough, 2009, p. 56).

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On the other hand, the company has subdivided this area into two sections whereby there are goods transport services and passengers services. This accommodates all forms of business hence attracting many willing and able customers. Contrary to many air service providers, Nippon Airways has established destinations in almost every part of the world. This helped it to remain relevant to all customers. To the areas that this company does not cover, the company management has formed alliances and mergers with like-minded stakeholders in the market as a way of satisfying all customers irrespective of the customer location (Scarborough, 2009, p. 56). This marketing strategy realizes a good relationship between the company and the targeted customers around the globe.

Human Resources Management

Human resource management is a core department that is expected to enhance a good internal environment within a company (Young, 2011, p. 94.). For Nippon Airways, the company’s human resource department is structured as an independent department that does not get influenced by the central management. The department is managed by professionals who keep the company’s reputation or interests first. It is with this notion that the company has been maintaining professionalism all across the departments. Candidates are recruited with respect to the expected results hence promoting organization culture within (Ryan, 2009, p. 34).

The ability to employ the right candidates has promoted the company’s internal environment whereby all officials provide their services to the company expectation hence reducing chances of internal conflict as a result of poor performance. Holding the fact that this company operates in the hospitality industry, attitude and professionalism are some of the elements that base the employment strategies. Any candidates that possess these elements pose to be given a chance by the company.

To ensure growth and service delivery, manpower development through constant training is a norm in this company (Campbell, 2011, p. 61). This prepares and educates the employees on the primary roles expected of them. As a result, the company profile and reputation have remained vibrant, hence encouraging more and more customers to seek the company’s services. Holding the fact that the company has been expanding in various regions, it has been recruiting employees from the region to manage the company interests this is a plus to the company in many ways, e.g. the company manages to get economical labor force as well as connecting the company with the locals (Campbell, 2011, p. 61).

This employment program acts as a marketing tool whereby the company manages to cope with the local diversity as well as motivate locals to associate with the company. At the same time, local employees help to create a conducive internal environment within the /company mainly because they hold interests in the company (Kimmel, 2011, p. 71).

References

All Nippon Airways Co., Ltd. 2010, Opportunities for Progress: Annual Report 2010. Web.

Audi, R 2009, Business ethics and ethical business, Oxford University Press, New York.

Bearden, WO, Netemeyer, RG & Haws, KL 2011, Handbook of marketing scales: Multi-item measures for marketing and consumer behavior research, 3rd edn, SAGE Thousand Oaks, Calif.

Campbell, DJ, Edgar, D & Stonehouse, G 2011, Business strategy: An introduction, 3rd edn, Palgrave Macmillan, Houndsmills, Basingstoke, Hampshire.

Flouris, TG & Oswald, SL 2006, Designing and executing strategy in aviation management, Ashgate Publishing, Aldershot, UK.

Kerin, RA, Hartley, SW & Rudelius, W 2009, Marketing, 9th edn, McGraw-Hill/Irwin, Boston.

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. 2011. Accounting: Tools for business decision making, 4 edn, Wiley, Hoboken, N.J.

Ryan, D & Jones, C 2009, Understanding digital marketing: Marketing strategies for engaging the digital generation, Kogan Page, London.

Scarborough, NM, Wilson, D & Zimmerer, T 2009, Effective small business management: an entrepreneurial approach, 9th edn, Pearson Prentice Hall, Upper Saddle River, N.J.

Shaw, S 2007, Airline Marketing and Management, Ashgate Pub., Farnham.

Smith, L & Mounter, P 2008, Effective internal communication, 2nd edn, Kogan Page, London.

Young, SB & Wells, A 2011, Airport planning and management, 6th edn, McGraw-Hill, New York.

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