Global Issues and Alaska Air Group - Report Example

Alaska Air Group al Affiliation: I. Introduction With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of economies, the level of competition in the local market has increased tremendously. This has mainly resulted from the entry of multinational airlines. These are firms that have diversified their operations to different parts of the world. They have therefore accumulated a huge amount of money which they use to segment the market, position their products and services strategically in the market, and attract the loyalty of the customers towards their products and services. Alaska airline has been in operations for decades but the current level of competition from Delta Airline is threatening the airline’s position in the market. However, the changing customer perception towards the airline’s commitment to participate in corporate social responsibility has affected the overall sales by the company. Many of the customers want to be associated with a firm that involves itself in activities that aims at improving the livelihood of the people or address an issue that is of great interest to the local population. The concerns have been aggravated by the report that the airlines have been playing a significant role in polluting the environment (Hermann, 2008). Different airlines have taken the initiative of ensuring that they participate in activities aimed at reducing the pollution levels. For instance, Delta Airline has invested heavily in modern aircrafts that emit little fumes that affect the environment. With the increasing levels of global warming, companies are expected to ensure that part of their profits is directed towards environmental pollution. II. How your Alaska Air group influences the issues In the past five decades, Alaska has seen the number of industry in the area increase tremendously. However, the environmental protection bodies are being overwhelmed. Many people think that Alaska is the best escape area from urban pollution. However, report indicates that air quality is twice as bad as that of Beijing. Alaska has a lot of woo but there are no gas pipelines. Many of the residents cannot afford fuel which cost at least $4.5 a gallon. Therefore, they have turned to wood or anything else that they can throw in their furnaces especially during the winter season. Effort by the regulator to ensure that use of wood in the area is regulated has been faced by intense resistance from the locals. Majority of the people feel that the government has failed on its part to address the big issue which is associated with industrialization (Caldwell, 2012). (Statistics that were being denied by the locals) Many feel that the industries and multinational companies have been in the forefront in polluting the environment. Therefore, they feel that there is a conspiracy between the government officials and the company managers to turn the attention towards the people rather than addressing the issue at hand. As a result, most of the people have been turning their frustrations towards the local companies. This is through avoiding the use of their products and services. This has had a major impact on Alaska Airline which is highly dependent on the local population for its existence in the market. The company’s competitors have been using the issue to weaken the firm’s position in the market. This is through using this as a competitive agenda. Alaska Airline was also being blamed for air pollution in the region. In 2013, the airline was accused of failing to observe the guidelines that ensure that the companies do not emit harmful elements in the environment. The company was accused of using low-quality fuel as a way of reducing the cost of operation. These allegations had a major impact on the performance of the airline in the market. Many of the competitors took this opportunity to enter the local market and giving the local population alternative substitutes to select from. III. Responses The activities of Alaska Airline have led to the increase in protest by the local society. However, the major strategy by the local population to avoid the services by the company has affected the operations of the company. For instance, the records indicate that after the allegations, the sales of the firm dropped by almost a half. This attracted the attention of the company towards the issue. The employees of the company started increasing pressure on the company to intervene in order to salvage the reputation of the company in the market. In addition, the government agencies and activist groups became more vocal and started pilling pressure on the company’s top-level management to take the necessary action in order to resolve the issue. (Air quality levels in Fairbanks Alaska) (Alter, 2013). In November 2012, people went ahead and voted to strip the borough of all powers to regulate air quality. Proponents of this measure argued that the state already has the authority mandated with the regulating air quality but the local body is hindering the national body from intervening with the issue (Alter, 2013). They even went ahead and threatened to go to court in order to force the local companies commit part of their revenues to improve the living conditions of the local population. This is through forcing the companies to ensure that the locals get piped gas. However, the issue did not go through due to poor coordination of activities by the activists (Medred, 2014. The national government was able to come in for the rescue of the local population. However, the initial interventions targeted the local people. There were promises that the government will provide the people with energy saving cooker in order to prevent them from using wood (Caldwell, 2012). However, the decision to enforce laws that will force the companies based in the area to ensure that the waste being released in the atmosphere is free from pollutants was not arrived at. However, in future the issue is likely to be revisited because the previous strategies have not been successful and pollution levels continue to rise. The magnitude of the issue has not been taken seriously by Alaska residents. The media has been instrumental in spreading the issue beyond the boundaries of Alaska. With the Alaska airline expanding its operations in other emerging markets, the customers in other areas mainly in US and Mexico have been reluctant to use the services by the airline. This has hampered the airlines ambition of competing effectively with Delta Airline. IV. The Company’s Response Alaska Airline has tackled the issue head on through implementing internal strategies which are aimed at reducing the pollution levels. For instance, in 2013, the company in partnership with Ecova introduced new measures to ensure that it reduce its expenses through recycling 20% of its total waste materials. Everything from paper and cold cups to coffee grounds were recycled by the company. This intervention reduced the amount of gases that was initially released to the atmosphere from burning this trash. The move was lauded by the local community with Seattle Business Magazine appreciating the airline for its in-flight recycling program. Beside appreciation of the move by the locals, the confidence levels of the customers towards the airline increased tremendously (Ellram, & Tate, 2013). People started looking at Alaska Airline as a company that is environmentally conscious. The change in customers’ perception was replicated in the overall performance of the company in the market. V. Conclusion With the increasing levels of globalization, the competition in the local and global market has increased tremendously. In order for the companies to remain competitive in the market, they need to ensure that they participate in improving the welfare of the society. This is through setting up part of their revenues and directs it towards the noble idea of addressing the issues that are affecting the people. The response by Alaska Airline indicates how such intervention can have a major impact on the reputation of the business in the market. Bibliography Alter, L. (2013, February 19). The Air Quality in Fairbanks, Alaska is Worse Than in Beijing : TreeHugger. Retrieved March 18, 2015, from http://www.treehugger.com/environmental-policy/air-quality-fairbanks-alaska-worse-beijing.html Caldwell, S. (2012, December 20). Fairbanks Air Quality a Dirty Shame Locals Call a Community Health Crisis News. Retrieved March 18, 2015, from http://www.adn.com/article/fairbanks-air-quality-dirty-shame-locals-call-community-health-crisis Ellram, L., & Tate, W. (2013). Sourcing to Support the Green Initiative. Hermann, P. (2008). When Disaster Strikes - a Guideline to Business Continuity Awareness. München: GRIN Verlag GmbH. Medred, C. (2014, May 3). Polluted Air Travels from China to Dirty Alaska Sky News. Retrieved March 18, 2015, from http://www.adn.com/article/20140503/southcentral-alaska-skies-clouded-chinese-pollution Read More