Strategy/Problems in Mgmt - Essay Example

The current Delta Airline is as a result of mergers by many airlines which include the Chicago Southern Airlines (1953), Northwest Airline (2010), Pacific Air Lines (1968), among others. The total sales of Delta Airlines has been increasing for the last five years with the last and current total sales standing at $36.67billions and the gross income being $6.12billion. Delta Airline is composed of a very complex but effective and efficient system if leadership which is the Chief executive officer and the president are among the top most leaders in the corporation.

The current Chief Executive Officer is Richard H. Anderson and the President is Edward H. Bastian. Reason for Going Global Delta Airline ha s expanded globally due to various reasons. Among the reason is the ability and strength of the corporation to get to the large amount of the initial capital that was and is required to establish, run, maintain and sustain the activities the corporation all over the world and this factor as been greatly facilitated by merging which has seen the company gain more and more grounds in providing airline services.

Another key reason for delta airline to go global is the existence of the potential market in which it realized in time and it fully took advantage of it and this has proved to be beneficial to it in the entire global market. Risks The greatest risks of globalizing for the firm are economic risk and currency risks. Under economic risks, has Delta Airline struggles to explore new and potential markets, there are other places in which there services are not likely going to be economical since they are likely to get few customers who have the capacity to make use of their services and thus this may render them a loss in the long run.

The economic loss risk also comes in to place in that the firm deals with giant airplanes in which in the case of any recurring accident, they are likely to suffer a great of loss in terms of their assets and customers who might lose faith and trust in their services. In currency risk, it being a global corporation, it means that it deals with many different countries which have different currencies and this is risk in that transactions are not only difficult but there is also a great deal of suffering a blow in case of inflationary effect.

Culture: The greatest Hofstede differences between the US and the country they do the most business with is that US is basically under individualism cultural dimension which has a define kind of preference with individuals expected to care for themselves and their immediate family member whereas other countries survive under a collective preference where individuals expect relatives or other members of the society to care after them unquestionably. America culture is of uncertain avoidance has opposed to other countries that have rigid lines of beliefs and behaviors.

Its culture is also of short- term orientation while other countries are of long term orientation. Global Strategy The firm uses a global strategy when it comes provision of its services all over the world. It offers the same product globally, under a centralized system of decision making with the local authority having little control over decision making issues and it is more effective in small countries which are strategically advantageous in terms of cost, coordinating its activities and fast development of its product.

Multidomestic Strategy The firm