The Simulation Project
Assignment 8 – The Simulation Project
Judith L. Allen
BUSN310, American Public University
January 27, 2013
Assignment 8 – The Simulation Project
Multinational corporations face many challenges in their domestic and global environments. According to Ajami, Cool, Goddard, and Khambata “a multinational firm is one in which a certain percentage of the earnings, assets, sales, or personnell of a firm come from or are deployed in foreign locations” (Ajami, Cool, Goddard, & Khambata, 2006, p. 6). According to this definition US Airways Group would be classified as a mulitnational firm. On Fortune 500’s Worst List, US Airways Group is identified as a least admired company on all eight attributes identified by the research and surveys performed by Hay Group (Best & worst in..., 2006). As the name implies US Airways Group operates in the Airline industry. This paper will discuss how government regulations, hard and soft technologies, some political-legal barriers, sociocultural factors and two economic theories that are faced by US Airways Group are affected by their domestic and global environments. It will also offer a strategy for US Airways Group to countinue its growth and success as an industry leader. As indicated from its name the domestic environment of this company is the United States and the global environment that will be used is Costa Rica.
In the US the airline industry has two main agencies that write regulations that it has to obey. The Federal Aviation Administration (FAA) and the United States Department of Transportation (DOT) (Electronic Code of Federal Regulations, 2012). Although the airline industry was de-regulated in 1978 the DOT “retains the authority to alter or amend any airline’s certificate or to revoke such certificate for intentional failure to comply with the terms and conditions of the certificate” (10-K, 2012). The FAA is responsible for writing the regulations that relate to aircraft maintenance and operations,
Judith L. Allen
BUSN310, American Public University
January 27, 2013
Assignment 8 – The Simulation Project
Multinational corporations face many challenges in their domestic and global environments. According to Ajami, Cool, Goddard, and Khambata “a multinational firm is one in which a certain percentage of the earnings, assets, sales, or personnell of a firm come from or are deployed in foreign locations” (Ajami, Cool, Goddard, & Khambata, 2006, p. 6). According to this definition US Airways Group would be classified as a mulitnational firm. On Fortune 500’s Worst List, US Airways Group is identified as a least admired company on all eight attributes identified by the research and surveys performed by Hay Group (Best & worst in..., 2006). As the name implies US Airways Group operates in the Airline industry. This paper will discuss how government regulations, hard and soft technologies, some political-legal barriers, sociocultural factors and two economic theories that are faced by US Airways Group are affected by their domestic and global environments. It will also offer a strategy for US Airways Group to countinue its growth and success as an industry leader. As indicated from its name the domestic environment of this company is the United States and the global environment that will be used is Costa Rica.
In the US the airline industry has two main agencies that write regulations that it has to obey. The Federal Aviation Administration (FAA) and the United States Department of Transportation (DOT) (Electronic Code of Federal Regulations, 2012). Although the airline industry was de-regulated in 1978 the DOT “retains the authority to alter or amend any airline’s certificate or to revoke such certificate for intentional failure to comply with the terms and conditions of the certificate” (10-K, 2012). The FAA is responsible for writing the regulations that relate to aircraft maintenance and operations,
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