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In every year, many institutions typically consider international business operations as a process of gaining a firm ground in the business environment, marketing and as a growth technique. When carrying out a strategic plan to launch a global business idea, growing businesses and their advisors have to put into consideration various factors, the potential barriers, and adjustments that will be significant in the production process. TRE Aviation, Inc. is an aircraft equipment and parts manufacturing organization that is interested in expanding its services internationally and has to consider several factors that will aid in the successful expansion. Therefore, this paper will be an executive brief that will provide a summary of the factors that the company will have to put into consideration.
Some of the challenges that continuously face the airline industry are familiar and always persistent with the difficulties being the safety of the airline while in the sky together with its passengers on board. Safety and security problems are some of the most considerable challenges facing the aviation industry where international terrorist acts have been continuously experienced with the aviation being their primary target. Therefore, governments and airlines have to come up with practical ways of providing increased security while making available, efficient degree of services and overall passenger comfort (Bows, 2010). Moreover, sustainability and economics is another challenge being witnessed in the aviation where it is likely to experience some pressure since the air travel is considered to be significant in economic growth through connecting global marketplaces.
Regional trade blocks are regarded as the associations of nations at a state level that aids in promoting trading activities within the block and protect its associates against the constant international competition. Typically, the defenses against worldwide competition are achieved through established tariffs on products produced by the member states, government subsidies, and import quotas. Therefore, the four main regional trade blocks include the Association of Southeast Nations (ASEAN) that is in charge of boosting economic growth, social progress and cultural growth in the regions (Bowen, 2013). The second regional trade block is the European Union (EU) whose achievements have evolved from being a local free-trade alliance of state into a union of financial, political and executive links. The third trade block is the Mercado Comun del Cono Sul – Southern Cone Common Market (MERCOSUR) that has been able to combat poverty crisis.
Privatization in the aviation industry can be typically described as simply the entire or part move from the public to private ownership with an active engagement with the private sector management and operations. This process in aviation is significant to the government in that it will not only help in lowering the dependency rate on the state resources, but also increases the catchment process. Privatization is also encouraged by various governments due to the focus that it has on the customers and the policy.
About the information technology, several airports must invest more financial resources in this sector more than anything else since, with the expansion of technology, airport information technology sectors have become the backbone of the business operations. It also safeguards all the processes and systems that will reach all areas of the airport operations (Griggs & Howarth, 2013). Consequently, having to invest in technology is one of the vital aspects of improving the complete safety and security of airport enterprise, encouraging the overall productivity, and increasing the revenue production. Modern technology continually offers various opportunities at the airport setting hence must be considered a priority when setting up any airline.
Workforce diversity is another significant factor that must consider in the aviation expansion process since a majority of companies always embraces a diverse cultural mode of working where every culture is incorporated in the airport operations (Ghosh, 2014). The international civil aviation organization is one of the groups that embrace workforce diversity where it has had an overwhelming implication towards the resource policy. Factors such as the cultural anthropology and global business arise when they encourage a multicultural workforce. Moreover, there is also the need to have a close survey to ensure any cultural differences do not hinder the global business. This will need for the study of various human cultures that is done typically by the anthropologists in different varied fields and industries. There are always diverse cultures within a given workforce which may have an adverse result on the aviation expansion success if not monitored keenly. Workforce diversity will allow the sharing of ideas and knowledge that are significant towards achieving a successful operation and handling of various clients internationally.
The political status in which airlines functions are highly controlled and favor the customers over the airlines because international aviation industry functions in a surrounding where passenger’s safety is essential and where the previous behaviors towards monopolistic character by the carriers have made the political set up drained of the airlines. Airlines have not recovered from the 911 attacks together with the increase in the price of oil due to the second Iraq war plus the constant spike in oil prices before the prolonged recession. These are factors that have contributed to the losses that are experienced in the airlines globally. Technology is essential in airlines operations; however, they are limited to the aircraft and the duties of the carriers without the ticket and the delivery phase (Griggs & Howarth, 2013). Therefore, there is the need to include other technical aspects such as the mobile technologies for ticketing, distribution and clients’ service processes. It is also important to know that many lawsuits against various airlines both from the users and the workers have escalated thus carriers must ensure that the laws are followed to the latter.
Carrying out any business activity internationally typically needs a well understanding of varied cultures since what functions well in a given country might not operate well in another and could be interpreted to be an insult. International aviation policy comprises of the aircraft noise regulation, the navigation act and regulation, the global airline license guidance notes and the family assistance code (Ghosh, 2014). About negotiations and decision-making principles, debates on the climate change have been continuously encouraged and began in the second half of the last century. However, the talks were restricted due to its causes and side effects thus the federal nation environment program has come up with reports on the climate change and its side effects based on the current scientific data.
Motivating and managing workers who represent various cultures can be useful and challenging at the same time regarded that the supervisors and managers know how cultural differences contribute towards organizations success. Some of the methods of motivation and control of diverse workforces include defining culture without having to add aspects such as the race, color, sex, place of origin and even religion (Mazraati, 2010). Moreover, it is vital to continually request the workers to identify differences they believe will apply to them on an individual basis. There is also the need to carry out a worker survey with the intention of learning more about worker’s preferences about work styles. It is also essential to encourage cross-department focus groups and allow candid and fluid interaction of ideas.
On the global markets, export procedures, and import processes, there are typically rules and policies that are used to guide any business process taking place internationally to regulate the goods that introduced or exported out of a particular country. This aids in maintaining the security of various countries and business related crimes such smuggling of weapons and drugs.
Bows, A. (2010). Aviation and climate change: confronting the challenge. The Aeronautical Journal, 114(1158), 459-468.
Bowen, J. (2013). Continents shifting, clouds gathering: the trajectory of global aviation expansion. In Sustainable Aviation Futures (pp. 37-63). Emerald Group Publishing Limited.
Ghosh, A. (2014). Plane truth: aviation’s real impact on people and the environment.
Griggs, S., & Howarth, D. (2013). The Politics of Airport Expansion in the United Kingdom: Hegemony, Policy and the Rhetoric of ‘Sustainable Aviation’. Oxford University Press.
Mazraati, M. (2010). World aviation fuel demand outlook. OPEC energy review, 34(1), 42-72.