Business Report on Air New Zealand

Business report on Air New Zealand
1

Table of content
Introduction......................................................................................................................................3
1. Internal Environment of Air New Zealand..................................................................................3
2. Impact of external environment on Air New Zealand.................................................................4
3. Explain using four examples sustainability initiatives undertaken by Air New Zealand and
their impact on business...................................................................................................................6
4. Sustainability initiatives to change the way of business approach..............................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
2

Introduction
Air New Zealand is the national airline organization of New Zealand. This airline organization is
located at Auckland and operates with 20 domestic flights and 31 international flights across 19
countries around the world. The particular airline company delivers its services to Australia,
Asia, South West Pacific, UK and North America. In this report the internal environment of Air
New Zealand will be discussed along with the external and internal factors affecting the
operations of the organization, the various sustainability approaches taken by the airline
organization and recommendation for employee performance improvement.
1. Internal Environment of Air New Zealand
For understanding the internal environment of Air New Zealand certain resources like
reputational, tangible, human, innovational and relationship have to be evaluated besides the
cultural categories like long term orientation, risk avoidance, individualism and power
distance.The organization should make effort to construct its organizational structure in a way
that would ensure organized systematic approach of running business. Reputation of an
organization is interlinked with tangible, human, innovational and relationship resources. In the
context of tangible resources the airline organization has taken up a new philosophy of entering
the low-cost market in order to achieve the objective of maximizing the overall group returns
based on capital employed. This objective implies to cost reduction and turning into a long –term
oriented business maintaining the interests and providing values to its shareholders, customers
and employees. With respect to human resources the airline company maintains competent
managers and staffs who are efficient in handling the customers and providing them with
satisfactory services (Purce, 2014). Encouragement is provided to the employees by rewarding
them for their performances. All of the above discussions contribute in determining the
reputation of the airline company. Air New Zealand is considered to have the best corporate
reputation in the country. It is the most reputable company in Australia. The resources that affect
the reputation of Air New Zealand are innovative technologies, employee performance, customer
services and tangible resources (Fernández-Olmos &Díez-Vial, 2015. 25(3), 213-226). The
3

airline company has so far reflected satisfactory performance with respect to the mentioned
reputational resources. However, it is necessary to mention that the company needs to give
importance to certain factors which creates better internal environment. For instance, the
company needs to have strong human resource, skilled and industrious employees willing to
provide better effort for further growth and development. The company should make effort to
increase its scope of volunteer activities. The objectives of the particular airline company are to
increase the total group return based on capital employed, to promote balance and diversity to the
earning streams of the group and to take the complete advantage of the competencies of the
group in the markets where they have influence. The company also maintains a good customer
service team that handles the queries and complaints in an appropriate manner. This helps the
organization in attaining competitive advantage over the other airlines. In order to increase the
factor of competitive advantage, importance should be given on physical resources such as new
facilities, availability of advanced equipment. The company needs to make it easily accessible to
target and potential customers. The management of the company gives importance to the
opinions and feedbacks of the workers by supporting the concept of Individualism (Triandis,
2018). The company needs to stress on its value system to improve internal environment. Value
system indicates the company’s ethical beliefs to fulfil and perform business aims and objectives.
The particular company emphasizes on maintaining equality within the working environment.
The persistence of a communication gap between the staff and the higher authority may result in
the disintegration of the performance thereby affecting the overall performance of the
organization. Thus Air New Zealand takes great care in maintaining proper interaction between
its staff and management for preventing any kind of misunderstanding and ensuring a proper
management of the business operations.
2. Impact of external environment on Air New Zealand
External environment indicates the factors which reside outside, such as political, economic
condition society, impact or influence the business operation. Air New Zealand needs to consider
the external factors in order to tackle any changing situations and take actions accordingly.
Political, legal, social or cultural, demographic, environmental, economic and technology, are
some examples.
4