Report on Air Malta's International Business Expansion in the UK

This report analyzes Air Malta's international business expansion, specifically focusing on its potential growth in the UK market. It begins with an overview of the company and the concept of international business, including globalization and economic integration. The report delves into key factors for internationalization, such as cultural considerations (power distance, masculinity, uncertainty avoidance, and indulgence), ethical considerations, and global marketing strategies. The marketing mix, including product, price, and place, is discussed in detail. The report aims to provide a comprehensive analysis of the challenges and opportunities Air Malta faces as it expands its business internationally, emphasizing the importance of adapting to cultural nuances, ethical standards, and effective marketing approaches to ensure success in the UK market. The analysis includes factors like cultural differences, ethical considerations, and global marketing strategies. The report aims to provide a comprehensive analysis of the challenges and opportunities Air Malta faces as it expands its business internationally.

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1. Introduction
1.1 Company
1.2 International business
1.2.1 Globalization
1.2.2 Economic Integration
Table of Contents
1. Introduction............................................................................................................................ 1
1.1 Company............................................................................................................................ 1
1.2 International business.........................................................................................................1
1.2.1 Globalization................................................................................................................................ 1
1.2.2 Economic Integration................................................................................................................... 1

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This is the structure I expect you to follow
Front page
1. An Overall Company Description 100 words
Air Malta is the flag carrier airline of Malta. This is an airline company which provides
services to the travellers by carrying them through this airline and making them reach their
respective destinations (Esarwi and et.al., 2019). It operates its services in Middle East, North
Africa and Europe. The Air Malta airline is expanding its business in UK. In UK, the business of
airlines will be expanded on scale that will help airlines in making effective business and will
attract target travellers or customers along with making business effective in terms of promoting
and branding the services which Air Malta has to offer country.
2. An Executive Summary 300 words
The report has been prepared on the topic International business which will provide the
details of the Air Malta Airline business in the market structure of Malta and its expansion in the
UK. The report has been formed and written in detail the various factors which will be
considered in expansion of the Air Malta airlines business in the UK. This has been done prior to
acknowledge the purpose of the business in UK’s market structure. Globalization along with the
economic integration factor has been analyzed which helped in identifying the business aspects
and the expansion globally including the trade benefits and strategies which were framed for the
purpose of depicting the standards and how the airlines will be processing the various factors for
making the business acknowledge what are the different perspectives and trends which are
running in the market and through this, the marketing of services and products also has been
described which has helped in making the process of analysing the market structure in the airline
industry even more appropriate and significant for the terms that it has been expanded in the UK
market. Through this report, it has also been analyzed that how international business helps in
making the success in business effective and efficient by following the marketing patterns. The
report has also been framed which analysis the significant information for the Air Malta Airlines.
Internationalization of business has been analysed with factors such as cultural considerations,
global marketing considerations, economic integration, competitive strategy, international
strategy. Thus, these aspects in report have been considered for the purpose so that it becomes

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easy for making the expansion of the Air Malta Airlines business successful. Thus, business to
be powered with more success to run effectively and efficiently for the international business
expansion in UK forms Malta.
3. Introduction 500 words
International business is the process in which trading of services and goods is done which
includes technology, knowledge, capital performed across borders, transactional scale or global
scale. Contemporary forces that attract companies to compete internationally play major role in
making the business reach heights which help in expansion of the business globally and this also
helps in identifying the market needs and requirements (Cantwell, 2017). There are various
contemporary forces which are being described for the companies to compete internationally.
These forces are -
 Technological Change - There are various technological changes which take place when
the companies compete internationally with other companies. Various up gradations have
to be made to deliver the services and products reach to the customers in an effective and
efficient way.
 Difference in Tax Systems – There is difference in tax systems in the country with
which the company is competing. In this, the Air Malta company, which is in Malta and
is expanding its business in UK will face difference in the tax systems which is to be
considered important and through this, it is described that the difference in the tax
systems in both the countries are different which makes the airline business think of the
ways of how and when to expand the business effectively by considering all the elements
and processes of expansion (Backus and et.al., 2021).
 Growth Strategies – There are many growth strategies which the business follows and
through this Air Malta is able to expand its business in UK. Strategies have helped the
business in making decisions which are appropriate for the growth aspect and through
this the Air Malta is able to acknowledge the process of being in large business scale by
the development and growth aspects overall.

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3.1 Globalization
Globalization has benefitted international trade as it has enabled the business of making
the effectiveness and generating the business needs and requirements in different countries. The
Air Malta has expanded and diversified its business in UK where it has made sure that the
business which is being expanded successfully makes the services reach to the customers
effectively and efficiently (Ali and et.al., 2017). Through globalization the international trade is
benefitted as it increases the intensity of innovation, capital and the output from the business
which the airlines receive. The airlines have benefitted the most in this process of expansion and
diversification of the Air Malta business internationally with the country UK.
3.2 Economic Integration
Economic integration is process of reducing trade barriers to frame a set of economic
goals. Economic integration has benefited international trade by reducing cost of trade and has
improved availability of services and goods which are to be provided to customers (Strielkowski
and et.al., 2017). Along with this, economic integration has increased consumer purchasing
power in other nations which has been its biggest achievements and through this trade and
business has been increased as it has been following various methods through which business is
being performed. On large scale economic integration has helped in making Air Malta reach
expand its business in UK with all facilities which are being provided by UK.
4. Key factors to consider for Internationalization
(main body) Expect about 2000 word
4.1 Cultural Considerations

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Power Distance - Malta Scores high on dimension (score of 56) which is meant that it is a
hierarchical society. People in the society accept the hierarchal order in which people are placed
in Malta. For UK, the power distance is the society which has higher and lower index and this
helps in ranking the power distance score which is seen that higher score is among the high class
of Britain. People in UK should be treated as same way and equals. This is the situation in both
Malta and UK for the factor power distance described effectively and efficiently.
Masculinity - In Malta, the masculinity factor has a low score on the dimension. The dominant
values of the society are seen in this scale which is through males. There is power of masculinity
in Malta (Cheng and et.al., 2020). In UK, this is the same case as of Malta as the masculine
society is more dominating than the feminine. And males in UK are highly driven and are
success oriented. Therefore, there is similar case which is seen in both the countries that is UK
and Malta. Therefore, in this case that is masculinity scale is almost similar to what is being
denoted.
Uncertainty Avoidance - Societies in UK prioritize their existing goals differently and this is
seen through the scale that Malta scores uncertainty avoidance with 96 score which denotes that
there is high preference of avoiding uncertainty. In UK, there is low score of uncertainty
avoidance and also there are also not many rules which are to be followed by the society and the
people living in it. Therefore, this is the factor which denotes that there is high score of
uncertainty avoidance in Malta and low score of uncertainty avoidance in UK reflecting the
behaviours of society and its people.
Indulgence – Malta scores 66 for indulgence scale. People with high score in Malta are to have
the happy society and their indulgence within the society with people is also effective and
communicative (Wang and et.al., 2020). Therefore, Malta exhibits intelligence on that scale. In
UK, the score of 25 indicates that British culture is less in indulgence. Therefore, indulgence
scale of Malta and UK is on terms that it is low and high with much difference. This indicates
that indulgence scale of Malta and UK creates one of major studies on indulgence factor as
depicted by the scales of how much it is measured.
4.2 Ethical Considerations
Compiling with ethical consideration is equally an important point to be considered while
making internationalization. Ethical consideration includes the moral values and the ethical
perspectives which a company need to consider while making internationalization and
performance of its business operation (Vidgen, Hindle and Randolph, 2020). In case of Air Malta
which is making is expansion in UK also needs to consider and comply with the ethical
consideration in the form of following the concept of sustainability, non-harming the

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environment, respecting the moral and ethical belief of the people of UK and various other need
to be consider while operating its business there. Likewise, compliance of required laws and
regulations of the country is also counted as an ethical duty of Air Malta.
Apart from this ethical consideration in terms of serving the passengers, performing the
business operation is also important point to be considered by Air Malta. As ethical
consideration is directly linked with the moral and values of the society and hurting these will
lead to have a bad impact over the company and its business. So compiling and following these
considerations are very important for the Air Malta in order to have successful operation and
running of business. In addition of this various other considerations in terms of non-harm,
confidentiality, transparency, informed consent and various other considerations are also need to
be focussed and considered by the company including Air Malta while exploring its services in
UK.
4.3 Global Marketing Considerations
Like other modes and consideration an equal focus towards the marketing and the
situation of market in the target country is also important. As an analysis of market of a country
would enable the company to have an idea regard framing its own policies and regulation in
regard to business performance. In case when companies including Air Malta make expansion
and internationalization of its business it is essential that the following points will be consider:
Marketing mix:
It includes the strategies and a set of practices that is used by companies in order to
promote their service and make entry in the target market (Thabit and Raewf, 2018). It further
includes:
Product:
It refers to the tangible product that is being offered to the customers (Bruskova, 2019).
Here in case of Air Malta, the product includes the airline services of the company which enable
the customer to experience air travel along with enabling them to reach at their destination. As
there are already many airline companies exist in UK market, so enabling the best service is an
essential element to be consider by the Air Malta for establishing its business in competitive
market.
Price:
It is one of the crucial and important elements of marketing mix. As per this factor if the
prices of the services will be little fluctuate then it will have a severe impact over the customers
because they will shift to next best alternative (Ikechi, Chinenye and Chiyem, 2017). Thus, Air

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Malta need to be very careful regarding this factor and try to enable its services at low cost so
that it can grab more customers along with enabling expansion of its business.
Place:
It refers to place or include the channel of distribution. With regard to Air Malta it need
to try to enable its air services at such places too which is yet not been heavily used. This means
enabling the best connectivity to the places will surely lead the Air Malta to have better
expansion along with raising the percentage of sales and revenue too.
Promotion:
Promotion refers to creation of awareness among the customers and the population
regarding the company and the services. It is the key element which Air Malta need to consider
while expanding its services. This is because if the people of the targeted country will have no
knowledge regarding the company and its services then the business will not succeed. Use of
local advertisement, social media or any other local form of promotion will assist the Air Malta
to explore and expand its services along with good success.
4.4 International Entry
There are various modes by which Air Malta can enter into UK and make
internationalization of its business. However out of them some are:
Licensing:
As per this method company need to take permission in the form of license from the
licensor in order to operate its business in some other country (Mittal, 2018). As per this method
the within low cost and minimum risk companies including the airline companies can make
internationalization of its business and operate its services and business in some other country.
Air Malta may also choose and adopt this entry in order to expand its services in UK. For that it
will avail license from the concerned authority and perform its services. As licensing bears a low
percentage of risk in terms of compliance of more formalities and provisions so by enabling and
availing license, Air Malta can make market entry in the UK.
Partnering and strategic alliances:
This is also counted as a useful method with regard to internationalization of business in
concern to Airline Company. As per this mode, Air Malta can either make partnership or
strategic alliances with already existing big companies of UK or thereby make market entry.
Through this method company will make expansion of business along with exploring its services
with the help of other company in other country (Subramanian, Bo and Kah-Hin, 2018). Air
Malta may also choose this method. As this method involves low cost because of sharing of cost
and expenses. Likewise, percentage of risk will also be reduced. This all due to the expertise of

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the already existing company and making of equal sharing. In the same way it will also make the
entry to international economy and market as easy.
However, there are some other ways including joint venture wherein two or more than
two companies will pool their recourses and work towards the accomplishment of specific
objectives. In the same way under the method of acquisition wherein one company will acquire
other.
But out of all, Air Malta can choose Licensing and partnering in order to make
internationalization of its business.
4.5 Competitive Strategy
The Porter Diamond is referred as Porter Diamond Theory which explains the
competitive strategy which processes the competitive advantages in the market and helps in
understanding the customers’ requirements and needs which are to be fulfilled. The Porter’s
Diamond Model consist these factors which are described below as –
Factor Conditions - The factor conditions are the resources which include knowledge resources,
capital resources, infrastructure and natural resources (Schmid, 2018). The Air Malta may have
to deal with these resources which may or may not be present in UK as the expansion of the
airline business is being done there effectively and efficiently.
Demand Conditions – Demand conditions is defined as the home market demand which
includes the aspects such as market growth rate, market sophistication and market size. In the Air
Malta business, UK’s market size and growth rate is seen which makes the analysis of the scale
that how the business will grow and what will be the extreme growth situations for making the
progressive standards of airline business in the country like UK.
Related and Supporting Industries - The presence of the international market is the main key
source through which the suppliers in the industry can be identified and the processing can then
be done based on it (Rexhepi and et.al., 2017). As the Air Malta airlines is expanding its business
in UK then it has the chance to take the advantages which are provided through the international
market that is from UK.
Firm Strategy, Structure and Rivalry – Air Malta’s firm strategy focuses on displaying the
brand name full flegedly. The new brand strategy is the step towards airline development which
makes the most use of the brand growth and after the expansion of the Air Malta in the UK it is
made sure that the firm strategy is based on the new developments which are to be made
effectively. The structure of the Air Malta is framed in such a way that the airline is able to
expand in the market of UK and in country itself (Autio, 2017). The rivalry with the airlines is
very competitive in market which denotes that UK’s market structure is framed in such a manner

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which makes the brand name and airlines effective enough for company so that expansion in
market is done effectively and efficiently. Thus, porter’s diamond model is helps in creating
competitive advantage which makes realise market structure of Malta and UK work effectively
and efficiently.
5. Conclusion 300 words
Thus, it is concluded from the above report that globalization helped in playing the
important role in making realise the expansion of the business of Air Malta in UK. Along with
this, economic integration also helped in analyzing and removing the trade barriers which
promoted business in the UK. Furthermore, aspects like cultural considerations, ethical
considerations, global marketing considerations, international entry and competitive strategy
were explained which made sure that there are various other sources which helped in creating
and making the Air Malta business consider these points. Further, the business of Air Malta was
to be extended and expanded in the UK. This made clear the market structure of UK as well and
the comparison of the UK market along with Malta as the country. Creating the business
internationally made process of identifying the market and analysing the marketing needs and
requirements which are to be fulfilled. This made more clearly that the process of the Air Malta
when expanded its business considered the process and procedure of the airlines in an effective
and efficient manner. Therefore, Air Malta helped in expansion of the business by analysing the
marketing strategy along with structure of brand when it will expand in the market of UK. This
also made in realising process of company that the airlines that what and how the airlines
business will be effective enough to expand and grab the market structure in an effective manner.
Therefore, expansion of airlines was done on the basis that how the business of airlines is
expanded by considering structure of the market in which the marketing needs and the
requirements are to be fulfilled effectively and efficiently. The criteria of branding and
promoting of the Air Malta brand made clear that future strategies are to be framed within the
scenario effectively.
6. Recommendations 300 words
The recommendations which are to be provided to the management of the Air Malta airlines is
that –
 Effective technological up gradations should be made which would help the management
in taking decisions effectively and efficiently.

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 The management should takes risk in expanding the market to other countries as well
other than UK which will help them in knowing what are the key sources through which
the whole process of market structure can be followed through it then.
 Various strategies whole be framed by the management towards changing the older
patterns and systems of Air Malta and its procedures.
 Some decisions should be taken for the success and the progress so that the business
which is expanded in the UK takes the peak of having to know more about the
development and the growth on the large scale.
The Air Malta airlines should proceed with internationalizing their business by practically
analyzing market structure so that it helps in knowing what are the requirements and needs of the
customers and travellers. This will also make the process of expansion easier as the market will
be developed and grown on that behalf. When the airline business will be internalized it will help
to seek business growth and objectives which will help Air Malta seek more future aspects of
dealing in the UK. To proceed with internationalizing business, it is the prior responsibility of
management to identify key opportunities and threats in market which will help in making most
use of the business and through this, the business key objectives which are to be fulfilled will be
identified. This will make sure that business will need key aspects which will serve best of what
it can to other country that is UK as well in a significant and effective manner.
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