Cross-Cultural Environment and Recommendations for AirAsia

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INTERNATIONAL BUSINESS
6/12/2019
Student name

INTERNATIONAL BUSINESS 1
Executive summary
The cross-cultural environment is one of the key issues that would be responsible for
international trade that will ensure the ease of employee’s interaction from various regions and
cultures. The purpose of the report was to analyse the cross-cultural environment and key
recommendation to manage them while considering one of the organizational cases that is
AirAsia.
AirAsia is a low-cost airline based in Malaysia and is identified to be the Malaysian largest
airline with destinations covered and by fleet size. The key characteristics observed in the culture
of these nations are impulsive people, emotional, relevance to the family and friends,
multitasking, poor followers of agendas. The culture was quite nurtured of the company and
manages cross-cultural skills to be a success and excel in every aspect. AirAsia claims to be
successful due to the human resourced of the company. The key recommendations for AirAsia to
increase cross-cultural proficiency include cultural auditing, training and development program
and agile team formation.

INTERNATIONAL BUSINESS 2
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Literature review..............................................................................................................................4
International business model.......................................................................................................4
The Lewis model of culture.........................................................................................................6
Discussion and analysis...................................................................................................................7
PESTLE analysis of AirAsia.......................................................................................................8
The Lewis model influence on AirAsia.....................................................................................10
Conclusions....................................................................................................................................12
Recommendations..........................................................................................................................12
References......................................................................................................................................14
Appendix........................................................................................................................................17
Appendix 1.................................................................................................................................17
Appendix 2.................................................................................................................................18

INTERNATIONAL BUSINESS 3
Introduction
The international business considers the trading of products and services outside the home
country of the brand. This would include assessing the business environment and understand the
factors that would affect the business in another nation. Moreover, it is one of the key strategic
decisions, which required detailed study of the internal and external business environment of the
company (Alvesson, 2016). The key factor that would affect the business is cultural differences
in home and the host country that is to be entered. The cross-cultural environment is one of the
key issues that would be responsible for international trade that will ensure the ease of
employee’s interaction from various regions and cultures. The cross-cultural business is focusing
on the barriers and differences caused by law, language, beliefs, and culture (globalnegotiator,
2019). The purpose of the report is to analyse the cross-cultural environment and key
recommendation to manage them while considering one of the organizational cases that is
AirAsia.
AirAsia is a low-cost airline based in Malaysia and is identified to be the Malaysian largest
airline with destinations covered and by fleet size. This airline group is engaged in international
and domestic flights to 165 or more destinations. The company is expanding their business since
2001 as the largest low-cost airline in Asia. The mission of the company is to encourage people
to travel through the air and make this service available for various incomes group that is
providing low cost airline. The major competitors of the company are Malaysia Airlines, and
Singapore Airlines. The report will include studying the key external environmental factors in
international business that would affect the company’s business (airasia, 2019).