Context of Business Report: Norwegian Air Analysis

This report provides a comprehensive analysis of the business context of Norwegian Air. It begins with an introduction outlining the report's objectives, focusing on leadership styles and organizational strategy. The main body includes a SWOT and PESTLE analysis to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, technological, legal, and environmental factors. The report then explores the impact of these PESTLE factors on the company's work capabilities. It delves into different leadership styles, including autocratic, democratic, laissez-faire, transformational, and participative approaches, recommending the most appropriate style for Norwegian Air. The report also discusses the company's social responsibilities and concludes by summarizing the key findings and recommendations, supported by relevant references.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1: SWOT and PESTLE................................................................................................................1
2: Impact of PESTLE factors on work capabilities of the company............................................2
3: Different leadership styles.......................................................................................................4
4: Recommended leadership style...............................................................................................5
5: Social responsibilities..............................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
Books and Journals......................................................................................................................9

INTRODUCTION
Leadership is responsible for leading organizational workforces such that it is able to achieve an
common organizational target in minimum efforts and leadership style is the leadership approach
for leading organizational workforces towards the achievement of desired target. Norwegian Air
is chosen for the analysis in this report, the company tend to provide affordable travelling option
to its customers in several geographic areas. Evaluation of the organization's working capabilities
through the implementation of SWOT and PESTLE analysis is done in the report, with that
analysis on the steps taken by the organization for negating the negative impact of changing
market condition is also done in the report. Analysis on different leadership and management
style for the achievement of desired organizational target has also being evaluated within the
report. Also, recommendation for the appropriate leadership style has being integrates in report,
while analysing the social responsibilities of the organization.
MAIN BODY
1: SWOT and PESTLE
SWOT analysis of Norwegian Air
Strength- Norwegian Air tend to provide affordable flying options to their customers and
because of this company has managed to achieve high level of brand awareness. Due to which is
having high sales which has provided company an efficient economic growth which empowers it
to implement changes as per the organizational requirement.
Weakness- Even though company is having high organizational sales but in order to provide
customers an affordable pricing Norwegian Air has to establish low profit margin (Abdoh and
et.al.,2020). Due to this company's economic growth is limited and during the present time of
COVID-19 this growth is also being reduced because of the less travelling.
Opportunity- Company can implement several customers attracting creative cost reduction
offers while implementing the government developed COVID guidelines. Through which it can
make sure that it is able to improve customer retaliation and also at the same time making
concentrated efforts for reducing the chances of brand switching for the customers which will
improve company's sustainably in the changing market conditions.
Threat- Due to increased market competition company's customer bases is being affected
drastically and because of which its economic growth is affected. Apart from that government
has to induced lock-down to stop the spread to COVID-19 virus because of which company's
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aircraft have not being able to achieve proper scheduled maintenance because of which high
organizational expenditures have to be made for ensuring the safety of the ride to customers.
PESTLE analysis of Norwegian Air.
Political- Norwegian Air tend to provide its services in various geographic areas within the EU
and because of which changing international politics will make a significant impact upon the
company's working process and policy development (Volodymyr, 2019). This can evaluated in
the present time of COVID-19 in which Norwegian Air has to improvise its working and sitting
arrangement as per the government developed policies.
Economical- Norwegian Air has to ensure that it is able to introduce its pricing strategies in such
a way that it is able to attract wide range of customers through affordable pricing, with that
company also has to make sure that it is able to implement pricing such that it is able to achieve
high profit margin.
Social- Company has to make sure that it is able to develop organizational working process as
per the changing customer requirements through which it can attract new and trendy crowd
towards the organization for maintaining its efficient sales (Křupka, Kantorová and Haile,
2018).
Technological- Norwegian Air has to ensure that it is able to reduce organizational expenditures
while increasing work productivity and because of which company has to integrate technological
advancement through which it can achieve high work productivity. However, this will also
increase organizational expenditures but will ensure that company is able to achieve its desired
target.
Legal- It is very important for organizations like Norwegian Air that it is able to work
accordingly to the legal legislations through which it can make sure that it is able to minimize the
threat of facing penalties for not working as per the government induces laws.
Environmental- Organization has to make sure that it is able to minimize the negative impact
which is being established on the environment, this is important for the company because
through this it can develop a positive image in front of the customers, but this will also increase
organizational expenditures.
2: Impact of PESTLE factors on work capabilities of the company
Impact of PESTLE on opportunities and threat-
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Organizations like Norwegian Air have to ensure that it is able to make appropriate changes in its
working process as per the changing market conditions through which it is able to achieve
desired organizational target (Bytyqi and Le, 2018). Thus following are the impact of changes of
PESTLE factors impact upon the opportunities and threat of the organization.
Impact of Opportunities- Organization has to introduce several customer attraction schemes
through which it tend to make sure that it is able to attract new customers. Thus, for achieving
this company has to follow several deliberate deception steps through which it can make sure it
is able to reach a wide range of customers. This will improve company's working condition and
goal achievement capabilities. With that company also has to make sure that it is able to make
several efforts through which it can improve customer's experience with the organization through
which chances of brand switching can be reduced.
Impact on Threat- Norwegian Air has to improvise its working process according to the
changing external factors which affects the organizational working process and this can be seen
in the present time of COVID when company has to implement several changes (Bandara and
Opsahl, 2017). This, changes include reduction of employee workforce for reducing the
organizational expenditures and due to the lock-down the scheduled maintenance of company's
aircraft was being reduced because of which large amount of capital investment have to done for
ensuring the safety of the rids. Apart from that increasing market competition also tend to make a
significant impact upon company's customer count because of this its economic growth is
affected.
Use of strength to negate threat and weakness- Norwegian Air tend to utilize its strengths for
improvising its weaknesses such that company is able to improvise its working process in such a
way that negative impact which is being established on the organization is reduced. Thus, for
achieving this company can utilize its strong economical background for implementing the
technological advancements through which it can make sure that it is able to synchronize
different levels of organizational working through which high work productivity can be
achieved. This is also very important because company has to reduce its number of employee so
that organizational expenditures can be reduced, therefore by diverting the capital investment in
the right direction it can maintain its same high level of work productivity through which
chances of goal achievement can be increased.
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Norwegian Air can also use its high level of brand awareness for promoting its self to a wide
range of customers through the effective utilization of social market strategies through which
customer's level of engagement in organizational activities can be increased. In order to develop
a positive image company tend to showcase the steps which it had to follow according to the
legal legislations. By showcasing organizational steps for following the legal legislations it can
develop a positive image in front of the customers by providing them for having best in class
services, this will reduce the chances of brand switching for the customers and provide increased
customer loyalty.
3: Different leadership styles
Organizational leadership is responsible for leading organizational workforces in such a way that
they are able to collaborate their working process with each other through which chances of goal
achievement can be increased. Following are the different leadership styles which can be
implemented by Norwegian Air.
Autocratic leadership- It is a type of leadership in which the organizational leadership tend to
force organizational employees to work according to the provided instructions. Through which it
tends to make sure that employees are working as per organizational requirement, this is
effective but tend to make reduced employee's level of engagement with the organizational
activities (Taye, Keino and Ngala, 2020). Due to these chances of brand switching is increased
for the employees, which will affect the goal achievement capability of the organization.
Demographic leadership- It is an type of leadership style in which the organizational leadership
tend to motivate employees to participate in the decision-making process and provide their ideas
for improving the decision-making. Through this step organizational leadership tend to achieve a
different point of view in the decision-making, however the final decision is being made by the
leadership (Bakhsh, 2020). Through this step organizational leadership tend to ensure workforces
that their suggestions are being taken into consideration by the organization and because of
which it tends to increase the employee's level of engagement with the organizational activities.
Laissez-Fair Style- This is a type of leadership in which organizational leadership tend to less
monitor the organizational employee workforces and allow them to implement improvisations in
their working process as per their requirements. This is a highly effective method of leadership
and being widely used because it empowers organizational workforces to analyse the work
condition and implement changes as per their requirement. This will not only reduce the problem
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solving time but will also influence employee's to learn new skills and talents so that they can
improve their work productivity. However, it also develops unsynchronized working within the
company because of the differences of work productivity.
Transformational leadership- It is a type of leadership in which organizational leadership tend
to provide comparatively simple projects which they are able to achieve efficiently and because
of which employee's level of engagement in organizational activities is increased. Since, the
employees are having high work productivity then in that case leadership tend to provide new
but complicated target to that employees (Bekdash, 2019). Through which it tends to improve the
work productivity of the employee workforce through which chances of goal achievement is
being increased.
Participative leadership- It is a type of leadership in which organizational leadership tend to
motivate employees to implement improvisations by rewarding them for improved working
condition. Also in this the leadership tend to punish employees for not working as per the
organizational requirements through this step leadership tend to maintain an efficient
organizational working within the company. Since employees are motivates for learning new
skills so that they can achieve rewards because of which their loyalty towards the organization is
also not being affected.
Demographic leadership will be highly beneficial for Norwegian Air because through this
company can ensure that it is able to resolve the issues which the employees are having and with
that through this it can also resolve the problems which are affecting the organizational working
capability of Norwegian Air.
4: Recommended leadership style
The appropriate leadership style for Norwegian Air will be demographic because
company has to make several improvisations in its working process through which company can
provide new and rare products to the customers, while maintaining same high level of work
productivity. Due to this factor it is important for the organizational leadership that it is able to
identify the employee's perspective of improvising organizational work productivity while
maintaining its high work productivity (Cote, 2017). This is necessary because the employees are
responsible for implementing the organizational develop plan on the ground level and due to
which they are aware of the customer requirements. Therefore, by integrating the organizational
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employee's in the decision-making process leadership tend to make sure that it is able to achieve
the ground level working process through which chances of goal achievement can be increased.
With that Demographic leadership is also very important for Norwegian Air because the
company has to reduce the organizational staff for saving the organizational expenditures and
because of which it has made a significant negative impact upon employee's level of engagement
with the organizational activities. Therefore, by resolving the issues which the employee's are
having organizational leadership tend to ensure that employees are able to concentrate their
efforts for the achievement of a desired task. This is important for the company because reduced
employee workforce will reduce work productivity, but in the present time of COVID-19
travelling is reduced (MWANGI, 2017). Therefore, since the organizational work load is being
reduced for Norwegian Air then by reducing company's working productivity accordingly
Norwegian Air can make sure that organizational employees are able to provide high level of
organizational services to the customers.
Norwegian Air has to make sure that it is able to implement improvisations in the
working process through which it is able to achieve an efficient competitive edge through which
it can reduce the chances of brand switching from the customers side and maintain an efficient
economic growth. Thus, for achieving this company has to implement several creative
improvisations through which it can make sure that it is able to provide new and rare
organizational services. Due to which company has to take creative suggestions from the
employee work forces through which it can minimize the threat of facing resistance to change
from the employees. Therefore, Norwegian Air has to ensure that the threat to chance from the
employee side is minimized by fulfilling their requirements and by this company also tend to
make several efforts by which employee's engagement in the organizational activities in
increased. Through which it can make sure that it is able to identify the areas which are making
negative impact upon the organizational working of the employees and also work creativity will
also be increased.
5: Social responsibilities
Corporate social responsibilities- It is organizational responsibilities of the organizations like
Norwegian Air towards the social welfare of the society by which it can make sure that it is able
to develop a positive image in front of the customers (Vo, Xiao and Ho, 2019). This is important
for organizations like Norwegian Air because through which level of engagement in social
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welfare activities company can develop a positive image in front of the customers which
motivate them to increase their level of engagement with the organization. However, this will
increase organizational expenditure of the company which will affect its economic growth but on
the other hand this will act as a type of promotion activities for the company (Kim, Lee and Roh,
2020).
Responsibility- Organization like Norwegian Air are responsible for doing social welfare
activities through which it tends to make sure that it is able to develop a positive image in front
of the customers and also is promoting itself towards a wide range of customers. This is a
effective way for promoting itself but on the other hand there are several ways through which
organizations tend to implement their social welfare activities, which are fast and slow. In the
case of fast large welfare activities are done in a instant and because of which company tend to
make large welfare activities due to which it is able to develop a high brand value and manages
to achieve high return in context to the investment which is being done by the company for the
achievement of a desired target (Park, 2019). This is effective but with the increasing time the
product life-cycle tend to be decreasing and because of which customer's level of engagement
with the company is also affected. However, organizations can implement slow method in which
it tends to implement integrated approach in which companies like Norwegian Air tend to
implement integrated series of consecutive steps. Through which it tends to make sure that it is
able to develop a positive organizational image this happens because company often tend to
make small efforts for social welfare and through which it tends to make sure that it is able to
maintain a high level of customer's engagement with the company by which it tends to achieve
an efficient economic growth (Ringham and Miles, 2018).
Obligations- Norwegian Air has to ensure that it is able to implement the social welfare
activities in the weaker section of the society through which it can make sure that it is able to
improve the common problems (Peeters and et.al., 2019). Through this step company can
achieve high organizational brand image in front of the customers and tend to motivate them for
developing direct contact with the company. Through this step it can develop a high
organizational reputation in front of the organizational customers and also at the same time this
will also increase the customer loyalty towards the company because of which chances of goal
achievement can be increased.
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CONCLUSION
From the evaluation in this report it can be concluded that organization tend to analyse their
working capabilities such that it is able to implement improvisations in its working capabilities
according to the changing market trends and customer requirement. Through which chances of
goal achievement will be increased. With that it can also be identified that organizations like
Norwegian Air have to develop effective working strategies in such a way that it is able to
minimize the negative impact which is being established on the company through which it can
maintain its efficient working while maintaining it's sustainably. Apart from that it is also very
important for the organizational leadership that it tend to influence organizational employee
workforces to implement changes in their working process through which they can achieve a
improved working condition. With that it is also very important for the organization that it is able
to fulfil its social responsibilities through which it is able to develop a positive image in front of
the customers.
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REFERENCES
Books and Journals
Abdoh, H.M.B., and et.al.,2020. The Effect of PESTLE Factors on E-Government Adoption in
Jordan: A Conceptual Model.
Bandara, W. and Opsahl, H., 2017. Developing organization-wide BPM capabilities in an SME:
the approaches used, challenges and outcomes. Journal of Information Technology
Teaching Cases. 7(2). pp.92-113.
Bytyqi, A. and Le, K.A., 2018. Financial Evaluation of a Public Firm, Theory and Practice:
Finnair.
Křupka, J., Kantorová, K. and Haile, M., 2018. Swot analysis evaluations on the basis of
uncertainty-case study. Scientific papers of the University of Pardubice. Series D,
Faculty of Economics and Administration. 43/2018.
Volodymyr, S., 2019. Approved by _ (Doctoral dissertation, Kyiv School of Economics).
Bakhsh, A.A., 2020. Factors Affecting Employee Job Satisfaction Of A Major Middle Eastern
Airline. International Journal of Management and Marketing Research. 13(1). pp.15-
22.
Bekdash, M.O., 2019. Leadership and decision-making style for airline crisis management in
emerging markets. EuroMed Journal of Management. 3(2). pp.89-108.
Cote, R., 2017. Vision of effective leadership. International Journal of Business
Administration. 8(6). pp.1-10.
MWANGI, J.W., 2017. INFLUENCE OF CONFLICT RESOLUTION ON EMPLOYEE
MOTIVATION IN AIRLINE INDUSTRY.
Taye, G.T., Keino, D.C. and Ngala, M.N., 2020. The Moderating Effect of Labor Demand on the
relationship between Leadership Practices and Turnover Intention of Technical Staff
in Kenyan Schedule Operating Passenger Airlines. Journal of Human Resource &
Leadership. 4(4). pp.76-91.
Kim, Y., Lee, S.S. and Roh, T., 2020. Taking Another Look at Airline CSR: How Required CSR
and Desired CSR Affect Customer Loyalty in the Airline
Industry. Sustainability. 12(10). p.4281.
Park, E., 2019. Corporate social responsibility as a determinant of corporate reputation in the
airline industry. Journal of retailing and consumer services.47. pp.215-221.
Peeters, P. and et.al., 2019. Airlines and corporate responsibility: Issues and
challenges. Corporate Sustainability and Responsibility in Tourism, pp.163-180.
Ringham, K. and Miles, S., 2018. The boundary of corporate social responsibility reporting: the
case of the airline industry. Journal of Sustainable Tourism.26(7). pp.1043-1062.
Vo, T.T., Xiao, X. and Ho, S.Y., 2019. How does corporate social responsibility engagement
influence word of mouth on Twitter? Evidence from the airline industry. Journal of
Business Ethics.157(2). pp.525-542.
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