Hannu Seristö

LEVELS OF AIRLINE ALLIANCE MEMBERSHIP BALANCING RISKS AND BENEFITS

This article relates the risks and benefits of alliancing to different levels of alliance integration. The trade-off between alliance benefits reaped and risk levels inherent in the tightness of integration into the alliance as well as mechanisms to dampen the potentially detrimental effects of high levels of risk are discussed. It is suggested that risk in itself does not necessarily carry negative consequences; based on findings from organisation theory research, the role of inherently risky alliance-specific investments as both a generator of efficiency and as a facilitator of trust within the alliance is described.

Key steps for success in export markets: A new paradigm for strategic decision making

This article focuses on a paradigm of ten key steps for successful decision making in export marketing for the European business firm. These ten steps are: analyze market opportunity; assess product potential; establish market entry mode; make a firm commitment; allocate necessary resources; identify technical issues; develop strategic marketing plan; organize operational team; implement marketing strategy; and evaluate and control operations. Tables of basic what, who, and how questions help to guide the reader through the decision‐making process, leading to successful export marketing operations. The article provides a decision‐making paradigm that is useful to top‐level management personnel as well as export managers. This model has been developed by the authors based upon over 25 years of consulting work with European business firms.

Airline cost drivers: cost implications of fleet, routes, and personnel policies

The aim of the study is to define the factors that offer cost reduction possibilities in airline operations and to assess the impact of different cost reduction measures. It is concluded that fleet structure, route network and company policies on remuneration and work rules are the key factors affecting indirect operating costs, which, in turn, determine the total cost differences between airlines. Particularly for small and medium-sized carriers, concentration with sufficient volume in some traffic type—short-haul, medium-haul or long-haul—would appear to produce marked cost savings. Most airlines would benefit from a more uniform fleet structure and more flexible work rules.

Transformational team‐building across cultural boundaries: A case focusing on the key paradigm of leadership styles

Purpose – In a world‐wide environment strongly influenced by the issues and perspectives of globalization, internationally‐based business firms must be focused on transformational leadership team‐building across the cultural boundaries with which they are involved. The purpose of this paper is to juxtapose the leadership dimensions and national culture dimensions, and particularly to explore one aspect of that transformational leadership team‐building process, the application of the key paradigm of leadership style balance and support within the parameters of an operational team.Design/methodology/approach – Based on a literature review the paper identifies four basic leadership styles, the strengths and weaknesses of each of the styles are identified, communication preferences are discussed, primary back‐up styles that come into focus due to high levels of stress are analyzed, and the all‐important skill of style flex is described. These dimensions will be examined in association with the case of UnitedT...

Developing the Global Management Team: A new Paradigm of Key Leadership Perspectives

Purpose – Because of globalization, an increased focus on more effective team‐building has become a greater priority. The purpose of this paper is to suggest and describe a new paradigm of key leadership perspectives that is of major importance and value to this effort.Design/methodology/approach – This paper is based on extensive research by the authors regarding the leadership perspectives global managers consider to be of major importance in the team‐building that has helped them achieve success.Findings – The key leadership perspectives are: paradoxical thinking that nurtures understanding based upon use of both hemispheres of the brain; controlled reflecting that fosters reactions based on internal self‐talk rather than external events; intentional focusing that facilitates the ability to be centered on expected outcomes; instinctive responding that cultivates the ability to recognize and use intuitive impulses; inclusive behaving that nurtures actions based upon a concern for the whole; purposeful t...

The executive view on the cost problem of European airlines

Summarizes European airline executives’ views on the reasons for the cost problem in major airlines and on the potential areas and measures of cost reduction in airline operations. Presents a survey where 28 executives from 17 European airlines were respondents. In the executives’ opinion the cost problem in major European airlines is primarily due to high salaries and inflexible work rules. Of the various functions in airlines, general administration was seen as the least cost efficient, whereas flight operation was seen as an area with most potential for cost reduction. Most respondent airlines had made route and fleet changes after the beginning of 1991 to reduce costs. Concludes from the survey results that privatization would be an important step towards more efficient airline operations. Also, flexibility from the labour unions would be very much welcomed.