American And Northwest Airlines

Northwest Airlines and American Airlines will be compared thoroughly in many aspects. Globalization, diversity, ethics and technology will be addressed in various ways. All four themes will be addressed through the strength, fit and adaptive ness of both company's cultures. The overall organizational culture of both Northwest Airlines and American Airlines will be clear.

Globalization

Globalization can be defined as "making worldwide in scope or application"(1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere. A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness, career paths, and the use of cultural differences as an asset and if a worldwide training system is in place. A conclusion will then be made as to which corporation has the best organizational composition to compete in the global market.

The strength of Northwest and Americans' global culture can be compared by evaluating how well they "facilitate performance"(2,546). Both of the corporation's employees, it may be argued, have the common goal of wanting their company to expand and continue to grow in the global market. It could also be argued that the companies differ, in significant ways, when it comes to the motivating effect this common goal has. Northwest seems to be better motivated in obtaining this goal. Examples of this motivated corporate culture are illustrated by the fact that they were "pioneers in global alliances"(3) and in the fact that they have committed major investments, in the form of hub cities, in both Tokyo and Amsterdam. American, on the other hand, does not seem to be as motivated by the goal of expansion in the global market. Although they have alliances with several international carriers, the number of alliances is not as large as Northwest's. The recent acquisition of TWA, by American (4), may help to expand their global culture, due to the greater foothold this acquired asset has in the global market. In addition the financial investment that Northwest has shown in the global market is lacking in American. The only hub, questionably, outside of the U.S. is in San Juan, Puerto Rico (4). American seems to concentrate its strength inside the U.S., which may have a stifling effect on globalization efforts in the future. Northwest, although somewhat slowed by the economic downturn, especially in Asia, has shown consistent economic performance, possibly contributable to past globalization efforts.

Globalization in the airline industry may seem to be a natural flow of the business model. However, some companies have a better fit, or culture that lends itself to a smooth and prosperous integration into the global market. In comparing this integration into the global market one might take a historical look at American and Northwest. Both carriers were formed just after World War I, as mail carriers (3,4). Eventually both evolved into passenger carriers. Americans roots are traced to Charles Lindberg and the cities of Chicago and St Louis (4). Northwest also has its roots in Chicago, but their first routes went north to Minneapolis / St Paul (3). Northwest eventually evolved into Northwest-Orient Airlines and expanded its routes into Japan, being the first airline to make a profit in the Asian market without subsides (3). Northwest continued to globalize with their alliance with KLM Airlines and eventual expansion into the Netherlands (3). American, on the other hand, concentrated their growth in the Americas. With an extensive route system into Central and South America (4), American Airlines seems to have centered its expansion in the United States. A possible result of American's expansion, or lack of expansion outside the U.S., might have reduced the artifacts that could have otherwise further enhanced their global culture mix and thus created a better organizational fit.

The cultural mix or organizational fit found at Northwest may help to explain the greater adaptability of the corporation, in comparison to American. American, it would appear, has a more centralized management structure that relishes its power and releases it sparingly. American's stockholders appear to be second, possibly third, in line when it comes to organizational decisions. First, it appears, in every decision American makes, is how it will effect upper management. The greed shown by upper management has poisoned the adaptability and trust that is needed by a global organization. This "cautious management" (2, 548) style was most recently evident when management was asking the flight attendant union for pay concessions, while at the same time insuring their financial future, with retirement and pay guaranties (4). The "cautious management"(2,548) style is not as evident at Northwest. Although they have had their disagreements over employee compensation, it appears that more confidence in the organization and its ability to adapt to the ever changing global environment is inbred in the Northwest culture. This ability to adapt helps to insure that the needs of the customer, stockholder and employee, management as well as front line, are met. Northwest continues to improve its global organizational fit through alliances. For instance, the alliance with Continental Airlines, in 1998, and a recent cooperative agreement with Delta Air Lines (3) help to grow the cultural mix at Northwest, while reducing expenses. These actions increase the availability of the product to the customer, while increasing stockholder value. At the same time, that customer and stockholder concerns are addressed, management and labors willingness to work together to reduce cost, in these trying times, is an indicator of Northwest's adaptability in today's global market.

An indication of a company's ability to survive and grow in the global market place might be found in their mission statement. Americans vision states that they want "to be the world's leading airline by focusing on industry leadership in the areas of safety / service / network / product / technology /and culture (4). This vision easily meets the condition of being simple. Its simple ness may, in fact, be a problem. In other words the simple ness of this statement might