Expanding internationally (Southwest Airlines)

Name Slide
Starting my presentation with the topic of expanding internationally southwest airlines comparison
among three countries USA, China, and Canada with the help of Hofstede’s cultural dimension
framework.

Slide 1

For international expansion of the giant organization like southwest airlines requires huge and deep
research work specially among the countries which are controversial in trade worldwide like The USA
and China. So here I present a smart analysis of which country is best for the expansion among these
three countries.

For this analysis first we analyze the similarities and difference between the organizational culture and
the country’s culture and traditions.

I selected the Hofstede’s framework for strong comparison on well-known parameters.

Slide 2

Hofstede’s framework is effective in making comparison between countries and countries and
organizations. It includes six parameters which are enlisted below.

• Power distance

• Restrain/Indulgence.

• Long-term/Short-term orientation

• Masculinity/Femininity

• Uncertainty avoidance

• Individualism/Collectivism

Slide 3

Individualism is famous in western countries because they believe one must do his own work without
someone’s help and that notion has become so extreme that it is now inculcated in every aspect of
western societies so to support this argument, I have put the quantitative data which is percentage of
the societies The USA is 91% individualistic followed by Canada with 80%. However, China as the south
Asian country it is a collective society where families still live-in extended form. So, this factor of
Hofstede is supporting China for expansion because Southwest also works on collectivism because when
the airline lands the crew staff and even pilot help the passengers to carry their luggage to reduce the
time between the flights and increase the efficiency.

Power distance is categorized in two forms one is high power distance society and the other is low
power distance society. The difference between them is high power societies cannot question on the
authorities about their work or actions. While in low power distance societies every individual in
authority is accountable to the public so they can not misuse the power because public is always ready
to question. China as an authoritative or one-party country has high score in high power distance its
almost about 80%. USA has 40% and Canada is 39% power distance societies. Southwest Airlines is
based on low power distance organization it believes in the system, operations, situations, behaviors,
and efforts rather than on one person’s commands. So, this factor is supporting Canada as it has the
least power distance percentage.

Slide 4

Masculinity focuses on the assertiveness, results, competitiveness, and material rewards. All three
countries are masculine in contrary to the southwest Airlines because it has a feminine culture which is
based on care and concern for each other along with consensus-based decisions. But among these
culturally masculine countries lowest percentage is of Canada with 52%. So, this factor also supports the
expansion in Canada.

Uncertainty avoidance in other words is said to be the unorthodox ideas which means new ways of
doing things fortunately all three countries are tolerant to unorthodox ideas and southwest airlines best
fit with these countries.

Slide 5

Long term vs short term orientation: southwest is long-term orientation organization because it plans
the profits and success for long term. In addition to that Airline hire the employees who have the same
qualities in it the patience to wait for reaping the long-term fruits. As per data percentage China is found
to be the follower of long-term orientation plan with a percentage of 87%.

Indulgence means free gratification of human desires. In simple words human feel free from any kind of
restrictions. Southwest Airline’s management is famous for this phenomenon like google they allow staff
to wear the comfy cloths especially in summer so that they can perform better. In this case China is
much stricter than other two countries which are having equal percentage score of 68%. So this factor is
favoring both USA and Canada.

Slide 6

China’s recruitment practices include Job information through kin and friends or relatives. Internet
sources are also used for job postings. While professional recruitment platforms are also preferred for
the HR practices.

The USA and Canada require work visa or work permit to work any of the country which means if
Southwest want to hire the international labor or staff it needs to get the work permit for their
employees. Or in other case the employees must be the resident of the country or at least citizens of
Canada or USA.

Slide 7

Payment systems have evolved even in third world countries, yet Canada and USA use bank cheques or
bank transactions to proceed any transactions with the help of magnetic cards, stripe cards or chips.
Similar payment methods are followed in Canada which requires banks to process and verify any
financial transactions. However, China is ahead of it most of the transactions these days are taking place
with cryptocurrencies or social currencies these are widely used in China than in USA or Canada.
Slide 8

As China is world’s largest population country which means world’s largest labor found in China. For that
China need largest labor unions. China has All-China federation of trade unions which is not a member
of international federation of trade unions. In USA office of labor management handle the labor laws
and trade unions. In Canada, Canadian jurisdictions control the labor laws.

Slide 9

China is said to be difficult for training people, so it is behind both countries whereas Canada is best in
training and support of the staff even companies get relief from government for taxes if companies train
well to its employees so this factor support Canada again.

Slide 10

Southwest should go for Canada because majority of the Hofstede’s factors are supporting Canada for
the expansion. Labor laws and training reap fruits for the organization in terms of well-trained labor as
well as slight relief from taxes.

Indulgence also support Canada culturally. Whereas China is strict in labor laws, indulgence and other
factors which can be uncertain in future.

So, Canada is the option for expansion internationally.

Thankyou.