Analysis of the impact of globalization on performance of Ethiopian Airlines

Abstract

Globalization drives people to change their ways of living and caused dramatic change to changes to business practise. As part of the global community various organizations in our country Ethiopia has also been affected positively as well in the negative aspect. Among the best organizations Ethiopian Airlines one of the well knows airlines in Africa. Despite the escalation of fuel cost and intensive competition from neighbouring airlines and the international aviation industry it has maintained its reputation in the business. It has been growing each year in its capacity to compete in the aviation industry since its establishment. Therefore, the purpose of this research is to investigate the impacts of globalization on the performance of Ethiopian Airlines. The qualitative data were collected by using questionnaires which were administered to the management, international flight customers and non-management staff of the airlines within the population of above 6000 Ethiopian airlines employees 200 employees were selected by judgment sampling method. The quantitative data for 10 years were collected from the airlines annual report. After critically examining both the qualitative and quantitative data, the researcher found that, the impact of globalization is enormous in the different aspects of the organizations performance. The positive impacts include increased customers and income, increased technology leading to more comfort and increased destination of flight worldwide. The negative side is basically related to competitors and factors associated with Ethiopia’s economic status that can make the organization of lesser preference by its customers due to the fact that competing giant organizations present better service by investing more. That is, as different literatures show globalization has a significant role in promoting as well challenging organizational performance. In general, the research led to the conclusion that more of the positive effects of globalization prevail than the side effects. This being said, it also showed that even the challenges posed by this process of globalization can be used as an opportunity that will enhance the organizational performance through fierce competition. As a recommendation the researcher mentioned that the organization should be alert in assessing its surrounding business environment and plan accordingly. The management in particular should make decisions affecting the organizational performance by taking the international aviation industry in to consideration. It is a good opportunity despite some of the hazards presented hence Ethiopian airlines should make use of it at its maximum ability.