scholarly journals Challenges in the Business Model of Low-Cost Airlines

2020 ◽  
Vol 16 (3) ◽  
pp. 64-77
Author(s):  
María Rodríguez-García ◽  
Maria Orero-Blat ◽  
Daniel Palacios-Marqués

In recent decades, low-cost airlines have proliferated in the European market offering cheap tickets and increasing popularity. This business model, characterised by cost leadership, has been studied on numerous occasions. The case of the Irish airline Ryanair has presented different challenges over the last few years in relation to its stakeholders, who are shaping the sustainability of the current era of air travel. This business model should be adapted to the current demands of the market, such as corporate social responsibility or care for the environment. The functioning of low-cost airlines regarding the use they make of ERP management systems is also analysed. They aim to balance their cost strategy with the development of internal resources and capabilities for the company's long-term strategy. A major current challenge for low-cost airlines is the implementation of ERP management systems to make strategies oriented to the customer, sustainability, and corporate social responsibility.

Author(s):  
Nor Hadi ◽  
Udin Udin

This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective for empowering SMEs: (1) low-cost revolving funds and (2) production equipment assistance for SMEs. Meanwhile, six other CSR programs showed ineffectiveness: (1) mentoring, (2) marketing, (3) ease of procedure and relief of loan terms, (4) education and training, (5) accessibility of obtaining loans, and (6) the involvement of parties in the implementation of CSR. It indicated that the six CSR programs were not effective in helping to build image and legitimacy. The results of the research make an important contribution to the government and corporations and show that the construction of CSR programs must give attention to the real conditions and needs of SMEs in order to achieve effectiveness in solving problems by SMEs. Especially for the government, regulations are needed that can systemically encourage companies to implement CSR. This research still has limitations, therefore further research should be developed, especially in the area of empirical testing related to the contextual dimensions of CSR that are relevant to assisted stakeholders. Development-based research should be considered.


2021 ◽  
Vol 13 (14) ◽  
pp. 7971
Author(s):  
Xinfei Li ◽  
Baodong Cheng ◽  
Heng Xu

With the rapid development of the economy, corporate social responsibility (CSR) is receiving increasing attention from companies themselves, but also increasing attention from society as a whole. How to reasonably evaluate the performance of CSR is a current research hotspot. Existing corporate-social-responsibility evaluation methods mostly focus on the static evaluation of enterprises in the industry, and do not take the time factor into account, which cannot reflect the performance of long-term CSR. On this basis, this article proposes a time-based entropy method that can evaluate long-term changes in CSR. Studies have shown that the completion of CSR in a static state does not necessarily reflect the dynamic and increasing trend of CSR in the long term. Therefore, the assessment of CSR should consider both the static and dynamic aspects of a company. In addition, the research provides the focus of different types of forestry enterprises in fulfilling CSR in the long term, and provides a clearer information path for the standard identification and normative constraints of different types of forestry enterprises CSR.


Author(s):  
E. N. Tumilevich

The article analyzes the required changes in the implemented areas of corporate social responsibility in a crisis situation. The analysis of the translated behavior of business structures during the crisis is carried out. The author formulates directions for restructuring approaches to the implementation of corporate social responsibility in the current crisis. Conclusions are drawn on the importance of creating an effective system of corporate social responsibility in times of crisis affecting the long-term development of an organization


2018 ◽  
Vol 10 (10) ◽  
pp. 3532 ◽  
Author(s):  
Kuo-Jung Lee

Corporate social responsibility (CSR) implementation could raise corporate reputations and benefit long-term development. Studying the effects of CRS on corporate valuation is essential. However, studies on the valuation of CSR are limited, particularly studies involving a dynamic model for valuing CSR. This study applies a real options approach to derive the company valuation of CSR investments, CSR options value, and the optimal timing for implementing CSR. This study elucidates the value of CSR and the decision to invest in CSR. Specifically, the value of CSR options facilitates determining whether to invest in CSR, and the optimal threshold for implementing CSR indicates explicitly when to invest in CSR. In addition, numerical analyses and results are demonstrated to verify the established model. This is the first and novel attempt to consider the valuation model and optimal strategies of CSR investments using the methods of real options.


2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Christina Esti Susanti

In recent business competition, marketing managers try to satisfying consumers and building stable-long term relationship between company and consumer. The relationship needs consumer’s trust to company. That is why marketing managers are interested in knowing the impact of trust, loyalty and corporate social responsibility (CSR) toward customer retention (repurchase intention) in order to develop the long term profitability of the company. The long term relationship with consumers results in profitability and also impacts of survival and company development. In other word, trust influences toward loyalty and consumer retention. In the same moment, it is not surprising that academicians and practitioner effort to understand trust, customer loyalty, repurchase intention and CSR. This research examines firstly, influence of customer trust toward customer loyalty. Secondly, the research examines influence of customer loyalty toward repurchase intention. Thirdly, the research examines the role of perceived CSR as a moderating variable on the influence customer trust toward customer loyalty. The packaged-drinking water Aqua is taken as the research context because the Aqua company have donated 10 litter clean water in East Indonesia for each of one litter consumer buying. The result of the research shows that perceived CSR play a strong and positive role of influencing trust toward loyalty. Otherwise, trust influences strongly toward loyalty and loyalty influences strong enough toward repurchase intention. The result is expected to give managerial benefit for Aqua Company and also theoretical development in marketing related to the moderation role of perceived CSR in the influence of trust toward loyalty and repurchase intention.


Author(s):  
Elena Candelo ◽  
Cecilia Casalegno ◽  
Chiara Civera

The chapter demonstrates the extent to which companies operating in the Retailing Grocery industry use Corporate Social Responsibility (CSR) as driver to enhance their brand and pursue commercial value, or to purely redefine their business priorities in accordance to evolving consumers' needs and expectations by making CSR a new concrete business model and evolving towards the concept of Corporate Shared Value (CSV). The study is addressed to analyse the matter of facts in two different European geographical areas: Italy and United Kingdom, chosen because of the peculiar approaches in companies' attitude towards CSR and CSV, ultimately. Many differences and some relevant similarities in the implementation of CSV as new strategic model between the countries have emerged, with UK showing the most formalized and standardized integration between social and economic value within its Grocer Retailer companies' business activities.


2012 ◽  
Vol 3 (1) ◽  
pp. 502
Author(s):  
Maria Pia Adiati

A word of CSR which stands for Corporate Social Responsibility is now becoming popular and more often many companies insert the CSR activities into its company profile. CSR has another different names such as Social Activity or Sustainability Development. CSR program according to wikipedia ia an organization or company has a responsibility to its customer, employees, share holders, community and environment in every aspect involved in company operasional. In the management science, there is a level whereas it is called social responsibility or it is just social obligation. Many opinions argues that CSR program will reduce the profit of the respected company. But many opinions denies the previous argue by saying the CSR program is a long term program profit gain since the short term result is good public image. The good public image will lead the loyalti of customer to keep using the product or service from the hotel. The customer loyalti also affected by the customer’s opinion, if they involves in the social activities held by the hotel, they also participate in a social activity.


Author(s):  
Putu Rian Arde Surya ◽  
◽  
I Ketut Budarma ◽  
I Gede Mudana ◽  
◽  
...  

Purpose: This research is to analyze the three-cluster policy in international, national, and local policy on corporate social responsibility (CSR) implementation at InterContinental Bali Resort. Research methods: The research method used is descriptive qualitative with juridical-normative analysis techniques. Results and discussion: The CSR implementation is related to three-cluster regulation analysis, as follows: do small things with great love, embrace the joy of giving, give a little, safe a life!, green living!, and IHG earth week. The implementation of CSR has an impact on the sustainability of the company. Conclusion: A company in carrying out its activities are not only on more financial factors such as profits or dividends but be based on social and environmental responsibility for the present and long term.


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