Scandinavian Airlines (Sas): the Green Engine Decision Essay

813 Words Apr 11th, 2012 4 Pages
Scandinavian Airlines (SAS): The Green Engine Decision

Arguments for and against purchasing the green engines: a. From the perspective of the Director of Aircraft and Engine Analysis, two arguments for purchasing the green engines include; producing significantly lower NOx emissions and would represent a strong commitment to the future environmental improvement of the airline. With the anticipation of increased emissions charges and taxes in the European industry, the company could have positive financial implications with the minimized risk of future operational limitations from the combination of international, federal, regional and local legislation. The Director of Aircraft and Engine Analysis could argue against the purchase of
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The unanticipated complications are an inevitable with new technology. The only long-term research available is the actual use of the engine day after day, year after year.
Internal and external influences: a. Three internal forces at SAS that could have influenced the firm’s decision to purchase the green engines were their objectives, capabilities, and culture. SAS had a corporate identity as the leader in environmental commitment and the objectives were to maintain the identity with decisions of environmentally positive actions. The capabilities were there to make purchasing the green engines. The resources were available along with the finances as well. The culture of the company was socially influenced by the increasingly environmentally conscious shareholders. The strongest internal force influencing the decision to purchase the green engines was the culture factor because of its influence on shareholders. A deep set of environmental values and beliefs embedded the culture of the shareholders. If SAS shied away from decisions the involved saving the environment, then shareholders could make decisions that would not help the business side of SAS and could eventually lose customers and therefore lose business. b. Three external environmental forces that could have influenced the SAS’s decision included industry, laws, and regulations. The industry was becoming more efficient and SAS was heading in the same

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