Ensayo Bussines

Nowadays, the world is having big issues with its natural resources. The actual market is using all the natural resources to its profit without thinking on the consequences. One of the most controversial resources is oil. Actually, oil market is one of the biggest in the economy and it is growing in an alarming way. Eventually the reserves of oil will run out and the global market will haveserious problems (Cudmore, 2011). Airlines use oil based fuel for their planes. In this context, AeroMexico is trying to challenge the market introducing biofuel to power its aircrafts and reduce the use of oil. This innovative, risky and sustainable idea could have a huge impact in the airlines economy and in the preservation of the natural resources.
AeroMexico is a commercial business airline thatwas founded in 1934, now is the biggest airline in Mexico. They have about 95 airplanes and have flights to Europe, United States, South America, Central America and Asia. In most of the airlines the cost of fuel it’s about 25% of total cost, for this reason they are very dependent on the price of oil. AeroMexico made the desicion of made a “green flight” even when the cost of the biofuel is moreexpensive than the common fuel.
The main management concept in the article is innovation. AeroMexico and Interjet were the first airlines using biofuel for international and national commercial flights. This is a very important decision for airlines business, because they are guiding and building a new concept that relies on making flights more sustainable from an environmental perspective.In this context the literature define innovation as “An environmental innovation is a new or significantly improved product (good or service), process, organizational method or marketing method that creates environmental benefits compared to alternatives.”(Irish Central Statistics Office, 2008), this definition fix with the idea of the airline to improve the product using new technologies that willhave less impact on the environment.
AeroMexico in front of the reality of the world, realize that if nobody do nothing about it, we are going to keep living in a world where the only important thing is to generate money without considering the environmental impact. Is because of this, and by their own decision that they try to introduce this new technology. In this way, they are trying to makepeople and global market, reconsider their behavior. It’s important to consider that only one company can’t make a big impact on the global behavior, but if the rest of the companies start to follow them, and the consumers take conscience, definitely something can be achieved. This is related with the function of a leader “One of the most important functions of a leader in a learning organizationis to create a shared vision […] a picture of an ideal future” (Samson & Daft, 2009). Now we can infer that other reason of the decision was to demonstrate that they are a leader company, and that they want to keep improving their products. Being a leader company means that you have a well known name in the business area. Most of the new costumers usually want the best product and they associatethe leader company with the best products. So this means that most of them will prefer this airline.
In the actual culture, where people are starting to worry about the uncertain future, an action like this gives a good reputation for the company that will be reflected in the preference of customers in the future. Customers prefer an airline that is proactive to reality. But we have to berealistic, most of the consumers will prefer a cheaper product. Biofuel is much expensive than the common fuel, so this means that the flights are more expensive. What can they do?
In Mexico there are many non-arable land (which is needed to grow Jatropha), but current laws do not help that these are intended for the cultivation of Jatropha. Thus, greatly increases the cost by making it non-viable...