We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The bond rating of national government is investment grade. growing, since 2000, Singapore Airlines has only managed to grow passenger numbers on the mainland (Singapore and Malaysia) by 2 per cent annually (Heracleous, Wirtz and Pangarkar, 2006; Heracleous and Wirtz, 2012). 3. Malaysia Airlines reported a Net Loss of Tax of RM433 million in 2012 compared to a Net Loss of RM2.52 billion registered for the 12 months ended 31 December 2011. PESTLE analysis. On August 2021, the airline announced that it has been appointed by the National Sports Council (NSC) as its Official Airline Partner for the Tokyo 2020 Paralympic Games. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Analyze the Mas Malaysia external competitive environment to identify opportunities and threats. As population is ageing it will require less tech intensive products. - Empowerment of Supply Chain Partners Mas Malaysia should analyze areas where technology can empower supply chain partners. 5. MAB joined one world in 2013, and after joining it the company began to offer the best connectivity with world-class journeys to over 1000 destinations across 150 countries and access to approximately 650 airport lounges globally. Bank Simpanan Nasional (BSN) currently is one of the major financial organizations in . Developing strategies that can capitalize on Mas Malaysia strengths and help mitigate weaknesses and impact of threats of macro-environment. - Technology transfer and licensing issues for Mas Malaysia laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Mas Malaysia can avoid shakedowns and IPR thefts. - Waste Management What is the policy of waste management in the prospective market and how Khazanah Mas's can adhere to the waste management requirements in that market. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. All Rights Reserved by Barakaat Consulting. Analyze the Khazanah Mas's external competitive environment to identify opportunities and threats. As of early 2021, the MAB has around 12,000 employees in 53 cities. Available at: https://www.marketingtutor.net/airline-industry-pestle-analysis/ (Accessed 21 June 2021). The PESTLE analysis for Malaysia Airlines is presented below in a table followed by the detailed analysis report. Different countries have different attitude towards health and safety so it is better for Mas Malaysia to conduct a thorough research before entering the market. The airline is aiming to further implement innovative fuel optimization initiatives in addition to offering the highly fuel-efficient Airbus A350 aircrafts on the London route. These paper overviews several theoretical approaches to explore the strategic marketing planning process of the Starbucks Malaysia. In case you want this report emailed straight into your email inbox, kindly share your details below. Travelers confidence in air travel is increasing slowly, 1. This can help Mas Malaysia in numerous decisions such as plant location, product development, and pricing strategy. It will also give them an opportunity of getting investors. Many reputed employers in the industry have undergone this crunch of talent retention. Prior to this, a US$392 million loss, as well as the inability to compete with lower-cost carriers, had posed a great challenge to MAS. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Environmental, Social, and Governance (ESG) Analysis Report. The Group plans to reduce the overall CO2 emission by 25 million kilogram in 2021 and also aims to reach 50% usage of biodegradable materials for in-flight operations coupled with 50% of ground and in-flight waste recycled and up-cycled by 2025 onwards. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. Here are a few ecological issues that can potentially affect the airline industry: Though the legal issues may not have much to do directly with the growth of airline companies, indirectly, it can severely impact their business. Mas Malaysia should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. PESTEL analysis airline industry can show how legal issues can impact their business: The PESTEL analysis airline industry shows how the business has a broad scope for growth with a few minor negative issues. It is the part of Malaysia Aviation Group, serving over 50 destinations across different nations in the world and operating approximately 300 flights per day. - Corporate Social Responsibilities Culture Are Khazanah Mas's present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. It will help Khazanah Mas's in both developing environmentally friendly products and thwarting PR stumble blocks. Read More. Attitude towards immigration has come under sharp focus. If there is arbitrariness in the judicial process then Khazanah Mas's cant be sure of the judgments. Malaysia Airlines Berhads unique selling proposition or USP lies in being one of the leading airlines in Malaysia serving global destinations. The bond rating of national government is investment grade. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Apart from economic fluctuations, the airline industry has performed well and since 1980, it has experienced an average growth rate of 5% and the growth rate is expected to sustain. The government has set up some strict rules and guidelines for the operation of an airline which can ensure the utmost security of the passengers. Moreover, through the analysis or PESTEL and Five Force model, it will show how both internal and external environment impacts the growth of SIA and how the competitive environment stimulates the growth of this company. Khazanah Mas's can borrow cheaply under such circumstances. Air transport started in the 1920s. Mcdonald Porter's Pest Analysis Essay. This can help Mas Malaysia to bring in more transparency and make supply chain more flexible. Use of data and predictive analytics, AI to boost revenue in airline industry, 1. Over 32 million people inhabit this land. - Mobile Phone & Internet Penetration Khazanah Mas's should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. FEATURES OF PESTEL ANALYSIS OF MALAYSIA Get trend and forecast of real GDP growth rate of Malaysia. Cathay Pacific, Iberia, Japan Airlines, Qantas, Malaysia, Airlines Qatar Airways, Royal Air Marco, S7 Airlines, Royal Jordanian, SriLankan Airlines. Malaysia Airlines Berhad - Strategy, SWOT and Corporate Finance Report: Sep 30 2022: 43: USD 175.00: Spritzer Bhd - Strategy, SWOT and Corporate Finance Report: Malaysia Airlines Berhad SWOT and PESTLE analysis has been conducted by Muskan Arya and reviewed by senior analysts from Barakaat Consulting. Feel free to connect with us if you need business research. The whole world is connected via airlines. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. Stiff competition from LCCs and other players especially in the Asia region, 1. 2021. Management was planning to initiate a cost-cutting strategy to manage pricing and the competitive challenges of the aviation industry when these incidents shocked the world. Should Khazanah encourage job and route cuts at MAS, and how would the government react to them? Malaysia Competition Commission regulates market-sharing prohibitions, 1. Indian IT professionals are in great demand in India as well as in abroad. Everything in desktop + Templates Community, Join 2023 Edraw Special Sales. 2. Please note that you agree to receive email updates from us on our new reports and solutions. The trades as well as all the factors are interrelated. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Political Economic Social Technological Conclusion Political The airline industry operates in a highly regulated political environment where passengers are favored over the airlines. Malaysia Airlines (A) case study (referred as Khazanah Mas's for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Finance & Accounting and strategic management. Malaysia Airlines Berhads locations are focused in Malaysia, South East Asia, North and South Asia, Australia, New Zealand, Europe and the Middle East. Moreover, should MAS's new CEO pre-announce publicly his intentions? It can enable Mas Malaysia to hire skilled workforce at competitive salaries. - Intellectual Property Rights and Patents Protection Before entering new market Mas Malaysia should focus on the environment for intellectual property rights. If there is huge income inequality in the society then the likelihood of conflict and crime increases. Analyze Strengths and Weaknesses of Mas Malaysia. Most of the tourists are not interested in visiting countries that have threats due to political conditions. The airline delivers premium services and offers superiors connectivity to 1000 locations across 150+ countries. and its background in Malaysia, and a PESTEL analysis and Porter's Five Force analysis will also be included in this written assignment. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. . It can also be a responsible step to protect the environment. The companies can take on some corporate responsibilities and include environment-conscious messages in their campaigns. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. MULTINATIONAL ENTERPRISES IN NIGERIA, THE CHALLENGES OF ACHIEVING MILLENNIUM DEVELOPMENT GOALS IN NIGERIA: SMALL AND MEDIUM SCALE ENTERPRISES: AN OPTION, STRATEGY AND STRUCTURE WHICH COMES FIRST, ACCOUNTING FOR ENVIRONMENTAL COST IN HOSPITALS: BARRIERS AND MOTIVATIONS A CASE STUDY ON AL BASLE HOSPITAL IN TARTOUS CITY, BUSINESS ENVIRONMENT IN AUSTRALIA: A GLOBAL PERSPECTIVE, E-LOYALTY IN MARKETING: IMPLICATIONS FOR E-CUSTOMER FOCUS, THE AGILITY OF INDIA'S TOURISM INDUSTRY ON THE HEELS OF MODERN TECHNOLOGY ICT IN FOCUS 1. The airline is supported by Khazanah Group and the Malaysian Government as well. It can help them to stay away from crashes or technical faults. PESTEL analysis is mainly the assessment of macro environment factors. Here are some issues which can directly impact the business of airline companies: A country's economic condition is directly related to the business operating within the country. To maximize their effectiveness, color cases should be printed in color.In the first six weeks on the job, the new CEO of Malaysia Airlines (MAS), has developed an ambitious turnaround plan, including aggressive job cuts and route eliminations, but MAS's largest shareholder, Khazanah Nacional, the sovereign wealth fund, is tasked with helping to grow the Malaysian economy. Political factors: Malaysia's stable government is rot with corruption Economic factors: Moving into new industries means a low unemployment rate Malaysia Airline also became the first official partner of Team MAS, a flagship partnership programme for all sports assets under the Ministry of Youth and Sports Malaysia, National Sports Council of Malaysia and the National Sports Institute of Malaysia, equivalent to the Olympic Partner Programme of the International Olympic Committee. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. 'A Concise PEST Analysis for Airline Industry', PESTLE Analysis, [online]. Get 22% Off before it's gone >>, https://pestleanalysis.com/pest-analysis-for-airline-industry/, https://www.managementstudyguide.com/pestle-analysis-of-global-aviation-industry.html, https://notesmatic.com/airlines-industry-pestel/, https://www.marketingtutor.net/airline-industry-pestle-analysis/, https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry, The Complete Guide To Understand IDEF Diagram. Like other industries, airline industries are also get affected by social conditions. Therefore, it is a threat for Air Asia Berhad. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. Tourism industry is such a money earner industry that it has the potential to generate foreign exchange and also to make a very active contribution towards growth of overall economy and creation of employment opportunities. - Unrest within the Country & Chances of Civil Unrest We dont think that Khazanah Mas's business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Based on the findings of the present study and learning lessons from other countries, the author provides recommendations for universities and policy makers to boost the spirit of entrepreneurship among youth. The prudent policy should be to take insurance and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. If there is arbitrariness in the judicial process then Mas Malaysia cant be sure of the judgments. Another reboot can Malaysia Airlines get it right this time - https://www.theedgemarkets.com/article/another-reboot-%E2%80%94-can-malaysia-airlines-get-it-right-time. Political Landscape Malaysia has well-developed foreign relations through bilateral agreements and trade treaties. In 2021, Malaysia Airlines received a 7-star rating by airlineratings.com 2020, received the Putra Brand Award (Putra Brand Icon for the Year 2020, Transportation, Travel and Tourism Category Platinum Award), HR Excellence Awards 2020 (Gold- HR Leader of the year, Gold- Excellence in Workplace Culture, Silver- Excellence in Digital Transformation). The growth and success of any organization depends on its employees. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, SWOT Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, 5C Marketing Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, 4P Marketing Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Porter Five Forces Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Porter Value Chain Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Case Memo & Recommendation Memo of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Blue Ocean Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Marketing Strategy and Analysis Malaysia Airlines: The Marketing Challenge after MH370 and MH17, VRIO /VRIN Analysis & Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, PESTEL / STEP / PEST Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Case Study Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, SWOT Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Superb Trucks LP: How to Conduct a Field Experiment PESTEL / PEST / STEP Analysis & Solution, Airbnb: WhatA?s Next? SKIREC Publication- UGC Approved Journals. . Higher inflation may require Khazanah Mas's to continuously increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. The airlines also need to keep an eye on the comfort of the passengers. Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study (referred as Mas Malaysia for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Sales & Marketing and strategic management. This can help Khazanah Mas's in numerous decisions such as plant location, product development, and pricing strategy. Presently, in India, more than half of the population is in the age group of 15 to 59, known as the economically active age group. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Khazanah Mas's should build a strategy that can integrate societal values, infrastructure, and Khazanah Mas's business model. This indicates that there is a pressing need to effectively implement the system which can absorb the youth in profession. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Mas Malaysia business model. In a market with a lot of growing airlines, MAS has still managed to sustain its competitive advantage even during critical situations. MAGs sustainability program will contribute towards the SDGs for aviation carbon and GHG emission reduction, fuel conservation and climate change. It can add to the clear image of any aviation company. Mas Malaysia needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. 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