Managers at Khazanah Mas's need to examine three inter-related environments in order to come up with an effective strategy. Are you looking for a report which is not covered on our website? The human resource significantly contributes in the development of Hotel Industry. Over 32 million people inhabit this land. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Transparency & Digital Drive Mas Malaysia can use digitalization of various processes to overcome corruption in the local economy. - Level of Acceptance of Technology in the Society Mas Malaysia has to figure out the level of technology acceptance in the society before launching new products. Study of these factors will help to understand the perspective of youth towards entrepreneurship. They may get stuck in legal proceedings. - Nature of Social Contract between Government & Society Before entering into a market Khazanah Mas's needs to understand the nature of social contract between government and society. - 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. The top executives pondered various options, including a rebrand of the airline, a new discounted pricing structure to build volume, a private equity infusion, a merger and filing for bankruptcy. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Pestle analysis of Malaysia. It's still running with the name of Air India. It has been a worry for the airline companies and the government at the same time. As of early 2021, the MAB has around 12,000 employees in 53 cities. If there are airline accidents, and if that is related to the companys carelessness, their business may get severely affected. If a company can secure a tie-up with the government, that can be highly beneficial for them. - Business Laws Before entering into new market Khazanah Mas's has to assess what are the business laws and how they are different from home market. They need to upgrade continuously and incorporate the green flight ideas as much as possible. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. But this strategy entails risks when interest rate will go up. 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. Khazanah Mas's should consider demographic trends before new product developments and integrate features that cater to this segment. Purpose of this agreement is to allow both country to have the right to fly across its territory without landing. Malaysia Competition Commission regulates market-sharing prohibitions, 1. The period in which amnesties were applied covers the years between 2012 and 2014. The recent era of economic depression shook all industries and airlines' industry was no exception. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. - Threat of Terrorist Attacks We believe in the world of post 9/11, corporations such as Khazanah Mas's have to live with operating under the shadow of a terrorist attack. Malaysia Airlines Berhad SWOT & PESTLE Analysis - SWOT & PESTLE.COM. Copyright 2023. 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. 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 environment and other factors not only impact the cost of doing business but also long term sustainability. Otherwise, this can be a massive concern in the future. PESTAL analysis is used to overcome the weaknesses of the organization. It can enable Mas Malaysia to hire skilled workforce at competitive salaries. Mas Malaysia has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Mas Malaysia. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Khazanah Mas's shouldnt be worried about the monopoly and restrictive trade practices law. - Level of Acceptance of Technology in the Society Khazanah Mas's has to figure out the level of technology acceptance in the society before launching new products. The prudent policy should be to take insurance and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks. This culture of consumption and savings impact both type of consumption and magnitude of consumption. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. This will help in better predicting the environment policy of the country. 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. As per the latest record, more than 5000 airlines are operating worldwide with ICAO codes. This can help Khazanah Mas's to bring in more transparency and make supply chain more flexible. Importance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps - 1. Feb 26, 2023 (The Expresswire) -- "Airline A-la-carte Services Market" Research Report 2023 Provides a Basic overview of the Industry including definitions,. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. It can add to the clear image of any aviation company. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. 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. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. The PESTEL analysis of the airline companies can show how the external factors have affected them. For international flights, the regulations are strict, and this situation may lead an airline to push for more amenities to keep up with the competitors. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. 5. The bond rating of national government is investment grade. 1. It can be concluded that measures should concentrate on the causes of NPLs rather than amnesties in order to mitigate the problem of NPLs. Academia.edu no longer supports Internet Explorer. 3. Pratap, A., 2021. Apart from operating from its home base, Kuala Lumpur International Airport, the company operates in Europe, the Middle East, Australasia, North and South Asia, and Southeast Asia. These measures should consist of legal, institutional and administrative dimensions. Malaysia Airlines is an airline that operates flights from its headquarters in Kuala Lumpur. Malaysia Airlines (MH) has collaborated with Japan Airlines (JL) since July 25, 2020 to further optimize the convenience of travelling between Japan and Malaysia, allowing customers to benefit from more flight choices. The disasters greatly impacted customer confidence, as reflected in the company's declining booking rates and stock prices. Use EdrawMax Online to create a PESTEL analysis diagram, or create any other diagram with ease! This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. At the same time, the economic condition of all the countries has experienced some depression which can affect the airline industry as well. Reach thousands of academicians and corporates across the globe. Everything in desktop + Templates Community, Join 2023 Edraw Special Sales. At EMBA PRO, Malaysia Airlines Berhads unique selling proposition or USP lies in being one of the leading airlines in Malaysia serving global destinations. With its reputation severely damaged, MAS was faced with many hard-hitting questions from various stakeholders about the airline's prospects. 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. Use of data and predictive analytics, AI to boost revenue in airline industry, 1. However, at the same time, the number of passengers is declining, which can show a negative result in the long run. - Consumer Protection Laws Mas Malaysia needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. Choosing the vision, mission and the reason of existence for Khazanah Mas's. 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. Although plenty of airlines are currently operating in the industry, there are . Reach thousands of academicians and corporates. 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. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. The purpose of this research is to examine the effects of external environment pertaining to the marketing strategy of Starbucks, a coffee chain in Malaysia. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Khazanah Mas's. Strategy planning process often requires five steps When the data before and after amnesties were considered it is determined that amnesties did create negative results due to moral hazard. The capital of Malaysia is Kuala Lumpur. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. Managementstudyguide.com. Kuala Lumpur is the capital of the country. Execution of the strategy and building a feedback loop, using which managers at Mas Malaysia can fine tune processes and strategies going forward. 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. The company needs to set a research team that can work on creating a more environment-friendly aircraft. . - Fiscal and Monetary Policies The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years. - Inflation Rate The inflation rate can impact the demand of Khazanah Mas's products. Digital Marketing and Social Media Strategy Analysis Report. and its background in Malaysia, and a PESTEL analysis and Porter's Five Force analysis will also be included in this written assignment. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Malaysia is a Southeast Asian country; it gained her independence in 1957. SWOT & PESTLE.com (2023). Enter the email address you signed up with and we'll email you a reset link. Here are some sociological conditions which can impact the airline industry: The airline industrys technology is intricately related to its growth. 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). For example most of EU countries now want the EU citizen data to be saved in EU countries only. - Attitude towards Savings The culture of saving in US and China is totally different where savings rate in China is around 30% , it is well below 15% in United States. Moreover, should MAS's new CEO pre-announce publicly his intentions? I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. The PESTLE framework is used to understand the political, economic, social, technological, legal and . Here is a PEST analysis for airline industry to give you a better idea. This can help Khazanah Mas's in numerous decisions such as plant location, product development, and pricing strategy. 50 international and 35 domestic destinations Excellent advertising and marketing strategies Decrease of ticket prices Promotions Advantage for domestic and international travelers STEP 5: PESTEL/ PEST Analysis of Malaysia Airlines Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future. Attitude towards immigration has come under sharp focus. This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. 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. If the legal system is not strong then Mas Malaysia can face numerous challenges from consumer petitions to shakedowns from authorities. PESTLE analysis PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning components of strategic management. Read More. 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. The rules help to protect the environment and to ensure the safety of the passengers. Recession and unstable economic conditions can severely affect the airline industry. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. Analyze the Mas Malaysia external competitive environment to identify opportunities and threats. !-Keith GrencherBirmingham Business School. - 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. Thus significantly impacting the ability of Mas Malaysia to build sustainable competitive advantage High level of education often results in better jobs, higher income and higher spending on complex and aspirational products. This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. In India , people in this sector have understood the pulse of the times .They understand the far reaching effects of our PM Narendra Modi's call for " Make in India " that will definitely lead to the increase in the number of tourists visiting the shores of India. Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. If you want to know more about how to make a PESTEL analysis diagram in EdrawMax Online, just check this PESTEL guide, it may help you to create diagrams without efforts. Proper strategies and plans can be very fruitful in this case. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. 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. Neeraj Pandey and Gaganpreet Singh are affiliated with National Institute of Industrial Engineering (NITIE). In case you need the complete report please purchase using the buy options displayed. Air transport started in the 1920s. Malaysia PESTLE Analysis & Macroeconomic Trends Market Research Report Browse Report Land borders are. In 1963 it was renamed to Malaysia Airlines Ltd after the. The airline industry is not an exception. The whole world is connected via airlines. 2. . Thus significantly impacting the ability of Khazanah Mas's to build sustainable competitive advantage 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. - 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. Attitude towards immigration has come under sharp focus. The PESTEL analysis airline industry can help them to have an idea about those conditions. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Mas Malaysia should have capabilities to navigate under this hyper sensitive environment. The assumption is that if the country is able to audit its current environment and assess potential changes, it will be better placed - Property Rights & Protection of Technology Oriented Assets Khazanah Mas's should analyze the legal status of various property rights and intellectual property rights protections that are common in US. There are massive PESTEL templates and symbols to choose from, and creating a PESTEL analysis diagram could be really simple. 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. Free Summary Report Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. The neighboring countries of hers are; the Philippines, Indonesia, Vietnam, Singapore, Brunei, and Thailand. Khazanah Mas's can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Before COVID-19, the airline industry generated $818.32 billion globally in 2019. 5. The airline may lose customers for the lack of security to those parts. Detailed PESTEL Analysis of Airline Industry. Cathay Pacific, Iberia, Japan Airlines, Qantas, Malaysia, Airlines Qatar Airways, Royal Air Marco, S7 Airlines, Royal Jordanian, SriLankan Airlines. PESTEL analysis airline industry can show how the financial situation of a nation can impact the airline industry: Recession and unstable economic conditions can severely affect the airline industry. 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. 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