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. Malaysia Aviation Group (MAG) and Malaysia Airlines have introduced the MAG Sustainability Blueprint in 2020, which aims to achieve the target of becoming a net zero carbon emission airline by 2050, together with its oneworld alliance partner airlines. 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. This can help Khazanah Mas's in numerous decisions such as plant location, product development, and pricing strategy. 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. Study of these factors will help to understand the perspective of youth towards entrepreneurship. - 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. - 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. Better Essays. All Rights Reserved by Barakaat Consulting. In the United Kingdom, due to Heathrows long runway, Malaysia Airlines pilots use idle reverse thrust power while stopping the aircraft allowing for 18KG of fuel to be saved per landing, which over the course of a month reduces approximately 3,420KG of carbon dioxide from being emitted. It can also be a responsible step to protect the environment. The bond rating of national government is investment grade. 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. It's still running with the name of Air India. . - Empowerment of Supply Chain Partners Mas Malaysia should analyze areas where technology can empower supply chain partners. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Definition of PESTEL / PEST / STEP Analysis. 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. Holistic Analysis The SWOT analysis for Malaysian Airlines is presented below in a matrix followed by the detailed analysis report: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. The PESTEL analysis airline industry can help them to have an idea about those conditions. Top Quality. Two major regions Peninsula of Malaysia and East Malaysia of Borneo are divided by the South China Sea. The neighboring countries of hers are; the Philippines, Indonesia, Vietnam, Singapore, Brunei, and Thailand. 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. 4. The Summary report contains the SWOT & PESTLE table contents only. Keep it up! Increase in jet fuel prices decreases profits for airlines, 1. Political Economic Social Technological Conclusion Political The airline industry operates in a highly regulated political environment where passengers are favored over the airlines. The firm initiating it was Tata. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Mas Malaysia. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. 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. Here are some sociological conditions which can impact the airline industry: The airline industrys technology is intricately related to its growth. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Khazanah Mas's. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. PESTEL analysis is mainly the assessment of macro environment factors. There is consistency in both policy making and implementations of those policies. Malaysia, is a federal constitutional monarchy in Asia. Like most other businesses, the airline industry is also affected by the nation's unstable political condition. 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). Published by HBR Publications. 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. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Airline Industry Analysis. Malaysia Airlines (A) case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Core Competencies, Pestle Analysis, SWOT-AnalysisCo-OpetitionPESTLE AnalysisHandbook of Research on Decision-Making Techniques in Financial MarketingKodak, Fight to Revive. The detailed complete set of references are available on request in the 'Complete report' on purchase. - Transparency & Digital Drive Mas Malaysia can use digitalization of various processes to overcome corruption in the local economy. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Hence, an airline must have a good reputation. The airline companies are all about hospitality and services. The research study presented here has identified various demographic and non-demographic factors affecting youth towards entrepreneurship. The main aim of this study is to examine the impact of amnesties on non-performing loans (NPLs) in Northern Cyprus. - Influence of Climate Change How climate change will impact Mas Malaysia business model and supply chain. 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. - 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. INTRODUCTION OF PESTEL ANALYSIS For the development of any country many factors plays vital role. - Birth Rate Birth rate is also a good indicator of future demand. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Mas Malaysia business model. The PESTEL analysis of the airline companies can show how the external factors have affected them. With its reputation severely damaged, MAS was faced with many hard-hitting questions from various stakeholders about the airline's prospects. This section is available only in the 'Complete Report' on purchase. The assumption is that if the country is able to audit its current environment and assess potential changes, it will be better placed 2 PESTLE Analysis. PESTEL ANALYSIS FOR MALAYSIAN AIRLINES: PESTEL refers to political, economic, social, technological, environmental and legal factors. . Stiff competition from LCCs and other players especially in the Asia region, 1. However, it was limited to the airmail routes of European nations. It can harm their image and have some negative impact on their business. Segmentation, Targeting and Positioning (STP) Analysis Report. Malaysia Airlines Berhads locations are focused in Malaysia, South East Asia, North and South Asia, Australia, New Zealand, Europe and the Middle East. This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. PESTLE The SWOT analysis of Air Asia is presented below: Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. 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. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. . 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. Do you want us to design a market survey or write a market research report as per your specific requirements? - Level of Social Concerns & Awareness in Society Higher level of social concerns in the society often result higher consumer activism and pressure from non-governmental organizations, & pressure groups. It can help them to stay away from crashes or technical faults. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. These measures should consist of legal, institutional and administrative dimensions. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. Analyze Strengths and Weaknesses of Mas Malaysia. Malaysia Airlines partners ReveMax to enhance revenue strategy -https://www.theedgemarkets.com/article/malaysia-airlines-partners-revemax-enhance-revenue-strategy, 5. 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. The airline which has been recently renamed as Malaysia Airline Berhad and operates flights to Asia, Australasia, Africa, the Americas, Europe, and the Middle East. Malaysia Airlines is an airline that operates flights from its headquarters in Kuala Lumpur. However, we may send you emails on our new reports and solutions. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. PESTEL analysis airline industry can show how technical issues can work upon the growth of the airline industry: The significant environmental factor that has been a concern for environmentalists is its CFC emission. - Intellectual Property Rights Protection Mas Malaysia should assess the level of protection that intellectual property rights get under the legal system of the country. There are some conditions with the employee conditions and flight times of which the airlines should be careful. Malaysian Hospitality is world renowned, and Malaysia Airlines hospitality and services are world class, with its superior luxury and business class travel, Golden Lounge, In-flight offerings such as movies, TV, games, music, tasty in-flight meals and duty-free shopping. 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. Malaysia Airlines Berhad SWOT and PESTLE analysis has been conducted by Muskan Arya and reviewed by senior analysts from Barakaat Consulting. The number of passengers may decrease while the cost of raw materials may increase. 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. Should Khazanah encourage job and route cuts at MAS, and how would the government react to them? Khazanah Mas's should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Khazanah Mas's can face. The airline companies must be well aware of them and abide by those rules to avoid legal proceedings. Mcdonald Porter's Pest Analysis Essay. When the data before and after amnesties were considered it is determined that amnesties did create negative results due to moral hazard. The rules help to protect the environment and to ensure the safety of the passengers. Some of the economic factors that Khazanah Mas's should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. Khazanah Mas's can make strategies based on the stable political environment. 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