The airline industry needs to do regular technical up-gradation of their system and work on the communication with the air traffic. The assumption is that if the country is able to audit its current environment and assess potential changes, it will be better placed Mas Malaysia should have capabilities to navigate under this hyper sensitive environment. The airline has received various awards for its premium and high-quality services. 1. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. For different referencing styles and detailed guidelines, please click here. 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. Currently, about 11.3 million people are working in the airline industry, and it also has the potential to create more jobs in the future due to its growth. 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. Copyright of Malaysia Airlines Berhad SWOT and PESTLE Analysis is the property of Barakaat Consulting. Promoting entrepreneurship in society is one well accepted mechanism to generate employment which has potential to cater to the said problem. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. Each option would have to be considered very carefully, as the changes made to the business would decide the future of MAS. 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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Khazanah Mas's. As the aviation business can be profitable in the long term, the government may want to invest. Hence, an airline must have a good reputation. Available at: https://pestleanalysis.com/pest-analysis-for-airline-industry/ (Accessed 21 June 2021). The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Most of the tourists are not interested in visiting countries that have threats due to political conditions. Free Summary Report This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. - 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. It can add to the clear image of any aviation company. Proper strategies and plans can be very fruitful in this case. The airline companies, which operate in countries with political turmoil, may see a sharp decline in revenue. At EMBA PRO, - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. Khazanah Mas's should assess to what level the local market is prepared to roll out the 5G connectivity. It can be concluded that measures should concentrate on the causes of NPLs rather than amnesties in order to mitigate the problem of NPLs. 1. 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. This can help Khazanah Mas's in numerous decisions such as plant location, product development, and pricing strategy. For example, if there are cases of employee harassment or passenger mistreatment, those events can create a deep impact on their business. It will also give them an opportunity of getting investors. By using the PEST analysis, MAS airlines will link the entire four forces that may influence their business in general and competitive environment. The manpower in hotels in the form of trainees from hotel management institutes plays a major role in the operations in the hotels. SpendEdge. - Corporate Social Responsibilities Culture Are Mas Malaysia present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. - Role of Non-Government Organization, Civil Society & Protest Groups The country has a vibrant civil society community and Mas Malaysia should build bridges with them and seek out areas of co-operations. - Intellectual Property Rights and Patents Protection Before entering new market Mas Malaysia should focus on the environment for intellectual property rights. . The airline industry is not an exception. The aviation leader provides various commercial services specialized and tailored to traveler needs, such as MHbiz Travel, Government Travel, Flight Simulator, Charter Services, MHexplorer, AMAL and Enrich BizConnect, for government officials, corporate travel and tourism travelers. Otherwise, they may see a sharp decline in passenger numbers. Both the airlines are leveraging each others strengths to improve customers travel experiences. Established player in Asian region catering to large number of destinations, 1. Academia.edu no longer supports Internet Explorer. PESTEL analysis airline industry can show how the financial situation of a nation can impact the airline industry: The sociological conditions of any state gravely impact the airline industry. MAGs sustainability program will contribute towards the SDGs for aviation carbon and GHG emission reduction, fuel conservation and climate change. 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. This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. PESTLE Analysis of Airline Industry. The bond rating of national government is investment grade. Journify | Home - https://journify.malaysiaairlines.com/content/journify/my/en/home.html, 4. The transition of government and change in policy: the political transition in Malaysia has a very systematic process that is . This can help Mas Malaysia to bring in more transparency and make supply chain more flexible. Segmentation, Targeting and Positioning (STP) Analysis Report. - Inflation Rate The inflation rate can impact the demand of Khazanah Mas's products. 5. When the data before and after amnesties were considered it is determined that amnesties did create negative results due to moral hazard. - Nature of Social Contract between Government & Society Before entering into a market Mas Malaysia needs to understand the nature of social contract between government and society. The change in the behaviour of passengers following the COVID-19 crisis, travel restrictions and the ensuing economic crisis have resulted in a dramatic drop in demand for airline services. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. There is consistency in both policy making and implementations of those policies. According to Michael Porter organizational performance is to large extend determined by various industry forces. The companies need to invest in technology and bring in continuous changes to ensure the security and safety of the passengers. 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. Khazanah Mas's should have capabilities to navigate under this hyper sensitive environment. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. This report provides a PESTLE analysis of both countries for British Airways, which expresses all the factors that are essential to a business's macro environment (Moore & Taylor, 2021). This report is shared in order to give you an idea of what the complete Company Overview 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. It is written by Neeraj Pandey, Gaganpreet Singh and shed light on critical areas in field of Sales & Marketing, Crisis management, Customers, Organizational culture that the protagonist in the case study is facing. The airline companies must be well aware of them and abide by those rules to avoid legal proceedings. - 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. Holistic Analysis Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. They may get stuck in legal proceedings. This detailed PESTEL analysis of Malaysia aims to address some of the political, economic, social, technological, environmental, and legal factors that affect Malaysia today. . The study explores how Malaysian Airlines has achieved its outstanding performance and sustained its competitive advantage, through effectively implementing strategy. Porter's competitive analysis framework was used to analyze the main elements that helped to gain competitive advantage in the aviation industry.The study also used SWOT analysis to examine internal factors that enabled MAS to improve its strategic management. 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. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Khazanah Mas's. Neeraj Pandey and Gaganpreet Singh are affiliated with National Institute of Industrial Engineering (NITIE). This is in addition to taxiing the aircraft with one engine instead of two after landing, which can further save as much as 50KG of fuel or 158KG of carbon dioxide per flight. Nabil N. El-Hage, Leslie S. Pierson (2018), "Malaysia Airlines (A) Harvard Business Review Case Study. The remaining section under "Strength" is available only in the 'Complete Report' on purchase. - 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. Should Khazanah encourage job and route cuts at MAS, and how would the government react to them? - 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. However, we may send you emails on our new reports and solutions. - Intellectual Property Rights Protection Khazanah Mas's should assess the level of protection that intellectual property rights get under the legal system of the country. In case you need the complete report please purchase using the buy options displayed. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. PESTEL analysis is mainly the assessment of macro environment factors. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. 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. Published by HBR Publications. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. 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