The number of passengers may decrease while the cost of raw materials may increase. 2. 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. PESTEL analysis is mainly the assessment of macro environment factors. The most critical and delicate situation is to withhold the best talent in the organization. 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. Khazanah Mas's 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. - Data Protection Laws Mas Malaysia needs to assess what are the data laws in the country and what it needs to do to comply with them. Cost Based Pricing could be a bad strategy under such conditions. 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. The analysis has been done through personal interviews with the managers of 200 Hotels from 7 different locations of Delhi and National Capital Region. Should Khazanah encourage job and route cuts at MAS, and how would the government react to them? 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. 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. - Education Level in Society Education level of the society impacts both the quality of jobs and level of income. 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. The airlines also need to keep an eye on the comfort of the passengers. Purpose of this agreement is to allow both country to have the right to fly across its territory without landing. Banking systems is always the main segment of the financial sector. 'PESTLE Analysis of Airline Industry | Marketing Tutor', Marketing Tutor, [online]. The airline delivers premium services and offers superiors connectivity to 1000 locations across 150+ countries. 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. Malaysian Airlines was subject to litigation due to missing airplane with passengers resulting in loss of brand and consumer confidence, 1. The remaining section under "Environment" is available only in the 'Complete Report' on purchase. 5. . The recent era of economic depression shook all industries and airlines' industry was no exception. 4. 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. 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. Everything in desktop + Templates Community, Join 2023 Edraw Special Sales. It can lead to uncertainty and suppression of consumption in both short term and long term. Stiff competition from LCCs and other players especially in the Asia region, 1. Segmentation, Targeting and Positioning (STP) Analysis Report. However, we may send you emails on our new reports and solutions. [online] Available at: https://www.swotandpestle.com/malaysia-airlines/ [Accessed 01 Mar, 2023]. 'PESTLE Analysis | Generating Better Profit Margin for an Airline Industry', PESTLE Analysis, [online]. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Intellectual Property Rights Protection Mas Malaysia should assess the level of protection that intellectual property rights get under the legal system of the country. The chief executive officer of Malaysia Airlines (MAS) had the daunting task of sustaining a business that had suffered the tragic loss of two of its airliners in a span of just four months. This will help in better predicting the environment policy of the country. 5. - Time Taken for Court Proceedings Even if the country has best of the laws, it doesnt mean much if they cant be enforced in a timely manner. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. It will help them to improve the service and can make an impression. It shares cordial relationships with Asia-Pacific nations such as Australia and has strong bilateral ties with Japan and India. If the process is consistent and transparent then Mas Malaysia can plan ahead with greater conviction. Promoting entrepreneurship in society is one well accepted mechanism to generate employment which has potential to cater to the said problem. As per the latest record, more than 5000 airlines are operating worldwide with ICAO codes. - 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. With its hub in Kualalampur, the airlines fleet consists of 15 A333, 6 A359 and A332 and 44 B738. 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. Malaysia Airlines is also exploring carbon friendly technologies that are available at London Heathrow such as utilizing electrical ground power to electric pushback. 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 BP Healthcare and Enrich by Malaysia Airlines partnership cares for all Malaysians wellbeing - https://www.malaysiakini.com/announcement/568903, 3. PESTLE Analysis on Malaysia Airlines (MAS) Political: Air transport agreement between the government of the United States of America and the government of Malaysia during 21 st June 1997. - 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. - Empowerment of Supply Chain Partners Mas Malaysia should analyze areas where technology can empower supply chain partners. - Political Governance System Based on the information provided in the Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study, it seems that the country have a stable political system. However, it was limited to the airmail routes of European nations. Khazanah Mas's can leverage this trend by expanding its product range and targeting new customers. Analyze Strengths and Weaknesses of Khazanah Mas's. 1211 Words; . - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. Otherwise, this can be a massive concern in the future. However, there are various factors which affect the inclination towards self-employment. - 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. Importance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps - 1. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Most countries have some rules concerning the service. 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. 1. 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. For example the power structure in US economy is slowly moving towards the older generation as that generation has higher disposable income compare to the younger generation. However, the factors like association with entrepreneurship related activities at university level, parents' encouragement and role models from business community are significant in motivating the students towards starting their own business. 3. It has decimated the culture of savings as people dont have enough to save. Neeraj Pandey, Gaganpreet Singh (2018), "Malaysia Airlines: The Marketing Challenge after MH370 and MH17 Harvard Business Review Case Study. The bond rating of national government is investment grade. This study has focused on the adoption of various human resource practices adopted by the Hotels in the NCR (National Capital Region). we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. 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. All Rights Reserved by Barakaat Consulting. 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Mas Malaysia business model. The companies need to invest in technology and bring in continuous changes to ensure the security and safety of the passengers. India got its first airline in 1932. - Preparedness for 5G Related Infrastructure Countries across the world are trying to prepare themselves to install 5G infrastructure. Recession and unstable economic conditions can severely affect the airline industry. As a service-providing industry, the airlines can incorporate constant technological changes to improve their services. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. - Political Governance System Based on the information provided in the Malaysia Airlines (A) case study, it seems that the country have a stable political system. - 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. Technology is fast disrupting business models across various industries. PESTEL / PEST / STEP Analysis & Solution, HyundaiCard's Marketing Strategy PESTEL / PEST / STEP Analysis & Solution, IDS Financial Services (Condensed), Spanish Version PESTEL / PEST / STEP Analysis & Solution, Capital One: Leveraging Information-Based Marketing PESTEL / PEST / STEP Analysis & Solution, Delhi Metro Rail Corporation (B): Doing More with Less PESTEL / PEST / STEP Analysis & Solution, WestJet: A New Social Media Strategy PESTEL / PEST / STEP Analysis & Solution, Eco7: Launching a New Motor Oil PESTEL / PEST / STEP Analysis & Solution, Airbnb, Etsy, Uber: Acquiring the First Thousand Customers PESTEL / PEST / STEP Analysis & Solution, InMobi: Reimagining Mobile Advertising PESTEL / PEST / STEP Analysis & Solution, Malaysia Airlines: The Marketing Challenge after MH370 and MH17. The remaining section under "Strength" is available only in the 'Complete Report' on purchase. Read More. 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