Managing China’s Float

Managing China’s Float Why do you think the Chinese government originally pegged the value of the Yuan against the U. S. dollar? What were the benefits of doing this for China? What were the costs? Over the last decade, many foreign firms have invested in China and used their Chinese factories to produce goods for export. If the Yuan is allowed to float freely against the U. S. dollar on the foreign exchange markets and appreciates in value, how might this affect the fortunes of those enterprises? By some estimates, the decline of the dollar undervalued the Yuan by as much as 40%. That has allowed China to dramatically increase its exports, but at the same time Chinese import restrictions and other trade mechanisms made it more difficult for foreign exporters to sell their products to China. But a stronger Yuan with, and increased purchasing power, may result in an increase in Chinese firms' investment and expansion abroad. How might a decision to let the Yuan float freely affect future foreign direct investment flows into China? If China were to abandon its peg, that could result in a slowdown in its exports. That kind of sudden shift in policy could make foreign direct investment less likely to take place in China. Currently, China is an attractive investment destination, but a stronger, and a less stable Yuan could change that. Under what circumstances might a decision to let the Yuan freely destabilize the Chinese economy? What might be the global implications of this be? Do you think the U. S. government should push the Chinese to let the Yuan float freely? Why? At this point, the Chinese have gobbled up so much of the dollar that they control the largest part of the dollar’s reserves. It is foregone that the Yuan will be the reserve currency of this century, so why not let the currency float freely and allow market forces to dictate its value? That way exports from China can be realized at a fairer value and investment can be more fairly distributed to among countries that have equally cheap labor to China and competing resources for FDI. What do you think the Chinese government should do? Let the Yuan float, maintain the peg, or change the peg in some way? I would think that the Chinese would want to stabilize the Yuan before removing the peg. Their inflation levels have been above 5% over the past two years and given the large supply of money already on hand in their financial system, they could see a dramatic devaluation. With the lessons learned from the Asian financial crises of the mid-1990s and the current U. S. bubble that recently burst, the Chinese would be wise to allow the, markets to absorb some of their dollar reserves as a means to stabilize the value of the dollar.

Mas Strategic Analysis

Strategic Audit Report Strategic Management 313 Unit Index No. 3522 Semester 2, 2011 Malaysian Airlines PREPARED BY: Alfonso Di Tullio Andrew Dellaposta Philip Podgorski Sebastian Michael 14078282 13947899 13949206 14224933 SUBMITTED: 23/09/2011 1 1. 0 Executive Summary The aim of this report is to analyse Malaysia Airline System Berhad (MAS) in regards to its competitive position in the South East Asian (SEA) airline industry, and provide recommendations to help MAS counter the threat of Low Cost Carriers (LCCs). Analysis is limited to the major airlines operating within the SEA airline industry.Firstly, the report begins with an external analysis of the SEA airline environment highlighting significant opportunities and threats. The most notable opportunity is an increased demand for low cost travel in SEA, while the growing market share of LCC AirAsia is an emerging and significant threat. Secondly, an analysis of MAS's internal resources, capabilities and core competencies is carr ied out highlighting significant strengths and weaknesses. MAS? s most prominent strengths are its high brand recognition and reliable MRO facility. However, poor management of costs and high capital intensity prove to be the organisations main weaknesses.Finally, these characteristics are cross matched in a TOWS matrix to develop a number of possible strategies from which an evidence based recommendations are formed. It is recommended that MAS form a corporate strategy to diversify and offer low cost budget air travel as well as existing premium services. This can be achieved by horizontal integration into the related LCC airline segment through the formation of an alliance with existing SEA LCC leader AirAsia via an equity swap arrangement. In support, MAS shall also divest its fledgling LCC subsidiary Firefly.This strategy will counter the growing threat of LCC AirAsia while also providing the benefits of economies of scope/scale, transfer of core competencies and infrastructure sharing, and thus help MAS create and sustain a competitive advantage in the SEA airline environment. 1 Table of Contents 1. 0 2. 0 3. 0 4. 0 Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1 Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Malaysian Airlines – Main Strategic Issues †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 Malaysian Airlines in the SEA Environment †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 4. 1 General Environment Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 4. 1. 1 Political Environment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 4. 1. Economic Environment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 4. 1. 3 Socio-cultural Environment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 4. 1. 4 Technological Environment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 4. 1. 5 Environmental Environment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 4. 1. Legal Environment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 4. 1. 7 Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 4. 2 Industry Environment Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11 4. 2. 1 Threat of new entrants †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12 4. . 2 Threat of Substitutes †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 4. 2. 3 Intensity of Rivalry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 4. 2. 4 Bargaining power of buyers †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 4. 2. 5 Bargaining power of suppliers †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 4. 2. 6 Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 14 4. 3 Competitors En vironment Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 4. 3. 1 Scope and Methods of Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 4. 3. 2 Strategic Group Map †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 4. 3. AirAsia : LCC Competitor analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 5. 1 Capabilities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 5. 2 Tangible Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 24 5. 2. 1 Financial Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 24 5. 2. Organisational Resources†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 25 5. 2. 3 Physical Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 25 5. 2. 4 Technological Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 26 5. 3 Intangible Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 26 5. . 1 Human Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26 5. 3. 2 Innovation Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 26 5. 3. 3 Reputational Resources †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 27 5. 4 Core Competencies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 5. 4. 1 VRIO †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 28 5. 0 Malaysian Airlines Resources and Capabilities †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 6. 0 6. 1 6. 2 6. 3 6. 4 6. 5 Possible Strategies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 29 SO Strategies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 WO Strategies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 32 ST Strategies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 33 WT Strategies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 33 Recommendation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 7. 0 8. 0 Conclusion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 36 References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 37 2 2. 0 Introduction In the highly competitive airline industry, airlines must constantly analyse and re-evaluate the ir competitive environments in order to devise strategies that create and sustain a competitive advantage (DataMonitor 2009).This report analyses Malaysia Airline System Berhad (MAS) in regards to its competitive position in the South East Asian (SEA) airline industry, with emphasis on countering the threat of Low Cost Carriers (LCCs). An analysis of the external and micro external environment will be conducted followed by an analysis of MAS's internal resources, capabilities and core competencies. By doing so, the report will uncover the current strengths, weaknesses, opportunities and threats of MAS, and offer evidence-based recommendations that aim to counter the threat of LCCs and ensure MAS's profitability in the SEA airline industry.A graphical overview of the report structure and the analytical tools used is depicted in Figure 1 on the next page. 3 Current MAS Strategic Issues External Environment PESEL Framework Micro-External Environment Porters Five Force Model Strategic G roup Map Analysis Porters Framework for Competitive Analysis Internal Analysis VRIO Analysis Opportunities and Threats Strengths and Weaknesses Strategy Formulation TOWS Framework Recommendations Figure 1. Report Graphical Overveiw 4 3. 0 Malaysian Airlines – Main Strategic Issues Malaysia Airline System Berhad (MAS) is a Malaysian-government owned airline with an active fleet of over 100 aircraft.Operating in a traditional hub-and-spoke configuration, MAS flies approximately 50,000 passengers daily to and from its two Malaysian home bases in Kuala Lumpur and Kota Kinabalu (Malaysia Airline System Berhad n. d. ). MAS's roots date back to 1947 where it operated as a charter airline as Malayan Airways Limited. By the 1960's, a reduction of operating costs through technology and global economies of scale allowed the airline to offer single tickets to the general public at an affordable price, bringing about rapid expansion (Thomas 2007).By the 1980's, it had expanded to providin g longhaul flights with the aid of an economic boom in Malaysia. MAS experienced two periods of unprofitability in 1997 and 2005 but recovered primarily through aggressive route rationalisation (cutting unprofitable routes) (White 2006). By 2006, MAS only flew only 19 domestic flights compared to 118 in 2003 (Airline Business, 2006). This lack of domestic flights and market liberalisation opened the Malaysian domestic market to Low Cost Carrier (LCC) AirAsia, which took over many of MAS's unprofitable routes with discount airfares, via its low cost operating model.By 2007, AirAsia had rapidly expanded to include regional and international routes while maintaining an emphasis on low operating costs at every level, thus becoming a significant threat to MAS's profitable routes (Poon et al. ). 5 Yearly Profit Before Tax (PBT) of Selected Airlines in SEA 1500 Currency in Millions of Malaysian Ringgits 1000 500 MAS Air Asia JetStar -500 0 -1000 MAS Air Asia JetStar End of 2007 526. 6 554. 4 End of 2008 262. 3 -880. 5 244. 744 End of 2009 491. 8 592 327. 084 End of 2010 282 1,104. 60 409. 836 Figure 2: (BusinessWeek 2011a; BusinessWeek 2011b; Qantas 2010; Qantas 2009)Figure 2 depicts the yearly profit before tax (PBT) of LCCs AirAsia and Jetstar, and MAS since 2007. Following heavy investment in 2008, Air Asia was expected to grow rapidly at the expense of MAS as it continues to apply its low cost model to more routes that MAS already covers (Poon et al). By the end of 2010, this trend was already evident and will likely continue. MAS can no longer ignore the threat of LCCs. MAS must seek out new competitive advantages through a decisive set of strategies that capitalise on its internal strengths, minimise its weaknesses, capture industry opportunities and manage its macro-economic challenges. 4. 0 Malaysian Airlines in the SEA Environment External analysis of MAS will focus on the general, industry and competitor environment of the company. This analysis will lead t o the identification of the main opportunities and threats facing the organisation. 4. 1 General Environment Analysis Through the use of PESTEL analysis, the general external environment is analysed in order to find factors that will most likely affect MAS. 4. 1. 1 Political Environment The political situation within Malaysia is fundamentally focused on the country? s economic growth.The government has intervened within the Malaysian economy in order to stimulate economic growth so as to improve the living standards of the poor (Boyle 2011). However such noble standing has backfired as political suspicion has risen as to whom mainly benefitted (Boyle 2011). As a result Malaysia has become a dangerous place for tourists to visit as rallies and activist marches are common. Recently 50,000 people have protested in a rally with the police force quelling the march with tear gas and water cannons. Many were arrested and charged with „war against the king? (Boyle 2011).This unrest wi thin Malaysia could affect tourism and the airline industry. 7 4. 1. 2 Economic Environment The economy of Malaysia had grown since its independence in 1957, becoming a main exporter of certain resources such as tin, rubber and oil (Thomas White 2010). With Malaysia? s reliance on the exportation of goods overseas, the economy had thrived and expanded. Malaysia seeks to transform its production from agricultural to industrial through the establishment of information technology and research and development bases. This will encourage skilled workforces and stronger technology, a movement known as the „knowledge economy? Thomas White 2010). This venture into knowledge economy displays opportunities for great improvement in technology and skills within the labour force. However, the recent global financial crisis has affected the export trade which Malaysia had heavy reliance on to support the economy (Thomas White 2010). The decline in overseas demand was a major blow to the grow ing Malaysian economy and caused problems for industries within the country. Khazanah Nasional or „National Treasury? translated into English, is the main investment arm of the Malaysian government that has piece of almost every local corporation within the country.This is significant because Khazanah Nasional holds equity in AirAsia as major shareholder and has 70 percent stake invested within MAS (Stock Market Reviews 2011). This means that the local Malaysian government has a „golden share? of MAS making it the largest shareholder to the business and exerting considerable power over MAS. This is similar to Malaysian government intervention in the economy. 8 4. 1. 3 Socio-cultural Environment Malaysia is a country with diverse ranges of ethic cultures from Chinese, Malaysians and Indians.Through a history of unrest between the multi-cultured society, Malaysia has reached some means of harmony however, racial discrimination still seethes (Thomas White 2010). The various religions and culture diversity is a rare sight that attracts tourists. Despite the multi-cultured country, there is still cultural conflict in the country in respect to the Malaysia people. The unrest is caused due to the negligence of the Malaysian government in civil liberties and certain human rights issues which in turn has caused political instability (Anwar 2010).There are numerous ethnic groups to manage in Malaysia and many feel discriminated or cheated by the Malaysian government. 4. 1. 4 Technological Environment In terms of technology, airlines within Malaysia are either enhancing customer experiences through new modes of communications or reducing operation costs from upgrading of aircraft. Constant innovation is always encouraged in this changing environment to ensure survivability. In order to keep up with the growing competition in the airline industry, MAS has upgraded technology and operating processes.New check-in technologies such as automated kiosks and mobile, self-service terminals have been introduced to enhance consumer interactions and workforce productivity (Malaysia Airlines 2011). Modifications to aircraft are ongoing and encouraged. Following price increases in aircraft fuel, the airline industry has modified aircrafts to be more fuel-efficient in order to avoid increasing operating costs while supporting the green revolution. Reductions in the airline industries carbon 9 footprint are achieved through CO2 standard engines and an abundant supply of palm oil biofuels (Association of Asia Pacific Airlines 2010).This new green technology suggests that airlines will successfully manage increasingly strict regulations surrounding carbon emissions. 4. 1. 5 Environmental Environment Environmental issues within the airline industry have grown even stricter with the notion of climate change and a green revolution. The tropics of South East Asia already experience severe outbreaks of fire due to warmer climate and the use of forest burning to clear land presents a problem (Wong-Anan 2009). The increase in fires results in smogs over major cities presenting visibility problems for aircraft and potential health hazards for citizens and tourists.The aviation industry has begun a unified strategy in addressing climate change developed during the UNFCCC Conference in Copenhagen in December 2009 (Association of Asia Pacific Airline 2010). The strategy aims to reduce the carbon footprints of aircraft through fuel-efficient planes, CO2 standard engines and a cap on carbon emissions (Association of Asia Pacific Airline 2010). In regards to restrictions introduced to combat climate change, Malaysia has begun a shift in the reliance of fossil fuels to cleaner alternatives.When the price of fossil fuels rose, countries within South East Asia began investment in bio-fuels, with Malaysia approving over 5 million tons (Shameen 2006). The many large plantations of palm oil trees in Malaysia is a valuable natural resource to assist i n the shift to bio-fuels from fossil fuel. 4. 1. 6 Legal Environment A recent development that could affect the airline industry in Malaysia is a plan to increase aircraft landing charges by 30% and parking charges by 60% from September 15, 2011 (Nambiar 10 2011). The price hike would systemically increase the prices of airfares due o increased operating costs. For example, international passenger fares would increase by RM65 (Nambiar 2011). The significant rise in prices could discourage international and domestic air travel. Analysts suggested that the increase in airport taxes may not deter international customers as significantly as the low cost carrier travellers, a concern for domestic travellers (The star online 2011). Within the SEA airline industry, one of the main issues surrounds the ethics of an aesthetic, sexualised and emotional labour force.The notion of a perfect flight attendant has been those of females of specific size, weight and beauty (Speiss and Waring 2005). This leads to ongoing problems surrounding sexual discrimination in the labour force and legal challenges. 4. 1. 7 Summary In summary, opportunities exist to reduce the carbon footprint of the airline industry in Malaysia by using alternative biofuels and more technologically advanced aircraft. Despite that, there are threats due political turmoil, increasing operating costs and labour relation issues. 4. 2 Industry Environment AnalysisOne widely accepted method of analysing the micro external environment is Porter's Five Forces Model. Developed in 1979, it provides a framework for analysing the level of competitive intensity and thus attractiveness of a market (Grant et al. 2011). 11 4. 2. 1 Threat of new entrants Siegfried and Evans (1994) argue that that there are two types of entry impediments. Structural barriers which exist due to natural characteristics of the industry and behavioural barriers which originate via intentional discretionary conduct by incumbent firms.Perhaps th e strongest structural barrier that exists in the airline industry are high capital requirements which provide incumbents a natural absolute cost advantage over entrants in the short run. This is empirically supported by Dunne and Roberts (1991), and Chappell, Kimenyi & Mayer (1992) which found that high capital intensity industries such as airlines have significantly lower entry rates. This barrier is however mediated by the prospective firms cost of capital and thus dependent on economic conditions such as interest and exchange rates.This suggests that relative to other industries, the airline industry has a significantly lower capital barrier during a global boom due to its high capital intensity nature. One behavioural barrier that MAS itself perpetuates is brand recognition and customer loyalty via the generation of customer delight. Brand loyalty increases a customer's psychic switching costs. Ong and Tang (2010) found that customer loyalty to MAS is higher in the internationa l route markets as customers tend to place a higher priority on price on shorter routes at the expense of loyalty.Among other reasons, Air Asia capitalised on this weakness in order to successfully enter the market in 2001. MAS also has an operational unit cost advantage over new entrants via the learning curve effect. Through over 60 years of experience, MAS holds knowledge, skill and stakeholder contacts that new entrants will need to acquire. 12 4. 2. 2 Threat of Substitutes For MAS, close substitutes only exist for domestic routes in the form of buses, boats and personal automobiles. However, such substitutes are perceived inferior in terms of convenience and only marginally superior in price (O'Connell and Williams 2005).Furthermore, domestic routes only make up 15% of revenue. Consequently the threat of substitute products can be seen as low. 4. 2. 3 Intensity of Rivalry With the advent of nearby regional-route low cost carriers such as Air Asia and a significant amount of agg ressive international carriers such as Singapore Airlines and Thai Airways, rivalry and price competition on all routes is high. Although airlines attempt to distinguish themselves through means other than price, most buyers still indicate that price is their primary factor in choice (Ong and Tang 2010). This leads to intense price wars.For instance, in the mid 2008 low season, MAS attempted to match Air Asia by offering cost-price fares (Grant et al. 2011). As many costs are fixed, the profitability of individual airlines is determined by efficient operations and favourable unit costs. As airlines are a naturally high capital intensity industry, airlines need to constantly be using their capital (airplanes) to maximum capacity. During periods of poor economic performance, price competition increases even further in an effort to remain operationally efficient due to reduced demand since leisure air fares are price elastic. . 2. 4 Bargaining power of buyers In the airline industry, c onsumers have high buying power for several reasons. Firstly, as supported by Shaw (2007), leisure customers are likely to spend the majority of their travel budget on airfares and thus are sensitive to changes in price. Secondly, customers do not strongly differentiate between airlines. Thirdly, the widespread availability of air fare comparison search 13 engines strongly reduce information-search costs due to an abundance of relevant accessible information.In addition to low switching costs, these factors induce the customer into dissonance-reducing buying behavior. Customers can change airline firms with little consideration. Recognising this, some airlines such as MAS have attempted to lower the bargaining power of buyers through the introduction of frequent flyer programs. 4. 2. 5 Bargaining power of suppliers The capital-intensive nature of the industry largely originates from the need to purchase relatively-expensive aircraft that are essential for any airline to exist.Aircra ft are purchased from a market that is a near-duopoly consisting of Airbus and Boeing. This low concentration of suppliers relative to buyers, coupled with its business-critical nature leads to an industry where suppliers have strong bargaining power. Indeed, this bargaining power is so strong that Boeing, MAS's primary aircraft suppliers, have complained of constant excessive demand with backlogs for some of its aircraft orders stretching to 2019 (International Business Times 2011). Furthermore, it is near-impossible for an airline firm to vertically ntegrate its aircraft purchases due to extremely high entry costs in the form of very large capital requirements and a high learning curve. 4. 2. 6 Summary In summary, it can be concluded that the SEA airline market is moderately attractive. Strong supplier and buyer bargaining power along with strong rivalry within existing firms restrict MAS's profit margins. However, high barriers of entry and a low threat of substitutes suggest tha t the number of competitors (or competitive goods) will likely not significantly increase. 14Furthermore, these factors also suggest that in the long-term, demand for airline travel will increase due to a shortage of viable substitutes and population growth. Figure 3: Adapted from Porter (1980) 4. 3 Competitors Environment Analysis To understand how competitors within the SEA airline industry create a competitive advantage, a Strategic Group Map will be formulated in order to analyse how airlines form groups based on the strategies they have adopted. Following this, an analysis of the most significant competitor derived from the strategic group map will be undertaken using Porters Framework for competitor analysis. 5 4. 3. 1 Scope and Methods of Analysis Malaysian Airline Systems (MAS), the national airline carrier of Malaysia, is located in SouthEast Asia with a population of 600 million (ASEANstats 2011). Air travel within the ASEAN region alone accounted for 36% of MAS? s passeng ers in June 2011 and is predicted to grow significantly (Malaysian Airline System Berhad 2011). Based on this, competitive analysis will be limited to the major Low Cost Carriers (LCC? s) and Network Airlines based in this region, as listed in Table 1.Airline Air Asia Indonesia Air Asia Thailand Air AsiaX AirAsia Firefly Garuda Indonesia Jetstar Lion Malaysian Airways Nok Air One to Go Singapore Airways Thai Airways Tiger Airways Country Indonesia Thailand Malaysia Malaysia Malaysia Indonesia Singapore Indonesia Malaysia Thailand Thailand Singapore Thailand Singapore Associated Carriers AirAsia, Air Asia Thailand, AirAsiaX AirAsia, Air Asia Indonesia, AirAsiaX AirAsia, Air Asia Indonesia, AirAsia Thailand AirAsiaX, Air Asia Indonesia, AirAsia Thailand Malasian Airlines Qantas Firefly Thai Airways Tiger Airways Nok Air Singapore Airways Type of CarrierLow Cost Low Cost Low Cost Low Cost Full Service/Network Low Cost Low Cost Full Service/Network Low Cost Low Cost Full Service/Network Full Service/Network Low Cost Table 1: Major South East Asian Airlines (Zhang 2009) 16 4. 3. 2 Strategic Group Map As described by Porter (1980), a strategic group map aims to identify a cluster of companies within an industry that implement similar strategies. Two key strategic variables are selected for the airline industry and its competitors are plotted on a quadrant according to these variables to help identify the strategic groups (Grant et al. 2011).One of the strategic issues to be addressed in this report is the threat of low cost carriers to full service carriers such as MAS. A key characteristic of LCC? s is the basic services offered on board flights versus the many included services offered by the full service network carriers (Damuri and Anas 2005). Based on this difference, one of the variables selected for the strategic group map will is the „level of service? offered by an airline shown on the (Y) axis. The geographical range in which relevant airlines operat e has been selected as the second variable, used on the (X) axis of the strategic group map.This ranges from domestic, regional (within SEA), through to international long haul for the identified airlines in Table 1. A strategic group map has been formed (see Figure 4 on next page) to display the position of each major SEA airline along the strategic variables of level of service and geographical range 17 Figure 4 18 Analysis of the strategic group map (Figure 4) identifies four distinct strategic groups within which airlines adopt similar strategies based on the variables chosen: 1. Domestic LCC 2. Regional LCC 3. International long haul LCC 4.Network Full service carriers The following conclusions can be drawn from observations of the Strategic Group map. ? As shown in Table 1 some of the LCC airlines within these strategic groups are subsidiaries of the Network carrier airlines. They are engaged in the LCC and the full service segments. For example, in 2007 MAS created a fledglin g wholly owned domestic LCC called Firefly (Firefly 2009). ? By definition MAS has similar strategies to those airlines within its strategic group and as such faces the most intense rivalry from them.Each of the airlines within this group has similar capabilities such cargo, engineering and ground handling services. ? MAS also face direct competition from other strategic groups. Malaysian based airline AirAsia and its subsidiaries span all the strategic groups that employ a LCC strategy on domestic, regional and some long haul routes. ? Within the International „Long haul LCC? strategic group AirAsiaX is the only airline competing. This clearly gives them a competitive advantage and perhaps threatens some of the Network carriers long haul market.Philip Lim (2011) from the Taipei times reports that since recent tough economic conditions there has been a substantial swing of business travellers to LCC? s in the long haul travel segments. New entrants, may also judge this strateg ic group as an attractive segment due the low rivalry. 19 Form a corporate level it is clear that MAS? s main competitors within the South East Asian airline industry are SIA, and Thai Airways. However the focus of this report is to analyse how MAS is to counter the threats of low ost competitors. AirAsia? s Malaysian base and breadth over all LCC strategic groups highlights that they may also be a more relevant, threatening and emerging competitor. This is supported by Thomas (2007) who notes that AirAsia has captured over 50% of Malaysia? s total air travel market. Based on these findings it is pertinent to undertake a brief competitor analysis of AirAsia in order to gain a deeper understanding of their activities. 4. 3. 3 AirAsia : LCC Competitor analysisBased on the observations of the strategic group analysis, an analysis of Malaysian airlines main LCC competitor, AirAsia will be undertaken using „Porters Framework for competitive analysis? (Grant et al. 2011). The framew ork focuses on analysing an organisations Strategy, Objectives, Assumptions and Resource capabilities in order to understand and predict competitors behaviour. Focusing on AirAsia, each of these aspects is explored. AirAsia – Strategy AirAsia has subsidiaries in all the LCC strategic groups such as AirAsiaX, AirAsia Thailand, & AirAsia Indonesia.AirAsia competes with smaller LCC? s and also Large International Network carriers. Air Asia? s annual report (2010) highlights that the Organisation implements the following 5 Strategies in order to gain a competitive advantage. 20 1. Low Fares – No Frills ? ? No frequent flyer programmes or airport lounges Choice to purchase in-flight services 2. High Aircraft utilisation ? ? High frequency flights High turnaround of flights 3. Point to point network ? All flights are non-stop. Does away with resources at transit locations. 4. Convert Fleet to more reliable and efficient aircraft. Complete fleet of A320? s. This homogeneous f leet reduces maintenance costs. 5. Safety First ? World standard maintenance of fleet by reputable provider (Luftansa). AirAsia – Objectives The organisations goals are as follows ? ? ? To continue to be the Lowest cost airline in every market it operates within High margins Sustainable growth It can be seen in the Table 2 (next page) that AirAsia has grown remarkably since 2007 across all significant measurables. It has also won the Skytrax „Worlds best low cost airline? award for the last 3 years (SYTRAX 2011). 21For the year ended 30 June 2007 Revenue [Ringit Millions] Total Assets [Ringit Millions] Profit before Tax [Ringit Millions] No of Passengers Carried Group Fleet Size No of Employees No Routes Served R1,603. 00 R4,779. 00 R278. 00 8,737,939 54 2,924 75 For the Year ended 31 December 2010 R3,948. 00 R13,240. 00 R1,099. 00 16,054,738 90 4,702 132 Percentage increase since 2007 to 2010 146. 29% 177. 05% 295. 32% 83. 74% 66. 67% 60. 81% 76. 00% Table 2: Air Asia Group Recent Performance (AirAsia 2010) AirAsia – Assumptions In AirAsia? s 2010 Annual report the organisation made a number of assumptions about the airlines operating environment.Firstly, global economic conditions are set to improve and secondly demand for air travel in the SEA region is predicted to rise substantially. However oil prices are expected to continue increasing, putting further pressure on operating costs and political uncertainty in the Middle East may continue to cause further disruptions to flight services. AirAsia – Resources and Capabilities One AirAsia? s main strengths and key to its success is quoted by Poon and Waring (2010, 203) as the , â€Å"†¦forensic management of costs†¦closely monitored on a daily basis†.This focus has come from the strong leadership of the group CEO Tony Fernandes who monitors costs daily in order to find ways to deal with any issues. 22 Another strength of AirAsia lies in the creation of AirAsiaX to c ompete in a new strategic group of low cost long haul services. As described by Wensveen and Leick (2009), this is a new competitive environment that creates a bridge between various short-haul LCC? s across the globe. Perhaps opportunities exist for of LCC? s around the globe to form alliances to compete with the network carriers.AirAsia has no aircraft maintenance repair or overhaul (MRO) facilities of its own. MRO is a key element of AirAsia success as it provides safe and reliable aircraft. As described by Rieple and Helm (2008) leaving this to a third party could be risky as AirAsia is not in direct control of these activities and is subject to market forces in relation to the cost of these services. With a growing fleet this could be interpreted as a weakness and competitive disadvantage compared to the major network carriers such as MAS, SIA and their low cost subsidiaries who all have their own MRO facilities. . 0 Malaysian Airlines Resources and Capabilities The internal an alysis of MAS will focus on the organisations resources and capabilities that help it gain a competitive advantage. This analysis will lead to the identification of the main strengths and weaknesses of MAS. 5. 1 Capabilities Capabilities, put simply, are the integration and collaboration of individual resources to reach a desired outcome (Grant et al. 2011). Capabilities are a combination of both tangible and intangible resources. By analysing a company? capabilities, we can deduce both the core competencies and competitive advantages that the company may possess. A competitive 23 advantage may lie within a company? s capabilities if they are not easily replicated (Grant et al. 2011). The below table represents MAS capabilities based on the resources mentioned below: Functional Area Management Capability Forward Thinking Clear Objectives Resources Business Turnaround Plan 1+ 2. Transparent information sharing. Skilled Managers. Innovative programs. Awards, Customer Loyalty, Recognis able, Various advertising mediums.Skilled Technicians, trusted supplier materials. Revered History, Government co-operation, strong supplier support, strong government links, open communication channels, innovation, employee knowledge Marketing Manufacturing Organisation Quality Customer Service Brand Recognition Differentiation High Quality Products Product Range Strong Network R Strong CSR Development Table 3 5. 2 Tangible Resources 5. 2. 1 Financial Resources MAS have several shareholders. „Penerbangan Malaysia Berhad? is the majority shareholder with a 52. 0% stake of MAS. The second-largest shareholder is „Khazanah National? which holds 17. 33% of the shares. Foreign shareholders make up 5. 13% (Grant et al. 2011). Up until December 2008, MAS had shrunk its operations for the tenth consecutive quarter (IntellAsia 2008). MAS? officials identified that increasing maintenance, repairs costs, an increasingly inefficient route network, higher staff costs and escalating fuel prices and increasingly inefficient route networks as reasons for the financial losses (Scribd 2011). The 24 introduction of the BTP has helped MAS deal with the financial issues, increased competition and government intervention (Grant et al. 011). 5. 2. 2 Organisational Resources The introduction of the BTP (Business Turnaround Plan) in 2006 and its successor the BTP2 in 2008 was implemented to regain profitability after 10 consecutive quarters of negative profit. MAS profit of RM 493 Million in 2009 (Grant et al. 2011) can be largely attributed to the success of the BTP. MAS has been able to successfully implement its private MRO (maintenance, repair overhaul) department which has reduced costs and increased both effectiveness and efficiency simultaneously (The Financial Express 2008).In 2008 MAS expanded their partnerships with other airline organisations such as Singapore Airlines, Air Mauritius and Silk Air. Also in 2008, MAS and Etihad Airways, two opposing competitors, signed a „code share agreement? to enhance their networks respectively (Etihad Airways 2008). In 2009, MAS once again expanded its network by signing a code share agreement and frequent-flier partnership with low cost carrier Jet Airways. This agreement increased passenger traffic between Malaysia and India (The Economic Times 2009) 5. 2. 3 Physical Resources The headquarters of the airline is in Kuala Lumpur, Malaysia.In total, MAS has approximately 19,000 employees (Airfleet 2010). MAS has the capability to use 100 routes globally. MAS has over 70 offices worldwide, which again displays its strength in its exceptional customer service (Airlines Information 2011). As of 2010, MAS has 12 A330 Airbus? s, and a fleet of 68 Boeing Aircraft, and 42 Boeing freighter aircraft. The MAS fleet comprises of 109 aircraft. (Airfleet 2010) 25 5. 2. 4 Technological Resources MAS source its aircraft from the two most reputable aeroplane manufacturing companies in the world, Boeing and Airbus (Ahmed , 2010).By using these two companies as suppliers, MAS leads customers to believe that they use only the safest and highest quality parts when assembling their fleet. 5. 3 Intangible Resources 5. 3. 1 Human Resources MAS have been able to identify and employ highly skilled and capable workforce, which has been illustrated by the array of awards MAS has received. With pilots, engineers and technicians in particularly high demand globally (Pearson, 2008), MAS will have to offer a number of incentives and strategies to keep the most suitable workforce possible. MAS customer service has always been revered.Continual awards and recognition are testament to this MAS has received the award of best cabin crew in the world 8 times since 2000 (Skytrax World Airline Awards, 2010). Customer service in the airline industry is a major factor to be considered when customers choose which airline to fly with. 5. 3. 2 Innovation Resources MAS have implemented a number of new strategies to sug gest it is a creative and innovative company. The introduction of the „Everyday Low Fares? policy in 2008 meant that MAS matched the lowest prices of its competitors, mainly Air Asia.Although this severely cut profit margins, it 26 was able to offer 1. 3 million „zero? fares, and most importantly, MAS were able to price match Air Asia (Grant et al. 2011). In what has been described as a „pioneering? move, MAS has introduced the ability for customers to be able to check into their flights via the social networking website of Facebook. Malaysia Airlines is currently the only airline in the worldwide to have such a feature available (Cnet Australia 2011). 5. 3. 3 Reputational Resources Throughout the organisation? s history, MAS has enjoyed strong brand recognition.MAS places a heavy emphasis on customer service and can boast about being one of only six international airlines to be awarded a „5-Star? Rating (Grant et al. 2011). Other significant awards include t he „Phoenix Award? for businesses undergoing a life changing transformation and magazine „Aviation Week ranking MAS as the 2nd best full service carrier globally (Skytrax World Airline Awards 2010) . With this reputation, customer loyalty is increased. These loyal customers are crucial to the success of any organisation, as they will often exclusively only use MAS. . 4 Core Competencies The core competencies of a company have been defined as â€Å"activities that an organisation performs better than its other internal activities and that are the most critical to competitiveness and profitability† (Business Dictionary 2011). By extracting and reviewing the core competencies of any organisation, competitive advantages and the strengths of MAS can then be identified. By using the „VRIO? model (Valuable, Rare, Costly to Imitate, Substitutable), we can then extract the strengths and weaknesses of MAS. 27 5. 4. VRIO RESOURCES AND CAPABILITES VALUABLE RARE COSTLY T O IMITATE NONSUBSTITUABLE Brand Recognition High R Spending Clear Objectives Quality Customer Service Forward Thinking High Quality Products Strong Network Product Range Strong CSR Development Yes Yes Yes Yes Yes No Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Table 4 No Yes Yes Yes No Yes Yes Yes No Yes 28 6. 0 Possible Strategies Following external and internal analysis of MAS, prominent strengths, weaknesses, opportunities and threats can be identified.These elements have been plotted into a TOWS matrix as shown in Table 5 on the next page, in order to link these characteristics and facilitate the formation of strategies that may aid the organisation resolve the intended strategic issues outlined in this report. (Weihrich 1982). 29 Strengths 1. High Brand Recognition 2. Strong learning curve advantage 3. Superior Customer Service 4. 5. 6. Clear Positioning Strong Route Network Reliable MRO subsidiary with proven record Opportunities 1. Increasing demand for low cost travel in SEA 2. Low rivalry in the longhaul LCC strategic group 3.Availability of new technology: biofuels to reduce fuel costs 4. Availability of newer more fuel-efficient aircraft SO 1. O1+O2+S1+S2+S4 Form alliance with a LCC to satisfy demand for market segments which prefer low cost over full service while maintaining the existing premium brand and positioning O1+O2+S2 – Expand and intensify Firefly operations in the SEA area O3+S6 – Leverage reliable in-house MRO to retrofit existing aircraft with biofuel Weaknesses 1. Government Golden Share: Socioenvironmental obligation to Malaysia 2. Poor Cost Management 3. High capital intensity WO 1.O2 + W3 – Shift underutilized aircraft to the Low cost/long haul segments to improve returns on capital. O3 + O4 + W1 – Use modern fuel efficient aircraft and biofuels to reduce carbon footprint to satisfy government social responsibility obligations 2. 2. 3. Threats 1. LCC? s are increasingly providing long haul services that compete with MAS 2. Continuing global economic uncertainty is increasing the attractiveness of long haul LCC? s such as AirAsiaX 3. High rivalry is further increasing from network carriers and low cost subsidiaries 4. Buyers and suppliers have increasingly higher bargaining power 5.Airports are continuing to increase landing and parking prices in a market with few alternatives 6. Malaysian labour legalisation may raise labour overhead costs. ST 1. S1+S3+S5+T2+T3 – Develop promotional campaign to emphasise safety, a proven track record and customer service awards are worth the premium S1+S3+T4 – Leverage customer service awards and brand recognition to further develop loyalty programs to decrease buyer bargaining power WT 1. W2+T1 – Shift focus from differentiation to cost leadership (similar to AirAsia) W1+T6 – Lobby Malaysian government to reduce social obligation and improve flexibility . 2. Table 5: MAS – TOWS A nalysis 30 Described below are the strategies developed from TOWS matrix that will aid MAS in achieving a competitive advantage. 6. 1 SO Strategies Form alliance with a LCC to satisfy demand for market segments which prefer low cost over full service while maintaining the existing premium brand and positioning The airline industry can be can be behaviourally differentiated into two broad segments; those consumers which place a high importance on the price of air fares above all else, and those are who are willing to pay more for premium service (Kotler et al. 010). By forming an alliance with an established existing LCC, MAS will be able to maintain and capitalise on its existing premium brand and learning curve advantage in the full-service industry whilst satisfying increasing demand for low-cost air fares in SEA (O? Connell and Williams 2005). Furthermore, establishing an alliance will ensure that each firm will be able to focus on their core competencies and established customer base by maintaining their current positioning.Expand and intensify Firefly operations in the SEA area Firefly, MAS's wholly-owned subsidiary, currently operates a small amount of domestic and regional routes (Firefly, 2011). To capitalise on increasing demand for low-cost air fares, MAS could expand and intensify Firefly's operations to cover more of the SEA region. Such a complete dual-brand strategy, as first introduced in the SEA region by Qantas/Jetstar, would essentially see Firefly compete with MAS, except that it will target the more price-conscious segment (Sandilands, 2009).MAS would be able to maintain its high brand recognition for its premium services whilst building Firefly's existing brand and experience in the LCC industry. 31 Leverage reliable in-house MRO to retrofit existing aircraft with biofuel MAS's owns an award winning reliable maintenance-repair-operations division that could be utilised to lower fuel costs by retrofitting existing aircraft with bio-fuel tec hnology (Grant et al. 2011). Bio-fuel as resource will likely be comparatively inexpensive for MAS as Malaysia has booming palm oil business from which it can produce bio-fuel from (Shameen 2006). . 2 WO Strategies Shift underutilised aircraft to the low cost/long haul segment. The airline business is capital intensive and MAS uses a large portion of its capital to purchase expensive machines compared to its labour costs. When these machines lay idle or are underutilised they can drastically increase costs for the airline (Wensveen 2009). Low rivalry identified by the strategic group map in the low cost/long haul segment could be an opportunity for MAS to diversify and shift underutilised aircraft into this new segment to increase aircraft utilisation.Use modern fuel efficient aircraft and bio-fuels. The governments golden share of MAS allows the Malaysian government to put internal pressure on the MAS board to uphold social and environmental responsibility obligations to Malaysia. Malaysia has booming palm oil business that could be used to reduce reliance on high carbon emitting fossil fuels (Shameen 2006). Along with this, the use of new generation aircraft that are more fuel efficient can substantially reduce MAS carbon footprint and help satisfy some government social responsibility obligations. 32 6. 3 ST StrategiesDevelop a promotional campaign to emphasise safety, track record and customer service awards. The attractiveness of low-cost carriers and higher rivalry from the low-cost subsidiaries presents as threats to MAS in maintaining survivability within the airline industry. Recently in 2010, Malaysia Airlines had won two awards as Asia? s Leading Airlines and Asia? s leading Business Class Airlines which can become the core focus of the promotional campaign (Malaysia Airline 2010). Through implementing a promotional campaign, MAS is able to rejuvenate its brand as the high quality airline that it is.Leverage customer service awards and brand recogni tion to further develop loyalty programs to decrease buyer bargaining power. With the increase in buyer bargaining power, the strategy of developing loyalty programs ensures higher switching costs to keep loyal fliers of MAS with the company. MAS already have the Enrich loyalty program in which customers are able to benefit from. In 2007, Virgin Blue had joined in partnership with MAS Enrich loyalty program to further the benefit for consumers (Malaysia Airline 2007).The partnership of Virgin Blue with MAS Enrich Loyalty program creates higher switching costs for buyers and reduces the bargaining power that has been on the rise. 6. 4 WT Strategies Shift focus from Differentiation to Cost Leadership Malaysian Airlines systems currently operates on a „differentiation? strategy. This strategy has allowed the organisation to distance itself from its competitors, and have a recognizable and strong brand recognition, which is paramount in gaining and retaining customer base. In rece nt 33 imes, some competitors, namely Air Asia (a Low Cost Carrier) has started to increase long haul services, which previously was only offered by Malaysian Airlines. The implications of LCC? s increasing long haul routes means that a number of customers will use LCC? s over MAS purely due to having a lower cost. A feasible strategy would be for MAS to offer same the same prices as these LCC? s over similar routes, essentially nullifying the LCC competitive advantage. Customers would be more likely to fly with MAS over LCC? s due to a) MAS reputation b) Customer service.This would change MAS overall strategy from „differentiation? to a „cost leadership? strategy. Lobby government to reduce social obligations and improve operational flexibility Malaysian Airlines currently has to meet a number of social obligations demanded by the government. Malaysian Airlines is widely supported for meeting its Corporate Social Responsibilities, but faced with the threat of an increase in labour restrictions and legislation, it would be wise for MAS to propose to (lobby) the government that for a relaxation of these Corporate Social obligations.This in turn, would improve operational and organizational flexibility, which would help MAS deal with the possible threat of increasingly stringent labour restrictions. The lobbying process would have to be done in a manner in which the final result (increased organizational flexibility) benefits both the government and organisation, as the government has veto powers over any decision made by the MAS board. 6. 5 Recommendation Based on the strategies developed following internal and external analysis of MAS, it is recommended that MAS adopt a corporate strategy to diversify and offer low cost budget air 34 ravel to satisfy the increasing demand for market segments which prefer low cost over full service, while maintaining the existing premium brand and positioning (Jegathesan 2011). This is to be achieved by horizontal in tegration into the related LCC airline segment through the formation of an alliance with existing SEA LCC leader AirAsia via an equity swap arrangement. In support of this agreement, MAS shall also divest its fledgling domestic LCC subsidiary Firefly. This strategy best resolves the main strategic issue of how an established carrier such as MAS can counter the threats posed by low cost competitors for the following reasons: 1.Each airline can focus on their core competency to create synergy and economies of scope. This strategy brings benefits of the specialisation of the two companies together. MAS in the long-haul premium travel and AirAsia low cost air travel. 2. Exchange in human capital such as Air Asia? s Tony Fernandez who was able to make Air Asia successful. The exchange of human capital is more than just able-bodied men, but the transference of skills and experiences. Both companies stand to benefit in the exchange of knowledge and skills. 3. Sharing of prominent intangibl e resources that each business

Aos: Power – Lord of the Flies

Related Text â€Å"Lord of the flies† 1. Summarize the main ideas/themes of the text. * The loss of innocence * The invariable corruption of power * Savagery vs. Civilization * The reality of betrayal * ————————————————- The influence fear has on people ————————————————- Power is often a source of violence in  Lord of the Flies. The desire for power breaks down the boundaries set by rules and order, causes strife and competition, and governs the actions of many of the boys on the island.Once achieved, power has the ability to either improve or corrupt its holder. Ralph, the more noble of the two leaders on the island, is bettered by his position as chief; whereas Jack, the usurper, abuses his power for personal gain. ————â€⠀Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- There are several themes in â€Å"Lord of the flies†, including innocence, rules and order, fear, power, identity and religion. The text shows the audience to be more self-critical, that the fact not to believe in a good side of a human being and the fight for important values is what separates the human being from animals.The central theme of the text, Lord of the Flies, is power. The different aspects of power shown, is the invariable corruption of power, the reality of betrayal and the influence of fear. In the text, Jack is the antagonist, his like a dictator; he uses fear to control the boys on the island and manipulates them and uses them to his own advantage such as to get food and shelter. Jack uses a story of a non-existent beast to manipulate the other boys to follow his orders/ commands. The reason why the boys follow him and sees him as a leader is because he promised †˜protection from the beast’.A quote in the text that talks about the beast: â€Å"Fancy thinking the Beast was something you could hunt and kill! You knew, didn’t you? I’m part of you? Close, close, close! I’m the reason why it’s no go? Why things are what they are? † 2. What does this text tell us about power? ————————————————- Power is often a source of violence in  Ã¢â‚¬Å"Lord of the Flies†. In Lord of the Flies the idea of power is expressed this way, imagine a world where there were no rules, no laws, and no government to oversee the running of the country.The desire for power breaks down the boundaries set by rules and order, causes strife and competition, and governs the actions of many of the boys on the island. Once achieved, power has the ability to either improve or corrupt its holder. Ralph, the more noble of t he two leaders on the island, is bettered by his position as chief; whereas Jack, the usurper, abuses his power for personal gain. This shows us two different sides of power. ————————————————- Power is often used as a source of violence in the text, â€Å"Lord of the Flies†.The idea of power is expressed differently; imagine a world where there were no rules, no laws, and no government to oversee the running of the country. In â€Å"Lord of the Flies†, to gain power was competitive which meant strife. The desire for power breaks down the boundaries set by rules and order. Being the leader meant governing a group of boys on an island. Whenever power is achieved, power was either improved or corrupted on the leader. For example, Ralph and Jack were leaders for separates groups of boys on the island, the boys had their own choice on who they wanted to follow.It was between Ralph, the more noble of the two leaders, who was the more acceptable or bettered as being ‘chief’ (leader) and coordinated the boys to build a miniature civilization on the island, and Jack, the usurper, who used fear and manipulation to abuse his power for personal gain. It was discussed amongst the boys, â€Å"Which is better–to have laws and agree, or to hunt and kill? † With one side that showed freedom and equality, the other was a dictatorship, the text showed two very different sides of power. 3.Comment on the film techniques employed by the composer of this text. How do they contribute to the meaning of Power in the text? Brook's film opens with a very creepy montage consisting of pictures of a British boarding school intercut with planes flying over London with a haunting school chorus playing in the background. Brook's use of grainy black-and-white photography, plus the lack of any comprehensive musical score (remember Tom Hanks' â⠂¬Å"Castaway†? ), accentuates the bleakness of its surroundings and feelings of isolation.The movie can hardly be expected to capture fully every single intention of this highly complex novel (most don't), but it does respect Golding's words and captures the very essence of what he wanted to say. For that alone it should be applauded. Brook is able to compose beautiful sad visuals. ***SPOILERS*** These include the kinetic editing during the hunt for Ralph, Simon's dead body floating in the water arranged by the sad school chorus (depressing moment), Piggy's tragic demise that puts the 1990s remake laughable mirrored scene to shame, and the very scary feast that occurs at night followed by the dance.That scene, consisting of quick images, scary close-ups on the savages painted faces ————————————————- It is disturbing, haunting, and visually wonderful. —— ——————————————- In Peter Brook’s film, â€Å"Lord of the Flies†, released in 1963 was a black and white film. Although it was black and white film, it’s underrated and it’s still a classic, this is preferably better than the new remakes of this film. Some scenes are considered as disturbing and haunting but visually wonderful.Brook uses a very creepy montage in the opening scene showing pictures of a British boarding school with planes flying over London and a haunting school chorus playing in the background. Brooke uses grainy black and white photography and emphasizes the bleakness of its surroundings to create a feeling of isolation, which relates to a feeling of savagery vs. civilization. With Brook being able to compose beautiful sad visuals, he is able create the scene of Piggy’s tragedy with quick images, scary closer-up shots on the savages pai nted faces of the hunters (Jack’s tribe).This scene shows influence of fear, the invariable corruption of power/ losing control and a sense of savagery vs. civilization. 4. How does this text relate to your prescribed text i. e. George Orwell’s Animal Farm? Link each text by exploring three common aspects of Power. * well the power in the  lord of the flies  is jack's rise to control and leadership. he leads an army of corrupt boys who carry out his evil orders (set the island on fire, orders to kill ralph, etc. ) * in animal farm, napoleon takes the power from snowball and forms a dictatorship. e also has minions such as the dogs who carry out his tasks and corrupt orders. ————————————————- Ralph represents a democracy while Jack represents a totalitarian form of leadership. lead the boys into savagery   —————— ——————————- Want power, Greed or selfishness bring the destruction of the societies, ————————————————- In Animal Farm the animals hated the humans and were scared that they might take back the farm. Napoleon uses it as an excuse to keep the animals working.In Lord for the Flies the littluns are afraid of the â€Å"beast†. When Jack, Ralph, and Roger went and saw the beast, which is a parachute and a man, the biguns also got scared. ————————————————- The pigs took control and the other animals were in worst condition than they were in when the humans were in control. The boys ended up disagreeing and killing each other ————————â€⠀Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- â€Å"Lord of the flies† is very similar to the novel Animal Farm by George Orwell. They relate with a common theme of power.However, both are from different context but written for the same reason, â€Å"Lord of the Flies† is a story of humanity from a navy officer, which served in WWII, while Animal Farm is based on the Russian Revolution. The plot, the characters and the symbols are very similar. Three common aspects of power in these texts is the want of power, the control of power, the reality of betrayal. The antagonist in each text, both want power and used a belief to manipulate the others. In Animal Farm Napoleon tells the other animals to hate the humans and they were scared that the humans might take the farm back.Whereas in â€Å"Lord of the flies†, Jack tells the littleuns that there is a ‘beast’ on the island and if they worked for him, he would provide them with protection. A nother aspect is the control of power, in Animal Farm Napoleon takes the power from Snowball and forms a dictatorship. He uses the other animals to work for him, such as the dogs that carry out his tasks and corrupt orders. In â€Å"Lord of the Flies†, Jack rises to control and leadership. He carries out an army of corrupt boys to carry out his evil orders, similar to Animal Farm. Both Napoleon and Jack represent totalitarian forms of leadership.And lastly, the reality of betrayal was common in both texts. In Animal Farm the pigs had started to become like humans, wearing clothes, sleeping in beds, drinking alcohol and playing cards with humans in the farm house. The other animals saw them through a window and couldn’t tell whether they were pigs anymore or humans. In â€Å"Lord of the Flies†, Jack starts his own tribe with his hunters, the littleuns, he went to steal Piggy’s glasses, but Ralph went to look for it, then suddenly Jack stabs Ralph in the ba ck, but luckily Ralph survived.

History Assignment Example | Topics and Well Written Essays - 1500 words

History - Assignment Example In the final section, she shocks him by saying they have never had a serious conversation in the course of their whole marriage. She also declares that she has a holy duty to herself. The very idea is shocking to her husband. 2. Read â€Å"The Voice of Zionism: Theorod Herzl and the Jewish State† and answer the following – Why did Herzl believe that Palestine was necessary for Jews? How does he seek to gain the acceptance of the Turkish sultan and the Christian nations of Europe? (see the box on pg 608) The story of the creation of Israel is a powerful one. Herzl was one of the founding thinkers on this issue. He argues in this piece that anti-semitism was such a serious problem in European countries that there was no possibility it would get better. He thought Jews should give up on Europe and seek to create a new land. He even thought European governments would help them as they would be eager to see them go. He writes that the Sultan would might be willing to give th em Palestine if they offered to help him look after the finances of his Empire. He also suggests that the Jews would create an outpost of civilization in the Middle East where everywhere else there was only barbarism. That idea might help to convince Europeans too. I.D. the following terms in paragraph format. Make sure you include ALL INFORMATION from the book: Do NOT just copy from the book. You must put these in your own words. (worth 10 points each) 1. caudillos Caudillos were military-style political leaders in Latin America in the 19th century. They were not democratic-minded and usually took power by force. They had a major impact on the development of these states and offered pursued expansionist policies. They often named themselves president for life and became dictators. Some examples were Rafael Carrera and Juan Manuel de Rosas. They secured gains made during the anti-colonial upheavals. Part of the reason they were able to take power was because none of these countries has any experience of governing themselves. 2. Kansas-Nebraska Act of 1854 This was an act of Congress that played a significant role in the development of the Civil War that would follow a few years later. At the time, the North and South of the Untied States were divided on the issue of slavery. Both Kansas and Nebraska were to be new states. Some people such as Stephen Douglas believed the resolution to the dispute between North and South was simply to let new states decide if they wanted to permit slavery or not. In a sense this was a naive idea, as northern abolitionists strongly opposed expanding slavery within the boundaries of the U.S under any circumstances. This issue would come to dominate the American political landscape in the years to come. 3. Emmeline Pankhurst, Christabel & Sylvia Emmeline was the leader of the British women's suffragette movement. She advocated for Women to have the right to vote. Some of her tactics were occasionally violent and she served prison s entences for them. Two of her daughters were Christabel and Sylvia, who took differing sides in the debate. Sylvia pursued an organizational movement and was more politically active. Christabel was the head of the women's movement and supported more militant action. All of these women made a major contribution to democracy when their actions contributed to the success of the

Current Congress Legislation Essay Example | Topics and Well Written Essays - 500 words

Current Congress Legislation - Essay Example Taxing small businesses fairly is a very important step in promoting them. American is strong due to the important role played by small businesses. Statistics indicate that more than 90 percent of all employers are small businesses. Therefore, if small businesses are not healthy, reducing unemployment in America is easy. Economists estimate that value of output from small businesses is 50% of non-farm GDP. With such a huge amount of output for the country, promoting small businesses is good for the American economy. The same companies are responsible for producing much of the knowledge that gives America competitive advantage over competitors. Small firms produce more patent per employee than large companies do. This suggests that without small firms, knowledge creation would take a beating. Small businesses in America are found everywhere. The numbers of small businesses are estimated at more than 22 million. A law that is beneficial to this huge number of small businesses will be felt in virtually every neighborhood in America. By virtue of their spread, they employ as much as 50% of all employees in private sector. Another important contribution of small businesses is exporting ("Office of Advocacy - Press Releases - Small Businesses Are Important Players in U.S. Business and Job Growth†). Currently, American is facing trade deficit because Americans import too much consumption goods more than export. By exporting, small business help, prevent the present trade imbalance from getting worse. Approximately 97% of American exporters are small businesses who export goods and services values as 27%of total export. Small businesses in America are started at a rate of half a million per year. This explains their capacity for creating jobs for Americans. If they are supported, more of these small businesses would succeed. Lastly, even the big Americans corporations that pay billions in tax every

Accounting Theory (Australia) Essay Example | Topics and Well Written Essays - 500 words

Accounting Theory (Australia) - Essay Example Presently, the Japanese Generally Accepted Accounting Principles are recognized by the European Union. The Financial Services Agency of Japan is also working to have common regulations with the International Financial Reporting Standards. The Business Accounting Council has come up with deliberations about the treatment of consolidated financial statement based upon International Financial Reporting Standards within the purview of Japanese Security Exchange Law. This measure has been presumed as the regulatory response of Japan as it involves the treatment of IFRS based consolidated financial statement prepared by issuers of both, Japan as well as foreigners, to be listed in the Japanese market. Japan and other Asian countries should participate more into the regulatory authorities for their own benefit. Their valuable presence in the committees would voice their needs and requirements. Presently, the Accounting Standard Board of Japan is trying to build up consensus over various financial regulatory issues among the Asian economies. Among the various regulatory issues, BASEL reforms have been very crucial for the transformation of the banking sector. It has been observed that there have been certain issues in terms of compliance of BASEL norms in Japan. The financial disorder prevalent in the last decade and the continuous postponement of resolution of non – performing loan (NPL) hindered compliance with the BASEL standards in Japan along with propagating political intervention in the economy of Japan that considerably hampered bank regulations. Today, it is almost certain in the periphery of the financial regulations that IFRS would make way for GAAP in due course of time as it has already adopted by European Union. Japan should focus more on accounting standards of IFRS rather than that of GAAP to be in line with the

No idea Assignment Example | Topics and Well Written Essays - 500 words

No idea - Assignment Example A is a single grade higher than B and the goal is therefore realistic. The goal is timely because it will take two months (Rouillard 47). To raise the performance of the rugby team that I coach, from ten touch downs to twelve, I will train with them on the field for two hours once a week starting next Friday till the last Friday of April 2014. I and the team is the who, training is the what, field is the where, two hours once a week is the when, touchdowns is the which, and raising the performance is the why. Fifteen touchdowns are measurable, training for two hours once a week is attainable, building a capacity to add two touchdowns in one month is realistic and starting next Friday until the last Friday of April, 2014 is my goal’s time bounds (Rouillard 47). To become a more sociable neighbor than I have been, I want to make one new friend in our new neighborhood every month starting in April 2014 so that I will have eight new friends by December 2014. In this goal, I is the who, making is the what, our new neighborhood is the where, every month is the when, new friend is the which and become a more sociable neighbor is the why. Making one new friend monthly and eight friends by December is measurable. The goal to make one friend monthly and eight friends in eight months is attainable. It is realistic that a person can make one new friend monthly and eight months are enough time for it (Rouillard 47). To expand our campus entrepreneurial club by ninety members in the next three months, we will conduct a massive campaign on campus using press, posters, and social media to recruit prospective members. We is the who in this goal, campaign is the what, campus is the where, more members is the which, and expand is the why. Ninety members is measurable and recruiting ninety members in three months is attainable. This goal is realistic because it can be broken down to recruiting thirty new members every month to get ninety in three months

Processed Food Essay Example | Topics and Well Written Essays - 1250 words

Processed Food - Essay Example In addition to this, their taste is almost always consistent. If we look at the process of manufacturing processed food, it can be divided into three basic processes. First is the raw material processing, which brings out the food in the form that is eaten. This is followed by packaging and finally transportation or logistics. Even though it sounds harmless, the process of manufacturing ready to eat meals has negative affects not only on the health of the consumers, but also on the environment. In the following essay, the use and production procedure of hamburger would be analyzed. The essay will show how producing a hamburger is accompanied by various processes which prove to be detrimental to the environment. Cheese is one of the condiments which always accompany a hamburger. Hardly any hamburger is eaten without cheese in it. Hilmar Cheese, a cheese production factory from California, has been in the business for over 20 years. As a result of its manufacturing process, the company has been constantly polluting both land and water. Approximately 2.5 million gallons of wastewater is discharged by the company every day. This water contains poisonous compounds like arsenic, barium compounds, nitrogen and other salts. Such elements are fatal to humans and animals. In addition to this, waste water from factories and production plants leads to two very serious types of pollutions, namely Barium pollution and arsenic pollution. The next component of a hamburger to be analyzed is the hamburger bun. These buns are made from wheat. With resources like land being limited, the same piece of land is irrigated repeatedly and its nutrition is exhausted. Over farming eventually leads to desertification. Since the same piece of land is irrigated repeatedly, it leads to over irrigation. This in turn leads to salinization. The farm land thus, gets covered with layers of salt. Most of the farming done

Criticize the attached research Essay Example | Topics and Well Written Essays - 1000 words

Effect of Supervisors Beliefs on the Supervision System in Turkish Primary Schools - Essay Example If the research reveals something more than what the previous researchers have revealed, then the research can be called as successful. Otherwise, it remains just an experiment with no new insights on the topic. Similarly, the research on the ‘beliefs of supervisors in primary schools of Turkey’ revealed nothing new about the research topic. After reading the article, the reader feels that the researchers should have widened the scope of the participants and the subject matter if they were to learn something more than what is already available in the existing literature on the topic. It feels as if something was missing in the research and makes the reader feel that the study was incomplete. The Positive Aspects Of The Research The authors have done an excellent job in giving the background of the research. The authors have beautifully explained why the research is being conducted and how the beliefs of the supervisors play an important role in the performance and develo pment of the educational organizations in Turkey. According to the research by Sullivan and Glanz (2005), the supervision beliefs of supervisors influence not only their behavior and approach towards work but also their language and communication pattern. Hence, understanding their beliefs about supervision becomes an important thing. According to the authors, the main aim of the research is to know the core of the supervision. As beliefs of human being determine the â€Å"views and perceptions† of the job they are doing, it is important to know what work method they believe in so as to understand their drive and motivation behind their performance at work. The authors have very successfully explained the reason behind undertaking the research and how the research results are going to impact the overall function of supervision in the primary schools of Turkey. Moreover, the sample strength of the research of 300 primary school supervisors was also a positive point of the rese arch. Also, the research was based on the classification of beliefs of supervision by Sullivan and Glanz (2005). They have classified beliefs of supervision in two categories, i.e. ‘bureaucratic supervisory beliefs’ and ‘democratic supervisory beliefs’. The authors have explained how these beliefs affect the communication between supervisors and teachers, and the job satisfaction of the teachers.  

Era of Good Feelings Essay Example for Free

Era of Good Feelings Essay An Era of Good Feeings is unity within a country, a stable government, beneficial or good foreign policy, and more. It shows how a country or region is in a good time period in regards to politics, economics, and social factors. The time period after the War of 1812 is often labeled the Era of Good Feelings due to nationalism. The government along with the people encouraged and maintained unity and stabilization within the country. There are many examples of nationalism that support that the time period after the War of 1812 was an era of good feelings. One example was the construction of canals and roads (Doc. B). The construction of roads and canals lead to more communication in regards to spreading news and informing one another about whats going on in society. Furthermore, they lead to easier transportation. With roads and canals people were able to travel much easier and interact with one another more. An example of a canal that was built was the Erie Canal, the Erie Canal allowed goods to transfer from city to city in a much more efficient way. Another example of nationalism was the slave revolt (Doc. G). A former slave by the name of Denmark Vesey decided to plan a slave revolt after becoming free from his owner. Thousands of blacks were involve with the plan by overthrowing their owners by killing them. He eventually was set out to be hung once the whole massacre was over with. This is an example of nationalism because it shows how equality was being fought by black citizens. They were revolting to show how they think that they should be treated exactly how the whites were treated instead of being mistaken as servants. Lastly, another example of nationalism was the Monroe Doctrine (Doc. H). The Monroe Doctrine stated that European nations should not and can not interfere with affairs of the Western Hemisphere. In other words it was telling Europeans to back off and leave the United States alone. This is an example of nationalism because it shows how the Unites States was taking a stand for themselves and showing European power that they were not going to tolerate anyone stepping ove r them since they ultimately knew themselves that they had power which meant they were a force to be reckoned with. These are some of many examples of nationalism that support that the time period after the War of 1812 was an Era of Good Feelings. Many can argue that the time period following the War of 1812 was an Era of Good Feelings in result of nationalism. One example of  nationalism that support the statement are the roads and canals. Furthermore, another example was the slave revolt that was lead by Denmark Vesey. Lastly, another example was the signing of the Monroe Doctrine. Nationalism within the United States positively affected the country by leading them to maintain and further expand their country over the years.

Proposed Roadmap for Cloud Adoption

Proposed Roadmap for Cloud Adoption 1. Chapter 8: Case Study based on the roadmap 1.1. Introduction This chapter focuses on the case study done by a privately owned company based in India. They were willing to adopt cloud for their IT Department. The proposed roadmap is being tested for the process they followed for the cloud adoption. This was done to know the significance of the proposed steps to be followed using the existing SDLC in chapter 6.The feedback is given by the team who worked on the proposed roadmap. The names have been kept anonymous for the confidentiality issues. 1.2. Project background The company who agreed to test the proposed system is a privately owned company with employee strength of 200-250 employees. The company deals in health care industry. The company is in a process of reshaping IT infrastructure and on its way of developing a cloud solution for the same. The reason for adopting cloud is the benefit it gives. It includes performance appraisal, resource utilization and scalable processes. The company wants to utilize the existing employee IT skills and resources. The company intends to do it by collaborating with the cloud service provider and customizing the cloud solution. It also intends to follow the different steps of the process to make sure that the requirement is met. 1.3. Framework walkthrough The roadmap is designed keeping in mind the challenges and best practices that are used while the cloud adoption of the project. It is believed that any project undertaking this roadmap with the highest score is more likely to succeed. The efficiency of the roadmap is tested based on a questionnaire designed for the different levels of process. The company will follow the steps of SDLC designed and customized especially for cloud adoption process given in Chapter 6. The five individual steps will have different set of questions. The IT manager will mark the question based on the importance of outcome by following the particular step in the entire process. Table 8.1 to 8.5 will represent the question for each stage. It will also contain the marks for each question. Table 8.6 will have the have the total marks for every stage based on the marking in table 8.1 to 8.5. Each phase has certain question that needs to be marked on a scale of 1-5 where 1 is least favorable and 5 a strongly favorable response. Each question is given weights (0.0-1) that are basically decided by the project team based on the nature of the project. The score for each question is then multiplied by weight given to it. The total of all the questions individual to each phase is done and then overall score adding the score of all the phases are done. The adding up of all the score adheres to the overall score of the project. The overall score represented how well the project adhered to the framework. Table 8.2: The questionnaire for the analysis phase Observation and comments for analysis phase: The successful implementation of the cloud adoption has made it a mandate step to do an intensive analysis and requirement gathering documentation. It is made a very necessary step as the process of cloud adoption is all in its early birth stages. The analysis phase requires the organization to closely analyze the future impact of cloud adoption on culture, politics, finances, procurement and in line work processes. Table 8.2: The questionnaire for the planning phase Observation and comments for planning phase: The use of standard tools and techniques based on organization’s standardizing tools for the planning phase was important. This helped to plan the right use of existing systems for the migration to cloud. The organizations benchmarks also helped to plan the performance standards for the systems that were moving on cloud. Based on the right planning it is also easy to chose appropriate cloud service provider. Table 8.3: The questionnaire for the design phase Observation and comments for design phase: This phase is majorly important in negotiating on the terms and conditions on the issues that were identified in the previous two phases that is analysis and planning. It is also realized that successes of design phase in entirely dependent on how efficiently the previous two phases are done. In other words design is basically a result of proper planning and analysis. Table 8.4: The questionnaire for the implementation phase Observation and comments for implementation phase: This is the phase where the actual movement of the application takes place to the cloud. This phase also deals with the end user participation and also the critical evaluation of the data involved. It was also found that the participation of the end users helps to address all the issues related to the new changes in the system. It helps to address the socio technical changes in the organization. Table 8.5: The questionnaire for the maintenance phase Observation and comments for maintenance phase: The phase basically makes sure the after implementation support that serves as a very critical indicator towards the success of cloud adoption. This phase is also important as this phase requires the team to address the best practices and also to document the lesson learned during the entire system development life cycle. This documentation serves as a building block for the future assignments. Table 8.6: Project phase totals It was observes that the analysis phase is the backbone of the entire project. It also serves as the building block of trust and understanding between the customer and the cloud vendor. The use of analysis phase as a part of SDLC was a positive point as the SDLC tool is familiar with mostly all the business managers. It also helps in selecting the appropriate infrastructure needed and the provider to provide them. The planning was observed as the most important and embarking step for the entire project. This is perceived as the most crucial step as this step interprets the result of analysis phase into the plan needed for design and then implementation phase. The design phase is successful only when the analysis and planning phase is done correctly. It is basically act as a result of the two previous phases. The implementation phase is the stage where all the issues are addressed related to social technical changes, resistance to change that occurs due to the result of the entire clo ud adoption. The last step of the maintenance acts as an additional advantage as this step provides the user support and monitoring control. This also serves as the important indicator towards the take off of the project. It also helps to improve for next coming projects as these steps requires the team to do the lesson learnt documentation and revive of all the best practices that were followed. 1.4. Conclusion A walkthrough of a case study is presented in this chapter. It was basically an illustration of how the proposed roadmap can be used in a cloud adoption project. It illustrates that how this proposed framework that can be used for a project. The each phase had questions to be answered by the project team using the framework. The individual phase had total score and that adds to the overall score to the project. The overall score represented how well the project adhered to the framework.