...bad……………………………………….7 4.0 The major competitor of the favorite brand…………………………………..8 4.1 Malaysia Airlines (MAS) the major competitor of Air Asia………….....9 4.2 Competing brands in term of strategy marketing……………………….10 4.3 Difference between Air Asia and Malaysia Airlines (MAS)……………11 5.0 Conclusion………………………………………………………………………13 6.0 Reference………………………………………………………………………..14 1.0 Introduction The aim of this individual assignment of subjects BPMM3113 Brand Management is to make a bit of criticism in connection with the preferred brand and the brand also not favored. This task is also to evaluate the performance of a popular brand of airline Air Asia and also the favored brand of Air Rayani. For the main competition for Air Asia is Malaysia Airlines (MAS). The airline industry is a big industry, a large and rapidly growing nowadays. In those years ago, air travel has increased by 6% a year and scheduled airlines carry more than 1 billion passengers in 2008. In addition, in this study, both the company and the challenges will be discussed in more detail in this report. It will be discussed further in this study are the weaknesses, advantages and competitive strategy used in the aviation industry. MAS Airlines and Air Asia on profitability and liquidity ratios to assess business performance and also the strength of the two airlines were strong and powerful. The conclusions and recommendations which investors need to invest in construction...
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...Executive summary This assignment is to compare the capital structure, and cost of capital between two same companies in Bursa Malaysia and their effect to market valuation and firm’s performance. It is also to indicate how the companies gearing levels and cost of capital affect the firm’s value and profitability ratios. The ratios being used are for comparing and investigating the relationships between two companies’ financial information. Besides, it indicates if higher gearing level and higher cost of capital affect the firm’s value and performances. This assignment was focused on AirAsia and Malaysia Airline.A company's capital structure refers to the relative proportions of equity (raising money by selling shares) and debt (raising money by borrowing) which the company uses to finance its activities. The uses of capital structure are important to distinguish between market value and book values. In general, financial economic prefer to use market value went measuring debt ratio because it reflect current value whether than historical values. Financial economist does belief that current market value reflects true intrinsic value. In the other hand the uses of book value is very popular because of volatility of stock market it is frequently claimed that the inherent volatility of the stock market makes market-debt ratios move around too much. A company's capital structure can have an enormous impact on its earnings per share, taxes, and interest payments, even though...
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...Marketing Institute of Singapore DIPLOMA IN SALES AND MARKETING MARKETING RESEACH DSM 303 |TABLE OF CONTENTS | | | | | |Page | |Branding Efforts by Malaysia Airline System (MAS) |2 - 6 | |Malaysian Hospitality | | |New Experience | | |Service and Upgrading | | |Corporate image | | |Corporate logo | | | ...
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... AirAsia In The Malaysian Domestic Airline Market: Empirical Analysis Of Strategy Mok Kim Man, (Email: mkimman@ums.edu.my),Universiti Malaysia - Sabah, Malaysia Jainurin Bin Justine, (Email: Jainurin@ums.edu.my), Universiti Malaysia - Sabah, Malaysia ABSTRACT This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. Firstly, the paper will provide a general background of the airline industry, in particular the Malaysian domestic airline market and a summary of an analysis of the industry using Michael Porter’s Five Forces Analysis. Secondly, the paper will provide a brief background of AirAsia and Malaysia Airlines. Thirdly, the paper will analyse the results of AirAsia’s strategy vis-àvis operating and financial performance. Finally, the paper will conclude a summary of AirAsia’s achievement of the past and present and prospect for the future. INDUSTRY BACKGROUND Airline Industry The airline industry is very competitive with existing airlines having to compete with each other as well as with new entrants from time to time. For every success such as Singapore Airlines and Southwest Airlines, there are plenty of failures such as Pan Am, TWA, Swissair, Sabena, Ansett, People Express, Go, Buzz and so on. Major Characteristics There are three major characteristics of the airline industry namely its product nature, its expenditure structure and its market entry conditions. Airlines’ product is homogeneous or undifferentiated...
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...Summary Malaysian Airlines System Berhad is the holding company for Malaysia’s national airline carrier, one of the fastest growing airlines in Asia. Malaysia Airlines has three airline subsidiaries, which is Firefly, MAS wings and MAS cargo. Although MAS had provide an excellent services and won many award, they still facing financial problem since year 2002. Situation become worse in year 2014 due to the MH370 and MH17 tragedies occurred. MAS are facing three main problems. First will be financial turbulence. In recent years, MAS has struggled financially. In 2013, the company reported a loss of 1.17 billion ringgit, its third consecutive year in the red. The airline had already been suffering from years of poor performance. The company’s stock price has dropped since MH370 missing and MH17 crashed occurred. A double tragedy of this nature after such a short period is unheard of in the industry, which could deal a crippling reputational and financial blow to Malaysia Airlines Malaysian Airline System Bhd. The second problem is lost confidence of passengers toward the Malaysia Airlines. Due to the disasters of MH370 and MH17, the airlines passengers lost confidence to the Malaysia Airlines which bring the feeling of fear and afraid toward MAS. Those passengers may switch to other airlines such as Air Asia and Singapore Third problem is reputation of Malaysia Airlines be damaged. At the beginning, Malaysia Airlines have a very high reputation and images in airlines industry which...
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...CRISIS COMMUNICATION AND THE CASE STUDY OF MISSING MALAYSIA AIRLINES FLIGHT MH370 I. Literature review In a ‘vulnerable’ society that has been easily affected by many different types of crises such as natural and man-made disasters, in disregard of where you live and what you do, no community or organization is immune from crisis. In order to provide clear definitions and deeper understanding crises of all types, scholars have developed theories to handle these events. A wide range of crisis fields are studied including psychology (Morgan et al., 2002), sociology (Clarke & Chess, 2008) or political perspective (Birkland, 2006). In addition, other research involved communicating in crisis (Reynolds, 2002). All of these disciplines, even different, combine to build a theoretical background on various approaches to crisis communication and contribute to establish crisis response guidelines for organizations. Among the prominent theories on crisis communication, the Situational Crisis Communication Theory generates a link between Attribution Theory firstly built by Fritz Heider in the early part of the 20th century which addresses the processes by which individuals explain the causes of behavior and events and crisis response strategies which represent what an organization does and says after a crisis. To protect reputation, it is crucial for the organization to consist the responsibility acceptance of the crisis response with the stakeholder attributions. Coombs (2006)...
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...MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved...
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...Management 110: Assessment 2 1. Case study I choose Malaysia Airline System (MAS) because the whole world is focusing on Malaysia recently and especially Malaysia Airline due to the miserable crash of MH370. According to international newspapers and articles, I have found that MAS has plenty of debts and it occurred because of wrong management. Some presses refer to MAS is able to be bankrupted by the tremendous compensation of MH370. Therefore, I choose MAS in order to revive and overcome from poor management. 2. Contemporary management issue in relation to this article Issue: Poor management leads Malaysia Airline to billions of debt, MAS needs government rescue. Background and context of the company: Malaysia Airline System (MAS) is the home base of Malaysia and it was established in 1947. Nowadays, Malaysia Airlines secures a variety of routes such as Europe, North America and Asia continent. These days, Malaysia Airline has recorded the minus of Operating Cash Flow (OCF) over the past three years. Free Cash Flow (FCF) which minuses capital expenditure from OCF was negative for six years. (Tengku Bahar,2014) The financial issue presses the airline and about 19,000 employees. Key issues for the company: Before being the crash of MH370, MAS already faced their financial pressures, which is approximately 4.2 billion ringgit loss. The disappearance of MAS MH370 boosts the financial loss and it can be a critical damage for MAS. Furthermore, the main issue for MAS is its...
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... Michael Dell of Dell Computers, Fred Smith of FedEx. Their applications of creativity, risk taking, innovation and the passion lead the way to the successful of the business which contributes a lot to the economic growth. In Malaysia, one of the successful entrepreneurs is the founder of the Tune Group of Companies named Tony Fernandes, who introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly". This paper will discuss the key entrepreneur attributes of Tony Fernandes which bring him to the success in his business and the background information of the companies. Table Of Contents 1. Background 2 2. Environmental Conditions 3 • Political 3 • Economic 3 • Social 3 • Technology 3 3. Approach, Attitude and Behaviour 4 4. The Strategies 5 5. Conclusion 6 6. References 7 Background In Malaysia, the general demand of travelling by airplane in the country arising, however the affordability for all was the concern. Malaysia Airline System (MAS) was the only one national carrier and had to operate as a local airline too. The government recognized the issue faced, so the second airline AirAsia by a joint venture with a local corporate company DRB-Hicom was formed in 1993 and began operations on 18 November 1996 to take care for the local destinations while MAS can concentrate on the international routes. With the...
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...Question 1 Analyze the current situation facing MAS and AirAsia using the internal and external strategic environment analysis model. Discuss what aspects and why did their collaboration take place. Answer Background to AirAsia A ‘no-frills’ airline is defined as one “That uses charter and/or scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. AirAsia is one of the fastest growing airline companies in the world, with a reputation as a low-cost, ‘no frills’ airline. It was originally a government owned business; yet, due to heavy debt, it was bought by former Time Warner executive Tony Fernandes in 2001, and this is where the real story begins. Their vision, under the slogan "Now Everyone Can Fly", is “To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares”,(ii) and their mission is, under the banner of 'Affordable Airfares', “To attain the lowest cost so that everyone can fly with AirAsia,” without any compromise to Flight Safety Standards, as well as, creating a worldwide recognizable brand with a ‘family’ atmosphere within working conditions for employees. (iii) These statements clearly show AirAsia’s value. Cost advantages...
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...Tan Sri Dr Anthony Francis Fernandes Background and Qualification Tan Sri Anthony Francis Fernandes, the founder of Tune Air Sdn. Bhd, which introduced the first budget no-frills airline in Malaysia, AirAsia with the tagline of "Now everyone can fly". He was born in 30 April 1964 in Kuala Lumpur, Malaysia to a Goan (originally from Goa) father Dr. Stephen Edward Fernandes and a Kristang (known as "Portuguese-Eurasians") mother Ena Dorothy Fernandez. Dr Tony Fernandes was educated at The Alice Smith School in Kuala Lumpur before entering Epsom College. His Bachelor of Science in Accounting and Finance was earned from the London School of Economics in 1987. He also received an Honorary Doctorate of Business Innovation from Universiti Teknologi Malaysia (UTM) in March 2010. He was admitted as Associate Member of the Association of Chartered Certified Accountants (ACCA) in 1991 and became Fellow Member in 1996. He is currently a member of the Institute of Chartered Accountants in England and Wales (ICAEW). Dr Tony Fernandes has been served as an internal auditor, managing director, financial controller and even Southeast Asian regional vice-president for few companies before starting up Tune Air Sdn Bhd. Working Experience Virgin Communications London 1987 until 1989 – Served as an internal auditor and subsequently becoming financial controller for that organization. Warner Music Group Warner Music International London 1989 until 1992 - Served as Senior Financial Analyst...
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...Malaysian Airlines: A Business Turnover Name: Course: Instructor: Date: Malaysian Airlines: A Business Turnover Summary Malaysia Airlines ranks among the top government-run agencies in Malaysia. The organization is the national carrier for the country flying to over 100 destinations in six continents across the world. It is based at the Kuala Lampur International Airport where its core operations are run, and recent statistics indicate that it has the strongest influence in East and south Asia regions. However, it is also important to note that its influence is also growing in Europe and Australia, which technocrats believe to be the growing influence in the kangaroo routes leading to Australia and the pacific (Alamdari & Fagan, 2005). The organization has undergone tremendous changes to position itself strategically in the rapidly changing world of air transport. With the increased competition ranging from the swiftly growing carriers including the Emirates, Qatar airways and Etihad airways, and the low cost competitors such as Air Asia and Jetstar to the well-established carriers such as Cathy Pacific and Singapore airlines, the organizations have enacted strategic changes to position itself on the global air transport market. The wakeup call came in 2005 when the airline experienced its worst experience. The Malaysia Airline System achieved success in two years and braced the impact of the financial meltdown that rocked the world at around...
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...position of Singapore Airlines Module No : EG3080 Module Title : Business Application in Engineering Submitted by : Chia Kok Kwang Alvin (K1068496) Table of Contents Page 1. Abstract 3 2. Introduction 4 3. Background 5 4. Singapore Airline’s Macro Environment (PESTEL Analysis) 6 5.1 Political Factors 6 5.2 Economic Factors 7 5.3 Socio-cultural Factors 7 5.4 Technological Factors 8 5.5 Environmental Factors 8 5.6 Legal Factors 9 5. Competitive forces and firm strategy (Porter’s 5 Forces Analysis) 10 6.7 Threat of new entrants 10 6.8 Threat of substitutes 10 6.9 Power of buyer 11 6.10 Power of supplier 11 6.11 Competitive rivalry 12 6. Strategic Capabilities (SWOT Analysis) 13 7. Strategic Choices (Porter’s Strategies) 14 8.12.1 Cost leadership 14 8.12.2 Focus 14 8.12.3 Differentiation 14 8.12 Strategic choice of Singapore Airlines 15 8. Challenges ahead of Singapore Airlines 16 9. Conclusion 17 10. References 18 & 19 1. Abstract Singapore Airlines leaves a deeply positive impression in many people’s heart as a leading airline that is dedicated to bring the highest level of products and services. We will look into how Singapore Airlines achieve its excellent...
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...in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis 2.1 Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively...
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...[pic] ACFI 3217 International Development in Accounting Comparing of the performance of Malaysia Airlines and China Southern Airlines Summary The purpose of this report was discovering and analyzing the performance of Malaysia Airlines and China Southern Airlines; and the benefits and problems in the U.S. adopting of IFRS will be mentioned. First, it evaluates the performance of Malaysia Airlines and China Southern Airlines through five ratios analysis which is profitability, liquidity/solvency, working capital efficiency, long term financial structure and investors’ perspective. Next, on basic of part one analysis, discuss the limitations of financial reporting, meanwhile, companies from different countries which are using different accounting standards should be noticed. Follow on; depend on the situation of financial report, using the SWOT methods to analyze the primary challenges faced by Malaysia Airlines and China Southern Airlines. Finally, discuss the positive and negative of U.S. adopting IFRS. Contents 1. Introduction 1 2. Ratio analysis of the MAS and CZ 1 3. SWTO analysis of the MAS and the CZ 12 3.1. Strengths 12 3.2. Weaknesses 13 3.3. Opportunities 15 3.4. Threats 16 4. The benefits and problems if US adopt IFRS 18 5. Conclusion 26 6. Reference 27 7. Appendices 36 7.1. Appendices 1—Analysis Current Ratio 36 7.2. Appendices 2—Analysis Quick Ratio 36 7.3. Appendices...
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