This article provides a PESTLE analysis of Malaysia Airlines, examining the political, economic, social, technological, legal, and environmental factors that impact the company. It also discusses the benefits of e-sourcing in procurement management.
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Management1 Introduction A Malaysia airline is the primary hub for domestic and international flights, which covers most of the Asia route in between Europe and Australia. In terms of external forces, which havemajorinfluenceovertheorganisationdecisionsmaking,affectstheoverall performances and helps in building up new strategies for generating more success. PESTLE ANALYSIS Political analysis-In terms of airlines concern, political factors are important to regulate the upcoming progress of the company. Malaysia is one of the famous tourist destinations or attractive for traveller all over the creation because Malaysia is that nation which is administrativelyconstant.PeoplewhovisitMalaysiahaveexperiencedsafetravelling anywhere throughout the various destinations visit. In political terms, the government of Malaysia is majorly focusing and promoting its tourism assets and implementing certain policies and legislations in order to safeguard the interest of the investors, consumers and entire community so that every individuals visiting Malaysia should feel safe, protect and works at ease(Szydlowska Katarzyna 2018) Economic analysis-In terms of economics, once global financial crisis has majorly affected the performance of the airlines business in which the companies has faced huge loss in terms of finances. Malaysia airlines were also one of them, which got majorly affected. Due to the global financial crisis, it has major effect over the purchasing power of the individuals in which they think of saving money is must better option rather than getting flights booked for business trips or family trips. For overcoming situation, airlines have practiced low fare promotion in which attractive discounts were offered in order to attract more of customers (Szydlowska Katarzyna 2018) Social factors-Social factors majorly highlights about the cultural, societal and demographic aspect, which affects the overall size of the potential market and wants of the consumers. These factors majorly highlights about the values, morals, attitude, lifestyles and individuals opinions. Other than this, government also plays a major role such as in order to boost the tourism, certain campaign are initiated for maintaining the attractiveness of the place as well as focusing over hospitality for maintaining customers(Zahari and Romli 2018)
Management2 Technological factors-Malaysia Air Company also delivers the online facilities to their clienteles in order to book their tickets online, various discount offers, different packages and schemes and other commodities. Within recent times, Malaysia airlines have worked over enhancing the online system so that it should be easier for customers to access their online portal or booking applications.Hence, this particular system soothes the online transactions for the customers for knowing about their flights details without travelling. Not only this, now, customers also known about their in-plane services and system such as digitalized entertaining screen for the designated seatings which comprises of movies system, music system, games and collaborating presentations(Suki Norazah Mohd 2014) Legal factors-In terms of legal aspect, legal protection of the intellectual property rights, data protection is one of the critical issues. Malaysia airlines in such concern need to do to meet many rules and regulations. Other than this, health and safety aspect should also be considered. Moreover, Malaysia airlines have to consider that whether the company have a healthy lawful and technical instrument to safeguard data against ruptures(Ayob Norizawati Mohd and Masroni 2014) Environmental factor-The most important factor in terms of environment are waste management, even government has come up with the strict norms for wastage in the urban areas. Renewable technology is also one of the major interests of Malaysian airlines. Many governmentofficialsarealsoprovidingsubsidiestoinvestintherenewablesector. Nowadays, the environmental norms are changing according to innovations. Now, products are based or formed on the basis of environmental standards and expectation rather than catering to traditional value prepositions.Even Malaysian airlines have certain strategies likewise,greaterawarenessamongcustomersregardingmaintainingenvironmental awareness(Zahari and Romli 2018) E-sourcing E- Sourcing is the one of the process of attaining bids from the various dealers through solo online gateway. Other than this, E-sourcing refers to internet- assisted application and decision support tools in order to assist connections in between consumers and dealers by the use of online portal in terms of negotiations.It is also linked with the online auctions, which helps in reducing prices through an introduction of elements of competition. Hence, this
Management3 process makes the procurement method transparent and clearly structured(Hsin Chang Hsin Yao-Chuan Tsai and Che-Hao Hsu 2013)lastly, the benefits which are associated with it is- Helps in reducing the overall cost, by reducing the expenses for both the buyers and suppliers particularly expenses while printing and paper costs. Helps in improving relations with the suppliers through speedy communication and effective feedback system so that both the buyer and the supplier should be aware about the current situation Lastly, helps in improving compliance and reduce risk Advantages of e sourcing- The advantage of e sourcing is that it generates superior efficiency due to the opportunity of shorter purchaser search intervals and due to the prospect of reducing the suppliers’ reaction times and abridging the planningmethod. E- Sourcing also helps in refining liquidity and address inadequacies in the supply chains by enablingdealingsandworkingovercultivatingbusinessprocedures.Hence,allsuch activities help in providing value proposition to obtaining and supply administration in aeronautics industry. Lastly, E sourcing also helps in generating efficiency by reducing procurement cost, reduced unauthorised purchases, improves or works over the fast cycle times and leads the better integrations with the back office systems. Hence, this helps in making quality purchase decisions and increased control over the supply chain of the aviation industry(McCue Clifford and Alexandru Roman 2012)
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Management4 References Ayob, Norizawati Mohd, and T. Masroni. "Issues of safety and security: new challenging to Malaysia tourism industry." InSHS Web of Conferences, vol. 12, pp. 1-10. 2014 Hsin Chang, Hsin, Yao-Chuan Tsai, and Che-Hao Hsu. "E-procurement and supply chain performance."Supply Chain Management: An International Journal18, no. 1 (2013): 34-51. McCue, Clifford, and Alexandru V. Roman. "E-procurement: Myth or reality."Journal of Public Procurement12, no. 2 (2012): 221-248 Suki, Norazah Mohd. "Passenger satisfaction with airline service quality in Malaysia: A structural equation modeling approach."Research in transportation business & management10 (2014): 26-32 Szydlowska, Katarzyna.International Business of the Airline Industry. Strategic Alliance and the Business Tool" PESTLE". GRIN Verlag, 2018 Zahari, A. R., and F. I. Romli. "Analysis of suborbital flight operation using PESTLE."Journal of Atmospheric and Solar-Terrestrial Physics(2018)