Report | Impact of Technological Changes in Malaysia Airlines

Malaysia Airlines 1
MALAYSIA AIRLINES
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Malaysia Airlines 2
1.0 EXECUTIVE SUMMARY
The purpose of this report is to investigate the impact of technological changes, job design and
the changing customer expectations on the profitability of Malaysia Airlines after the 2014 air
disasters. It also seeks to analyze how changes in globalization of markets and job design
impacts on the performance of the airline.Keeping in mind that the main objectives of the airline
are to become financially stable, the report delved into historical researches and information
contained online to understand how these factors influenced the profitability model. The
methodology of the research entailed analyzing how individual factor impacts on the financial
viability of Malaysia Airline. The report highlights the direct relationship between profitability
and the firm’s application of emerging technologies, customer preferences and proper quality
management systems. It recommends the inclusion of all employees in making important
decisions affecting passengers. The report further underlines the need to cut down on
unprofitable career routes and focus on the more revenue generating. Lastly, the media should
play an important role to inform the public of positive changes taking place in a bid to shore up
public confidence in the airline.

Malaysia Airlines 3
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY.......................................................................................................2
2.0 INTRODUCTION.....................................................................................................................4
3.0 DISCUSSION A........................................................................................................................5
3.1 Changing Technology............................................................................................................5
3.2 Continued globalization of markets including entrants by 1st and 2nd entrants...................6
3.3 Changing Customer Expectations..........................................................................................7
3.4 Changing Job Designs............................................................................................................7
3.5 Quality Management..............................................................................................................8
3.6 Global Manufacturing..........................................................................................................10
4.0 DISCUSSION B......................................................................................................................10
4.1 Supply Chain Design...........................................................................................................10
4.1.1 Buyers............................................................................................................................11
4.1.2 Supplier.........................................................................................................................11
4.1.3 Substitutes.....................................................................................................................12
4.1.4 Threats...........................................................................................................................12
4.2 Resource Management.........................................................................................................12
4.3 Goods and Service Design...................................................................................................13
5.0 CONCLUSION........................................................................................................................14
6.0 RECOMMENDATIONS.........................................................................................................15
7.0 BIBLIOGRAPHY....................................................................................................................16

Malaysia Airlines 4
2.0 INTRODUCTION
Malaysia airlines Limited has grown remarkably to achieve its current market share. The
company was born on 12th October 1937 operating as Malayan Airways Limited, ten years later
the company took to the skies with the first commercial flight as a national airline. With the
formation of Malaysia the company duly changed its name to Malaysia Airlines Limited. The
company would later change its name to Malaysia-Singapore Airlines in 1965 when Singapore
divorced from Malaysia. In 1972, the founding partners of the airways parted ways consequently
necessitating change of name. The company achieved a milestone in 2012 when it acquired its
first airbus A380-800 scheduling its route for London with the new airbus A380. A year later the
airline became a fully paid up member of the prestigious One World Alliance. The airline is now
connected to over 850 destinations in 150 countries across the world. The company also boasts
of lengthy record of excellence, amassing in its ranks over 100 global awards in the last one
decade.
In 2014 the already financially stricken airline suffered double tragedy when flight MH370
on way from Kuala Lumpur to Beijing disappeared with 239 passengers and crew onboard.
Only a few fragments have washed up, off Africa’s coast. Barely four months later, flight
MH17 exploded mid-air killing all 298 people aboard. The two disasters consigned the
airline to possible bankruptcy. Customers deserted the national carrier with poor public
confidence levels affecting its profitability potential. The experienced a massive 60% drop
in its Chinese market, a key component of its profitability model left the career on the brink
of collapse(Hussain, 2015). The government stepped in to rescue the company, pumping
billions of dollars to keep it afloat. The company continues to emerge from the shackles of
these disasters to chart its recovery.