Strategic Management in Air Malta: External Forces and Change Models

This report analyzes the influence of external forces on Air Malta's management and the present environment potentialities. It also explains internal forces and change models necessary for innovation and training of employees.

SM project

TABLE OF CONTENT
INTRODUCTION..................................................................................4
TASK 1....................................................................................................4
Porter 5 forces Model...................................................................................................................4
Lewin Business change model.....................................................................................................6
TASK 2....................................................................................................8
Internal Analysis..........................................................................................................................8
TASK 3..................................................................................................12
Strategies to Defend Core Business...........................................................................................12
CONCLUSION.....................................................................................15
REFERENCES.....................................................................................16

INTRODUCTION
Strategic management explains the essential elements which top management focuses for
high performance standards in market share and reaching high end profitable margins by
satisfying the preferences of customers with strong parameters. Air Malta company is one of the
biggest airways company operating business services all over Europe and regions of east Africa,
this report explains the influence of external forces on company management and the present
environment potentialities , along with parameters of future scenario. It also explains internal
forces of company and how it can reach enlarged customer segments around the world with
strategic management strategies, tools and models which needs to be implemented. It analyses
how it can establish a firm company in this industry by gaining deeper insights for leveraging the
market potentialities, long term success and keenly achieve strong reputation among customers.
It explains theories and various change models necessary for innovation up-gradation and
training of employees through guidance and strong leadership in teams.
TASK 1
The external business environment has diverse forces which gives tough competition to
company working efficiency on various levels. Airline industry has been going under huge
transformation due to innovative business services and machinery equipments building high
competitive growth opportunities. Air Malta is one of the biggest airways company established
in Malta flying to destinations of Europe, Middle East and North Africa having strong goodwill
among customers base. The recent external environment changes has affected company sale
revenues and brand reputation level on various level which has impacted in bringing new
changes which have been welcomed by company management (Tang,2019).
Porter 5 forces Model
This is one of the most innovative business model which explains in detail external competitive
forces impacting company revenues and long term stability on various parameters and how it can
forge ahead to gain new segments of customers. Porter 5 forces will enable deep insights on all
determinants where company needs to build further progressive business expansion descions.
 Threat of new entrants (moderate): Air Malta faces tough competition from new entrants
coming in airways industry with high innovative business services and stronger technology

standards used in machinery equipments. The new dynamic business world impacts company
forces to gain large customer base as preferences of customers have been changing rapidly
when it comes to travelling factors. Air Malta needs to generate higher customer satisfaction
services with productive quality in giving them comfortable experience, investing in training
employees for increasing their morale levels and overall business revenue.
 Threat of substitutes (high force): Air Malta has high threat of substitution when it comes to
customers preferring another airways brand in comparison to company, as the quality of
services and low technology integration has impacted its overall goodwill. Customers have high
preferences for airways which have connectivity and operations around the world, whereas Air
Malta has limited flight services to some parts of Europe and other regions in Middle East
(Schulz-Knappe, Koch and Beckert,2019).
 Competitive rivalry within industry (high): Air Malta has also been facing huge competitive
rivalry within the airways industry, where many factors of high innovative business models and
strong parameters of delivery premium class services to all customers are functioned by new
companies and brands. Air Malta company also needs to expand its business into various
diversified corners and enter into untapped countries market. The research breakthrough factors
will enable company to enhance the functional operations vitality and expand into untapped
business services.
 Buying power of customers (moderate): Air Malta Company faces moderate power of
customers as the airlines have huge capital funds and is not dependant on company revenues
from customers. However on various parameters it is also analyzed that customers have various
options of airlines companies to choose from for their travelling. This factor has impacted
company pricing strategies marginally and more emphasis is built towards promotion activities
for gaining new segments of travelers on board. The airways company business class, economic
class services are quite affordable for people to choose from which makes it an attractive
opportunity to position itself as strong competitor. Airways company maintains strong
determinants to check its price range and profitability margins within equal parameters of
equality to minimize any negative impact on company performance standards (Chappelow,
2019).
 Bargaining power of suppliers (low): Air Malta company has very low impact by external
forces of suppliers as operations are solely functional by the capital investments of own

company and it is not dependent on outside suppliers in any way. The business models have
diverse structure to formulate its functional strategies and management is dynamic to gain
strength of working with high efficiency. Customers have largely been known to company
services for longer periods which also explains it stable revenue scenario.
Existing market domains factors of airways industry
The changing scenario of airways industry explains there is high innovation coming in
sectors of technology and customer satisfaction based services, which explains importance of
integration huge investment funds needed for capitalization. Air Malta for gaining large market
competency and increase its profitability revenues have to upgrade the use of technology in all
aircrafts for high quality travelling services, largely extend its business operations into new
countries. The management must focus on training employees for delivering strong parameters
of services, solve customers’ grievances that come for travelling and build innovative aviation
knowledge in all pilots and crew members. The changing business scenario explains there is
extensive need to promote its business on websites and portals where customers can easily
reach to buy tickets, social ethical preferences must be enhanced (Abalkhail,2019).
Lewin Business change model
The future scenario has high potentialities for Air Malta airways company where there is
already high goodwill established for company which can be enhanced with cultivation of
innovative business model such as Lewin change model. This model explains how in 3 steps
business practices among employees and top management can be effectively changed with up
gradation in various arenas. Three steps of model can be explained as follows
(Thirunavukkarasu and Nedunchezian,2019).
 Unfreezing- This step analyses various elements which needs to be changed for increasing
revenue sales and establishing high goodwill among customers. Air Malta company on this
step of change model can enlighten importance of change in business services; motivate
employees by encouraging to vitalize the structure of company with innovation. Through
unfreezing step of model there can be analyzed on necessary a change which needs to be
brought within management and also how resources can be enhanced for long term

sustainability. The changes needed in promotion, customer based services and the need to
bring innovative business facilities for all travelers can be analyzed (Singh,2019).
 Freezing- This step analyses various methods and innovation in technology standards which will
be relevant for company expansion and training of employees in company. Through freezing
step of change in model it will enable company management to bring in all relevant
technological up gradation effectively (Sharma,Arya and Walia, 2020).Brainstorming sessions
and group discussions will motivate employees to accept the new changes with advanced
skills, high tech practical field knowledge and the way they can enhance customer satisfaction
services. Air Malta company leaders and top management must communicate the necessary
models integration with employees, solve their grievances related to work ethics and enhance
their potentialities which will also motivate them to gain practical insight to new horizons of
business expansion.
 Refreezing- This step of change model is last and final step of business change model which
explains the ways through which the changes made in company structure can be sustained for
long term. It analyses the ways of essential training and brainstorming of employees to check
their performance efficiency and growth learned within change process. This step analyses
how much productivity has been established and the resources optimum utilization for long
term positive impacts. Air Malta on refreezing step of the whole change procedure check the
innovative paradigms built in all teams and how much integration of technology has helped in
enhancing business revenues (Vidjak,2019)
 The explanation of external environment forces and the essential elements for gaining
competitive strength in the potential market share explains through integration of innovation
and training employees, with advanced skills and training will assist for longetivity. Business
change models will enhance potentialities of employees and all over financial revenue growth
of Air Malta, with diversified business services and developed customer based market share.
Through productivity future scenario of company will reach new heights, enlarged vision will
captivate strong market percentage and high goodwill globally.

TASK 2
Internal Analysis
Mission and Vision Analysis of Air Malta
Air Malta company is the air ways caters effective services of passenger flights.
Company cater all its services by aiming the following mission and vision.
Mission of Air Malta
 To cater the utmost guest experience.
 Through leveraging on the basis of the talent achieve the best customer satisfaction
possible from the services.
Vision of Air Malta
 To achieve the highest growth in the sector.
 To upgrade the customer experience.
 To cater the best passenger expectations.
 To embrace the idea of connectivity.
 To support passengers in meeting different cultures all across the globe.
SWOT Analysis
SWOT analysis is considered as the internal analysis to assess the different aspects of the
corporate organisation. SWOT analysis is among the widely used tool to evaluate the capabilities
organisation possess in order to meet all its mission, vision and objectives. SWOT analysis
comprises with all the strengths, weaknesses, objectives and threats associated with the Air
Malta Company.
Strength of Air Malta Company
Air Malta Company is serving international services in aviation sector. Company
comprises with the following strengths that enables company management to meet the vision and
mission framed by company management.

High quality services: Air Malta Company is well known for its high quality aviation services
in order to achieve the best passenger experience. Company management of Air Malta give
specific focus over service improvement that enables company management to implement
constant changes in the quality of Service Company caters (Futagami and Helms, 2017).
Aviation is a service sector industry and to have an effective growth in the services sector quality
of service play crucial role. In order to meet all the expectation attached with the potential
passengers of the Air Malta Company management try to upgrade all the services such as luxury,
food, time bound and other activities that can support the best travelling experience in the aircraft
of Air Malta Company.
On line services: Management of Air Malta company also focus over catering online services
related to booking, flight schedule, services and other aspecst related to company that enables all
the potential customers of company to gather complete detail in respect to the company and its
services. Passengers can also book tickets over internet at the company’s websites that also save
plenty of time of passengers.
Timely services: Air Malta Company give specific focus over running timely services such as
running all the flights as per the schedule so that passengers do not get to face any kind of
inconvenience while travelling from flight (Igliński and et.al., 2016). Passengers travelling from
flights are mostly very keen and punctual towards the time as many of the passengers belong to
business class which is highly depends upon the timely services. These aspects of the company
supports in catering satisfactory services to business class passengers of company.
Weakness of Air Malta Company
Air Malta Company also associated with the following weaknesses that can be projected
in the following ways.
Heavy investment in new airlines: Aviation industry is considered as among the expensive
industry in the entire business environment. In order to run any new flight company needs to
cope up with the heavy investment of financial resources of company. Due to effective
investment involve in running new flights company management of Air Malta Company do not
get to expand the numbers of routes in order to upgrade the services of company much often.

Human Resource Management: Aviation is considered as the busiest sector in business
environment. Due to plenty of flight at different timing to manage the shifts of human resources
for the Air Malta Company is considered as the big challenge company management face.
Company management also needs to make changes in shifts of all the human resources of
company that also further causes to non sustainability of employee’s of company.
Opportunities for Air Malta Company
Following opportunities are also available for the Air Malta Company.
Expansion opportunities: Company management at Air Malta Company consist the huge
expansion opportunities by increasing number of flight and routes at different locations. (Rocha
and Caldeira-Pires, 2019) Expansion will give chances to company management to improve the
profitability of company. This will also improve the brand value of Air Malta Company.
Technological Advancement: Management of Air Malta Company can go for new
technological advancement and development in order to upgrade the service quality of company.
Technological advancement will enables to reduce the cost of different services of company
which will further improve the profitability of company.
Threat for Air Malta Company
Air Malta Company faces the following threats that can be projected in the following
ways.
Economic crisis: Economic crisis is among the major threat business organisation face in order
to operate business operations. Economic crisis can be happened due to any immediate reason
such as spread of any disease and other causes. Economic crisis directly cut the revenue of the
service sector.
Terrorist attack: Terrorist attacks also a huge threat aviation sector face. Many times in past
terrorist has done plan hijacking and other relative activities that has restricted the businesses of
the aviation sector.
All the above factors has projected the major strengths, weaknesses, opportunities and
threat management of Air Malta Company face.

VRIO Analysis
VRIO analysis is an effective analytical factor to assess the different internal aspects of
the company. This analytical tool comprises with elements like valuable, rare, imitable and
organised.
Valuable: Organisation structure of the Air Malta Company is comprises with the wide amount
of financial as well as other resources that enables company management to cater the effective
customer friendly services (Tresna and Nirmalasari, 2018). Company is running flight at more
than 35 location that supports company management to cater the ex[excitations of all the
potential passengers of company.
Rare: Air Malta Company is known for its affordable pricing structure. Aviation is considered
as among the expensive sector. Fairs charge by company is affordable in nature for all the
passengers of company. Company also cater quality services along with the affordable price
range such as food, hospitality, timely services, on line bookings and other relatable survive in
order to improve the travelling experience of all the customers of company.
Inimitable: Inimitale is defined as the brand value of company. Air Malta Company is well
known for its affordable services in the best prices which makes the company to deliver the best
travelling experience to all travellers (Verboncu and Condurache, 2016). Company’s resources
also drives the company management to improve the numbers services along with all the existing
services in order to achieve the mission and vision of company.
Organised: Management of Air Malta Company plan all operations of company in organised
manner. Company management also focuses on catering timely services to improve the
travelling experience of all the customers of company.
Value creation of Air Malta Company
Management of Air Malta Company focuses on following techniques in order to create
value addition.
Brand promotion : Company management give specific emphasis on the promotional
campaigns. With the support of marketing team company management focuses on promoting all

services of company. Brand promotion enables company management to improve the brand
value by improving brand loyalty.
Ratings: Management of Air Malta Company also motivate to all passengers of company to
provide ratting on all the services cater by company (Abadi, Mohammadi and Moattar, 2019).
Ratting also support to analysis the customer experience during the travelling in flight and also
the post sale experience of travellers. This is an effective way to implement value addition in
company’s services.
Service Improvement: Management of Air Malta Company also give emphasis to improve and
upgrade the quality of services cater to all customers of company. This is an effective way to
improve the brand value by achieving higher level of customer satisfaction from services of
company. Company management not just focus ob improving the existing services but also on
service inclusion to existing ones.
All the above factors have projected the internal analysis on the Air Malta Company.
TASK 3
Strategies to Defend Core Business
Currently there are lots of effective strategies are available which can help to company for
defending its core business. The top-level management of Air Malts should follow or consider these
strategies in their daily operations to protect or defend own core business. There is competition in the
Airline industry is increasing day by day, in which it is necessary to the company to follow these
innovative strategies to gain huge profit in this particular industry (Tonelli and Cristoni, 2018). Some
major and productive business strategies have been discussed below;
Differentiate Strategy:It is very productive strategy which currently uses by many companies and
businesses. According to this strategy, the top-level management of Air Malta need to provide some
different and exclusive services to their customers. People who chooses air transportation for travelling
are always like some new and updated services.In this case, the company should try to develop such
services which currently no other airline company is providing in market. Through differentiate strategy it
will able to attract lots of new customers as well. This strategy is really too productive is defending core
business of a company. That’s Air Malta should follow the concept of this strategy in their business

environment. This strategy will mainly encourage to company for developing some extra-ordinary
services to customers. Differentiate strategy can play great role for this company. If top-level
management not implement this strategy in their daily operations, it will face many competitive
challenges in airline industry. Reason is, Air Malta’s many competitors are also taking various steps
towards depending their core business. That’s why it is necessary to company for following this
differentiate strategy.
Growth Strategy:It is a strategy which will give opportunity to company for growing own business in
airline industry. Growth is very necessary for a business, because without growth a business can’t survive
in this full market of competition. This strategy shows various techniques to company which will support
it to achieve huge competitive advantage in airline industry. Top-level management of Air Malta should
develop some marketing tactics to grow its core business. Techniques which can contribute in all over
growth of a business, those all businesses are major parts of this growth strategy. This strategy will really
give great growth to this company, so management should follow and implement this in their business
environment. In case, if management not follow this strategy, then it will can’t defend its core business
(Boris and Ushvitsky, 2017). There is create a safe zone for own core business is the first priority of a
business, so this company is also responsible to protect its core business from their competitors. It is too
necessary task to Air Malta which it need to complete properly, otherwise it will face many challenges the
airline industry.
Price-Skimming Strategy: With the support of price-skimming strategy the company will able to set
favourable price on their services. The company is able to attract lots of new customers towards brand by
following the concept of this strategy. Top-level management enables to compare price of its own
services with prices of their competitors’ services, so this can easily set a lower price than their
competitors through this strategy. The company should provide its all services on cheap prices, because it
is necessary to protect its core business. Currently people who come from high income groups are main
customers of Air Malta, so research and development team of company should develop some services for
low income groups as well. It means, company should develop some low pricing services also which
those people can easily afford who comes from low income groups. Currently many successful companies
or businesses are taking huge advantages from price-skimming strategy. That’s why company should
follow this strategy in their daily operations.
Acquisition Strategy: Acquisition is another productive strategy which company can follow or implement
in their business environment. Through this strategy top-level management of company is able to acquire
such companies which can offers it an effective deal. According to this strategy, a business enables to

merge and acquire another business to grow more fast in respective industry. That’s why this strategy will
play great role for the Air Malta. During using this strategy, the management should find those airline
companies in market which interested in exit and succession from their existing. Then it needs to acquire
that company which will offer the best deal to company (Doz, 2017). Currently many companies in
different industries are using this strategy to defend their core business. This is the main reason that this
company also should implement acquisition strategy.
Competitive Strategy: Competitive strategy mainly helps to company in gaining huge competitive
advantage in airline industry. This strategy will provide different technique to the company to achieve
more profit than competitors. Currently new entrants are coming in this airline industry continuously, in
which it is necessary to Air Malts for already making a safe and secure zone for own core business. This
strategy is very important to the company to develop some productive marketing techniques to beat their
competitors in airline industry. This strategy will provide such ways to company which will support it to
achieve their decided goals on time. The company can easily achieve their many prime objectives through
competitive strategy, because achieve high competitive advantage in market is one of the prime objective
of each business. This strategy will really give opportunity to Air Malta for innovating such services for
customers which currently no other airline company is providing in this industry. That’s why competitive
strategy will play a productive role to the company in defending its core business.
Focus Strategy:Focus strategy is very productive in defending and protecting core business of a
company, in which this strategy will support to Air Malts as well. With the support of this strategy the
company will able to analyze all market conditions. According to this strategy, a business needs to focus
on each movement of market to gain huge competitive advantages. Through focus top-level management
of this company can easily achieve each information about their competitors. This information will
support to company for making a specific plan to beat these competitors in respective industry. Currently
there are huge competitions in airline industry today, so the focus strategy can defend core business of
this airline company. The company enables to find out those technological gadgets and machineries also
which will contribute in improving its all over performance in this industry (Phillips and Moutinho,
2018). Hi-fi technology is highly required in airline industry to put effective impression on customers, so
company can easily implement such technology in their daily operations through focus strategy. These all
factors are completely showing importance of focus strategy, so the management should this strategy to
defend its core business.

CONCLUSION
It can be concluded that external environment of the company is highly influencing its daily
operations. Currently the top-level management of company has taken various productive steps to take
huge advantages from these external factors. Nowadays company is facing many problems in airline
industry, like day by day increasing market competition in very big problem to the company. On the other
hand, the mission and vision is clear for company that, provide quality services to customers for gaining
high profit. The management want to more expand their existing business operations in new countries, in
which it is another major mission of the company. On the basis of current progress of Air Malta, this
company can easily achieve its mission and vision in decided time period. Currently this airline company
is using many productive strategic competencies and capabilities in their business environment, so these
are enough to company for achieving high profit in airline industry. There are some additional strategies
has also discussed above which the top-level management of Air Malta should follow in their business
environment to defend its core business.

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