Strategic Plan Report | Strategic Management Assignment

Running Head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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Table of Contents
1. Introduction......................................................................................................................3
1.1. Purpose of report.......................................................................................................3
1.2. Overview of the company.........................................................................................3
1.2.3 Key challenges........................................................................................................3
2. Mission and vision...........................................................................................................4
2.1. Vision........................................................................................................................4
2.2. Mission.....................................................................................................................4
2.3. Evaluation of mission and vision- SMART model...................................................4
3. Environmental Analysis...................................................................................................6
3.1. Macro environment analysis.....................................................................................6
3.1.1 Political factors-......................................................................................................7
3.1.2 Economic factors....................................................................................................7
3.1.3 Social factors..........................................................................................................8
3.1.4 Technological factors..............................................................................................8
3.2 Industry Analysis.......................................................................................................9
4. Capability analysis.........................................................................................................11
4.1. Value chain analysis...............................................................................................11
4.2. Strength and weakness of MAS from value chain analysis...................................15
Strength..........................................................................................................................15

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Weakness.......................................................................................................................15
4.3 Barney’s VRIO model.............................................................................................16
5. Proposed strategy-.........................................................................................................19
5.1 TOWS analysis and evaluation................................................................................19
6. Strategy evaluation........................................................................................................21
6.1. SAF strategic evaluation.........................................................................................21
References..........................................................................................................................23
Appendices........................................................................................................................27

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1. Introduction
1.1. Purpose of report
The report aims to develop a strategic plan for the chosen organisation; Malaysian
aviation and focuses on Malaysian airlines using different analysis tools. The industry issues are
highlighted based on the analysis from the external and internal environment.
1.2. Overview of the company
Malaysians airlines system Berhad or Malaysian airlines system or MAS was found in
1947. The government recognises it has the flag carrier. The headquarters is situated, at Sultan
Abdul Aziz Shah Airport (Selangor). The first base from where the flight operates is in
Kuala Lumpur International Airport, and Kota Kinabalu is the secondary base. MAS is the
holding company for the National airlines carrier of Malaysia. Firefly and MASwings are two
subsidiaries. MAS are using A330-200 and A330-300 and boeing 737-400, 800 and 400/400
(malaysiaairlines.com, 2018).
MAS offers cargo transportation services, manufacture aircrafts parts, offers trucking,
laundry and dry cleaning service for the airline industry. The transition from small airline to the
award-winning air service is commendable. Currently, it has more than 1000 aircraft. The service
is available in six continents and 110 destinations. It has received second position in Aviation
Week's Top Performing Companies (malaysiaairlines.com, 2018).
1.2.3 Key challenges
There is a need of continuous operational improvement. It is still a challenge to excel in
commercial effectiveness, cost management and flight operations. The company is yet to provide

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branded customer experience during pre-flight, in-flight, and post-flight. The company is far
from achieving the extensive global network. It must make a simple business structure that can
increase the premium services, alliances and partnerships (Ong and Tan, 2010).
2. Mission and vision
2.1. Vision
The company’s vision is to develop itself as premium carrier and become, “An airline of
excellence”. It aims to gain strong position in the Asian aviation marketplace. In the ASEAN
arena, Malaysia is relatively smaller. Despite this, the organisation aims to harness the
Malaysia’s geo economic centricity. The company has its unique way to go beyond expectations,
work through the cost competiveness (malaysiaairlines.com, 2018).
2.2. Mission
The mission of the organization is explained in three main thrusts. It includes provision
of the best travel and transport service without compromising on punctuality, safety and comfort.
MAS dreams to become a leader in this sector in the areas of quality of service, efficiency and
safety. The third mission is to become a profitable airline (malaysiaairlines.com, 2018).
2.3. Evaluation of mission and vision- SMART model
The SMART model is a tool to evaluate the business process employed to meet its
mission and vision. The acronym stands for, “Specific, Measurable, Attainable, Relevant, and
Time-based” and represents smart goals for business (Shields, et al., 2015). In this section the
mission and vision of MAS will be evaluated using this model.

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Model Description
S- Specific The vision and mission of MAS is specifically
defined. The mission is not too specific when it
mentions providing safe and comfortable
service. The mission to be profitable is too not
specific as it has not mentioned specific
number it wants to achieve. Therefore, MAS
must be more specific in its goals (King, 2013).
M-Measurable The mission is measurable as it was easy to
track the progress and is relevant. Profit earned
by the company and if it has become the leader
in the industry can be measured through
graphical representations and statistical
analysis. However, being excellent service is
not measurable as “excellence is not limited”
(Suki, 2014)
A-Achievable Both the mission and vision can be attained
considering the present position of MAS.
However, it is slightly challenging considering
the fluctuation in fuel prices and low cost
carriers adding to competition. Before, 2011,
the profits and the quality of the service were
very low (Tarajčáková, and Rozenberg, 2013).