Strategic Analysis of Malaysia Airlines: Issues and Challenges

This essay provides a comprehensive analysis of the strategic management of Malaysia Airlines. It begins with an introduction to strategic management and highlights the issues faced by Malaysia Airlines, including less investment in business development, lack of innovation, high competition, decreasing consumer goodwill, and less cooperation among management. The essay then delves into an internal analysis using the SWOT framework, identifying the airline's strengths, weaknesses, opportunities, and threats. Furthermore, it explores the challenges related to mergers and acquisitions for Malaysia Airlines, such as fund requirements, culture clashes, and conflicting objectives. Finally, the essay offers recommendations regarding mergers and acquisitions and suggests new strategies to meet global business perspectives, emphasizing the need for increased investment, innovation, and improved customer relations to ensure the airline's sustainability in the competitive aviation industry. The analysis is based on a case study of Malaysia Airlines and relevant academic research.

International strategic
management

TABLE OF CONTENT
INTRODUCTION....................................................................................................................3
Issues faced by Malaysian airlines.........................................................................................3
INTERNAL analysis..............................................................................................................5
Challenges in relation to Merger and Acquisitions and Recommendation in regards of
doing the same........................................................................................................................7
CONCLUSION.........................................................................................................................9
REFERENCES.......................................................................................................................11

INTRODUCTION
Strategic management is generally defined as a process in which organization
generally used variety of the different strategy in the organization to manage the variety of
different decision in the organization. This report is based on the case study of Malaysia
Airline. This report highlights the variety of the issue which is faced by the organization in
the market. After that report highlights the current strategic implemented by Malaysian
Airway to carry out different operation of business. In the end report concludes the
challenges of acquisition and merger.
Issues faced by Malaysian airlines
There are various issues and challenges faced by Malaysia airlines to secure
sustainability within wide competitive world aviation industry where there are various
metrics company needs to focus onto for gaining accurate targets and also rationally
encouraging new paradigms for growth. At present Malaysia airlines faces issues based on
efficiency within technology as compared to wide changes demanded within competitive
pace of time and also for gaining accurate functional levels of advancement to meet
globalisation business perspectives. The various factors where company is behind at present
can be analysed as follows (Dožić, 2019)
 Less investment within business development: The cost management within airlines
industry has been widely showing that there has been no new investments enabled and
brought under company business perspectives where there are various demand loss
paradigms. This has been slowed new growth opportunities for bringing on keen
innovation within services, training and development of management within
company onto which there has been wide lack of skills found. Investment less has
been one of the main factor for decreasing efficiency levels within company business
scenario where aviation industry is widely growing with new innovation demand and
factoring growth perspectives. Investment needs to be progressively enhanced within
functional paradigms for Malaysia airlines to reach onto wider aviation business
demands through which new relative advancement can be achieved. No innovation within mechanics and engines within airlines: Malaysia
airlinescompany also has less innovation within mechanics in the airplanes engines
which has slowed capacities within its efficiency paradigms onto which profitability
has been also slowed up. Innovation is demand of business globally where new
competitive demands and also wide consumer services demands has been growing

onto new determinants for gaining stronger working scenario (Ghafar, Harun, and
Rahman, 2020). This can also widely lead to accidents within airlines and has been
also impacting goodwill within long run business strategies where company is facing
wide decreased efficiency levels. Innovation shall be increased onto various
paradigms within management and factoring growth within the mechanical factors
for developing stronger working scenario and keenly technical progression onto new
parameters for functional efficiency.
 High competition from external factors: There are various new companies and
brands coming on for competition within airlines industry which gives strong
competition for Malaysia airlines and has also demanded huge growth within
working business aspects onto which there is wide demands coming on. External
factors such as economy parameter shifting growth of business within company
services and use of new innovation technology has also been widely growing where
Malaysia airlines faces competition. Globally Asia is one of the most competitive
developing industry within aviation where competition within new companies and
airlines brand also widely focuses for growth, keen synergy of innovation and
creatively developing new fundamentals use of technology (Gisario, Kazarian, and
Mehrpouya, 2019)
 Decreasing consumer goodwill: Malaysia airlines is also facing one more important
issues where consumer goodwill is decreasing constantly for new business demands,
where company has been unable to achieve new services growth within functional
efficiency perspectives. The decreasing consumer goodwill has slowed its
productivity working scenarios where there has been wide innovation demanded with
higher capacity demands, and also for gaining new working skills of technical
progression. The sustainability of business is highly correlated with goodwill within
consumers market share and also for functionally developing new end goals where
there are wide business objectives and for relative business services. Marketing
within digital industry is also widely growing when consumers are also widely
demanding new end digital surfaces where they can easily boom their travels and also
for growing onto leveraging targets of wider factored innovation within consumer
goodwill metrics (Johan, Annuar and Kumar, 2020)
 Less cooperation among management: The Malaysia airlines company has les
efficiency within internal management where there are wide demands for cooperative
development, new dynamic functional skills demanded among employees. The

turnover at present within company is less stable where motivation and innovation
business synergy is less and also there is wide fluctuations among working paradigms
onto which wide business demands are highly focused. Management has been
lacking to develop and train employees with new skills and functional advancement
among their working skills for factoring growth synergy and onto working with wide
business ideas. This has been one of the most important factor where demands within
business avenues has been widely growing onto keen paradigms, potentially
developing new arenas of growth where there are more business opportunities.
INTERNAL analysis
Swot analysis is one of the most innovative business model which will enable for gaining
analysis within the current management aspects and for recognising future working
scenarios and business working opportunities.
Strengths:
 Customer centric menus- Malaysia airlines focuses onto customer centric menus
within airlines which has developed goof determinant of services and also
potentially enhancing services for growth and development of innovation. This is
one of the strength within management for developing new parameters of
functional efficiency for gaining new growth synergy (Kan, Chung and Chung,
2019)
 Focus on performance improvements- Malaysia airlines also focuses onto
performance improvements among employees skills and working actions for
gaining advanced competency within functional efficiency and factored growth
within business demands. The leaders are also training employees with new skills
and efficiency parameters through which it is one of best strengths.
 Capacity challenges: Malaysia airlines has weakness of less effective technology
within airlines services where capacity is widely les and not able to reach onto
competitive business performance avenues. Airlines less capacity factors are also
highly challenge for the company to avail new functional advancement within
competent industry demands where there has been wide efficiency grown.
 Cost management: The company is also less effective for cost management
functions where it can be analysed that profitability margins are less analysed for
reaching onto competitive goals and for further investments. The cost

management within Malaysia airlines is widely grown and dependent onto how
cost management is developed further, programming innovation synergy (Kim,
Lee. and Ahn, 2019)
Opportunities
 Changes in customer preferences: A Malaysia airline has business growth
opportunities by analysing and working with innovative customer preferences,
where new parameters of business opportunities can be achieved. For developing
competitively customer preferences there shall be analysis of new determinants
where there has been new relative goals advanced. The customer choices shall be
actively attained by online platforms with the digital media functional approach
for reaching onto new relative goals.
 New growth within innovation: Malaysia airlines has wide business opportunity
for growth within industry services by working on innovation among airlines ,
through which wider functional goals of profits can be achieved within
continuous efficiency parameters.
THREATS
 External competition: This is one of the most important threat for Malaysia
airlines where business industry has been widely growing onto innovation goals,
keenly developing new external competition where the company faces threat
from external competition..
 Slow capacities and less effective services: Management of Malaysia airlines has
been less effective to cope up with advanced services within industry where there
is slow working scenario within business industry. This is one of the important
threat where capacities shall be expanded for reaching onto new working relative
goals (Leong. and Indiran, 2020)
New strategies to meet globalisation business perspectives:
At present there are various factors where business is lacking within industry services
onto which Malaysia Airlines needs to meet new development metrics and developed
working goals for gaining new business perspectives onto where there are wider parameters
grown. Swot analysis enables us to understand that company is lacking innovation business

goals within working scenario and for technical exploration within wider goals where there
are wider demands available for company to work on . Management needs to actively focus
onto higher investments functions and bringing on new airlines services where there is wide
functional opportunity for technical advancement. There has been strong focus pertained onto
working on the future growth perspectives where external factors are widely giving new end
goals to airlines brand for yielding onto new potential paradigms and also for developing
new end goals and working objectives. There shall be new productive marketing demands
reached on with use od digital platforms and communicating vision, goals for reaching onto
new paradigms of working business opportunities. Malaysia airlines shall also focus for
reaching new synergy of global perspectives where there are wider yield growth avenues
available and also functional advancement within the working scenario shall be focused
within new business goals. The aviation industry is globally exploring onto wider paradigms
for technical advancement and new functional effective demands within consumer market
share, onto which focus shall be developed by Malaysia airlines to reach onto competitive
business goals and formatively focusing onto new working scenario. Malaysia airlines shall
also factor on growth and expansion business strategies within new countries for reaching
untapped customer segments and also for factoring innovation within services (Shamsudin,
and Adnan, 2019)
Challenges in relation to Merger and Acquisitions and Recommendation in regards of doing
the same
Merger and Acquisitions is the form of the business expansion technique which is generally
used by the different organization in the market to see better market area coverage and
improves customer base of the company in the market. Merger and acquisition will bring
variety of the benefit for Malaysian airline as well in the market but at the same time there are
varieties of the challenges which is being also faced by Malaysian Airline in the market.
Some of the challenges are as follows:
 Fund Requirement: It is the biggest challenge which will be faced by the organization
at the time of deciding to acquire or merge with any other organization in the market.
As merging or acquiring firms will eventually means that organization has to pay a
sum of the amount to the other organization in the firm they are looking to acquire or
merge with other firm (Lasserre, 2017). This will eventually require the good sort of
the fund to be arranged by the firm. In the market where there is good sort of
uncertainty about the variety of the condition which will be there in the future. It will

be very difficult for the company to arrange that sort of the finance in the
organization. It will also present good sort of the challenge for the company to find
out the source through which finance can be taken. This will eventually impact the
efficiency of variety of task which are carried out in the organization.
 Culture Clashes: It is another sort of the challenge which has to be seen by the
organization in the market. It has been identified that all the organization used to
operate with the different sort of the culture in the market, which eventually ask all
the organization to adopt the variety of the different sort of the culture at the time of
the merger and acquisition. This will eventually create the situation in the
organization in which there will be culture clashes. As it may happen that employee in
the organization are not able to adopt the different sort of the culture in the long run.
This will eventually create the good sort of the issue in the firm in regards of increases
employee turnover in the organization.
 Conflicting Objective: It will be the another sort of the issue which will be seen by the
organization in the long run, as it has been identified that all the firm used to has
different sort of the objective, so it will be challenging job for the organization to
fixing the common objective to run the business in the future. Any mistake at the
time of fixing the objective will eventually create the variety of the issue for the
organization in understanding the impact on the performance of Malaysian Airways
(Ansoff and et,al., 2018 ).
Feasibility of expansion and merger
Looking at feasibility of doing the expansion or merger in the current time for the
Malaysian Airway is not in that good time as company is not having that sort of the fund
available in their hand so that they can easily or conveniently perform the merger or
acquisition. As case study clearly used to explain that organization is not having that good
financial position in the market, so from it clearly identify that it is not that feasible decision
of the organization to manage the expansion or merger in the organization in the better way.
So after going through the feasibility study of decision it has been regarded as expansion and
merger is not that feasible decision which can be taken by the organization in the market.
Recommendation
 After going through the case study which has been presented it has been identified
that company has seen good amount of the loss in the past and taking decision to

merge or acquire different sort of the firm in the organization will create the variety of
the different type of the issue for the organization. For the same reason it has been
recommended to the organization that they do not take any decision in regards of
doing the merger or the acquisition in the market. It will impact the efficiency of
variety of the operation which are generally carried out in the organization in the
current scenario (Schilling and Shankar, 2019).
 Another thing which has been recommended to the organization that doing a merger
will be the better option as compare to the acquisition if company is really interested
in expanding the business. As merger require the less amount of the finance as
compare to having an acquisition in the market. Hence it will eventually help the
company in saving the money as well it will help company in expanding the business
as well.
CONCLUSION
After going through the report it has been concluded that there are variety of the different
sort of the issue which is faced by the organization in the market. After that report goes on to
concludes the variety of the different sort of strategy which can be applied by Malaysian
Airline. In the end the report goes on to conclude the feasibility study in regards of the
context that if Malaysian Airways is ready to have a merger and acquisition in the market.
Also report concludes the challenges of having merger and acquisition in the current point of
time in the organization.

REFERENCES
Books and Journals
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Schilling, M. A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
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Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Kan, S., Chung, D. and Chung, G., 2019. Customer Experience Transformation in the
Aviation Industry: Business Strategy Realization through Design Thinking,
Innovation Management, and HPT. Performance Improvement, 58(1),
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Malaysia (CAAM) Aircraft Maintenance License Holder Registered at
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