BLC 304/05 Procurement Management: Malaysia Airlines Report

This report provides a comprehensive analysis of Malaysia Airlines' procurement management practices. It begins with a SWOT analysis, identifying the airline's strengths, weaknesses, opportunities, and threats, considering factors such as financial stability, competitive advantages, and external forces like currency exchange rates and government policies. The report then explores the potential of online processing in supply management, emphasizing data analytics, online ticket sales, and the use of information systems to optimize supplier relationships and reduce costs. The analysis covers strategies for online sourcing, negotiation with suppliers, and the importance of data-driven decisions to improve procurement efficiency and enhance the airline's overall business performance. The report references several academic sources to support its findings and recommendations.

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BLC 304/05 Procurement Management
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BLC 304/05 Procurement Management 1
Answer – 1
SWOT Analysis of Malaysia airline
Malaysia Airlines provides different services in Europe and Australia. It is a famous and popular
service provider in the field of air travel. It provides domestic and international flights to travel
in different geographical locations. There are different types off forces, which are affecting the
performance and growth of Malaysia airlines. Those forces are helpful into creating new
strategies to become successful in the industry (Suki Norazah Mohd 2014).
In this report, to know internal forces of the Malaysia airline, SWOT analysis is used to identify
different forces. It will provide strengths and weakness of the company. Therefore, company can
use strengths to expand their business, and resolve its weaknesses using proper strategies. It will
also provide opportunities and threats of the company, which will be used to enhance their
business processes in all around the word (Ayob Norizawati Mohd and Masroni 2014).
Strengths Weaknesses
 Malaysia Airlines provide safe and
secure flights
 It can manage financial crisis using
their marketing strategy
 It is having good culture in the
organziation. They attend the guests in
the flights in polite way.
 Strong technical department, which
provides secure and safe online services
related to booking flights and other
works
 It follows all rules and regulations of
national and international agencies of
aircraft management.
 Proper waste management and
 Financial crisis at world level affects
 International currency exchange rates
 Competitive advantages
 Weak cash-flow management
 Low productivity
 High cost of few services

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environmental friendly services
 Strong reputation in airlines
 Government supports
 Latest services in aircrafts
Opportunities Threats
 Reputation in global market
 New geographic locations
 Expand travel traffic and cargo
 Technological changes in aircrafts,
such as Airbus A380
 High competition level
 Changes in currency change
 Fluctuation in policies and regulations
by governments
 Disasters
 Rising fuel costs because of limited
natural resources
SWOT analysis is helpful for identify strengths and weaknesses of company. It will
beneficial to expand different business functions of the company at different places. It also
provides opportunities and threats of the organziation, which are helpful to careful about all
those things and make possible controls to resolve all those risks.

BLC 304/05 Procurement Management 3
Answer - 2
Online processing of supply
Malaysia airlines can use their online resources for making business from different gateways.
They can make different way for customers from them can purchase online tickets. They can use
data analytics for sales and other business processes. They can design proper functions for rate of
tickets based on the seasons or other factors. They can use their online sources and technical
team to book flights. They can provide offers and discounts based on the demand supply of
customers based on the data analytics to manage their business. They can easily negotiate with
their customers with the help of data analysis reports. They can provide best offers to their
existing and new customers. it feasible for the company as well as for customers (Suki Norazah
Mohd 2014).
They can easily manage their requirements and others things using technology. In present era, AI
and machine learning provides best possible way to maximize business. Malaysia airlines has
their own information systems in which they have many data about their customers and others
things. They can easily manage their suppliers and buyers with the help of information system. It
also provides help in improving compliance of records and reduces risk from different operations
of business (Hsin Chang Hsin Yao-Chuan Tsai and Che-Hao Hsu 2013).
Malaysia airlines can use their strengths into negations, such as best facilities in low cost with
safety. They can manage their suppliers with the help of information systems and data analytics.
They can bid on their rates easily and get best services in low cost (Hamzah Amran 2004).
Online processing also helps in refining liquidity and other things by enabling online dealing
besides other business procedures. They can easily manage all the things of supply
administration through online processing in aeronautics industry (Halpern Nigel and Anne
Graham 2013).
Online sourcing is beneficial in reducing procurement cost of the Malaysia airlines. It will also
improve work-cycles of the company, which take less time in completing a work. It is a best way
to reduced unauthorized purchases in different departments. It provides better integration with
different business processes of the Malaysia airlines. It will provide better results in purchase

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decision as well as control over the supply chain of the airline industry (McCue Clifford and
Alexandru Roman 2012).
There are many things in the airline industry to overcome procurement cost from different
processes. Therefore, it is necessary to manage suppliers and purchase procedures in a proper
way based on the different conditions (Shafaei Fatemeh and Badaruddin Mohamed 2017).
In addition, Malaysia airlines can manage their suppliers using proper analysis and requirements
of the industry to reduce unwanted cost of different business processes. Malaysia airlines can
negotiate with their sources of income, such as online portals of different countries, increase
destination all around the world and many others.
Moreover, they can manage their resources in proper way using their data analysis reports. They
must have all the records of the resources for manage them properly, such as aircrafts,
employees, and many others. It will affect the progress of the Malaysia airlines and it enhances
the business of the company in different places.
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References
Ayob, Norizawati Mohd, and T. Masroni. "Issues of safety and security: new challenging to
Malaysia tourism industry." In SHS Web of Conferences, vol. 12, pp. 1-10. 2014
Halpern, Nigel, and Anne Graham. Airport marketing. Routledge, 2013.
Hamzah, Amran. "Policy and planning of the tourism industry in Malaysia." In The 6th. ADRF
General Meeting. 2004.
Hsin Chang, Hsin, Yao-Chuan Tsai, and Che-Hao Hsu. "E-procurement and supply chain
performance." Supply Chain Management: An International Journal 18, no. 1 (2013): 34-51.
McCue, Clifford, and Alexandru V. Roman. "E-procurement: Myth or reality." Journal of Public
Procurement 12, no. 2 (2012): 221-248
Shafaei, Fatemeh, and Badaruddin Mohamed. "Malaysia’s branding as an Islamic tourism hub:
An assessment." Geografia-Malaysian Journal of Society and Space 11, no. 1 (2017).
Suki, Norazah Mohd. "Passenger satisfaction with airline service quality in Malaysia: A
structural equation modeling approach." Research in transportation business & management 10
(2014): 26-32