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Business Environment: AirAsia and Malaysian Airline

Paper Type: Free Essay Subject: Marketing
Wordcount: 1965 words Published: 26th May 2017

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To start and develop a business, it is not only a risky business, but also a businessman challenge. In order to secure the success of a business owner or manager must ensure that a good business environment in their business there. Long-term business environment, business environment for both internal and external business environment. Internal environment is the conditions in the organization can influence its activities. While the external environment is what happens outside the factory or office. I did a comparison between the two companies to determine their business environment in four areas of economic environment, technological environment, competition-based environment and social environment. By the way, we can understand how they managed to successful companies. The two companies, I chose to Malaysia Airlines and Air Asia. Both Malaysia Airlines and Air Asia is Malaysia’s major airlines.

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Like in any other airline, Air Asia has its own unique technology environment. Initially, AirAsia will use Boeing 737-300 aircraft flight operations. But since 2005, they started to change for the Airbus A320 aircraft is more spacious, fuel-efficient. Airlines in Asia, mainly through the online booking system approach. They introduced online booking method, because it is more cost and convenience. By the way, they still practice the traditional way of booking tickets.

Air seems very consistent economic environment in Asia each year. Asian Airlines was established in 1993 and commenced operations in 1996. AirAsia is a low-cost airlines offer cheap tickets are available in the region attractive. Air Asia has been used to manufacture low-cost airline, has a huge population base and the most intensive component, understanding the emergence of regional airports, some of upward mobility in the tendency of population growth, tourism, Internet usage is relatively high. . Air Asia, Malaysia’s budget carrier, has sold USD260 26 at three per cent share of foreign investors in the United States, 000,00, as it prepares to meet the competition in Southeast Asia. With the economic downturn, more people will want to enjoy, rather than expensive full-service flights cheap tickets.

Air Asia on the social environment is so diverse. Aviation in Asia and their employees are mostly Malaysians. Because of this, we can say that their employees are from different races and religions here. Air Asia staff will still be able to work together, without any discrimination. Company as a low-cost airline, Air Asia staff than the other relatively long, full-service airlines such as Malaysia Airlines. This is because the company wanted to maximize the productivity of their employees and aircraft in order to generate profits, and cheap flights available to customers. For customers, their customers are mostly the one who is like the cheap flights. We can say that Asian air passenger revenues came from all levels of customers. Their first priority is a cheap ticket, rather than any service throughout the flight.

The competitive environment for the Asian Aerospace is so intense. There are many competitors in the airline business environment in Asia exist. To overcome these competitors, they choose the cheapest tickets available to the passengers. Even in the Asian aviation passengers a free flight time. Implementation of the strategy of low prices seems to be the success of Air Asia to overcome their competitors.

Malaysia Airlines for the economic environment, 2008 is the most difficult year, Malaysia Airlines and the airline industry faced. First, the HKMA has been hit by high fuel prices in the first 8 to 9 years had risen to $ 182 a barrel, affecting the overall operating costs. Later, while Malaysia Airlines is trying to find a solution to solve this problem, Malaysia Airlines once again attacked by the economic crisis and recession pressures, production and profits. The world economy is also being treated in today’s uncertainty, volatility of stock price and shareholder confidence.

Malaysia Airlines in the social environment is so colorful. Most of the company’s employees in Malaysia, from different races and religions. As a full-service airlines, their staff training, to serve passengers at their best to ensure that passengers and airlines really satisfied with the service. For customers, their customers are from Malaysia, and Malaysia for international flights by foreign airlines. Income levels of passengers, mainly from use of the Malaysia Airlines and other income and high income groups. This is because Malaysia Airlines ticket low cost airline Air Asia slightly higher than the other airlines higher. The next, Malaysia Airlines also have their first seat is first class and business class is much higher than your regular economy class seat.

The competitive environment for Malaysia Airlines, it seems very intense. Their opponents are from overseas, as well as from the local airlines. So far, China’s main rival Air Asia. In order to overcome their competitors, their decisions, change their mode of operation. For example, selected Malaysia Airlines to offer lower fares, while also providing a complete first-class services to airline passengers. This is because the statistics from the market, passengers and flight tickets cheaper, rather than expensive full service of choice for the flight. Therefore, in order to attract passengers, they provide low fares, while providing excellent service to customers.

Technological environment of Malaysia Airlines, Air Asia is a little more than advanced. Malaysia Airlines aircraft used in many ways. Malaysia Airlines Boeing 737 used example is the Boeing 747, Airbus A330 and more. They use different types of aircraft flight path. For example, they will use Boeing 737 medium-and long-haul flights using a Boeing 747. The next, Malaysia Airlines has launched a “self check-in kiosks” in order to reduce passenger queuing time and check with the airline that the technology in Malaysia, it has been more convenient for passenger’s inches.

In conclusion, it is clear there are two airlines have very different business environment. That is why they still maintain their own sales, even if a strong opponent. This shows a good business environment, leading to the success of an organization. This is because each enterprise has its own four-owned business environment, they are the economic environment, technological environment, competition and social environment, to challenge the competitors and their business success. As suggested, for example, the economic environment, we must have to access to the customer’s personal and business needs; the technical environment, encouraging us to build a good website and online customer service, enabling customers to access any information on the organization vulnerable to ;’s competitive environment, we must show our customers what is good, better and best, and for society, we must improve our work, safety and quality. These are my proposal to establish a good business environment, some of them.

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No matter what organization or company in this day and age, who is a stakeholder affected by the company or organization can influence the action. What is the significance of stakeholders? Stakeholders who, in the group of people, or company who owns the shares, is in the interests of a company. Stakeholders, including customers, the surrounding community, shareholders, dealers, banks, employees and suppliers. All of this is a very important organization or company, as they may cause the company successfully or will the trend in the future. Therefore, we must ensure that all stakeholders manage. If I am the boss of the business organizations, such as automobile shop is a private sector, I need to know who my potential stakeholders and manage them. As the owner of a bicycle shop, I sell all types of bicycle whether it is cheap or luxury and it is suitable for any generation. Therefore, as the owner of this bicycle shop, I must ensure that stakeholders, to influence my organization can also impact a good management is unprecedented.

First of all, customers of my company’s key stakeholders. Customer is the one who will consume our products and services. This will allow our company in future plans. We can earn more profit, if a lot of customers come to buy a bicycle, in the company’s Web site. We will provide good bicycle service and customer service to attract customers. For example, we will provide half of one year of free bicycle service, and accept any comment to my shop from all customers and i will try to improve and organize my management. It helps my bicycle shop, in order to attract more customers to buy our bicycle in the show bicycle room which is available.

One of the stakeholders is also important to a company or an organization, that is the surrounding community. Why is it so important? This is because if you set your company in a hot area, then you can make as much profit store. I will set my bicycle shop in the small town where the people need a bicycle to get more new customers. This is because the people in the city who are more able to buy a bicycle than a car to work than in city because small town is not big as city. In the addition, customers who live in the small town have more demand to a bicycle or luxury bicycle’s price. When I set my bicycle shop in the small town, I already have created a good community to my bicycle shop and going well in the future.

In the other hand, employees are also important in my business. A good employed can help my company to get well in the future because he or she can handle the work that i give and they can provide the good information to customers. They need to have a good relationship with the customers and another staff who work in my bicycle shop. I will hire employees who have more fields, such as I love the work, friendly to customer and he or she have experience in their own jobs. This may make my bicycle shop have a good image which compare with another company. It may help to attract customers to come to buy the bicycle.

As a shop owner, I have to find a good supply of automotive suppliers who want to continue running my business. I have to ensure the quality and quantity has always been a good bicycle which provide by the suppliers. I will compare all the suppliers in the city and I can know who can provide more good quality, quantity and service. In the addition, I will establish a good relationship with my supplier because I need the latest bicycle from their stock.

The last must be a shareholder. Another way, we call it the shareholders as a shareholder who owns shares of my company, they have the ability to make decisions. If my company is facing any financial or management problems, shareholders can take action to have a meeting to make a decision and in any case more intelligent choices. Shareholders will receive the profits that we earn each year the organization so that they will invest in my company more money as capital, but if the financial problems facing the organization, such as loss of profits, shareholders must use their own money to solve the problem we face problem.

Stakeholders affect or be affected by the company. If you manage your stakeholders, which means the company or organization can run, and, where possible and future plans. In the other hand, this also means that you can earn more profit, if you manage your stakeholders well. As a conclusion, if our stakeholder management is good, I can believe that our bicycle shop will be a busy day in the day of future and success.


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