Q1.Analyze the current situation facing MAS and Air Asia using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place. The goal of an organization is to reach and achieve optimal purpose. They want to make the most out of their atmospheres and existing environments in order to their accomplishment.

External factors are the one that affect an organization indirectly, such as:
•Political
•Social-cultural
•Technological
•Economical •Legal

External factor are the opportunities and threat to the company according to SWOT Analysis. There also Internal factors which need to be considered, that is which involves directly to an organization such as:
• Customers
• Competitors
• Suppliers
• Public
• Employees
• Shareholders and etc. Internal factors –
The strengths and weaknesses to the organization. This business strategy theory is very useful to help aviation researchers to make sense the current competitive pressure under which airlines all around the world seem to be. Business Strategy is a formulation of how the business unit intends to compete in its given business sector.

Let us look the comparison between Mas and Air Asia in terms of their Internal and External Factors.
Malaysia Airlines (MAS)
The Malaysian Airlines are tightly regulated by the government of Malaysia. Mas have won more than 100 awards in the past decade including the „Best Airline to Asia‟ and „World” Best Cabin Crew‟. It is also remain as one of the only six carrier globally to be accredited as a„five star airline‟.

This clearly shows that MAS is recognized world –wide and the brand name is recognizable. This shows that, there are customers wanted MAS‟s services and customer’s preferences on this airline. Air Asia
Air Asia is a Low Cost Carrier (LCC). Air Asia operates domestic and