...Introduction PEST Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company. Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy, inflation levels and such helps the company make better decision on how to operate their company effectively. Besides that, the social drive is a crucial part on PEST analysis. Creating and developing a social culture takes time and effort and a new motive driven company such as Air Asia has to develop me method on how to connect with the society's lifestyle, demographics, and media. Technological point of PEST analysis relates with competing technology development with other competitors and effective information and communication between the market and the company. Political Analysis Political Analysis mainly states about the aviation acts and regulation which needed by aviation company such as Air Asia to operate their business. The political...
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...Situational Analysis a. The Company Overview i. Describe your products, experience, know-how, financial, human and capital resources. What is the company’s long-term vision and strategic goals? What is the company’s progress towards these goals? Identify key performance gaps? A Fixed Base Operator (FBO) is a business that provides services at the 20,000 airports in the USA. They operate flight training schools, provide aircraft repairs and maintenance, provide fuel and provide pilot support with weather and flight planning facilities. As such they are the backbone of general aviation. Airport Tenant – An airport tenant is a person, firm, or corporation leasing or using airport property solely for the purpose of storing an aircraft and is not engaged in or providing any aviation related commercial activity or service at the airport. An airport tenant is not authorized to function as or provide the services of an FBO Current Products and Services With committed capital and deep industry experience in general aviation services transactions (having closed over thirty transactions in the last fifteen years), we can move quickly and discreetly with minimum disruption of day to day operations. Ideal FBO acquisition candidates will have: • Annual general aviation fuel uplift in excess of one million gallons • Long term lease rights at its airport operating location • Ancillary business segments such as maintenance and charter will be considered but should be...
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...Company Analysis Project – Final Paper – Southwest Airlines Charles M Mohr MBA 6008 – Global Economic Environment Capella University Doctor Halstead February 19, 2016 Abstract The aircraft carrier business contends in an oligopoly showcase. This implies just a few of airline companies control the significant bit of the business. Southwest Airlines is one of these organizations. They make up 16.6% of the business sector, second only to Delta. The motivation behind this paper is to talk about the microeconomic and macroeconomic situations that Southwest Airlines faces every day. The Airline Deregulation Act that was passed in 1978 was a huge impact on the aviation industry. There are administrative contemplations on financial choices, for example, group clamor and air quality. Southwest Airlines has moral (ethical) contemplations that should be tended to at whatever time financial choices are made. This paper additionally touches on the monetary hypotheses and models, including the Bertrand Model that Southwest Airlines ought to audit and consider for future accomplishment of the organization. Southwest Airlines must take after the Sustainability Accounting Standard for Airlines for all their bookkeeping purposes. Table of Contents Abstract 2 Microeconomic Environment 5 Macroeconomic Environment 8 Economic Implications 10 Regulatory Considerations on Economic Decisions 11 Ethical Considerations on Economic Decisions 13 Economic Theories and Models 14 ...
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...by the organisation, and the primary environmental commitment towards nation and the aviation industry, are also important aspects of the company's strategic direction and focus. Mission Statement Indigo airlines aims to become the number one leader in the low cost airline industry of India, offering the best service and ensuring highest standards of quality at low cost to the customer. Goals and Objectives Non- Financial Indigo airlines aim to attain the utmost rank of customer satisfaction in terms of the service and products offered by the firm. The management ensures that the highest standards of quality are in place at every level to ensure 100% customer satisfaction. Financial The financial goal for the firm is to ensure highest rate of return for the investors and the stakeholders and increasing the profit by following steps. Effective costing of products Cost cutting Increasing the market share by 25% Core Competencies / Competitive Advantage The strengths for indigo airline in the current market situation are the price tag of the tickets and the fact that it has been awarded many times in 2009 as one of the best low cost airlines. The recession was extreme and most of the people who were using services from jet airways and kingfisher came down to low cost airlines (financial express).The market almost doubled for the low cost airlines as in the times of recession companies wanted to cut costs so most of -the official travel (Domestic) was done through low cost...
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... 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes...
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...Content Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability), examining Qantas value chain analysis by evaluating the primary and support activities that the company performs and analysing its weakness and strengths. Finally...
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...Muhammad Sajid Saeed+44 141 4161015Email: tosajidsaeed@hotmail.comSkype ID: tosajidsaeed | | TABLE OF CONTENTS 1. INTRODUCTION------------------------------------------------------------------------------------- 03 2. VISION, MISSION, GOALS, AND OBJECTIVES ----------------------------------------------- 03 3. STRATEGIC ANALYSIS ----------------------------------------------------------------------------- 04 3.1 INTERNAL ANALYSIS -------------------------------------------------------------------- 04 3.1.1 RESOURCE-BASED VIEW ---------------------------------------------------- 04 3.1.2 VALUE CHAIN ANALYSIS ----------------------------------------------------- 06 3.1.3 FINANCIAL ANALYSIS --------------------------------------------------------- 07 3.2 EXTERNAL ANALYSIS -------------------------------------------------------------------- 08 3.2.1 PEST ANALYSIS ---------------------------------------------------------------- 08 3.2.2 PORTER’S FIVE FORCES ------------------------------------------------------ 09 3.3 SUMMARY --------------------------------------------------------------------------------- 10 3.3.1 SWOT ANALYSIS --------------------------------------------------------------- 10 3.3.2 KEY STRATEGIC ISSUES ------------------------------------------------------ 12 4. FUTURE STRATEGIC DIRECTION...
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...Elixir Mgmt. Arts 51 (2012) 11164-11171 AirAsia Berhad: Strategic analysis of a leading low cost carrier in the Asian region Yasmin Yashodha Taylor’s University Lakeside Campus, No. 1 Jalan Taylor's, 47500 Subang Jaya, Selangor Darul Ehsan, Malaysia. A R TI C L E I N F O Art i c l e h i st ory : Received: 9 July 2012; Received in revised form: 13 October 2012; Accepted: 30 October 2012; K ey w or d s Strategic analysis, Region, Low cost, Extensive. ABSTRACT This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline industry within the ASEAN region. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. This research exhibits critical analysis pertaining to the current macro environment of the aviation industry which includes the PESTEL framework and Porter’s Industry Analysis. The competitive environment analysis for AirAsia Berhad is thoroughly scrutinised to examine the driving determinants...
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...Jella Mae Macalima November 24, 2014 BSTM-2B Ms.Ana Esquierdo “9 RULES OF FREEDOM OF THE AIR” The freedoms of the air are a set of commercial aviation rights granting a country's airlines the privilege to enter and land in another country's airspace, formulated as a result of disagreements over the extent of aviation liberalisation in the Convention on International Civil Aviation of 1944, known as the Chicago Convention. The United States had called for a standardized set of separate air rights to be negotiated between states, but most other countries were concerned that the size of the U.S. airlines would dominate air travel if there were not strict rules. The freedoms of the air are the fundamental building blocks of the international commercial aviation route network. The use of the terms "freedom" and "right" confer entitlement to operate international air services only within the scope of the multilateral and bilateral treaties (air services agreements) that allow them. The first two freedoms concern the passage of commercial aircraft through foreign airspace and airports, the other freedoms are about carrying people, mail and cargo internationally. The first through fifth freedoms are officially enumerated by international treaties, especially...
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...“Jaeezra Airways”, Case Analysis Structure Executive Summary The airlines industries made a significant impact on the economy after 1970 and were interconnected to other industries. It is a huge capital financed mostly by loans, with high cost that requires development, design and management. The demand for aviation service is increasing strongly in the Middle East, particularly in GCC countries due to oil production, high income, expatriate population and business diversified opportunities beside other factors. To meet the increasing demand for travel, new airlines were established for this purpose such as Wataniya, Jazeera, Air Arabia, and flydubai . The operating performance of the new airlines was affected by political instability in the region which reduced tourism and raised the oil price; in general it affected the airline performance. Fuel is the main key of the airline’s operating expenses, when fuel prices increase it will affect the airlines’ profitability and financial flexibility. Recently, the fuel prices have reached over USD100 per barrel which affected airlines profits. During the economic crisis, the airlines lowered the flight prices in order to attract passengers which lowered their profitability. Despite the financial crises, airline companies follow certain plans and procedures to recover, depending on the limited means of transportation in GCC region and the continuous travel demand from expat to their origin There are 39 airlines operating in GCC(table...
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...m31: Home AssignmentCover Sheet Quality ManualVersion 5 2014-15 | Student(s) Name and ID: | Course Code and Title:Integrated Project Quality management. BUS4956 | Date: | Section:CLW | Submission Deadline:week 16 Late submission results in losing grades. For every working day delay the maximum grade decreases by 5%, up to a maximum of 35% after a week. Also note, not following the formatting guidelines an additional 10% may be lost. | Name of the Course Team Leader /Academic Coordinator (Moderator):Dr.BeenaSalimSaji This Assessment and the related Marking Scheme have been pre-moderated and approved by the Course Team Leader/Academic Coordinator of the Business Department according to the following criteria * The learning outcomes are covered as indicated in the assessment strategy. * The questions are clearly constructed and at an appropriate academic level. * The possible marks for each question are clearly stated. * The amount of time for the exam is properly allocated. * The level of English language is clear and suitable for the course. * The marking scheme is clear and detailed | Academic Format Reports/Essays submitted must follow the APA (American Psychological Association)thehttp://owl.english.purdue.edu/owl/resource/560/01/.Formatting and language contribute exactly ten percentage points to the overall grade. | Warning to Students! Students must submit their own works as assignments, and they cannot copy anybody’s ideas into their...
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...Finance and Accounting Information systems used in Aviation sector Finance and Accounting Information systems used in Aviation sector SUBMITTED BY: BHAVIK K. VORA 421 MBA (Tech.) Telecommunications Contents | SR. NO. | TOPICS | PAGE NO. | 1 | Aviation Sector: An overview | 3 | 2 | Effect of information system in aviation sector | 3 | 3 | Finance and accounting information system | 4 | 4 | Sirax Airfinance platform by Lufthansa systems syssystesm | 4 | 5 | Sirax Revenue Accounting | 5 | 6 | Sirax Cost Accounting | 8 | 7 | Sirax Business Intelligence | | Aviation industry: An overview The aviation industry traditionally grew due to increase in demand of business travellers as the companies started expanding their operations in different places all over the world. Moreover rise and income of the people had a positive effect on the tourism industry and thus leading to the growth of aviation industry. Deregulation and Privatisation of the aviation industry provided further impetus to its growth. Since 1970, the growth rate in the aviation industry has been about 6-7% Sirax Airfinance platform by Lufthansa systems With respect to the uncertainties that airlines are facing today, Sirax Airfinance platform can prove to be of great help to the airlines as it provides the right information at the right time. It keeps the airline updated about their operations and financial condition. It provides the airline with timely, accurate...
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...but it also emphasized their high quality, and as a result, it highlighted GE’s will to improve consumers’ lives. In other words, the slogan had more than communication purposes: it would lead the entire process of value creation; it summed GE’s strategy up. General Electric was created by a merge between two electricity-related companies – Edison General Electric Company and Thomson-Houston Electric Company, in 1892, from Thomas Edison and Charles Coffin initiative. Widely considered as one of the most successful corporations of the 20th century, recognized by Fortune to be the “Most Admired Company in the United States” and named Financial Times’ “Most Admired Company in the World” in 2001, the firm has dramatically grown from a merge between two electricity enterprises to an American multinational conglomerate corporation, which does not only operate in the Energy Industry, but internationally leads various other segments. Thus, Jack Welch’s two decades at the head of the company made an important strategic mark for at least two reasons. First, his choices in terms of diversification led General Electric to intervene more in Financial Services industry - as evidenced by its acquisitions, between...
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...Human Resource Management Case Analysis on Grievance Issues Related to Air India Submitted By : Sapana Sarawagi (MS-49) Sonam Gensapa (MS-52) Sandeep Jorasia ( MS-46) Case: Air India employees go on a strike after their grievances regarding parity in wages, delay in payment of their salaries and issues relating to working conditions could not be resolved. Currently the issue is going on as they have threatened to go on a strike on March 9, 2011. Background: In May 2007, India's Ministry of Civil Aviation announced that Air India Limited (AI), India's national flag carrier and Indian Airlines Limited (IA), the government owned domestic airline, would merge with effect from July 15, 2007.1 The new airline formed by the merger was to be called 'Air India,' and would operate in both the domestic and international sectors. The AI-IA merger was expected to create one of the biggest airlines in the world in terms of the fleet size. According to information posted on IA's website, the increasingly intense competition faced by AI and IA from private and global airline companies, was the main reason for the merger of the two airlines. . However, the proposed merger was not without its share of critics. Initially there was opposition from the employees of the two airlines as they feared that the merger would result in job cuts. The Aviation Minister, Praful Patel, had allayed their fears and assured the employees unions of the two airlines that employment conditions...
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...An Analysis Report on Barriers to Globalization and External Factors Affecting Kenya Airways Professor: Student Name: Date of submission: Executive Summary Stiff competition, technological changes and the political and legal environment are the main factors determining the success of a company operating in the airline industry. Kenya Airways is subject to these factors and must find the best solution to help mitigate the adverse effects of these factors. It will help improve efficiency, effectiveness and the competitiveness of the company. Liberalization of many economies accompanied by globalization has turned the face of doing business across the globe. It has led to the essence of competition among organization for prosperity and survival. Technological aspects have also improved communication across the globe leading to integrated systems connecting companies and businesses. The report is an overview of the external environmental factors affecting Kenya Airways that is in the service sector in the Airline industry. The service sector requires up to date technology and is easily affected by the external environmental factors. These factors relate to the political stability, legal environment, social, cultural well-being, and the state of technology. Table of Contents Executive Summary…………………………………………………………….2 1.0 Introduction………………………………………………………………….4 2.0 Task 1 ………………………………………………………………………….5 2.1 Macro Environment analysis for Kenya Airways…………………………………...
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