...Lusitania Disaster The Lusitania was a great passenger cruise line of its time. The ship held 1,959 passengers of that 702 were members of the crew. A single torpedo was shot from a German U-20 submarine sunk the Lusitania in less than 20 minutes, 1,198 passengers died and only 761 people survived the incident. The attack happened on the 7th of May 1915, one week into it voyage from New York. A warning was issued from the German Embassy, stating that the risk of attack was high due to the hostile actions around the British isle. This attack also took the lives of 127 Americans. This proved to be a turning point for the Atlantic war. This event set in motion the United States entering World War I. Malaysia Airlines Flight 17 The Malaysian airlines flight embarked from Amsterdam in a Boeing 777. The final destination was for Kuala Lumpur on 17th of July 2014. The Planes route took it through an active war zone that was controlled by the Dunbass People militia. The plane was shot down by a Buk surface to air missile. The plane crashed near Torez in Donetsk, Ukraine, killing all of the 283 passengers and 15 crew on board, total death of all passengers and crew of 298. This attack was against a passenger airline that enter hostile airspace. As a result of this flight patterns have been redirected around the airspace that is controlled by militants. Disaster Similarities and Dissimilarities The Lusitania and Malaysia Airlines Flight 17 both entered areas that where controlled...
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...award, they still facing financial problem since year 2002. Situation become worse in year 2014 due to the MH370 and MH17 tragedies occurred. MAS are facing three main problems. First will be financial turbulence. In recent years, MAS has struggled financially. In 2013, the company reported a loss of 1.17 billion ringgit, its third consecutive year in the red. The airline had already been suffering from years of poor performance. The company’s stock price has dropped since MH370 missing and MH17 crashed occurred. A double tragedy of this nature after such a short period is unheard of in the industry, which could deal a crippling reputational and financial blow to Malaysia Airlines Malaysian Airline System Bhd. The second problem is lost confidence of passengers toward the Malaysia Airlines. Due to the disasters of MH370 and MH17, the airlines passengers lost confidence to the Malaysia Airlines which bring the feeling of fear and afraid toward MAS. Those passengers may switch to other airlines such as Air Asia and Singapore Third problem is reputation of Malaysia Airlines be damaged. At the beginning, Malaysia Airlines have a very high reputation and images in airlines industry which received various awards which are “Asia’s Leading Airline” and “Asia’s Leading Airline Lounge”; however, reputation dropped dramatically after the disasters of MH370 and MH17. Thus, rebuild the reputation of MAS is a necessary matter to avoid negative news spread around...
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...award, they still facing financial problem since year 2002. Situation become worse in year 2014 due to the MH370 and MH17 tragedies occurred. MAS are facing three main problems. First will be financial turbulence. In recent years, MAS has struggled financially. In 2013, the company reported a loss of 1.17 billion ringgit, its third consecutive year in the red. The airline had already been suffering from years of poor performance. The company’s stock price has dropped since MH370 missing and MH17 crashed occurred. A double tragedy of this nature after such a short period is unheard of in the industry, which could deal a crippling reputational and financial blow to Malaysia Airlines Malaysian Airline System Bhd. The second problem is lost confidence of passengers toward the Malaysia Airlines. Due to the disasters of MH370 and MH17, the airlines passengers lost confidence to the Malaysia Airlines which bring the feeling of fear and afraid toward MAS. Those passengers may switch to other airlines such as Air Asia and Singapore Third problem is reputation of Malaysia Airlines be damaged. At the beginning, Malaysia Airlines have a very high reputation and images in airlines industry which received various awards which are “Asia’s Leading Airline” and “Asia’s Leading Airline Lounge”; however, reputation dropped dramatically after the disasters of MH370 and MH17. Thus, rebuild the reputation of MAS is a necessary matter to avoid negative news spread around continuously. To overcome...
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... It is every CEO’s worst fear: an event resulting in mass loss of life that becomes indelibly associated with your organisation. Malaysia Airlines experienced two such events in four months. The disappearance of flight MH370 on 8 March 2014 and shooting down of flight MH17 on 17 July 2014 presented an unprecedented challenge to the organisation, pushing it into nationalisation. But these tragic events also posed fundamental questions about the tension between crisis management best practice and the challenges of delivering a response to a dynamic, emotionally-charged situation in which control over partners and access to information is limited. In this thought piece, Tim Johnson, Chief Operating Officer of Regester Larkin Group and Jacqueline Ratcliffe, Managing Consultant of Regester Larkin Asia Pacific, make six observations about Malaysia Airlines’ response to MH370 and MH17. In exploring these issues, they do not seek to judge the actions that were taken; rather they try to draw some conclusions about what these incidents mean for the evolution of crisis management best practice. Before examining the observations in detail, it is perhaps useful to consider the anatomy of the two crises. The downing of MH17 was, by contrast, an example of an incident-led externally-driven crisis. This type of situation also materialises suddenly, but the organisation is not considered at ‘fault’; Malaysia Airlines (and the families of those on board) were considered ‘victims’. In a 24/7 news...
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...the people. Unless it’s just another number or statistic for the world to maintain, those 239 people, who may or may not be alive, still deserve the chance to be exemplified reassurance. The most updated news about the flight MH17 comes from Russian experts about the images taken by British or American satellite. George Bilt, an “expert” stated, “First, killing the crew in the cockpit, second, aerodynamically, killing the aircraft shooting off at the right engine. This is a classical fighter jet pattern.” He explains that there was never a direct Buk missile being fired from the ground, but that it was shot from the air directly by a fighter jet Mig-29. This makes this issue an even more complicated controversy. If it is so that the missile was never shot from the ground in the first place, then who was in charge of flying these fighter jets. Unlike the Malaysian flight MH370 disappearance, there is a lot more evidence tied to the MH17 flight. With so many experts from numerous countries, it would be expected that there would be more conclusive information. I would assume that there should be a better result of information from a plane that has actually been found, opposed to one that continues to have no trace on its whereabouts. All in all, the MH17 Malaysia plane crash in Ukraine has opened a whole new book of mystery and false conclusions. Without any substantial or resulting evidence that can lead to any primitive conclusion, really puts the issue on hold. Hopefully, very...
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...This is evidenced by the government bailout from its bankruptcy due to the recent air disasters. It is one of the most popular airlines (prior to MH370 and MH17 incidents) in the world, covering over 80 destinations across the globe. It is an airlift hub with extensive operations in South Asia, Middle East, Australia and other global destinations. The company focuses on strong branding which has enabled it to enter restricted markets. Meanwhile, one big advantage of Malaysia is its wide range of natural resources such as crude oil, natural gas, palm oil etc (MATRADE, 2011). The country has the financial capabilities to provide backing to its ailing national carrier and ensure its comeback. One area whereby Malaysia’s air travel relies on heavily is its booming medical tourism. It is one of the world’s top spot in the medical tourism’s global expansion (Hockton, 2014). With the depreciation of the ringgit, this increases its attractiveness as a medical tourism hub for the...
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...Names:Idanazura Binti Junus and Mohd Haikal Hazman Bin Mohamad Sukri Students ID: 13081161 and 14071500 Course Code: ENG 1014 Course Name: English for Business Assignment: Argumentative/ Persuasive Essay Weightage: 15% Title of essay: On 8 August 2014, Khazanah National announced plans to privatise Malaysia Airlines (MAS) in an attempt to revive the national carrier as it was struggling financially. Without doubt, the twin aviation disasters, MH370 and MH17, have also further contributed negatively towards MAS financials. The former prime minister of Malaysia, Dr Mahathir Mohamad said that the national flag carrier should be privatised as it is running at a loss. The Malaysia Airlines System Employees Union (Maseu), on the other hand, strongly stated that they will only support the privatisation of MAS if there is to be a new management team. In the past 12 years, MAS has undertaken about half-a-dozen restructuring exercises. Considering its current situation, the idea to privatise is seen as a necessity. In your opinion, can MAS turn itself around if it is now to be privatised? Why or why not? Justify your stand and support your arguments with reasons and examples. You should write between 600 and 650 words. Instructor: Mrs Anuratha Murugagoo On 8 August 2014, Khazanah Nasional Berhad (“Khazanah”) proposed an official petition to the Board of Directors of Malaysian Airline System Berhad (“MAS”) to handle a particular capital cutback and refund apply (“Proposed...
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...When you go traveling in some developing countries, which restaurant will you choose as a safe and convenient dinner choice? Most likely, you would choose a restaurant or fast food shop that you had heard of, this is something about reputation; reputation is intangible but directly related to the firm value. Therefore reputation risk management becomes extremely important for every corporation, if you don’t do it well, it may damage your firm value. What is reputation risk? Many researches show that reputation is the perception from stakeholders that has positive relationship to the firm value. Reputation risk is the risk that some incidents cause negative impact and damaging the firms’ brand value. It can due to the problems of the company products, rumors spread out, or publicized problem. This loss of the companies can be immediately financial loss, losing further business, decreasing of client base or losing goodwill. What is special about reputation risk is it interrelated to other risks and if it is not properly managed, it may turn into a crisis that danger the existence of the firm. A lot of business failures were caused by poorly manages of reputation risk. How to identify and assess reputation risk Many risks can be quantifying the exposure, but it is not the case for reputation risk, as it is related to some intangible assets and value of the firm, it is difficult to quantify and therefore some subjective method should be use to identify and assess reputation...
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...BBC403: MICROECONOMICS FINAL GROUP ASSINGMENT Group A1 DANIYA ILYASSOVA SAMAL KUSSANOVA MAOOTAZ TORKMAN BEB140007 YUNUSMETOV RUSLAN BEA130004 AZRIANNA ALYSSA AZMIL BEE140005 BBC403: MICROECONOMICS FINAL GROUP ASSINGMENT Question 1 (a) With the help of figure, explain three economics concepts that are represented in the production possibilities frontier. (b) The following events occur in the market for Malaysian Airline System (MAS). I. The crash of MAS flight MH17 in Ukraine. II. The wage rate paid to MAS captain and cabin workers decreases. III. The price of Air Asia tickets increase. IV. People expect the price of MAS economic class tickets to fall next school holidays. With the help of figures, explain the effect of each event on the market equilibrium of MAS service. Answer (a) With the help of figure, explain three economics concepts that are represented in the production possibilities frontier. The Production Possibilities Frontier (PPF) shows the various combinations of goods and services produced within the specified time, given available factors of production and state of technology. It is the boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced. Used to explain basic economic concepts: Scarcity, Choices and Opportunity cost. Scarcity is defined as wants always exceeds limited resources...
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...Table of Contents 1.0 Introduction of Shangri-La Hotel 3 2.0 Shangri -la Hotel existing Vision, Mission, Goals and Objective 4 2.1 Proposed new Vision and Mission 5 2.1.1 Vision 5 2.1.2 Mission 5 3.0 Shangri-La Hotel Internal and External Environment 7 3.1 Internal Assessment: Strength 7 3.2 Internal Assessment: Weaknesses 9 3.3 External Assessment: Opportunities 10 Growing Airline Industry 10 3.4 External Assessment: Threats 12 Increasing in Competitors 12 4.0 IFE, EFE and CPM Matrix 15 4.1 IFE Matrix 15 4.2 EFE Matrix 16 4.3 Company Profile Matrix (CPM) 17 5.0 SWOT Matrix, IE Matrix, and QSPM 18 5.1 SWOT Matrix 18 5.2 IE Matrix 19 5.3 QSPM 20 6.0 Recommendation on Specific Strategies 21 7.0 Shangri-La Hotel Financial Position (EPS-EBIT Analysis) 22 7.1 Common Stock Financing 23 7.2 Debt Financing 23 7.3 60% common stock - 40% debt financing 24 7.4 40% common stock - 60% debt financing 24 8.0 Strategy Evaluation 27 9.0 Conclusion 30 10.0 References 31 1.0 Introduction of Shangri-La Hotel Shangri-La Hotels (M) Berhad is an investment holding company and also a public limited company. This company was incorporated on June 29, 1971 and currently having a total of 2364 employees. Its headquarters is located at the Batu Ferringhi Beach, Penang. This company is engaged with the operations of services such as hotels and beach resorts, golf course and clubhouse, property management and investment and commercial laundry....
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...US: QE tapering and sluggish growth. During the 1H 2014, the US economy experienced tempered growth, led by increased private sector demand, against the backdrop of a 2.9 percent contraction in Q1 GDP. However, positive manufacturing and employment data signals the prospect of economic expansion for the remainder of the year. In search for capital preservation, investors have sought, theoretically the safest investment instrument, US treasuries, which have gained 2.7 percent for HY 1.During the first half of the year, the Federal Reserve continued to taper its Quantitative Easing Program. As at June 30th 2014, the program was reduced to US$35B from its original level of US$85B in bond purchases per month and is carded to end in October 2014. European Union- Rock Bottom interest rates, inflation still low. For the first half of the year, under the European Union’s increased monetary policy initiatives, the main refinancing rate was cut to 0.15 percent and the deposit rate to -0.1 percent, becoming the first major central bank to use negative interest rates as a monetary policy tool. This has been done with the intent of returning depressed inflation rates to acceptable levels. The impact on global bond markets has been quite noticeable. In a hunt for yield, investors have placed their confidence in bonds as a mechanism for returns. Sovereign Bonds in the PIIGS regions have been highly sought after, causing bond prices to reach near the 5 year high. For H2, further quantitative...
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...That soon turned out to be false and Russians continued to stride toward authoritarian regimes presented by Boris Yeltsin and Vladimir Putin. Kremlin politics of modern era have led american politicians to believe that Russia was aiming toward expanding nationalistic,autocratic Russian empire. Culmination of these events created an all around negative picture about Russia in the eyes of american government and public.Media picture of Russia being a possible hegemony created dissatisfaction in the US even before the Ukrainian crisis and shooting the Malaysian Airlines flight MH17. To understand US-Russian relations is to understand history. Vladimir Putin had repeatedly used history to fuel his reasoning behind annexation of Crimea. Putin used WWII sacrifice as why Crimea should belong to Russia. Also, Putin condemned policy of containment in 18th,19th and 20th century and said that Western powers (US) had tried to "deny Russia its rightful place as a great power in global...
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...formation in 1963, Malayan Airways Limited (MAL) changed its name to Malaysia Airlines Limited. Borneo Airways was incorporated soon after. Singapore’s separation from Malaysia saw the company renamed to Malaysia-Singapore Airlines (MSA) in 1965. In 1972, MSA went separate ways to become Singapore Airlines (SIA) and Malaysia Airline Limited (subsequently renamed to Malaysia Airline System (MAS)) independently. As of 31st December 2013, MAS operates a fleet of total 147 aircrafts (108 MAS + 39 Subsidiary). Other MAS subsidiary providing air services included MASkargo, Firefly and MASwings. MAS has been suffering from losses continuously since year 2011 even though revenue and passenger increased in the year 2013. Coupled with the MH370 and MH17 tragic incidents in year 2014, Malaysia government called for a recovery plan to be executed to turn MAS back to profitability. The recovery plan was put together by Khazanah Nasional (Federal government Investment Arm, which happens to be majority stakeholder of MAS) and to be carried out by MAS. An estimated total fund injection of RM6 billion by Khazanah Nasional over three years hoping to resuscitate loss-making MAS. External Environment Analysis 1. PESTEL Analysis – Macro Environment Political: * Political environment is stable - it can be predict that in the coming years the stability will continues....
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...Evaluating the Growth of Australia based on Economical, Political, and Social Changes Laura Rutherford Southern New Hampshire University Abstract For this short paper we have been asked to select a region of our choice and research current events to further discuss how economic, political, and social changes will impact growth in our selected region. I have selected Australia for this discussion. It is a region that I know very little about, but have always wanted to visit. In my discussion I will evaluate Australia’s economic, political, and social changes in order to evaluate the continent’s growth. Australia has a population of 22,507,617 as of July 2014. The population growth rate is currently 1.09% (Central Intelligence Agency, 2014). Australia is comprised of six separate regions that are call states, and each state has their own capital. Australia’s economy has been quite strong over the years. They have experienced continuous growth, low unemployment, contained inflation, as well as very low public debt (Central Intelligence Agency, 2014). However Australia’s economic growth has been slower than expected these past few years. Between the months of July and September 2014, Australia reported a weaker-than-expected economic growth (BBC, 2014). A major cause of this inadequate growth is due to a large drop off in mining investments. Coal and iron ore are two of Australia’s biggest exports, and decreased prices have negatively affected economic growth. Analysts...
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...to achieved almost all the objective of government privatization policy. Therefore, our opinion about the government privatisation policy is success due to achievement of these objectives. 4.1 Relieve the financial and administrative burden of government The successful privatization should bring gain to the government in term of reduce financial burden of those entities that suffer losses .For example is Malaysia Airlines (MAS). According to Tun Dr Mahathir, MAS should be privatize since ten years ago due to loss of RM 10 billion in term of capital injection and government also did not received dividend during the 5 years to 1985. As we can see now days, there are so many problems facing by MAS. For instance the accident of MH370 and MH17 that make MAS become worse. In order MAS to success they need to reconstruct the management structure from top to bottom to make a better decision making and become more perform. Besides that, the privatization also undertaking and maintain services and infrastructure, for example according to the Privatization Master Plan Policy (PMP), proceeds from sale of government equity in privatize companies has generated RM1.88 billion, while the government is said to have saved more than RM8.2 billion in capital expenditure for infrastructure development through privatize (Build- operate-transfer (BOT) project and a further RM7.45 billion of the government’s outstanding debt is said to have been transferred to the private sector (New Straits Times...
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