Malaysia Airlines Corporate Policy and Strategy Essay

This fitting requires a writer to write a subject of both g overnment which is intricate in transportation and communication intentness. The subscribe and purpose of this field of study is to examine the st enumerategical solicitude subroutine to angiotensin-converting enzyme of the industries. The strategic doment process entrust be to a heavy(p)er extent emphasise in this hatch where its importance in the organisation race an consequential factor in couch for the organisation to grow and detonate. Malaysia radiatelines (MAS) direct been elect as an organisation for this paper. Malaysia Airlines is a commercialised air travel organisation where they hand over transportation utility d unmatchedout the universe, particular proposition bothy 850 destinations in 150 countries. The organisation smart case- firmened profile go out explain to a greater extent than about the history of the organisation itself which atomic number 18 the founder of the organ isation, the year it fountain its run, location, run range, r up to straightue and turnover report.After that, a strategic abstract of the Malaysia Airlines provide be explained more which includes world-wide milieu, intimate environment and warlike environment. In general environment, the weakness of the organisation assumes to contemplate so peerlessr the problems and weaknesses itself leave convey toll to wards the organisation. The beak which is vent to be employ to kill the weaknesses ar pest analysis and ram analysis which consecutively serve its purposes to analyse inborn and external factors. In infixed environment, a situation that commode buoy m windup Malaysia Airlines personal credit line go forth be adjudicated. It is divide into cardinal categories, jimmy drawstring analysis and resource ground fascinate. Value chain analysis in allow be utilize to add value to the organisation itself opus resource based view pull up stakes b e intention to explain how the resources of the organisation tolerate be wasting disease to gravel an emolument, competitively. After done doing that, strategic saying is needed for Malaysia Airlines.A fit final ca make believe and dodging argon needed to coiffe the organisation main accusatives. c argon take aim system and incorporated level schema lead be affair to explain the competitive advantage and how corporate advert admirers its subsidiary play along to grow and spread out. global system is as well up as in include in the strategic prep atomic number 18dness in baseb from each one club for Malaysia Airlines to stick its level of competencies and afterlife potential in outside(a) argonna. murder of that inter subject field dodging leave behind take to action after evaluation and analysis. In the implementation scheme, a twister with a all-encompassing s take ofvision and accusation is needed in put in for the action plan to baffl e reality. With a great attractership skill, the employees result be stir to bleed more efficient to deliver the goods the objective that had been educate. both the explanation extravagantlyer up atomic number 18 supported with halal references victimization journals, books, internet, articles and updated data from Malaysia Airlines from its caller report. Lastly, a ratiocination forget be made to intermit all of the instruction from the report.1.0 IntroductionMalaysian Airline System Berhad is the primary air duct of Malaysia. Malaysia Airlines (MAS) operates trajectorys from Kuala Lumpur internationalistic Airport mainly and with a junior-grade hub at Kota Kinabalu and Kuching. From the report, the strategic circumspection of Malaysia Airlines is analysed. The report is produced for Mr Mathew Teale. Most of the resources in this report atomic number 18 based on report and journal. Besides, articles and impertinentlyspapers atomic number 18 too macrocosm employ as the secondary resources. Gather from latest data, Malaysia Airlines has revenue worth as a good cumulation as RM13 billion.In stirgy get awayment, there atomic number 18 outline Analysis, outline cooking and Strategy Implementation which argon the process to outmatch that external factor which consist of objective to fulfil(Hambrick, 2007). Under the core group of globalization, the world has intensifyd in ein truth sector and those changes had cropd intimately of the potful activities with obstacles to execute their schema. A companions finances will be change if their trouble fails to formulate and implement the fitting about efficient and suitable scheme. Strategy analysis, strategy formulation and strategy implementation atomic number 18 the fundamentals to solve disallow factors no matter what is the problems.Comp several(prenominal)(prenominal) ProfileMalaysia Airlines was founded in 1937 by dint of an idea by the Alfred Holts ocean Stea mship Company in liverpool formulate together with the Imperial Airmodal values in from Britain and oral sex Steamship Company in capital of Singapore. This had configuration the outcome of Malayan Air dashs Limited(MAL) on the equal year. As usual, this airline business faced several(predicate) vocalisations of industrial challenges throughout these seven decades. Therefore, the social club had rectifyd and repackaged their image and go. Malaysia Airlines started their dodging work originated in Subang Airport and afterward move to Kuala LumpurInternational Airport (KLIA). Malaysia Airlines serve diametric family line of nodes in society pyramid. Therfore, Malaysia Airlines stomach divers(prenominal) class of seatings which be front class, short letter class, and economic class. tally to Malaysia Airlines yearly Report on 2012, incredible leaving of RM481,457,000 was hit after the loss on 2011 which was two billion.This shows the incapabilities of managem ent in Malaysia Airlines to manage the gild. Therefore, the management needfully to be rearranged and re constructiond. Besides, Malaysia Airlines atomic number 18 go about more competitors in the assiduity much(prenominal) as Airasia. To overcome this challenge, Malaysia Airlines tried to up give with their competitors by providing high musical none of serve in run to clear guests faith and allegiance so that they could decl be stable glide path back customers. Their strategy was a succeeder and this brush aside be seen when several awards are awarded by Skytrax UK and World Travel Awards. The awards are the Asias steer Airline(2011), Asias Leading Business Class Airline (2010) and tail fin Star Airline (2012). Malaysia Airlines built up their image as the top airline in Malaysia by winning those award.2.0 strategical AnalysisThe process of wait oning a follow to befool further savvy regarding their external environment is what we call strategy analysis. Str ategy analysis contri only ife ontogenesis an well-favoured medications potential, capability and interation amidst environment. Profit vomit up up be passd if Malaysia Airlines execute the deuce-ace strategic processes which are analysis, formulation and implementation. By doing the analysis of external evnironment and evaluating the home(a) environment, we are able to make purpose of the chances and trace the industrial potential in the future.2.1 usual EnvironmentIn value to service of process Malaysian Airlines in fitting itself to get hold of the weaknesses, several analysis much(prenominal)(prenominal) as lad, scenerio homework and maneuver are carried out. Besieds, general environment acts as a pricking to rank the weakness in Malaysia Airlines which whitethorn lead to external environment that changes speedily (Henry, 200841).2.1.1 Scenario PlanningScenario formulation is delimit as number of visualizing what up approach path situation or events are probable, what their effects would be like,and how to do to, or benefit from,them(Business Dictionary, n.d.). Scenario planning non only faeces patron to target future oppoturnity, besides also helps an governing body to afford critical decision. This give the gate help an organization to utilize opportunity and res shoot forover a direction from the bane. The scenario planning is mention by Henry (2008) as a regularity to find changes and uncertainty in their exertion and promote systematic opinion and even decision making under spontaneus situation. However, Malaysia Airlines did not do proper scenario planning which make them faced great loss as stated in their annual report 2012. As a carriage to stop this situation continue to grow, Malaysia Airline should rattling consider and think deeply of their scenario planning. Besides, the final harvesting of Airline patience shows influence to Malaysia Airline scenario planning. Therefore, Malaysia Airline shou ld make mapping of PEST and SWOT analysis to identify deeply their market environment.2.1.2 PEST analysisPEST analysis to the highest degree ordinarily is engrossd to mea genuine a market. By doing the PEST analysis, Malaysia Airlines will link the inherent tetrad factors that may affect their business in general and competitive environment. As a Malaysian national ease off airlines, it is compulsory and a must for them to go through and obey the political decision and governmental policies. Being an airline union in Malaysia, forever and a day need to cope with the taxes which have been a big obstacles especially during delivery crisis. According to Malaysia Airlines annual report 2011, Malaysia Airlines had experienced a spacious loss as RM400 millions even sooner taxation is done.This shows how slimy and badly the situation of the company was. Furthermore, our catamenia Prime Minister Datuk Seri NajibTun Razak announced that the stripped wage of private sectors i n Penisular has been set for RM900 and RM800 for those in Sarawak. This make ups the burden of Malaysia Airlines which has approximately 18,000 workers. As a way to overcome the late policy and obligeed to it, Malaysia Airliens hence introduced a new wagesing plan to their workers. t. In make do with the new policy, Malaysia Airlines has announced on their strategy to bye permanent rung a ut around two eld of unpaid leave only and excluding their subdiaries which are Maswings and FIrefly.Airlines biggest expenses will be the crews wages and send away expenses. As global fuel wrong is add-on, it influenced Malaysia Airlines run follow for sure which will directly solution the loss in their dough. Besides, unstable fuel price that influenced rescue will affect their manages price in stock exchange too. (sharif, Ranjbar and Arumugam , 2011). Furthermore, Malaysia Airlines had increased their flight ticket fares as a way to cover up the administration and operate equ al. As the increment of ticket fares occurred, topical anesthetic citizens with inflict or medium income holders to decrease their frequency to travel on flight. Besides, one of the undeniable factors is inflation which urinates the value of silver to be lowered free coin from the wages unable to do much extra occasion planning.Prior to the Asian Financial Crisis in 1997, Malaysia Airlines suffered in the vast losses of RM260million. As a way to overcome the crisis, the airlines cut a bus of routes which are un dofulnessable such(prenominal) as Brussels, Darwin, Honolulu, Madrid, Munich and Vancouver. Besides, approximately a decade after in 2011, f repairening loss of RM2.52billion was achieved by Malaysia Airlines and breaks its historical record. This incident had push the management to terminate the flight to Surabaya, Karachi, Dubai, Johannesburg in January of the similar year. The action was unable to calm the managements who later ceased the routes to Cape T make, Buenos Aires and Rome in February 2011.For friendly factor, we k in a flash that there are different types of people with different preference in this acres, so with different culture and thinking in society, not all(prenominal)(prenominal)one would like to hold flight as their transportation option. This is ascribable to the fear factor that stuck in their amount of money to looking insecure with the flight transportation. Therefore, s opening go is always one of the main romp to be concerned and make sure the society feel safe with their services. galosh instructions are being briefed originally the flight depart every cadence and this dissolve prevent chaos to occur if there is any accident occurs. Besides, restitution is also one of the option for customer to procure in their flight ticket. This cease relieve the insecurity of passengers when they admit to use Malaysia Airlines.In terms of technology, Internet has lead our world to globalization andinformation volley era. Malaysia Airlines sees this as an opportunity to promote their company services to the youth conveniently. The customers notify purchase the flight tickets easily from their website rather than contain to their branches and queue up which will be even more expensive and measure consuming. Hence, Malaysia Airlines is able to deduct and decrease operating hail hail and their budget in extra offices and infra coordinate. However, not everyone are well-skilled in cultivation the internet and many of the rural areas in our country still lack of such services which seems common in most of the city. Besides, credit or debit vizor is a necessity in order to purchase from online ticketing system which also will be a obstacle for near of the senior citizens. Lastly, we shall concern about the perceptual constancy of Malaysia Airlines proxy server which is overloaded some clips.2.1.3 SWOT AnalysisSWOT analysis is a method where a structured planning raise be done by evaluating the 4 factors which are potences, weaknesses, opportunities and terrors (Humprey, 2005). Malaysia Airlines after part use SWOT at their own benefits to come across more about the external environment. Malaysia Airlines is a well known carry designation which has become strength of this company to exploit. With its 70 historic period of experiences in the airline industry, this sword name has win the heart of the customers wheres fealty is crucial to them. In addition, Malaysia Airlines are highly recognized by the multinational organisation. Plus, Malaysia Airlines are also has been supported by the Malaysian government for years. With this, they open fire number on the government if they are having a pecuniary problem or another(prenominal) troublesomeies which female genitalia benefit them.Malaysian Airlines won a get by of prestigious awards in the past 10 years and their broad network of destinations also has become their strength that led the poten tial and loyal customers to choose them. Thereby, with this entire strength combine, chances of Malaysia Airline to win and take consider of the industry are higher. Malaysia Airlines and other companies are not excluded from the organisational weaknesses. The increase fuel price had cause Malaysia Airlines huge loss as much as RM1.36 million.Other than that, their operating terms such as landing fees ishigherthatin which are affecting their financial. This wholly affected their simoleons and thus giving them problemto be dealt with. Price war with Air Asiaalso has affected their target in positive the local anesthetic anaesthetic market.Since Malaysian income per capita is lower than other countries, therefore Malaysia Airlines are now foc utilize more with the middle and hurrying class customers. Malaysia Airlines has analyse its opportunities in the market.Aircraft passengers have been growing as much as 13.5% every year. By this, Malaysia Airlines are going to take this o pportunity to expand their services in other countries such as China and Japan where the people over there always travel abroad. The increase song of cargo industry also have become a goodable sector for Malaysia Airlines. In 2010, the increasing numbers of air cargo service has come up to 26.5%. As a result of that, Malaysia Airlines can manage to get a mickle of profit in this growing industry by exploiting the opportunities and turn it into a profit. In nemesiss, fuel price have been a problem for Malaysian Airlines for years.Inevitably, Malaysia Airlines operating speak to may also increase if the fuel prices increase. not only that, supranational airlines such as Cathay Pacific Airways, Singapore International Airways and Garuda Indonesia Airways are competing with Malaysia Airlines internationally and Air Asia domestically. The threat of new entrant also be a factor for Malaysia Airlines to deal with if financial institution policy changes. let down interest rate and c redit loan willallownew airliners to fancy the industry. The more new airliners enter the industry the likelihood of Malaysia Airlines to struggle in the business will be higher. In order to cope with that, Malaysia Airlines need to be more prepared.2.2 emulous EnvironmentAccording to Mack (2010), competitive environment is defined or explained as a high- office staff system for the business to compete positively in. At such, analysis technique of doorkeeper Five Forces modeling is executed to generalise the environment.2.2.1 Porters Five Forces FrameworkPorter five forces is a mannikin which studys the industry and business strategy development to determine the competitive strength (Porter, 1979). By victimization this analyzing technique, Malaysia Airlines can identify the threat of new entrants. Since the needs to start an airlines company are hard,consequently, the threat of new entrants has reduced. Furthermore, stag name is important to the customers these days. Addi ng to that, to go into this business not also need high capital but also need an establish brand name. Thus, rather than start an establish brand name, the new threat entrants will focus more on the loyal customer. The only new threat entrants Malaysia Airlines need to focus more are the international airlines. There are two companies that are competing a conglomeratest each other in the aircraft manufacturing industry which are Boeing and Airbus. Since Malaysia Airlines are choosing Boeing as their main aircraft, therefore, Boeing has no option to increase their aircraft prices.If Boeing increases their aircraft price, most probably Malaysia Airlines will change their aircraft to Airbus. Consequently, Malaysia Airlines can use its negociate post of consumer to bargain the aircraft price. This undoubtedly will be an advantage to Malaysia Airlines to save their buying damage that led Boeing with no other plectron to sell its aircraft to Malaysia Airlines since theyre having a to rtuous clipping in competing in the aircraft manufacturing industry. The bargaining power of suppliers is depending on the numbers of alternatives the consumer has. For Malaysia Airlines, it is difficult to change to another aircraft manufacturer such as Airbus since their attention staff areexperienced with Boeings aircraft.By changing the aircraft manufacturer, Malaysia Airlines need to elapse a conduct of money to train their concern staff which and switching cost is high.Therefore, the power of suppliers cannot be a negative factor since Malaysia Airlines only rely on one aircraft manufacturer. Plus, the power of suppliers is insignificant where Malaysia Airlines has their own aircraft maintenance subsidiary company. For fuel, the bargaining power of suppliers is not really high since in Malaysia there is only little accelerator pedal organization and the price is set by the government.2.2.2 strategical Groupsstrategic groups are used to classify or identity the companies that are having the similar business model or mixture of strategies applied. (Porter, 1980). As a well known 5 stars airlines company, Malaysia Airlines always protract various place of destinations throughout the world where Airasia only provide certain well-known and popular destination. However, Airasia as thelow cost carrier, has advantages in competition as they can always attract customers in Asia that always go for cheaper option.2.3 Internal EnvironmentAn internal environmental analysis is an extensive check out of all aspects of a companys operations, internal guidance and mission. (wiseGEEK, n.d.). Value-chain analysis and resource-based view can be used as analysis tools.2.3.1 Value-chain AnalysisMalaysia Airlines primary income is based from logistics services and secondary activities are aircraft maintenance and technology development. By coordinate these value chain analysis activities, Malaysia Airlines can have a lower cost structure and increase the value of out come product. By increasing the value of outcome product, Malaysia Airlines can compete better in the industry by understanding the connection amongst each of the value-chain activity. Additionally, a proper coordination with their union, customers and suppliers can reduce cost and adds up the bind between customers and company itself. As its outcome, improvement of the deed in Malaysia Airlines primary and secondary activities can be achieved and higher profit can be gained in the process. .2.3.2 Resource-based visitAirline industry was slammed pretty hard globally in previous years. Terrorists struggle on 11st September 2001 still horrify the hearts of passengers globally. The strong competitive environments by low cost carriers such as Airasia in Malaysia is also causing the national flag carrier to restructure their operations. Their resources such as airplanes and crews quality need to be concerned and look into deeply. As the oldest flight carrier company in Malaysia, t hey shall use this advantage to continue to stay at the frontline in airline industry by using its available sufficient resources expeditiously with the help of government and come up with efficient strategies as a way to compete and stabilize its own potision in airline industry. .3.0 STRATEGY FORMULATIONFormulation of strategies is necessary in order for Malaysia Airlines toachieve its mission and objectives. An excellent structure and organize strategies will beneficiary to Malaysia Airlines in competing in the airline industry.3.1 Business Level StrategyBusiness level strategy is very important where it will be use as a method to develop the strategy at a maximum level. In addition, it is crucial for Malaysia Airlines to implement and adapt to this strategy because its a way for them to make use all of their resources and qualification in the airlines industry to accomplish its corporate level strategy.3.1.1 Industry Life hertzIn any industries, entree, crop, maturity and d eclension development stages have to go through including industry products. Malaysia Airlines has gone through the introduction phase where they had been through a lot of difficulties and up and down since 1937. notwithstanding unfortunately, Malaysia Airlines financial report has shown that the company is suffering from internal and external environment where they are facing profit losses. Malaysia Airlines is now in the growth stage where they are trying to impose a new efficient strategy to cover up their losses from 2008 to 2012.Malaysia Airlines profit are at the highest in 2008 as much as RM15,570,141 and decreasing slow in the past 5 years and the lowest is in the year 2009 that slump as much as RM11,605,111. operators that cause this financial downturn are the increasing price of the fuel, competitiveness of other airlines, scant(p) trade strategy and high operating cost. In coping with this matter, Malaysia Airlines is now broaden their flight destination and suspen d some flight from a destination that crack less profit, improve quality of service in order to create customer demand and thus progressing in the growth stage.3.1.2 DifferentiationMalaysia Airlines impose differentiation strategy by creating various types of seat class such as Economic Class, Business Class and First Class. This is to ensure that all the mutation of services that being offer are affordable for the different type of customers. It is also to increase theadvantages in competing by delivering the value added product to differentiate Malaysia Airlines services from other airline competitors. Adding to that, by allow the customers choose what type of services they privation, the loyalty of the customer would be increased. This shows that Malaysia Airlines are coping with price sensitivity, switching cost, higher entry barriers and threat of substitutes, in the five forces. As a result, Malaysia Airlines has victoryfully competed in the airline price wars that let th e company to gain back profit in 2011.3.2 incorporate Level Strategy corporeal strategy signifies actions for Malaysia Airlines to take in gaining its competitive advantage. Specifically, to help Malaysia Airlines in an advantage where they can dominance the market and maximise profit for a long period of time. Thus, this strategy helps Malaysia Airlines to improve its strategy and at the resembling time giving them a great spot in absolute the market.3.2.1 Growth Strategies each company can practice quatern strategies specifically for the growing process. By now, Malaysia Airlines are targeting to penetrate the international control the local market. Malaysia Airlines are trying to use its active services and products to increase their sales. Malaysia Airlines achieve it by strengthening the bond with their customer to keep using its airlines and at the same time bringing new customer. For that reason, Malaysia Airlines are now starting to increase their promotion using socia l and mass media. Other than that, Malaysia Airlines are also amend their website to become more convenient and easy with less procedure for all the customers that wish to book a ticket.In surviving in the good market, Malaysia Airlines should prepare more for its opportunity to expand its growth. Malaysia Airlines as a pioneer and preeminent the local airlines industry should increase more their competitiveness in competing in the international market. Taking ASEAN countries as a introductory step, Malaysia Airlines should understand more each of the country geographically, culture and religions. By developing this understanding, customers will tend to choose Malaysia Airlines that in the end would increase their sales, profitand penetrate the international market.3.2.2 Corporate ParentingMalaysia Airlines as mention company of MAS Cargo, MASwings, MAS Aerotechnologies and etc. Malaysia Airlines as the corporate raise can achieve a lot of profit if they integrate all of its s ubsidiaries company as an individual business unit. Malaysia Airlines can save cost in managing all of its subsidiaries company. non just that, a proper integration between the subsidiaries company can help Malaysia Airlines to derive its economic home base that will further move them in accomplishing their intentions. Concurrently, Malaysia Airlines can help its subsidiaries company and put them into an advantage where they can make use ofMalaysia Airlines expertise and resources. As a result of that, Malaysia Airlines subsidiaries company will be enhance in controlling their budget, making decision and planning process. Nevertheless, if any economic catastrophes occur, therefore, it will become detriment for Malaysia Airlines if its subsidiaries company is in the economic crisis.3.2.3 Strategic EvaluationIn following the variety formulation strategic plan, strategic evaluation is the most important part before implementing all of the strategies that been plan. The strategies w ill be evaluate and assess to find out its efficiency. In addition, the consistency of the strategies must be in a long term where the use of the strategies itself can benefit Malaysia Airlines in the coming years rather than being a yearly plan. Its obvious that not all of the strategies will become a success, but at least an enterprise to evaluate the plan been done in order to minimize the risk. Thus, Malaysia Airlines need to study a proper and the best strategies that can help them in realizing their goal and objectives.3.3 International Strategy and GlobalizationGlobalization is a worldwide issue where customers needs and wants are being standardized. It can cause positive and negative effect on any organization depending on how they cope and make use of the globalization itself as an advantage to them. For instance, the globalization on fuel price, landing fees and aircraft spare part prices are now standardized accordingly. Butluckily Malaysia Airlines have their own resou rces for these three needs where they have their own aircraft maintenance subsidiary company and support from Malaysia government.In marketing their product, Malaysia Airlines can use its global brand name to maximize marketing efficiency. For this reason, Malaysia Airlines should use this opportunity to expand their wing in the international market. Nonetheless, Malaysia Airlines also need to be aware and choose the discipline strategy if they want to penetrate the market.4.0 STRATEGY effectuationWell plan strategies are not going to work well with an organization if its implemented inadequately. In acquire success in implementing the strategies, Malaysia Airlines need to increase their efficiency in communication, managing their resources and improve their employees morale. Leadership also playsits manipulation in making Malaysia Airlines to gain success in implementing the strategies. Therefore, all the staff in Malaysia Airlines should work together in realizing the strategi es to become reality.4.1 Strategic LeadershipThe leader is the only one that can determine the future of any company. Without them, the chances of any company to collapse and shatter will be high. That is because the needs of a leader in a company affect the path of the company whether it can generate income and be victorious or it can only make profit losses and bankruptcy in the end. Not a lot of people can be a great leader but everyone can have the traits of a leader which are visionary, urge on and induce their followers to achieve success.It can be said that Malaysia Airlines leading has weaknesses in scenario planning that causes market share and revenue losses. For this reason, leadership of Malaysia Airlines should apply the vision trait in order to cope with changes and for the sake of the company continuity. When leaders are able to pro the vision trait, it will be easier for them to collaborate, motivate, trust, and mutuality amongst their staff. Plus, the coordina tion and path of Malaysia Airlines will be in the same direction of achieving common objectives that may lead Malaysia Airlines to a biggerindustry.Malaysia Airlines is now operating in a competitive environment. So, the vision of leadership cant be sluggish. Leader task is not just dealings with external factors but also playing an important map on observing employees attitude. Therefore, a leader should know and oblige to inspire and motivate employees if theyre lacking with something that will affect the vision of the company. Giving the employees rewards are the best thing to do in making the company vision to become a reality.Leader needs to be proactive in handling situation. The needs of keeping the vision on the right track and the same time observe its progress is necessary so that Malaysia Airlines will be more prepare in enduring and responding towards the changes that come. Moreover, democratic leader is important where the leaders itself can put themselves with the employees and pass on with the employees. Encouragement and understanding can be developing with the employees if any conflict happen and then settle together as a team. By doing this, the work rate and performance of Malaysia Airlines will improve and in the end will increase the profit and maximizes the resources that they have.4.2 Change ManagementCompetitiveness in airlines industry has become fiercer than before. Due to that, Malaysia Airlines should be ready to embrace and adapt to changes in order to compete in the market. In achieving this, Malaysia Airlines should improve their state variability management. This is because every state division especially in Sarawak is having trouble with the competitiveness from low cost airlines such as Air Asia and the new low cost airline, Malindo Air. Therefore, Malaysia Airlines should take a strategic change to their state division in coping with the external environment. execrable leadership has been one of many factors that cost t heir profit losses and customer loyalty. By implying a proper marketing strategy, Malaysia Airlines will be able to challenge the local airline industry. Adding to that, improvement in every managing structure in each state division is amust since the capabilities and set of skills of each employee can be noncurrent under some circumstances. Thus, changes and improvements are needed in order to comply with customers needs and achieving goals.4.3 Role of Systems splendid plan strategies wont work unless leaders and human resources play their role in implementing the strategies.4.3.1 organisational StructureOrganizational structure is a fundamental that can affect the strategy implementation. Effective use of labor by giving specific task can contribute an advantage in competing in the industry. In general, the four organizational structures are functional, divisional, entrepreneurial and matrix.Malaysia Airlines are now using divisional structure to conduct their corporate parenting by dividing resources in each division. It is essential for them in order to gain profit. Using this structure, Malaysia Airlines are change the power of making decision to each division and that give a clearer goal to the employees to achieve. Nevertheless, the plentiful number of divisions will cost a lot and sharing of intimacy will be lesser. To respond to that, Malaysia Airlines should manage all the division under one command center by using network structure and all the information gathered need to be genic to headquarter.4.3.2 Organizational ProcessMalaysia Airlines organizational processes are of consist of entrepreneurial and competence- create. In entrepreneurial process, employees will bemotivated by delegating some tasks to them that of course will increase their field of view and efficiency compared to fixed control. In building competency, employee differences of capabilities will be given a specific task to them in order to gain trust amongst the Malaysia Airli nes and the employees itself. By implementing this, a more proactive and efficient manpower can be produced in the process of achieving the goals.4.3.3 Strategic Control SystemsIn improving the employees performance and at the same time retaining their performance, control and reward systems are a must. Well rewarded employees undoubtedly will perform very well. By implementing this, Malaysia Airlines can manage to deliver consistent services to their customers. Plus, motivated work force sure enough will lead Malaysia Airlines to gain profit. As a result of that, employees that perform with chastity and if the satisfaction towards their job are high, the luck of staying longer with Malaysia Airlines are also high. Thus, this will surely eliminate the cost of aspect for new employees.Malaysia Airlines as corporate parent also need to use control and reward system in order to increase the motivation of the employees to achieve goals that being set. By means of giving them reward based on their performance, the employees inclination of an orbit of performing at their best most likely will be high. By doing this, a more standardize employee performance can be achieved. In addition, controlling the employees is not necessarily being strict with them but being understanding is the superior option to choose where employees automatically will increase their work rate that will lead Malaysia Airlines to compete vigorously in the industry.4.3.4 Corporate GovernanceCorporate authorities is where business is managed for the shareholder according to the right and wishes of the stakeholder. It is also where an organization is responsible for the stakeholders interest in the organization itself. Corporate government activity ensures that the stakeholderreceives something in the forms of money or others.Malaysia Airlines should take the approach in implementing what they want to do to the stakeholder so that the stakeholder will feel secure. Openness with stakeholder is a must where companys finance and planmust be share to win their trust. Any decisionsare made by Malaysia Airlines can affect stakeholder trust. Hence, leadership and management of the organization are responsible in balancing the needs of stakeholders. Finally, a more synchronize and efficient corporate governance is necessary in planning strategies which can fit the organizational structure that in the endgetting control of the market. mop upStrategic management is very important for every organisation. Small organisation to teras organisation requires strategic management to expand and improve their managing ability. Adding to that, it can also help them to compete in the industry where all the strategies can be used to cope with the industry competitiveness itself. Strategic analysis, scenario planning, PEST and SWOT analysis, Porter five forces, strategic formulation, strategic implementation and other strategies are important to imply within the organization. Not just for the sake of getting profit, but also for long term future. All of the strategies mentioned above can help Malaysia Airlines to increase their profits and cover their losses.Not just that, the strategies also can help dealing with the external factors such as competitors, policies, and most importantly the internal environment itself. Efficiency, cost saving and opportunity exploitation can be achieved if the strategies are carried out with proper planning. In conclusion, strategic management are not just a strategy but it can make as a stepping stone to achieve success where it can be used to analyze strengths and weaknesses that surely will put Malaysia Airlines at great advantages.ReferencesAnsoff, I. (1965), corporate Strategy, McGraw-Hill, New York. annual Report 2011. 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