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Kentucky Friend Chicken And The Global Fast Food Industry

Essay by 24  •  December 12, 2010  •  9,852 Words (40 Pages)  •  1,212 Views

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4.0 PEST ANALYSIS

The remote environment comprises factors that originate beyond, and usually irrespective of, any single firm's operating section: social, political, economic, technological and ecological factors. That environment presents firms with opportunities, threats, and constraints, but rarely does a single firm exert any meaningful reciprocal influence.

4.1 Social Factors

The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm's external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning. Malaysians become more enjoy holidays now's a day, some family planned go for vacation on the year end. It was very helpful for airlines industry, because they can travel by air which was more convenience. The changing of the Malaysians lifestyle wills brighter the future of the airline industry in Malaysia. With the increase of the Per Capital Gross National Income from RM18,040 (2005) to RM18,795 (first quarter of 2006) . Malaysian become more affordable to travel by air, because they having more extra money.

4.2 Political Factors

Political constraints are placed on firms through fair-trade decisions, antitrust laws, tax programs, minimum wage legislation, pollution and pricing policies, administrative jawboning, and many other actions aimed at protecting employees, customers, the general public, and the environment. Political factor very important to make sure the growth of the airlines industry in Malaysia. With the peaceful environment, Malaysia became one of the world's attractive travel destinations. This will increase more people used airlines to travel. So, for the growth of MAS, Malaysia must always peace and having good relationship with all countries.

4.3 Economic Factors

Economic factors concern the nature and direction of the economy in which a firm operates. Because consumption patterns are affected by the relative affluence of various market segments, each firm must consider economic trends in the segments that affect its industry. On both the national and international level, managers must consider the general availability of credit, the level of disposable income, and the propensity of people to spend. Prime interest rates, inflation rates, and trends in the growth of the gross national product are other economic factors they should monitor. The growing of the economy of Malaysia wills encourage the growing of the airlines industry at Malaysia. The Gross Domestic Income for 2005 is RM471, 331 Million and for first quarter is RM124,275 Million . The increase of GDI shows that Malaysian becomes more affordable to travel by air.

4.4 Technology Factors

To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry. Creative technological adoptions can suggest possibilities for new products or for improvements in existing products or in manufacturing and marketing techniques. The quasi science of anticipating environmental and competitive changes and estimating their importance to an organization's operations. Technological forecasting can help protect and improve the profitability of firms in growing industries. It alerts strategic managers to both impending challenges and promising opportunities. The development of an industry can not achieve without the development of the technology for that industry. So MAS must improve their technology to survive in this airline industry, which are high tech based industry.

4.5 Ecological Factors

The term ecology refers to the relationships among human beings and other living things and the air, soil, and water that support them. Threats to our life-supporting ecology caused principally by human activities in an industrial society are commonly referred to as pollution. Specific concerns include global warming, loss of habitat and biodiversity, as well as air, water, and land pollution. Airlines industry brings air pollution to the public, especially if the airport is build near the housing areas. This is because the operate of fleet will make high frequency sounds which cannot accept by human. It can damage human's hearing.

5.0 CORPORATE STRATEGY

According to www.wikipedia.org, an organization's strategy must be appropriate for its resources, environmental circumstances, and core objectives. The process involves matching the company's strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently. A good corporate strategy should integrate an organization's goals, policies, and action sequences (tactics) into a cohesive whole, and must be based on business realities. Business enterprises can fail despite 'excellent' strategy because the world changes in a way they failed to understand.

5.1 MAS Strategy (Defensive Strategy) - Turnaround Strategy

Since early December 2005, the MAS' management team has dedicated itself to the development of a plan that builds off the actions taken by the Board in 2005 to begin the turnaround. This turnaround plan will not only reverse the loss and return MAS to profitability, but also transform the company into a strong and vibrant institution - one that is capable of withstanding external shocks and aggressively tackling new opportunities.

MAS' Business Turnaround Plan has been developed using the GLC Transformation Manual as a guide. It takes into account the recommendations in the manual and adapts these for implementation in MAS in the context of the business turnaround. The plan has five central thrusts, which is flying to win customers, mastering operational excellence, financing and aligning the business on profit and loss, unleashing talents and capabilities and winning coalitions. This plan will enable MAS to realize a net income of RM500 million in 2008 - an all-time high profit for MAS and to be well positioned to improve its net income even further.

5.1.1 Flying to Win Customers

MAS reconfigure their network and

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