Management 110: Assessment 2
1. Case study
I choose Malaysia Airline System (MAS) because the whole world is focusing on Malaysia recently and especially Malaysia Airline due to the miserable crash of MH370. According to international newspapers and articles, I have found that MAS has plenty of debts and it occurred because of wrong management. Some presses refer to MAS is able to be bankrupted by the tremendous compensation of MH370. Therefore, I choose MAS in order to revive and overcome from poor management.
2. Contemporary management issue in relation to this article
Issue: Poor management leads Malaysia Airline to billions of debt, MAS needs government rescue.
Background and ...view middle of the document...
Depart from MAS, Airasia had successfully achieved the growth of legitimacy air travel by attracting budget leisure travelers. The difference between MAS and AirAsia is the low price of air travel and AirAsia engages in price cutting measures. (Tengku Bahar, 2014) Franchising strategy offers to deal with unpredictable operating conditions and it can secure the diverse routes not only domestic but also international line. Franchising leads to an effective operation and proposes low cost through the competition.
Intellectual Capital: Human Capital is a significant role for recent airline industry. MAS can train the employees in order to be multi-tasking crews. (Jones, Gareth 2014) If they work as a team, the effectiveness may be incredible advantages. As a result, the corporation may achieve low-cost consumption for human capital.
3. Discussion and Analysis
In Malaysia, the industry of airline service is an oligopoly structure, which includes Malaysia Airline System, AirAsia and Firefly. However, the problem is poor management leads MAS to its financial disaster. "So much money wasted," Fernandes said. "I wonder if it's fair that Malaysia Airlines can lose so much money and protect its market share."(Shazwan Mustafa Kamal, 2014) MAS only focuses on complex structure of fare and yield management. In competitive industry, MAS’s financial status is getting worse and just need a rescue through government. However, if MAS does not change their management strategy or benchmark from...