Strategic Management

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UGB202

Introduction to Strategic Management

Individual Report on the Application of the Strategic Management Process

Module Leader: Mathew Teale

Module Tutor: Adeline Sim

Student Name: Adrian Eu Suk King

Student ID: SCSWBABM 1111003

Submission Date: 11 May  2013

Executive Summary

This assignment requires a writer to write a report of any organisation which is involved in transportation and communication industry. The aim and purpose of this report is to examine the strategic management process to one of the industries. The strategic management process will be more emphasise in this report where its importance in the organisation play an important factor in order for the organisation to grow and expand. Malaysia Airlines (MAS) have been chosen as an organisation for this report. Malaysia Airlines is a commercial air travel organisation where they provide transportation service throughout the world, specifically 850 destinations in 150 countries. The organisation company profile will explain more about the history of the organisation itself which are the founder of the organisation, the year it start its services, location, service range, revenue and turnover report. After that, a strategic analysis of the Malaysia Airlines will be explained more which includes general environment, internal environment and competitive environment. In general environment, the weakness of the organisation needs to analyse before the problems and weaknesses itself will take toll towards the organisation. The tool which is going to be used to overcome the weaknesses are pest analysis and swot analysis which consecutively serve its purposes to analyse internal and external factors.  In internal environment, a situation that can impact Malaysia Airlines business will be evaluated. It is divided into two categories, value chain analysis and resource based view. Value chain analysis will be used to add value to the organisation itself while resource based view will be use to explain how the resources of the organisation can be use to become an advantage, competitively. After done doing that, strategic formulation is needed for Malaysia Airlines. A proper plan and strategy are needed to achieve the organisation main objectives. Business level strategy and corporate level strategy will be use to explain the competitive advantage and how corporate parent helps its subsidiary company to grow and expand. International strategy is also in included in the strategic formulation in order for Malaysia Airlines to develop its level of competencies and future potential in international arena. Implementation of that international strategy will take to action after evaluation and analysis. In the implementation strategy, a leader with a broad scope of vision and mission is needed in order for the action plan to become reality. With a great leadership skill, the employees will be inspired to work more efficient to achieve the objective that had been set. All the explanation above are supported with proper references using journals, books, internet, articles and updated data from Malaysia Airlines from its company report. Lastly, a conclusion will be made to conclude all of the information from the report.

TABLE OF CONTENT

Executive summary.........................................................................................................................i

1.0 Introduction..............................................................................................................................1

1.1 Company Profile.......................................................................................................................1

2.0 Strategic Analysis.....................................................................................................................2

2.1 General Environment................................................................................................................2

2.1.1 Scenario Planning...................................................................................................................2

2.1.2 Pest Analysis........................................................................................................................3-4

2.1.3 Swot Analysis........................................................................................................................5

2.2 Competitive Environment.........................................................................................................6

2.2.1 Porter’s Five Forces.............................................................................................................6-7

2.2.2 Strategic Groups....................................................................................................................7

2.3 Internal Environment................................................................................................................7