Host country political and legal environment of airasia

AirAsia has little exposure to credit risk as it does not lend money to any external parties. It also actively sponsors Malaysian organizations on the basics of charity and Corporate Social Responsibility. These include productivity and performance-based bonuses, shares and stock options.

It was noticeable that some Asian countries established open-skies agreements while others allowed the entry of private airlines. As long as it successfully understands its environment, Wal-Mart can address all issues including its Global Responsibilityits growth will not be limited and it will operate successfully.

This includes the acquisition of more fuel-efficient aircraft A so that the company can have sufficient capacity to meet the growing needs and demands of their customers as well as to continue to keep its cost low. These allow them to cross promote routes and promote greater synergy between their subsidiaries.

Question 2 The construct of cost leadership strategy emphasizes on lowest costs, though not necessarily the lowest price, in the market. In the latewhen then executive of Warner Music wanted to established an airline in Malaysia, he went and meet with Tun Dr. In alone, it was carrying almost 18 million passengers.

All these help lower fixed costs. However due to this, AirAsia learned to adapt and the emphasize in building relationship with the powers to be. Limited aircraft causes AirAsia was cannot prepare of standby aircraft if there is any problem in the operation.

Bagaimana sebuah negara persekitaran politik dan undang2 antarabangsa memberi kesan kepada syarikat Malaysia dalam aktiviti pemasaran antarabangsa mereka.

Although rapid growth and increased trade and businesses may intensify competition entrance of other LCCs and even lead to full-service airlines start cut costs to complete, it can present opportunities for airlines to enlarge their markets.

Apart them, they try to connect and engage with consumers by talking about sports and other social issues.

Airasia Weakness

It seeks to keep cost low by offering no frills experience. This presents an opportunity for all LCCs to increase their revenues by offering travelling at a much lower fare.

Airasia Weakness

As many secondary airports were older, they were often close to urban areas and were thus more attractive to some travelers. In the management level, all the staff of AirAsia was the contributors where there are no ranks or hierarchy in the company where the upper management and their staff will be in the same room.

As such, these airlines do not directly pose as strong rivalry to AirAsia at this point in time. Like Indonesia, India does not allow majority ownership in domestic Airlines.

With such huge reserves and low debt-to-asset ratio, Air Asia is thus capable of generating internal funds to finance any expansion.

Host Country Political and Legal Environment Affect of Airasia

In the long run, it was forced to drop this product line for good thus halting its overall growth. In the US, the company is facing a major high interest rate challenge, high energy and fuel cost, unemployment and high inflation rate.

They actively support Tourism Malaysia campaign. The internal analysis on the company below will answer the question.

Host Country Political and Legal Environment Affect of Airasia

AirAsia wanted to be an airline that operates on average man basis in the street of being in a position to pay for flights. With this in mind, let us discuss how the following strategic actions adopted by AirAsia support its cost leadership strategy.

In addition, it also emphasizes cost deduction so intensely that in-flight ovens must not be overheated and that cabin lights switched off at appropriate times. Therefore, the success of the company largely depends on how a host country trends socially.

AirAsia purchased insurance policies to mitigate pure risk although it is done and operated a bit differently as it adopts an integrated approach risk management that goes beyond the traditional parameters of what is insurable.

If government announce that any flight from Malaysia to country that was having crisis, will affect AirAsia and any flight schedule will be delay until there is an announcement again from government. Host Country Political and Legal Environment Affect of Airasia in International Marketing; Host Country Political and Legal Environment Affect of Airasia in International Marketing.

Words Nov 6th How does a host country political and international legal environment or trade barrier affect the Malaysian companies in their international.

In the largest case to date, on September 6,the CAC found national carrier Malaysian Airlines and budget airline AirAsia to have breached the Competition.

Sample Essay on PESTEL Analysis on Airasia PESTEL Analysis on Airasia A closer look at PESTEL analysis on AirAsia Political. Population growth affects sales of AirAsia. Increasing population in the country increases sales of the airline bearing in mind that many clients prefer affordable services.

Demand for products and services have.

Sample Essay on PESTEL EL Analysis for Wal-Mart

Therefore, the prevailing political environment, currency regulation, legal and economic constraints, intellectual property rights and tax system affect its operations.

The global operations of the organization have a larger impact on the laws and regulations of a host nation for instance, Indian government. Legal and political environment • This environment is composed of laws, government agencies, and pressure groups that influence and limit various organizations and individuals.

• Sometimes these laws create new opportunities for business.

Host country political and legal environment of airasia
Rated 3/5 based on 89 review
Sample Essay on PESTEL Analysis on Airasia -