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1.0 Introduction The The purp purpos osee of this this assig assignm nmen entt is to iden identi tify fy the the type typess of envi enviro ronm nmen entt face faced d orga organi nisat satio ion n and and to disc discus usss the the appr approp opri riate ate chan change ge appr approa oach ch that that can can be used used
organisation, based on the framework for change developed developed by Burnes (00!". (00!". The comp chosen for the purpose of this assignment is #ir #sia Berhad. It is an airline which
established in 1$$% and starte
operations on 1& 'ovember 1
)n *ecember 001, the hea
indebted airline was purchase its
current
+roup
-)
ernande/s (igure 1" via Tune
dn Bhd for the token sum of
1.00. The principal activity of ompany
is
providing
transportation services. #ir#sias core business activities include low4cost and afford
airfares, in4flight services that promote 3alaysian hospitality with a huge variety of the l
food and offering, internet and mobile services as mediums for check4in and bookin
tickets. tickets. Besides Besides that, lately #ir #sia also offers services such as low fare finder, finder, custom
travel, inflight comforts, island 5 city transfers fly direct, ly4Thru or self4connect insur
destination highlights, TuneTalk sim card and airport bus ticketing. The airline also allow passengers to e6perience a new level of shopping on board by preplanning their
e6clusive gifts and souvenirs with #ir #sias catalogues. These inflight duty free catalo
known known semester as kyho kyhop p offers offwith ers great greScribd at saving savingss on perfum perfumes, es, cosmetic cosmetics, s, skinca skincare, re, 8ewe Master your Read Free Foron 30this Days Sign up to vote title #ir confectionary and many more on board #ir #sia aircrafts. The development phase of & The New York Times Useful Not useful Cancel anytime.
it pioneered the short4haul low4cost carrier (9" model in #-#' in 00 Special offer forstarted students:since Only $4.99/month.
has grown from a domestic airline in 3alaysia to the leading low4cost airline in #sia ser
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2.0 Identification of the types of environments and the focus of change by organisation.
The types of e6ternal environment that causes the airline company to be adaptive to chan and areas that the company need to focus on changing will be discussed in this section. Types of environment
The airline industry has contributed to the globali/ation of the world econom connects buyers and sellers. It also transports goods across nations. It breaks the barri
distance and time. 9ike any other business, the airline industry is impacted by changes i
e6ternal environment. In this paper well use the :olitical, -conomic, ocial, Technolog -nvironmental, and 9egal framework to analyse the airline industry. ;ell also look at the frameworks factors influence the airline industrys fundamentals and
management can be applied based on ramework for hange suggested by Bernard Bu
(00!". 9ike any other industries, #ir #sias platform is also very sensitive to changes in
environmental factors. >owever, the factors arent controlled directly by the You're Reading a Preview companies in the industry. ompanies are forced to alter their business models, pric Unlock full access with a free trial.
revenue, and cost structures to suit their customers changing needs in different econo
conditions. #s a result, knowledgeDownload of the trends the economic life cycle can help pre Withand Free Trial
e6ternal opportunities. It can also predict risk factors for #ir #sia in investing in the indu
The ma8or players in the 3alaysian airline industry including 3alaysian #irline (3#
3alindo #irlines and irefly #irlines have contributed significantly to the growth in
travel. The companies have added customi/ed services and capacity e6pansion to cater to industrys demands. Master your semester with Scribd Read Free Foron 30this Days Sign up to vote title & The New York Times Useful Not useful :olitical and legal factors include government intervention on economic operations Special offer for students: Only $4.99/month.
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particular industry. #irlines operate in a political environment thats very regulated
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The airline industry is widely impacted by regulations and restrictions related to internati
trade, ta6 policy, and competition. Its also impacted by issues like war, terrorism, and
outbreak of diseases such as -bola. These issues are political. #s a result, they re@ government intervention.
# healthy economy acts as a catalyst for industrial growth. -conomic health is also meas by various economic indicators. -6amples of economic indicators include growth in
domestic product (or +*:", per capital income, disposable income, industrial produc
level of business, and consumer confidence. luctuation in oil prices at global level is ano ma8or factor that impacts airlines profitability. 9ike most industries, 3alaysian
industry is impacted by the economic cycles peaks and troughs. The current growt
developed economies like A.. thats driven by the loosening monetary policy has resulte
a rise in business confidence in #sia, industrial production, and international trade (*eim 01". #ll of these results act as catalysts for #ir #sia and the overall airline industry. The demand for air travel in 3alaysia has increased significantly over the years. indicates changing travel preferences among the latest generation. *emographic factors You're Reading a Preview
an important role in forecasting Unlock demand and with future full access a freetravel trial. preferences. or e6ample,
future of 3alaysias travel and tourism will be defined by the growth in the millen Download With Free Trial generation. This generation includes 1<%! year olds. 2etiring baby boomers, people were born between 1$! and 1$! spending on travel is e6pected to decrease. #ccord
Boston onsulting +roups (or B+" research, the millennial generation is the future of
travel and tourism industry. urrently, the travel industry is driven by baby boomers tr
needs. In the ne6t five to ten years the millennial generation will enter their peak earn
Master your semester with Scribd spending, and traveling years. Their spending on business is Read Free Fore6pected 30this Days Signtravel up to vote on titleto grow by = & The New York Times Useful Not useful ne6t 1= of the total by 00. Its e6pected to remain strong for the years after that. Special offer for students: Only $4.99/month.
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Technological advancement has been the driving factor for improving airlines operati
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before. #irlines need to make large and ongoing improvements to operate more efficie
;ith few e6ceptions, the most successful airlines are those with the strictest cost cont
The biggest lever to reduce costs lies in fuel efficiency, as 8et fuel typically accounts for ! == percent of operating e6penses. The rapid growth of air travel in developing markets, as 9atin #merica and especially #sia, is shifting the industrys centre of gravity. #ir
shoul continue to e6perience above4average growth rates for the industry, particularl
emerging economies with many first4time fliers. ;orth noting, however, is that 9ow arrier (9" also increasingly faces rising customer e6pectations, especially in m
markets. #ir #sia should focus on the right balance between making investments to imp the e6perience they offer and maintaining their cost advantage.
3.0 Description on the framework for change.
hange management has been defined as the process of continually renewi organi/ations direction, structure, and capabilities to serve the ever4changing nee You're Reading a Preview e6ternal and internal customers. #ccording to Burnes (00!", change is an ever4p Unlock full access with a free trial.
feature of organisational life, both at an operational and strategic level. Therefore, t
should be no doubt regarding theDownload importance to Free any Trial organisation of its ability to iden With
where it needs to be in the future, and how to manage the changes re@uired getting th
onse@uently, organisational change cannot be separated from organisational strategy, or
versa (Burnes, 00!C 2ieley and larkson, 001". The framework for change designed Burnes is as shown in the figure 1 below?4
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#ccording to Darnemelk, the framework above consists of >ori/ontal a6is and Eertical as shown. In the hori/ontal a6is change management is more on slow chan
transformation vs rapid change 5 transformation. #lthough circumstances often change in
blink of an eye, organi/ations tend to change at a slower pace. -ven the most motiv
companies welcome change often encounter stumbling blocks that make transformation m
complicated than theyFd originally anticipated. ;hether they are looking forward to a me
or trying to convince employees to embrace a new procedure, immediate results are
e6pected. Instead, they recogni/e that real change happens slow and steady. The vertical
highlights turbulent on environment 5 large4scale vs. stable environment 5 small4s
changes. #gainst a backdrop of increasing globalisation, deregulation, the rapid pac technological innovation, a growing knowledge workforce, and shifting socia
demographic trends, few would dispute that the primary task for management today is leadership
organisational change. #ll this uncertainty poses a tremendous challenge for strategy mak You're Preview Thats because traditional approaches to Reading strategyathough often seen as the answer to Unlock access withstable a free trial. and uncertainty actually assume a full relatively and predictable world. #
environment is one with little or no une6pected or sudden change. >owever, it is difficu Download With Free Trial find stable environment because of changes in technology, society and other spheres.
The four @uadrants in the framework for change above could be identified and e6pla
individually. The combination of @uadrant 1 and e6plains situations where organi/at
need to make large4scale, organi/ation4wide changes to culture or structure. In @uadrant %
Master your with @uadrantsemester ! organi/ations need Scribd to make relatively small4scale, locali/ed ad8ustmen Read Free Foron 30this Days Sign up to vote title attitudes and behaviours of @uadrant 1 and @uadra & The New York Times or tasks and procedures. ombination Useful Not useful Cancel anytime.
Special offer forfocuses students: on Onlychange $4.99/month. in the human side of the organi/ation such as cultural, attitudinal an
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as it concerns the entire organi/ation is a vital factor of @uadrant . Huadrant % emphasi/
changes aimed at the individual and group level to improve performance through change the technical side, small4scale and little implications for attitude and behaviour,
approach depends on the organi/ational structure. The outmost significance of @uadrant small4scale initiatives with the main ob8ective of performance improvement th
attitudinal and behavioural change at the individual and group level. :lanned changes
appropriate with regard to the matri6, it has often proven difficult to identify where
organi/ation falls on the continuum. >owever, the real issue is to identify the main focu the change.
#ccording to Burnes, since the need for change often is unpredictable, it tends to be reac
discontinuous, ad hoc and often triggered by a situation of organisational crisis. -ven tho it
is
difficult
organisational
to
change
identify
any
management,
consensus there
seems
regarding to
be
an
a
framework
agreement
o
important issues. irstly, it is agreed that the pace of change has never
greater than in the current business environment. econdly, there is a consensus that cha You're Reading a Preview being triggered by internal or e6ternal factors, comes in all shapes, forms and si/es Unlock full access with a free trial.
therefore, affects all organisations in all industries.
Download With Free Trial )verall, the ramework for hange by Bernard Burnes (00!" allows approaches to cha
to be matched to environmental conditions and organisational constraints are
attractive. In this case, the concepts which focus on identify the range of situations w
organi/ations face and match these to a widely group of approaches. By controlling
managing, the key varieties of change in the organi/ation situations is important fo
Master your semester with Scribd organi/ations that have better choices in what to change, how to change and whento chan Read Free Foron 30this Days Sign up to vote title & The New York Times Useful Not useful Special offer for students: Only $4.99/month.
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perhaps even increase margins (2. T. (00=". The way airlines react to and navigate trends playing out across the globe will determine carrier performance.
irst of all in the case #ir #sias industry, safety is the paramount of all its business activ
In 01% there were some %.! million flights and 1 fatal accidents which mark a signifi turbulent environment for the airline industry. But accidents do happen. or e6ample,
the last two % years 3alaysia had some sad reminders of that reality. The two trage
involving 3alaysia #irlines are still fresh in all of our minds. )n the other note, #ir#
light H&=01 crashed into the Java ea off Borneo shortly after take4off on & *ecem
01! with no survivors. The safety features best relates to the turbulent environment large scale transformation and the environmental factor involved is technol
advancement. lying today is e6tremely safe. It wasnt always that way. In the early da was a risky business. But right from the beginning there was a transformation
governments and industry that safety was not a competitive issue. #nd there has always b
great cooperation among all the industrys stakeholders in efforts to make flying ever s
(3atai, 011". #s mentioned earlier, this change is initiated in the e6ternal environment, You're Reading a Preview this re@uires #ir #sia to change in order to remain effective. In the case of a Unlock full access with a free trial.
3anagement ystem, its acceptance as a good global safety practices. The e6
environment with respect to any Download firm or collection firms in a similar industry ca With Free of Trial characteri/ed by the amount of change that is occurring overtime in the environment. approach is known as bold stroke in the framework. The social and demographic factor best matches with @uadrant ! where it focu
individual 5 group on their attitudes and behaviours. :lanned change is the approach t
Master your semester with Scribd social implemented in this conte6t. This will provide a better of how Read Free Foron 30this Days Signunderstanding up to vote title & The New York Times Useful Not useful the factors influence demographic factors influence air travel. It will alsoshow how Special offer for students: Only $4.99/month.
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#sias strategies to adapt to the changing trends. or e 6ample, knowledge of different gro
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more difficult to implement. Typically, such changes entail a wholesale behavioural
cultural shift within the organi/ation, particularly for frontline, customer4facing employee
The economic environment best handled by @uadrant 1 from the ramework to hange w
focus on the organisation, culture and emergent change. -mergent change is based on
assumption that change is a continuous, open4ended and unpredictable process of alig and realigning an organisation to its changing environment (Burnes, 00$". Taking
consideration of volatile economic condition and government regulations of 3alaysia w
will continue to limit much consolidation, #ir #sia should slowly change its direction
continue to seek partnerships that can complement and even improve what they do bes
most cases, corporate level changes to partnerships will be more targeted and synergi
Those alliances allow route sharing on a broad basis, but they arent tailored narrowly eno
to allow airlines to strategically fill in specific gaps. or e6ample, according to hank
(01!" Hantas which was already part of the one world alliance recently forged su
targeted partnership with -mirates. Hantas did not have the traffic to fly profitably to mul
cities in -urope, yet that was a significant demand among its loyal customer base. -mir You're Reading a Preview by contrast, had sufficient demand to access a large number of destinations in -urope, Unlock full access with a free trial.
did not have a loyal base of local customers in #ustralia. The new partnership gives Ha
access to many more destinationsDownload in -urope, andFree it gives With Trial -mirates access to an e6trem
loyal base of customers. >ence, adapting this approach of emergent change believe benefit #ir #sia as well. Conclusion
Throughout this paper, we analy/ed types of environment that influences #ir #sia Berh Master your semester with Scribd Read Free Foron 30this Days Sign up to vote title change management and the areas that needed to be focused for change by the company. & The New York Times Useful Not useful Cancel anytime.
analyse the airline industrys.environment factors are :olitical, -cono Special offer forframework students: Onlyto $4.99/month.
ocial, Technological, -nvironmental, and 9egal aspects. #ir #sias focus on change note
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#sia to make viable changes here. ollowing the @uadrant, this is a turbulent environm and large scale transformation is needed. #ir #sias option here would be to adapt a
stroke approach by implementing changes in afety 3anagement ystem immediatel bringing change to satisfy the increasing consumer e6pectations the environmental
involved would be social and demographic. #s suggested by @uadrant ! of the framework change management process must focus on individual 5 group on their attitud
behaviours. The approach most viable will be a planned change. It could be impleme
through a slow transformation process by collection of large data and implementatio
strategies from inside and outside of the organisation. inally, @uadrant 1 of the framew
and suggested approaches will best suit the company in adapting to economic environme
factor. This process focuses on the overall organisational level and culture. #n emer
change approach is vital here as #ir #sia should be seeking for partnership to emerg markets with other strong airlines to better handle the environment. 2oute sharing and
sharing basis could be a strategic change management process suggested under this @uad of The ramework for hange by Burnes (00!". You're Reading a Preview Unlock full access with a free trial.
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eferences
ederholm , T. (01!, eptember %". 3ust4know? The role of technology in the airl
industry. 2etrieved 3arch , 01K, from http?GGmarketrealist.comG01!G0$Gm know4the4role4of4technology4in4the4airline4industryG
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layton, #. >. (01!, *ecember 0$". 01= #viation Trends. 2etrieved 3arch 1, 01K, fr
http?GGwww.strategyand.pwc.comGtrendsG01=4aviation4trends You're Reading a Preview *eimler, 3. 2. (01, 3ay K". #daptability? The 'ew ompetitive #dvantage. 2etrie Unlock full access with a free trial.
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%,
01K,
advantage
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https?GGhbr.orgG011G0KGadaptability4the4new4compet Download With Free Trial
3atai, *. (011, 3arch %0". ;hat Is The Dey To urvival In # onstantly hang
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is4the4key4to4survival4in4a4constantly4changing4environment40114%MI2NT5rNA
Master your semester with Indus hankman, . (01!, )ctober 1!".Scribd % Biggest hallengesRead acing the #viation Free For+lobal 30this Days Sign up to vote on title & The New York Times Useful Not useful 2etrieved 3arch %, 01K, from https?GGskift.comG01!G10G1!G%4biggest4challen Special offer for students: Only $4.99/month.
facing4the4global4aviation4industryG
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