sohaib sadeq mohammed 216188 nor syairah bt mohamed 221403 nur ruqshana bt habibur rehman 222215...
TRANSCRIPT
SOHAIB SADEQ MOHAMMED 216188NOR SYAIRAH BT MOHAMED 221403
NUR RUQSHANA BT HABIBUR REHMAN 222215
Group 7
HOW BUSINESS FIRMS ADAPT BUSINESS STRATEGIES TO TARGET A FAIR SHARE OF THEIR POTINTIOAL CUSTOMER? TAKING MALAYSIA (MAS), HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY?
INTRODUCTION
• Malaysia Airlines (MAS) flies thousands of passengers daily with many opting for the airline to enjoy the typical "Malaysian hospitality".
• The national flag carrier posted record losses of RM2.5 billion in 2011• The losses continued in 2012 and 2013 • losses up to RM2 billion 2014. • 2014 the loss of flight MH370 and the tragic MH17 flight
that was shot down in Ukraine.
LINK
HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY?
WHO IS HE??
HOW IS MAS SEEN IN DOING THIS AND RETURN
TO ITS FORMER GLORY?1. Creation of NewCo.• Delist of MAS OldCo by the end of 2014
2. Funding of up to RM6.0 billion on a strict conditional basis • Delist of MAS OldCo – RM1.4b• Restructuring and retrenchment – RM1.6b• Capital injected – RM3.0b
3. Reset the operating business model through a more regionally network, lower cost structure and greater emphasis on revenue yield management
HOW IS MAS SEEN IN DOING THIS AND RETURN
TO ITS FORMER GLORY?
4. MAS relocation to KLIA from Subang.
5. Strengthening of the assurance, integrity and safety functions. • To reassure the customer back due to the incident
happen recently.
6. Review and, where appropriate, renegotiate supply contracts• Renegotiate with catering supplier
STRENGTHEN LEADERSHIP
The transition period between OldCo and NewCo
over the next 10 months to 1 July 2015 will see
significant changes to leadership that will be
executed in an orderly fashion.
The search process involves reviewing both local
Malaysian leadership talent, as well as from global
aviation industry executives. The final decision on
the CEO of NewCo will be made in consultation with
the Special Shareholder, the Minister of Finance,
Incorporated.
RIGHT-SIZE THE WORKFORCE TO AN ESTIMATED
14,000 EMPLOYEES AT NEWCO
It is estimated that NewCo will require a workforce of
approximately 14,000;
This is a net reduction of 6,000 (or 30%) from the
approximately 20,000 employees currently at OldCo.
Khazanah is nonetheless committed to ensuring that the
process of transfer, migration, and separation is
conducted with utmost care, fairness and due process.
HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY?
Strengthen industrial relations and
internal alignment
A critical component of the MAS Recovery Plan
involves significantly improved industrial relations;
and
New measures and practices, including an
enhanced Employee Consultative Panel (“ECP”) to
better align staff, unions, and management, are
critical conditions of the MAS Recovery Plan.
Reskilling, job creation, and redeployment
Khazanah will invest in a Corporate Reskilling Centre
(“CRC”), to be located in the Subang area, to specifically
address the reskilling of appropriate MAS staff who do not
migrate to NewCo.
Khazanah envisages that this will involve a reskilling and
redeployment programme and the active creation of new
jobs.
APPROPRIATE GOVERNMENT SUPPORT
ON KEY INITIATIVES
Subject to Parliamentary approval, the enactment of
appropriate enabling legislation including a
standalone Act specific to MAS, with a finite period,
to facilitate the restructuring in a comprehensive
and timely manner; and
The establishment of an Aviation Commission.
CONTINUOUS COMMUNICATION
AND STAKEHOLDER
ENGAGEMENT
Regular communications and engagement
with key external stakeholders; and
Periodic public accountability briefings.
• The plane is targeted to return to profitability within 3 years of delisting, and to relist within 3 to 5 years, that is between the end of 2017 and the ends of 2019. • “The turnaround plan will enable MAS to come up
with compelling strategies and steps to take in improving its fortunes. The turn around plan provides determination for the national flag carrier in operating effectively and competitively with the destinations in Asia being its priority.” - Dr Syed Raisudin Syed Abdullah
CONCLUSION