Malaysia Airlines Business Plan - 9468 Words

Business Plan Our Way Forward December 2011 Confidential 5 December 2011 Malaysia Airlines is in crisis. Our combined losses in the first three quarters of 2011 have already exceeded RM1.2 billion, and the final numbers for the year will not improve upon this. The core passenger airline business is chronically challenged. The new Board and Management team, in place for three months, has been hard at work on a plan, referred to as the Business Plan, for Malaysia Airlines. This Business Plan outlines our near-term recovery plan to move us to profitability by 2013, as well as a set of ‘game changers’ to sustain our performance and create a platform for continued growth for Malaysia Airlines’ future. Executing this plan is key to our†¦show more content†¦Irrational exuberance in aircraft orders by Asian airlines is engendering a situation of capacity over-supply and excessive price competition. We expect the current Southeast Asian regional fleet to triple in the next decade. Increasing liberalisation also makes it easier for airl ines to compete outside of their home markets. In the US and Europe, this combination of overcapacity and liberalisation has invariably yielded market consolidation, with only the strongest airlines surviving in their original form. Page 5 To make an already bad situation worse, there is the near-term possibility of a global recession emanating from Europe, and stubbornly high jet fuel prices conspiring to create the perfect storm of immediate turbulence. Without question, our current trajectory is unsustainable and nothing short of dramatic action will reverse our fortunes. Our weekly cash losses are in the millions of Ringgit. If we maintain our current business model, we will be out of cash by the middle of the second quarter of 2012. We will be bankrupt. Beyond the loss of 20,000 jobs, this would mean an indefinite end to connectivity with the many global hubs to which we are connected today. It is unthinkable and yet it is entirely possible. With new, expensive aircraft entering our fleet next year, our financing costs will increase markedly. While these new aircraft are larger and generally enable us to fly at a lower per-passenger cost, we must fill these aircraft to realise theShow MoreRelatedMalaysia Airlines966 Words   |  4 PagesStrategy in the Market Place: Malaysia Airlines (MAS) has announced their new business plan for year 2012, aiming to restore their profitability on the premium sector, as to become the preferred premium carrier. (Business Plan, Our Way Forward, December 2011, page7) By achieving the vision as to become the preferred premium carrier, they will be launching a new regional premium airline. In the first half of 2012, they will launch new short-haul brand, flying an entirely new Boeing 737-800 fleetRead MoreTurning Around Malaysia Airlines1428 Words   |  6 Pages Turning Around Malaysia Airlines Turning Around Malaysia Airlines Table of Content NO | TITLE | PAGE | 1.0 | Executive Summary | 1 | 2.0 | Introduction to Case Study | 1 | 3.0 | BTP1 Assessment | 1 | 3.1 | Financial Analysis | 1 | 3.2 | SWOT Analysis (BTP1) | 2 | 3.3 | BTP1 Turnaround Analysis | 2 | 4.0 | BTP2 Assessment | 3 | 5.0 | Bottlenecks amp; Recommendation | 3 | 6.0 | References | 4 | 7.0 | Appendices | 5 | 1.0 Executive Summary Malaysia Airlines (abbreviated MAS), isRead MoreCase Study Questions On Malaysia Airlines797 Words   |  4 Pagesproblems that Malaysia Airlines brand faced and to provide solutions for the problem. Background Information Malaysia Airlines is the flag carrier of Malaysia and a major airline industry that was born on 12 October 1937 (Rise of an Airline, 2014). Their first commercial flight was ten years later on 2 April 1947 as the national airline from British Strait Settlements to Kuala Lumpur (â€Å"Telekom Malaysia and Malaysia Airlines Synergize Business Relationship†, 2007). In the past, Malaysia Airlines have changedRead MoreE-Commerce Strategies for Airasia1576 Words   |  7 PagesAIR ASIA E-COMMERCE STRATEGIES Low cost per average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001Read MoreBenefits Of A Large Global Market Consists Of Malaysia Airlines1486 Words   |  6 PagesMalaysia Airlines is a world-renowned flag carrier that commenced operation in 1972. The airline serves as a symbol of national pride after the formation of Malaysia in 1963, and continues to operate to this day. Following the tumultuous events in recent times, the government carrier has tragically suffered two fatal blows to their brand reputation. Arbitrary missing flights as well as missile shootings forced the company to rethink its strategies. Strengths - Appealing to a large global marketRead MoreThe Missing Malaysia Airline Flight Mh3701672 Words   |  7 Pages Malaysia Airline MH370 Bhavika Ravindra Kitawat Syracuse University â€Æ' Abstract: The missing Malaysia Airline flight MH370 on March 8, 2014 is not only a technical mystery but determines current weaknesses in technical, regulatory and organizational infrastructure of international civil aviation. Safety culture of international civil aviation is the fundamental pillar of success but unfortunately aerial disasters occur. This article discusses about missing Malaysia Airline flight MH370 andRead MoreThe Actors Of Micro Environment1657 Words   |  7 PagesAirAsia Berhad Competitors: †¢ Malaysian Airlines (http://www.malaysiaairlines.com/my/en.html) †¢ Thai Airways (http://www.thaiairways.com) †¢ Singapore Airlines (http://www.singaporeair.com) †¢ Malindo Air (http://www.malindoair.com) †¢ Jetstar Airways (http://www.jetstar.com/au/en/home) †¢ Cathay Pacific (http://www.cathaypacific.com/cx/ms_MY.html) †¢ Emirates (http://www.emirates.com) †¢ Japan Airlines (https://www.jal.com) Suppliers: †¢ Brahim’s Food (Food) †¢ Malaysia Aiports Holdings Berhad (Airport facilities)Read MoreThe Actors Of Micro Environment1585 Words   |  7 PagesAirAsia Berhad Competitors: †¢ Malaysian Airlines (http://www.malaysiaairlines.com/my/en.html) †¢ Thai Airways (http://www.thaiairways.com) †¢ Singapore Airlines (http://www.singaporeair.com) †¢ Malindo Air (http://www.malindoair.com) †¢ Jetstar Airways (http://www.jetstar.com/au/en/home) †¢ Cathay Pacific (http://www.cathaypacific.com/cx/ms_MY.html) †¢ Emirates (http://www.emirates.com) †¢ Japan Airlines (https://www.jal.com) Suppliers: †¢ Brahim’s Food (Food) †¢ Malaysia Aiports Holdings Berhad (Airport facilities)Read MoreThe Success of Air Asia1718 Words   |  7 Pagesvery outstanding company in airline industry and among their competitors in the low-cost career (LCC). I have learned from one of my university course called Airline Business Management that the airline industry is intensively competitive. To survive in this industry the airline business must be strong and has well strategy to overcome every high challenge in the industry. AirAsia has becoming more and more successful. Therefore, I would like to learn more about this airline; learn about their perspectivesRead MoreLeadership Analysis of Antony Fernandes, CEO of AirAsia1698 Words   |  7 Pagesrated as one of the worst performing airlines in Asia. Several years back, it experienced tragic underperformance and reported high levels of losses every fiscal year. This was until another new company bought the organization. The latter company was referred to as Tune Air. The important element discussed in this content, is how the C.E.O of AirAsia, Antony Fernandes, revolutionized the company to a multi-billion dollar corporation, that is operating global airline services and has managed to set standards

Analysis of Service Quality Parameters Among Co-Operative...

Analysis of Service quality parameters among co-operative banks - a study with respect to Kerala Abstract Measuring customer satisfaction is critical in the process of serving the customer. The importance of improving service quality in the banking industry is highly considered for achieving objectives of the industry in whole. Service quality considerations are comparatively less among co-operative banks in the state due to various reasons. An in depth analysis of the service quality perceptions of their customers is essential to achieve sustainable growth for the sector. The perceived quality is normally assessed based on service quality dimensions such as tangibles, reliability, responsiveness, assurance and empathy. The SEVPERF†¦show more content†¦The International Co-operative Alliance (ICA) appointed a new commission to form fundamental principles. The commission in its report submitted in 1966 stated the following as the fundamental principles of co-operation: †¢ Voluntary, open and active membership †¢ Democratic control †¢ Member economic participation †¢ Autonomy and Independence †¢ Education, Training and Information †¢ Co-operation among co-operatives †¢ Concern for community 1.2 History of co-operative movement in India India has basically an agrarian economy with 72% of its total population residing in rural areas. The rural people need lot of services in daily life which are met by village co-operative societies. The seeds of cooperation in India were sown in 1904 when the first Cooperative Societies Act was passed. Since then, the cooperative movement has made significant progress. Cooperatives have extended across the entire country and there are currently an estimated 230 million members nationwide. The cooperative credit system of India has the largest network in the world and cooperatives have advanced more credit in the Indian agricultural sector than commercial banks. The village cooperative societies provide strategic inputs for the agricultural sector, consumer societies to meet their consumption requirements at concessional rates; marketing societies help the farmer to get remunerative prices and co-operative processing units help in value ad ditions to the rawShow MoreRelatedComparative Study of Commercial Banks and Co-Operative Banks20279 Words   |  82 PagesCOMPARATIVE STUDY OF COMMERCIAL BANKS AND CO-OPERATIVE BANKS Introduction The robust macroeconomic environment continued to underpin the financial performance of Indian banks during 2004-05, with major bank groups successfully weathering the impact of an upturn in interest cycle. The demand for credit was broad-based during 2004-05 with agriculture and industry joining the housing and retail sectors to drive up the demand for credit. A sharp increase in net interest income mitigated to a largeRead MoreAn Organisation Study in Apollo Tyres Company10707 Words   |  43 PagesAN ORGANISATIONAL STUDY IN APOLLO TYRES LTD PERAMBRA A Project Report Submitted to Calicut University In partial fulfillment of the requirement for the award Of the Degree of BACHELOR OF BUSINESS ADMINISTRATION By SAJA.K.A Registration no: Under the guidance of SREEJA MISS Department Of Commerce Management Studies ANSAR WOMEN’S COLLEGE PERUMPILAVU CERTIFICATE This is to certify that the mini project entitled â€Å"Organizational Study† is a bonafide record of the work done by SAJA.K.A, RegistrationRead MoreAn Organizational Study Done at Apollo Tyres Company Perambra.10400 Words   |  42 PagesAN ORGANISATIONAL STUDY IN APOLLO TYRES LTD PERAMBRA A Project Report Submitted to Calicut University In partial fulfillment of the requirement for the award Of the Degree of BACHELOR OF BUSINESS ADMINISTRATION CONTENTS CHAPTER NO: TITLE page no:- 1 INTRODUCTION 1 2 Read MoreProblems Faced by Coir Industry Indis11436 Words   |  46 Pagesthat exists for floor covering and other applications. In the meantime, Coconut cultivation also got spread over in many regions other than the traditional areas like Tamil Nadu, in a significant way. Prominent among the states other than Tamil Nadu, which have promoted coir industry, are Kerala, Karnataka, Andhra Pradesh and Orissa. The Coir Industry in Tamil Nadu presently provides direct employment to about 3.60 lakhs persons including those who are employed for part of the year. It is a fact thatRead MoreNbfc13828 Words   |  56 PagesINTRODUCTION: We studied about banks, apart from banks the Indian Financial System has a large number of privately owned, decentralised and small sized financial institutions known as Non-banking financial companies. In recent times, the non-financial companies (NBFCs) have contributed to the Indian economic growth by providing deposit facilities and specialized credit to certain segments of the society such as unorganized sector and small borrowers. In the Indian Financial System, the NBFCs playRead MoreMarketing Management130471 Words   |  522 PagesMarketing Communication Advertising management Sales promotion Personal selling Public relations Understanding individual consumer behaviour Understanding industrial consumer behaviour Customer satisfaction Customer relationship management Marketing of services Rural marketing Types of marketing research Process of marketing research Tools and Techniques of marketing research Applications of marketing research Preparation of marketing research rep ort Online marketing E-commerce Trends in marketing PageRead MoreI Love Reading Essay69689 Words   |  279 PagesGovernment of India b i n n o v a i c u l t u r w u s i n e s f E N T R E P R E N E UR S H I P m n a d c a t i o n u o n P l o y m e n t l t h e v i r o n m e n t n a n c e A Study by National Knowledge Commission Entrepreneurship in India National Knowledge Commission 2008  ©National Knowledge Commission, 2008 This report has been prepared by Amlanjyoti Goswami, Namita Dalmia and Megha Pradhan with support and guidance from Dr. Ashok Kolaskar and Mr. Sunil Bahri. TableRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesmajority were almost invariably lives of drudge labor in urban sweatshops, on tropical plantations, or on the wharves of an expansive, global export economy. Throughout the century, advances in human rights, which were spread ever more broadly among different social groups—including women, laborers, INTRODUCTION †¢ 3 ethnic minorities, and gays—made strides that were perhaps greater than all of those achieved in previous history combined. During the same time span, however, state

Contrast and Compare Young Goodman Brown and The Ministers Black Veil free essay sample

The Great Gatsby In the book The Great Gatsby the character Nick Carraway is a young man who comes from money which could be a good thing or a bad thing depending on ones character. People with great financial freedom who lived in the 1920s seemed to have such a lavish life style. F. Scott Fitzgeralds tells of the differences in his novel by showing the varying virtues that come with this type of lifestyle. As Nick Carraway makes his way to New York City he does not loose his sense of self. And as we go through this story with Nick an read about the extravagance that was so prevalent in that era, we see that Nick holds on to some of the simplicity of being from out West, as a symbol of this his house is in West Egg the lesser of the two Eggs. He also holds on to the lessons his dad taught him, one in paticular: Whenever you feel like criticizing anyone, just remember that all the people in this world havent had the advantages that youve had. (F.Scott Fitzgerald, 5). Nick has learned this lesson so well he watches what he says about everything that he see and he is also careful of his own actions. At one point Gatsby asks Nick if he makes enough money as a bonds man; and offers him a job with Wolfsheim. Even though there is the possibility that he could make better money, this business is illegal, and it would go against his character. But Nick says, no thanks chooses to not judge Gatsby on what is right or wrong. The rich of East Egg want to be seen as proper and they put on a great facade, however, Nick sees right through it and is disgusted by the culture and the individuals that live there. After spending one afternoon with his cousin Daisy and her husband Tom Buchanan Nick realizes that they are a dysfunctional bunch. And even though they are related to him Nick dislikes the environment of East Egg. In fact, Nick notices that they are more interested in gossiping then they are in him, a family member. And thinks to himselfTheir interest rather touched me and made them seem less remotely rich~nevertheless, I was confused and a little disgusted as I drove away.(F. Scott Fitzgerald, 24-25). Here, Nick demonstrates that he sees the Buchanans fake concern towards him which makes them seem lesser then what they portray. He also perceives the constant lying that goes on as people choose to confide in him, but what is said is never truths and Nick never actually admits to anyone he knows about their lies. Catherine who is  Myrtles sister, tells Nick that Daisy will not divorce Tom because she is Catholic, Nick is, a little shocked at the elaborateness of the lie (F. Scott Fitzgerald, 38). At this point, Nick knows that the only reason Tom told Catherine this is because he hopes to make his marriage seem real. Tom knows that the only reason Daisy is married to him is because of his money. Nick sees how the the people of East Egg cannot take the reality because they have to maintain that facade at all cost. And even though Nick comes from the same background and money he is troubled by the life these individuals pursue. As I read on, Nick seems to me to be very honest and living in the present, not in lies of the others. He also is steadfast in his beliefs and does not deviate from his convictions. Nick explains his honesty when he affirms, I am one of the few honest people that I have ever known (F. Scott, Fitzgerald, 64). Nick is not only honest with himself, he also wants others to see the truth as he sees it. Even though he is aware that the money of East Egg brings with it a certain status and power, Nick sees Gatsby from the inside and realizes that he is better then the Buchanans. The Buchanans and the residents of East Egg tell lies with no purpose other then selfishness. Nick becomes aware that Gatsbys lying ways are due to the fact that he is in love with Daisy and he lies to impress her. And in all this discovery, Nick says to Gatsby, Theyre a rotten crowd, I shouted across the lawn, Youre worth the whole damn bunch put together (F. Scott,Fitzgerald, 162). Nicks personality clashes with his friends inability to be honest, in order to maintain his honesty and not loose himself, he always tells the truth. Even though the characters in the novel continue to tell stories to survive their own lives, Nick chooses to stay true to who he is, an honest man. Nick sets a tone through his narration that he did not want to be intertwined into these characters lives or lies for that matter.And with everything that goes on around him he seems cool and collected. But at one point in the story you could feel his uneasiness, when Gatsby asked him to invite Daisy to lunch. Nick just seemed to be able to stay on the margins, maybe because his old fashioned up bringing taught him to respect boundaries. Or maybe Nick was just one of those characters that knew to mind his own business. When Gatsby burst out saying that Daisy was in love with him and never loved Tom, Nick wanted to leave and he wasnt the only one trying to excuse himself, Jordan Baker to  wanted to make her way out, At this point Jordan and I tried o go out but Tom and Gatsby insisted with competitive firmness that we remain (F. Scott, Fitzgerald, 138). As we see Nick keeps on the outside, orbiting his friends lives, but it shows that as hard as it might be because he knows everything about everyone he chooses to not make a vocal judgement on any one. For Nick being from money didnt change him as he experienced life in he East. He chose to stay with the simplicity of the Midwest by staying on West Egg even though he was neighbors with Gatsby, and this is shown by the simplicity of the small cottage he rented for that summer. His virtues as taught by his father, the values that come from growing up in the Midwest were so ingrained in his person that he did not fall pray to the eccentric and lying ways of the rich of East Egg. Nick Carraway told the story from an honest and non judgmental perspective.

Investment Evaluation of Renewla or Replacement of A Machine

Question: Discuss about the Investment Evaluation of Renewla or Replacement of a Machine. Answer: Introduction Lifestyle Furniture is a leading online retailer of solid hardwood furniture. The company provides a large variety of ranges of furniture and wishes to improve its production line by investing in new generation craft machinery. The company is in a dilemma whether to renew the existing machinery or replace it with a new one. Relevant cash flows have been developed for both the options and the respective NPV, IRR and PI have been calculated to decide which option is better in terms of profitability and timely return of investment. An NPV profile has been developed for both the options to see which has a better NPV profile. The incremental cash flows have been later adjusted for the effect of inflation. A base case scenario has been performed for both the alternatives where the companys expected profits have been considered as the base case and depending on these profits, the sales and operating and maintenance costs have been adjusted to see the changes in NPV and other NPV techniques. Investment Evaluation Incremental Operating Cash Flows The incremental operating cash flows have been prepared for both the alternatives by deducting all operating outflows like raw material, overhead, operating costs, advertising and marketing expenses, depreciation and interest on bank loan. The net income has been calculated after deducting taxes. The operating cash flows have been calculated by adding depreciation to net income. The net cash flows have been discounted by the cost of capital. The initial investment for alternative 1 comprises of cost of renewal, opportunity cost of not selling the machine and increase in working capital. The initial investment for alternative 2 comprises of cost of new machine, after tax proceeds from sale of old machine and increase in working capital. There is a terminal cost at the end of the project which includes all the cash flows on liquidation. The table of incremental cash flows is given in the appendices. NPV, IRR and PI Alternative 1 Alternative 2 NPV $ 2,60,512 $ 6,32,774 IRR 54% 82% PI 2.5 3.5 Based on the above incremental cash flow analysis, the company should opt for alternative 2 as it has higher NPV. A project with positive NPV is acceptable and higher the NPV the better it is. Also if the IRR is more than the required rate of return, the project is acceptable. A profitability index of more than 1 is acceptable. Since both the projects have positive results but since alternative 2 has higher NPV, IRR and PI the company should opt for replacing the old machine with a new one. NPV and IRR profile NPV profile is the graphical representation of NPV at different required rates of return. The below graph represents the NPV profile for both the alternatives at given required rates of return: From the above table we see that alternative 2 has a better NPV at all levels of required rates of return. The alternative 2 NPV line lies above the 1st alternative throughout. Hence we can say that there is no conflict in ranking between NPV and IRR because at all levels of IRR, alternative 2 only has better NPV and hence is preferred. Impact of Inflation Due to an inflation of 3.5% p.a, there is an increase in the operating and maintenance costs, advertising and marketing costs and overhead costs. Due to an increase in the above costs, there would be change in incremental operating net cash flows for both the alternatives. The cash flows will reduce. Due to a decrease in net operating cash flows, the NPV, IRR and PI will decrease for both the alternatives. The new operating incremental cash flows and capital budgeting techniques are given in appendices. The change in NPV, IRR and PI is presented in the table below: Alternative 1 Alternative 2 Before Inflation After Inflation Before Inflation After Inflation NPV $ 2,60,512 $ 2,22,359 $ 6,32,774 $ 5,96,510 IRR 54% 48% 82% 78% PI 2.5 2.3 3.5 3.3 Base Case Scenario The base case here would be the expected profits of the company for the next five years which is $130000 in the first year and a 2.9% increase every year. The base case scenario does not apply to alternative 1 because the total net income for the project is $627,842 whereas the total expected profits are $688,809. Since the base case profits are more than project 1 profits, hence the scenario does not apply. For alternative 2, the sales and operating and maintenance costs have been altered to make the project just feasible for the company. The changes are presented in the table below: Sales Operating and maintenance costs % change Decrease by 18.24% Increase by 167% Total Net Profit $688797 $688815 NPV $283282 $269184 IRR 47% 44% PI 2.1 2.1 From the above table we see that sales were reduced by 18% to bring the project to being just feasible. This reduced the NPV, IRR and PI of the project. Even though the above items have reduced but the project is still feasible to the company because the NPV is positive, IRR is more than required rate of return and PI is more than 1. There is a huge change in operating and maintenance costs. The costs were increased by 167% to make the project just feasible for the company. This means that this cost is low as compared to other costs. Leasing Decision Lease can be either Operating lease or a Financial Lease. Under operational lease, the ownership of the asset is never transferred to the lessee whereas under financial lease the ownership of the asset is transferred at the end of lease term. Leasing is advantageous in term of tax savings. Lease rental is tax deductible, so is the depreciation. Since ownership rights are not available with the company, it is not advisable to go for lease as for tax savings depreciation is available and purchase of asset increases the companys assets. The operating lease is for a short term and hence for a project 5 years if operation, the lease would have to be renewed which is expensive and time consuming. Operating lease is considered an expense for the company whereas finance lease is considered a liability. An increased liability affects the credibility of the company in terms of acquiring a loan; hence the same is not advisable. Moreover, Lifestyle furniture is a profit making company and hence should use its earnings for purchase of asset rather than opting for a lease. WACC The weighted average costs of capital have been calculated using the book value and market value weights. The WACC is presented below: Book Value Market Value Source of Capital costs Book Value Weights Cost of capital Market Value Weights Cost of capital Long term debt 6% 4000000 0.784 0.032 3840000 0.55 0.02 preference share capital 13% 40000 0.007 0.001 60000 0.008 0.001 ordinary share equity 17% 1060000 0.207 0.035 3000000 0.434 0.073 Total 5100000 6.9% 6900000 9.8% The WACC is higher for market value weights of the different source of capital. This is because the cost of equity is the highest and the market value weights of equity is higher as compared to book value weight, thus a high weighted cost of equity has led to an overall increase in WACC. The preference share capital hardly has any effect on the WACC. Conclusion/ Recommendation On the basis of the above analysis, it is clear that the company should opt for alternative 2 of replacing the old machine with the new one. This is because the proposal has a higher NPV, IRR and PI. Also one of the main reasons is that alternative 1 of renewing the existing machine does not satisfy the base case scenario of the company of the minimum profits the company is expecting in the next five years. The total profits are lower than the expected profits. Whereas alternative 2 will be able to generate more than the total expected profits of the firm. Hence, the company should go ahead with replacing the old machine with a new one. Appendices Incremental Cash Flows NPV and IRR Profile Impact of Inflation Base case Scenario