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Airlines Pest Analysis Essay

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The general environment is composed of dimension in the broader society that influence an industry and the firm within it. A firm cannot directly control the segment of their external environment, however, these segment will have particular impact and influence on the firm performance. Therefore, a PEST analysis has been used by MAS airlines to measure the market. By using the PEST analysis, MAS airlines will link the entire four forces that may influence their business in general and competitive environment. These four external environment forces are political/legal segment, economics segment, sociocultural segment, and technological segment. MAS airlines will do the general environmental analysis by gathering all the data and information needed to understand the four external …show more content…

As an airline company in Malaysia, MAS airlines always need to deal with the taxes which have been a huge difficulty for them especially during the period of economy crisis. According to the Malaysia Airlines annual report in year 2011, MAS airlines had experienced a massive loss of 400 million ringgit even before the taxation is done. This shown that the MAS airlines was operating in an awful and pathetic situation. Moreover, the burden of MAS airlines has increased after the announcement from our current Prime Minister Datuk Seri Najib Tun Razak that the regulation for minimum wage of private sectors in Penisular has been set as RM900 and RM800 for those in Sabah and Sarawak. Therefore, the operating cost of MAS airlines would increase as they has a large number which was about 18,000 employees work for them. In order to cope with the new policy, MAS airlines has introduced a new rewarding plan to their employees which they will offer only a maximum two years of unpaid leave to their permanent employees and excluding their subsidiaries which are Firefly and

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