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