Q4.

Could change management bring about the desired transformation of MAS, particularly in terms of
customer perception? In what contexts could change occur?

Ans-

The situation at MAS has gone from bad to worse, they can further go down or they fight their way up to
the ladder. The most important of all the factors they have lost is the 'trust' of the people. Doubts have
crept in to the mind of the people about the safe arrival to their destination, and that has come out as a
major blow to the organization. If the situation has gone so far that people have dillema about
undertaking your service, then there is a serious issue at hand.

Change management fits apply as a mechanism that can uplift the flight of MAS. There are people in the
centre of any business at the end of the day. Actions are needed to be undertaken to influence people in
their individual transitions. Change management provides a structured approach for supporting the
individuals in the organization to move from their own current states to their own future states.

In terms with the customer perception, Change management can bring about a change. It allows the
organization to analyze the situation, implement change and then review it also for a holistic progress.

It will enable MAS to-

 Communicate the threat to the internal stakeholders.

 Involve the team.
 The task would then become to minimize uncertainity.
 Celebrate the positive shifts.

It will ensure that MAS becomes as transparent as possible to the customers, that's how they will be
able to regain the trust.

Change can occur if they focus on giving customers a vivid range of hospitality. If they start providing an
exceptional service by giving customers enjoyable waiting at various airports in the form of lounges this
will add to the customer attraction part. MAS had a huge loss of trust with the back to back accidents
and in order to bring people's faith they should partner with an established airlines so that it could bring
with it the trust. Value propositon is all that it comes to at the end, so MAS should be more open in
sharing knowledge about their aurcrafts and services while at the same time identifying problems in
house and taking measures to be more accountable and avoid uncertainity.

Q5. Bearing in mind the potential of the travel and tourism industry in Malaysia, can diversification into
this arena help MAS retain market share?

Answer.
HIGH
MARKET SHARE

LOW

BUILD

GROWING SHRINKING

MARKET SIZE

From this BCG matrix we can see that the market size of the travel and tourism industry is growing. This
is evident from exhibit 4 and 5 which depict an increase in the number of arrivals and departures by
countries, purpose of visit (business and leisure) and mode of transport (air).With increase in the arrival
from nationals all over the world, there is a huge scope of medical tourism, ecological tourism, luxury
and business tourism. Hence we can say that it is a good opportunity for Malaysian Airlines to build their
business in travel and tourism arena.

The diversification can be done concentrically. Concentric diversification implies acquiring or creating
new products or services to reach more consumers. Looking at the growth that is expected in the travel
and tourism sector and lack of funds available with MAS, it will be a sound strategy to invest in offerings
in travel and tourism industry such as hotels, car rental companies, and tour operators’ etcetera. The
MAS can utilize its subsidiary airlines Firefly and MASwings that operates between tertiary cities and
inter-Borneo respectively to provide better travel and tourism services besides providing air travel.