Kentucky Friend Chicken and the Global Fast Food Industry

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  • Topic: Airline, Singapore Airlines, Malaysia Airlines
  • Pages : 42 (10375 words )
  • Download(s) : 109
  • Published : November 17, 2006
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4.0 PEST ANALYSIS

The remote environment comprises factors that originate beyond, and usually irrespective of, any single firm's operating section: social, political, economic, technological and ecological factors. That environment presents firms with opportunities, threats, and constraints, but rarely does a single firm exert any meaningful reciprocal influence.

4.1Social Factors

The social factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm's external environment, as developed from cultural, ecological, demographic, religious, educational, and ethnic conditioning. Malaysians become more enjoy holidays now's a day, some family planned go for vacation on the year end. It was very helpful for airlines industry, because they can travel by air which was more convenience. The changing of the Malaysians lifestyle wills brighter the future of the airline industry in Malaysia. With the increase of the Per Capital Gross National Income from RM18,040 (2005) to RM18,795 (first quarter of 2006) . Malaysian become more affordable to travel by air, because they having more extra money.

4.2 Political Factors

Political constraints are placed on firms through fair-trade decisions, antitrust laws, tax programs, minimum wage legislation, pollution and pricing policies, administrative jawboning, and many other actions aimed at protecting employees, customers, the general public, and the environment. Political factor very important to make sure the growth of the airlines industry in Malaysia. With the peaceful environment, Malaysia became one of the world's attractive travel destinations. This will increase more people used airlines to travel. So, for the growth of MAS, Malaysia must always peace and having good relationship with all countries. 4.3 Economic Factors

Economic factors concern the nature and direction of the economy in which a firm operates. Because consumption patterns are affected by the relative affluence of various market segments, each firm must consider economic trends in the segments that affect its industry. On both the national and international level, managers must consider the general availability of credit, the level of disposable income, and the propensity of people to spend. Prime interest rates, inflation rates, and trends in the growth of the gross national product are other economic factors they should monitor. The growing of the economy of Malaysia wills encourage the growing of the airlines industry at Malaysia. The Gross Domestic Income for 2005 is RM471, 331 Million and for first quarter is RM124,275 Million . The increase of GDI shows that Malaysian becomes more affordable to travel by air.

4.4 Technology Factors

To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry. Creative technological adoptions can suggest possibilities for new products or for improvements in existing products or in manufacturing and marketing techniques. The quasi science of anticipating environmental and competitive changes and estimating their importance to an organization's operations. Technological forecasting can help protect and improve the profitability of firms in growing industries. It alerts strategic managers to both impending challenges and promising opportunities. The development of an industry can not achieve without the development of the technology for that industry. So MAS must improve their technology to survive in this airline industry, which are high tech based industry.

4.5 Ecological Factors

The term ecology refers to the relationships among human beings and other living things and the air, soil, and water that support them. Threats to our life-supporting ecology caused principally by human activities in an industrial society are commonly referred to as pollution. Specific concerns include global warming, loss of habitat and biodiversity, as well as...
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