General Environment Analysis for the Cathay Pacific Airlines
With headquarter and airline hub located in Hong Kong, the general environment of Hong Kong has significant effect on Cathay Pacific. It is crucial to analyze the key trends and events of the six segments of Hong Kong general environment in order to adjust the firm strategy of Cathay Pacific. The six segments are sociocultural, demographic, political or legal, technological, economic and global.
The Sociocultural Segment
The value of workers has been so different as compared to the past. There is a recent study about the working attitude of the Post 80s generation in Hong Kong. The study shows that the Post 80s work for better life. They want to have flexible working time and think highly of personal life. They are lacking loyalty and uncommitted to their work. As the Post 80s are the important work source, it is important to adjust the management strategy to retain the talented workers in Cathay Pacific.
The Demographic Segment
According to the statistics released by the Census and Statistics Department in mid-2012, the aging population is much serious. Until 2039, the ratio of 65 years old to the overall population will raise to 25%. In order to alleviate the effect of aging population, Cathay Pacific should consider inviting the workable elderly who are under 65 years old for part time job. Moreover, Cathay Pacific may further extend the retire age of flight attendant from 55 years old to 60 years old. Extra medical care should be provided too.
The Political/Legal Segment
China and Hong Kong keep extending the “Individual Visit Scheme” which permits the mainland visitors travelling to Hong Kong. They are going to issue multiple-visit permits to non-residents of Shenzhen. Much more mainland visitors are expected to come to Hong Kong. The demand for China-Hong Kong air tickets is likely to increase and the frequency of flights should be adjusted.
Besides, the Competition law is going to