4769 Words20 Pages
1.0 Table of Content

Topic Page
1.1 Brief History on AirAsia 2 – 3
2.0 Macro-Environmental PESTEL Analysis 4 - 12
2.1 Undertake a Macro-Environmental Analysis using the PESTEL Framework
2.2 AirAsia Inflation Rate in Malaysia
2.3 Brief Definition on Unemployment Rate
3.0 Porter’s Five Forces 13 - 16
3.1 Analyze the competitive forces within the industry using the Porter’s Five Forces Framework
4.0 Carry out a Customer Analysis 17
5.0 Analyze the competitor’s by conducting competitor profiling 18 - 20
5.1 Recommendations with regards to competing with competitors
6.0 References 21 6.1 Internet References

1.1 Brief History on AirAsia

Prior to its take-over by Tune Air
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Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).

2.1 Undertake a Macro-Environmental Analysis using the PESTEL Framework

PEST Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company.
Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy, inflation levels and such helps the company make better decision on how to operate their company effectively.
Besides that, the social drive is a crucial part on PEST analysis. Creating and developing a social culture takes time and effort and a new motive driven company such as Air Asia has to develop me method on how to connect with the society’s lifestyle, demographics, and media.
Technological point of PEST

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