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UNIVERSITI MALAYSIA TERENGGANU

SEMESTER I 2021/2022 SESSION (MASTER PROGRAMME)

NAMA KURSUS : STRATEGIC MANAGEMENT

COURSE

KOD KURSUS : MGM5200

COURSE CODE

TARIKH : 27.01.2022

DATE

TEMPAT : TAKE HOME EXAM

VENUE

MASA : (3 HOURS)
TIME

NO. MATRIK : NIK MAHMUD ZUHDI BIN NIK MAT

STUDENT NO. P4347

NAMA PROGRAM :
PROGRAMME MBA

NO. MEJA :

SEAT NO. _____________________________________________

INSTRUCTIONS TO CANDIDATES

Answer all questions.

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DO NOT OPEN THE QUESTION PAPER UNTIL INSTRUCTED

THIS QUESTION PAPER CONSISTS OF THREE (3) PRINTED PAGES

Instruction: Answer all questions.

Question 1 (25 marks)

Instruction: You are required to choose a firm including your own firm. Then answer the
following questions. (100 Marks)

Question1: Provide the following information based on your chosen company.

(10 Marks)
1. Introduction
- Brief history of the company

Malaysia Airlines was founded as a joint venture between Imperial Airways and the
Ocean Steamship Company of Liverpool, which operated the Straits Steamship of
Singapore. This partnership resulted in a proposal to the Colonial Straits Settlement
(CSS) administration to conduct aviation services between Penang and Singapore, as
these two states were well-known at the time. The agreement resulted in the formation
of Malayan Airways Limited (MAL) on October 12, 1937, which was also the first
company in the Malaysian aviation business at the time. Furthermore, MAL was
established as Malaya's national airline with its first commercial flight in April 1947. MAL
has effectively become a key player in the worldwide airline sector in less than a
decade, thanks to a well-defined and energetic team of visionaries.

Following the formation of Malaysia in 1963, the airline company changed its name to
Malaysian Airlines Limited (MAL) and became the country's first national carrier. Within
two decades, MAL had grown from a single aircraft company to a company with over
2,400 employees and engaged the then-newest six F27s, Comet IV jet aircraft, two
Pioneers, eight DCs, and so on. However, with the separation of Singapore from
Malaysia in 1965, the entire aviation platform in the industry changed. As a result of this
unfavorable situation, MAL became a bi-national airline and was renamed Malaysia-
Singapore Airlines (MSA).The airline expanded significantly with new routes to Perth,
Taipei, Rome, and London, as well as a new business mission.

Furthermore, the partners split up in 1973, which resulted in the formation of Malaysia
Airlines (MAS), which still serves the country today. Malaysia Airlines now flies nearly
50,000 passengers per day to over 95 destinations on six continents from its primary
hub at Kuala Lumpur International Airport (KLIA), Kuala Lumpur. Furthermore, Malaysia
Airlines has an excellent service record, having received more than 120 awards in the
last ten years since its inception. The most notable recognitions are "World's Best Cabin
Crew" by Skytrax UK from 2001 to 2004, Number one for "Economy Class Onboard
Excellence 2006" and "5-star Airline" in 2005 and 2006. This credit will only be given to
the other three airlines in the world, and Malaysia Airlines was also ranked second out
of 88 contenders in Aviation Week's Top Performing Companies, which measures an
airline's financial viability.

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Malaysia Airlines is the parent company of two subsidiary airlines: Firefly and
MASwings. Firefly operates scheduled flights from Penang International Airport and
Subang International Airport, its two home bases. The airline primarily serves tertiary
cities. MASwings specialises in intra-Borneo flights. Malaysia Airlines operates a
freighter fleet, which is managed by sister company MAS kargo, which also manages
freighter flights and aircraft cargo-hold capacity on all Malaysia Airlines passenger
flights. Malaysia Airlines is a subsidiary of the Malaysia Aviation Group, serving over 50
destinations worldwide and operating over 300 flights per day (MAG). Malaysia Airlines,
as a member of oneworld, provides the best connectivity, with nonstop flights to over
1000 destinations in 150 countries and access to over 650 airport lounges worldwide.
Malaysia Airlines operates flights from its home base, Kuala Lumpur International
Airport, and provides global connectivity to destinations such as Europe, the Middle
East, Australasia, North and South Asia, and Southeast Asia.

- Core product

The most important service provided by Malaysia Airlines is the transportation of people
and their luggage to their destinations. Businesses offer both in-flight and ground
services. These services are referred to as the actual product. Malaysia Airlines has a
long and proud history of providing a product and brand that is synonymous with
exceptional, warm hospitality. The national flag carrier has received numerous aviation
industry awards, including being named 'The World's 5-Star Airline' by Skytrax three
times (2009, 2012, and 2013) and being named 'Asia's Leading Airline' by the World
Travel Awards (2010, 2011 and 2013).

MAS is a service-based entity that provides its customers with exceptional flying
experiences. The services provided are constantly reviewed to ensure that they remain
relevant to the needs of the customers. Furthermore, the target market for MAS
includes all customers, from high-end to low-end. This strategy had been implemented
through the use of media sales promotion and the establishment of subsidiaries within
its business.

The airline's fleet includes six Airbus A380-800s, fifteen A330-300s, and 54 Boeing 737-
800s. The first of six Airbus A350 XWB aircraft ordered by the company will be
delivered by the end of 2017. The Airbus A350 XWB will eventually take the place of the
A380. The Extra-Wide-Body planes will fly on premium long-distance routes, with a
luxurious three-class layout: Economy, Business, and First (the only First Class cabin
on the A350 operated in Asia). In-flight WiFi will also be available, a first for the airline.

As a result, whenever they fly with MAS, all customers can enjoy five-star services at a
low cost. Low-cost carriers such as Air Asia, Singapore Airlines, Thai Airlines, and
others are MAS' main competitors. As a result of the high number of competitors, MAS
has continuously introduced its turnaround plan and marketing strategy in order to
remain competitive in the industry. As a result of the well-planned plan and initiatives,
MAS has established a solid reputation and successfully captured the market in South
East Asian countries.

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- Problem facing by the company

Malaysia Airlines has yet to file its financial results for FY 2018 with SSM, but it has
blamed the poor performance on a lack of crew, tough competition, overstock of
capacity, and fuel and foreign exchange price volatility. Since nearly three decades,
aviation fuel availability and costs have remained one of the fundamental economic
variables affecting the airline business. The financial portfolio of an airline is directly
affected by high jet fuel prices. Fuel prices were at an all-time high, creating a vicious
spiral, as the number of airline businesses increased year over year. Alternative fuels
haven't had much of an impact, thus maintaining fuel economy is one of the aviation
industry's biggest difficulties.

The aircraft sector is service-oriented, and passenger satisfaction is crucial to its

success. Because no two passengers are alike, passenger satisfaction is at the heart of
the airline industry's issues. At any given time, a segment of customers may be
unsatisfied. This is, however, what has pushed airline businesses to achieve
seamlessness throughout the entire journey - the actual flight, good security, less/no
issues in airport lineups, convenient baggage claim, customer service, and more.

It may come as a surprise to learn that technology advancements are one of the
aviation industry's concerns. Technology, on the other hand, is a double-edged sword,
and increasing reliance on it, despite the upheaval it has brought about, could put the
entire sector at risk. For example, if a software problem arises, the airline's operations
may be hampered until the problem is rectified. Upgrades to critical infrastructure, such
as aeroplane communication systems, may be difficult due to a lack of funds, causing
the entire system to collapse.

Past tragedies have sparked dread not only among the general public, but also among
airport employees. Although terrorist actions have decreased in recent years, they
remain a threat, and airlines must stay watchful at all times. As the public's fear of
terrorism grows, more severe check-in procedures are implemented, resulting in longer
queues and delays.

Prior to COVID, airline firms faced significant issues, the solutions to which were
frequently considered and appraised by industry experts. The epidemic, on the other
hand, presented the airline industry with a set of unprecedented obstacles that it had
not faced in any other global tragedies, such as the 9/11 assault or the 2008 economic
slump. It has not only caused a complete 180-degree shift in how earlier issues were
regarded, but it has also introduced a new set of threats.

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Question 2: Develop an “External Factor Evaluation (EFE) Matrix” for your company.
(10 Marks)
- List about 10-20 factors which includes all the external environment factors.
- Identify whether the factors are considered as opportunities or threats.
key external factors weight rating weighted score

Opportunities

1. Malaysia Airline global presence is being expanded

through tie-ups and partnerships 0.08 4 0.32

2. Malaysia Airlines has a remarkable presence in

Malaysia aviation sector 0.08 2 0.16

3.More international routes to popular destinations can

boost business 0.08 4 0.32

4. More services and choices to customers at airport

facilities 0.05 3 0.15

5. Higher pay scales increased corporate and average

traveler travel budgets 0.04 1 0.04

6. Targeting off peak seasons 0.04 2 0.08

7. Extensive usage of digital marketing tool to increase

awareness that Malaysia Airlines is the preferred
airlines service provider 0.04 2 0.08

8. Malaysia Airlines expand domestic routes via low

cost Firefly 0.03 3 0.09

9. Malaysia Airlines target the premium and low-cost

segment 0.02 2 0.04

10. Promote and expand medical tourism within airlines 0.02 2 0.04

Threats

1. High competition with local and international airlines 0.1 4 0.4

2. Travel restriction imposed by countries due to

pandemic affected operation 0.08 3 0.24

3. Malaysia Airlines faces bankruptcy as a result of the

Covid-19 travel restriction 0.04 3 0.12

4. Malaysia Airlines margins impacted by rising fuel

costs 0.08 3 0.24

5. International disputes in political environment 0.04 2 0.08

6.Uncertainty in the global economy and stiff

competition put strain on Malaysia Airlines 0.02 2 0.04

7. Loss in reputation as Malaysia Airlines loss two

airplanes in 2014 0.06 4 0.24

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8. Malaysia Airlines has interest rate risks that will
fluctuated by changes in market interest 0.03 2 0.06

9. High taxes and fees for the industry 0.03 2 0.06

10. Very thin margin for profitability 0.04 3 0.12

Total 1 2.92

Rating: poor (1), below average (2), above average (3), superior (4)

The total weighted score for External factor Evaluation (EFE) is 2.92. It indicates that
Malaysia Airlines has strong external position. Note that total weighted score is the
above average of 2.5 so Malaysia Airlines has doing pretty well taking advantage for
external opportunities in avoiding the threat facing by the firms.

Malaysia Airlines should take precautions to cope with things that are beyond their
control such economy instability, political, government, social, global competition and
many more.

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Question 3: Develop an “Internal Factor Evaluation (IFE) Matrix” for your company.
(10 Marks)
- List about 10-20 factors which includes all the internal environment factors.
- Identify whether the factors are considered as strengths or weaknesses.

Key internal factors Weight Rating Weighted Score

Strengths

1. Good customer service as a part of culture 0.08 4 0.32

2. Malaysia Airlines government owned company 0.08 3 0.24

3. Malaysia Airlines served a variety of markets 0.05 3 0.15

4. Reliable IT system 0.06 3 0.18

5. Employees are loyal and reliable 0.08 2 0.16

6. Wages higher than industry average, making low

chance of attrition 0.08 2 0.16

7. Strong brand equity and brand awareness 0.06 4 0.24

8. Strong relationship with existing supplier 0.03 2 0.06

9. Malaysia Airlines operate in a thriving domestic

market 0.04 2 0.08

10. Malaysia Airlines has the first mover advantage

in term of the number of segments 0.03 2 0.06

Weaknesses

1. The airline's domestic traffic is limited. 0.02 2 0.04

2. Having a strong reliance on International Onward

Moving Traffic 0.06 4 0.24

3. Price insensitivity to demand – holiday and

festive seasons 0.04 4 0.16

4. Net profit margin has been a decline 0.06 4 0.24

5. Very high operating expenditure 0.06 3 0.18

6. Poor revenue management and expansion

decisions 0.05 3 0.15

7. Very high debt in capital structure 0.04 2 0.08

8. High turnover rate 0.02 2 0.04

9. Negative issues had negative consequences. 0.03 2 0.06

10. Depreciation of aircraft, property, plant and

equipment 0.03 3 0.09

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Total 1 2.93

Rating: poor (1), below average (2), above average (3), superior (4)

The total weighted score for Internal Factor Evaluation (IFE) is 2.93. It indicates that
Malaysia Airlines has strong internal position.

Malaysia Airlines should improve more in its internal strength such as by providing
training to improve staff productivity in order to meet customer expectation.

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Question 4: Develop a “SWOT Matrix” for your company. (20 Marks)
- Transfer all the external factors (opportunities and threats) from your revised EFE
matrix and all the internal factors (strengths and weaknesses) from your revised
IFE matrix to the SWOT matrix.
- Reduce the font size and margin in order to place the SWOT matrix into 1-page
only.
- For each of the resultant strategy (SO, ST, WO & WT), suggest at least two
alternative strategies from the matching. You need to specify the factors involved in
the matching activity.
- Briefly explain all the alternatives derived from the matching.

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External Opportunities (O)
1. Malaysia Airline global presence is being
expanded through tie-ups and partnerships
2. Malaysia Airlines has a remarkable presence in
Malaysia aviation sector
3.More international routes to popular destinations
can boost business
4. More services and choices to customers at
airport facilities
5. Higher pay scales increased corporate and
average traveler travel budgets
6. Targeting off peak seasons
7. Extensive usage of digital marketing tool to
increase awareness that Malaysia Airlines is the
preferred airlines service provider
8. Malaysia Airlines expand domestic routes via low
cost Firefly
9. Promote and expand medical tourism within
airlines
External Threat (T)
1. High competition with local and international
airlines
2. Travel restriction imposed by countries due to
pandemic affected operation
3. Malaysia Airlines faces bankruptcy as a result of
the Covid-19 travel restriction
4. Malaysia Airlines margins impacted by rising fuel
costs
5. International disputes in political environment
6. Uncertainty in the global economy and stiff
competition put strain on Malaysia Airlines
7. Loss in reputation as Malaysia Airlines loss two
airplanes in 2014
8. Malaysia Airlines has interest rate risks that will
fluctuated by changes in market interest
9.High taxes and fees for the industry
10. Very thin margin for profitability
Internal Strength (S)
1. Good customer service as a part of culture
2. Malaysia Airlines government owned company
3. Malaysia Airlines served a variety of markets
4. Reliable IT system
5. Employees are loyal and reliable
6. Wages higher than industry average, making low
chance of attrition
7. Strong brand equity and brand awareness
8. Strong relationship with existing supplier
9. Malaysia Airlines operate in a thriving domestic
market
10. Malaysia Airlines has the first mover advantage
in term of the number of segments
SO Strategies
1. New route to introduce for domestic and
international
2. A promotion in which "special need" passengers
receive free tickets while youngsters and senior
citizens receive a 50% discount.
3. Improving their website to make it more user-
friendly and simpler to book a ticket for customers.
4. Malaysia Airlines is consolidating and expanding
its market position by leveraging its capabilities.
ST Strategies
1. Attract more shareholder and stakeholder with
the collaboration with the government.
2. Transparency of information in dealing with
airplane incident.
3. Analyze their competitors’ strengths to increase
the demand for international routes.
4. Malaysia Airlines can use two approaches -
building on present strengths, or analyze the trend
and build processes to two-pronged market
penetration approach
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Internal Weakness (W)
1. The airline's domestic traffic is limited.
2. Having a strong reliance on International Onward
Moving Traffic
3. Price insensitivity to demand – holiday and
festive seasons
4. Net profit margin has been a decline
5. Very high operating expenditure
6. Poor revenue management and expansion
decisions
7. Very high debt in capital structure
8. High turnover rate
9. Negative issues had negative consequences.
10. Depreciation of aircraft, property, plant and
equipment
WO Strategies
1. During the holiday, festive, and peak seasons,
prices are reasonable.
2. Hiring professional and experienced
accountants.
3. Finalize their financial structure in order to take
advantage of the global market's low pricing
approach.
4. Developing strategies based on a consumer-
centric approach to product development and
marketing.
WT Strategies
1. Analyze their competitors’ financial
strategies and structures to increase
their net profit margin.
2. Reduce administrative cost and stop
hiring employees in order to overcome
the fuel cost rising issue.
3. Malaysia Airlines should just get out of
these business areas and focus on
strength and threats box, or on
weakness and opportunities box.
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Question 5: Develop a “SPACE Matrix” for your company. (20 Marks)
- List about 5-10 factors for each dimension (Financial Strength, Competitive
Advantage, Industry Strength, Environmental Stability)
- Determine the directional vector coordinate for your chosen company. Then,
draw the directional vector. Show each step towards obtaining the directional vector.
- Based on the above results, briefly give your opinion pertaining to your chosen
company position.

INTERNAL ANALYSIS RATE EXTERNAL ANALYSIS RATE

Financial Strength Industry Strength
Rating scale from +1 (worst), +7 Rating scale from +1 (worst), +7
(best) (best)
1. Operating revenue 1. Growth potential
7 1
2. Operating expenses 2. Profit potential
1 1
3. Other operating income 3. Financial stabillity
1 1
4. Taxation 4. Resource allocation
1 1
5. Loss before taxation 5. Bargaining power
1 1
6. Return on investment
1
7. Cash flow
1

Financial Strength Average 1.85 Industry Strength Average 1

Competitive Advantage Environmental Stability
Rating scale from -7 (worst), -1 Rating scale from -7 (worst), -1 (best)
(best)
1. Price range of competing
1. Market share products
-5 -7
2. Product differentiation 2. Price elasticity of demand
-5 -7
3. Customer loyalty 3. Competitive pressure
-7 -7
4. Employee loyalty
-7
5. Control over
supplier/distributors -5

Competitive Advantage Average -5.80 Environmental Stability Advantage -3

-5.8 (CA Average) + 1.00 (IS Average) = -4.8 (Final X – Axis)

1.85 (FS Average) + -3.00 (ES Average) = -1.15 (Final Y – Axis)

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We need to plot values on X and Y axis on space matrix in order to get which strategies
to adopt we need to add point of financial strength and environmental factor to get value
to be plotted on X axis and to plot value on Y we need to add value of competitive
advantage and industrial strength.

Score of competitive advantage and industrial strength that is -4.8

Add score of financial strength and environmental factors that is -.1.15

FS

7
CONSERVATIVE AGGRESIVE
6

1
CA IS
-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7

-1

-4.8, -1.15 -2

-3

-4
DEFENSIVE COMPETITIVE
-5

-6

-7

ES

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From this analysis we conclude the Malaysia Airlines Berhad has a Defensive Business
Strategy.

The management of Malaysia Airlines should do:

- focus on rectifying internal weakness and external threat

- reduce cost to realize a stronger competitive position
- focus on core business and sell off ancillary activities
- increase the marketing and promotional activities of Malaysia Airlines product
- cut down the price and provide discounts to reduce the sales of their competitors.

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Question 6: Condensation of strategies (QSPM, regrouping, etc.) (20 Marks)

- Transfer all the alternatives strategies (SWOT and SPACE) into QSPM in order
to select the best strategy to be applied by the company. Justify.
Alternative 1 – Alternative 2 –

Local Market Expansion Global Market Expansion

Key Factors
Weight Attractiveness Total Weight Attractiveness Total
Scores Attractive Scores Attractive
Scores Scores
Strengths
3 0.15 0.07 3 0.21
1. Good customer service 0.05

2. Government owned
0.06 1 0.06 0.02 4 0.08
company

3. Served a variety of
0.05 4 0.2 0.04 2 0.08
markets

4. Reliable IT system 0.04 2 0.08 0.03 1 0.03

5. Employees are loyal and

0.06 3 0.18 0.06 3 0.18
reliable

6. Low chance of attrition 0.08 2 0.16 0.08 3 0.24

7. Strong brand equity 0.04 1 0.04 0.04 2 0.08

8. Strong relationship with

0.03 1 0.03 0.05 1 0.05
existing supplier

9. Operate in a thriving
0.07 2 0.14 0.06 4 0.24
domestic market

10. Has the first mover

advantage in term of the 0.02 2 0.04 0.05 2 0.1
number of segments

Weakness
0.04 4 0.16 0.07 4 0.28
1. The airline's domestic
traffic is limited.

2. Having a strong reliance

on International Onward 0.03 1 0.03 0.02 2 0.04
Moving Traffic

3. Price insensitivity to
demand – holiday and festive 0.07 4 0.28 0.05 4 0.2
seasons

4. Net profit margin has been

0.02 3 0.06 0.04 2 0.08
a decline

5. Very high operating

0.06 3 0.18 0.05 4 0.2
expenditure

6. Poor revenue management

0.08 3 0.24 0.06 2 0.12
and expansion decisions

7. Very high debt in capital

0.05 1 0.05 0.06 1 0.06
structure

8. High turnover rate 0.06 2 0.12 0.08 3 0.24

9. Negative issues had

0.05 1 0.05 0.04 3 0.12
negative consequences.

10. Depreciation of aircraft, 0.04 3 0.12 0.03 3 0.09

property, plant and

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equipment

Sum Weight 100 % 100 %

Opportunities

1. Malaysia Airline global

0.05 3 0.15 0.04 3 0.12
presence is being expanded
through tie-ups and
partnerships

2. Malaysia Airlines has a

remarkable presence in 0.04 1 0.04 0.03 4 0.12
Malaysia aviation sector

3.More international routes to

popular destinations can 0.05 4 0.2 0.07 2 0.14
boost business

4. More services and choices

to customers at airport 0.06 2 0.12 0.02 1 0.02
facilities

5. Higher pay scales

increased corporate and
0.06 3 0.18 0.06 3 0.18
average traveler travel
budgets

6. Targeting off peak seasons 0.08 2 0.16 0.08 3 0.24

7. Extensive usage of digital

marketing tool to increase
awareness that Malaysia 0.04 1 0.04 0.05 3 0.15
Airlines is the preferred
airlines service provider

8. Malaysia Airlines expand

domestic routes via low cost 0.03 1 0.03 0.06 3 0.18
Firefly

9. Malaysia Airlines target the

premium and low-cost 0.07 2 0.14 0.05 2 0.1
segment

10. Promote and expand

medical tourism within 0.02 2 0.04 0.04 1 0.04
airlines

Threat
4 0.2 0.02 1 0.02
1. High competition with local
0.05
and international airlines

2. Travel restriction imposed

by countries due to pandemic 0.06 1 0.06 0.05 4 0.2
affected operation

3. Malaysia Airlines faces

bankruptcy as a result of the 0.05 4 0.2 0.06 2 0.12
Covid-19 travel restriction

4. Malaysia Airlines margins

0.04 3 0.12 0.05 4 0.2
impacted by rising fuel costs

5. International disputes in
0.06 3 0.18 0.04 2 0.08
political environment

6.Uncertainty in the global

economy and stiff competition
0.08 3 0.24 0.06 4 0.24
put strain on Malaysia
Airlines

7. Loss in reputation as
Malaysia Airlines loss two 0.04 1 0.04 0.08 1 0.08
airplanes in 2014

8. Malaysia Airlines has

0.03 2 0.06 0.04 3 0.12
interest rate risks that will
fluctuated by changes in

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market interest

9. High taxes and fees for the

0.07 1 0.07 0.03 3 0.09
industry

10. Very thin margin for

0.02 3 0.06 0.07 3 0.21
profitability

Sum Weight 100 % 100 %

Sum Total Attractive Score 4.7 5.37

Based on the QSPM Analysis Alternative-2 (Global Market Expansion) is higher than
Alternative-1 (Local Market Expansion). So, Malaysia Airlines should focus on Global
Market Expansion.

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7. Conclusion (10 Marks)
- Last, propose only one most appropriate strategy to be selected and
implemented by the company from the QSPM.
- Briefly explain how the proposed strategy can overcome the problem facing by
the company.

Based on the QSPM Analysis Alternative-2 (Global Market Expansion) is higher than
Alternative-1 (Local Market Expansion). So, Malaysia Airlines should focus on Global
Market Expansion.
Malaysia Airline provides domestic and international flight services. Major portion of the
customers are international flight customers. It is actually show that Malaysia Airlines
have a certain target market with high income.
Malaysia Airline is a renowned service provider especially for travelling across the East
Asian zone. The major competitor is this region includes – Emirates, Singapore Airlines,
Qatar Airlines, Biman Bangladesh Airlines and many more. However, each of the
competitors includes different routes and different price packages. Based on the routes
and differences in travelling point variances each of them has a strong market share
with varying customer base ranging from low end to high end segment.
Malaysian Airline has been suffering from image crisis for several incidents and they
had a decline of sales. The company must have to reduce the operating cost by 25% in
increasing its profitability in the longer run.
Malaysia Airlines should focus on regional routes within four hours from Kuala Lumpur,
including to destinations in Southeast Asia, the Indian subcontinent and greater China.
Malaysia Airlines can expect this focus will result in immediate 19% improvement in
yields.
So, the organization should maximize the utilization of their opportunity. Need to
continually optimize portfolios (packages) to reduce risk and increase return. Recently
they face some external threats where they have no control like increase of fuel cost for
Iraq war, plan crash (MH17). So, they should overcome their internal weakness like
operational cost.

-End of Questions-

 Submission time: Follow the examination instruction.

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