Malaysian Airlines Business Communication - Situational Analysis and Communication Strategy - Example

Business Communication Table of Contents Element A - Communication Plan 3 0. Executive Summary 3 2.0. Overview 4 3.0. Situational Analysis (SWOT Framework) 5 3.1. Strengths 5 3.2. Weaknesses 5 3.3. Opportunities 6 3.4. Threats 7 4.0. Communication Strategy 8 4.1. Identifying the Target Audiences 8 4.2. Determining the Communication Objectives (SMART) 9 4.3. Designing Messages 10 4.4. Choosing Media 11 4.5. Media Schedule (GANTT Chart) 11 4.6. Summary 12 Element B – Press Release 13 References 16 Bibliography 18 Element A - Communication Plan 1.0. Executive Summary This particular report aims at developing a communication program for Malaysian Airlines, concerning its current strategic position, following the two disasters of 2014. As these occurrences and the predating financial weaknesses of the company have been observed as imposing significant negative impacts on its corporate reputation, the communication plan intends to rebuild its brand image and ignite trust amid its stakeholders. Correspondingly, the report included a SWOT analysis of the company along with the SMART matrix to cover the various aspect of this communication plan. In addition, a Gantt chart was also developed, emphasising that the company use both online social media and news media as means of communication besides making a better use of its official website. 2.0. Overview The significance of business communication in building organisational goodwill by means of enhanced customer satisfaction and business-to-customer relationship has been indubitable in the recent decades. It has also been noticeably swerving management guidelines, as applied by organisations, having imposed its long-term effects on the overall sustainability of businesses (Lehman & DuFrene, 2010). As was justifiably noted by Riel & Balmer (1997), communication plays a crucial role in shaping corporate identity and therefore, it is quite likely to have a strong impact on the organisation’s sustainability. Besides being crucial and inevitably significant in today’s business context, business communication is also highly sensitive and vulnerable to sudden changes, whether within the organisation’s internal environment or external. This particular notion can be apparently observed with reference to the recent performances of Malaysian Airlines, which has faced many controversies and criticisms concerning its safety management policies and strategic performances. In the year 2014 itself, the brand witnessed considerable change in its image among the global customers, when one of its planes disappeared with 239 passengers en-route to Beijing from Kuala Lumpur and the other was shot down in Ukraine with 298 passengers on board (West, 2014). The effects of these crashes were observed with the decline in the financial performance of the company, indicating major risks for its future competitiveness as well as sustainability. In a crisis such as this, it has become very much crucial for the company to increase its focus on effective business communication, which would assure a better brand image for the company along with augmenting the degree of confidence among its stakeholders. With this objective, the report will present a situational analysis of Malaysian Airlines in the current scenario with due consideration to its business communication developmental needs. 3.0. Situational Analysis (SWOT Framework) 3.1. Strengths Predating the two casualties of Malaysian Airlines, the company possesses a few strengths that can be utilised to rebuild its brand image within the targeted customers. Its global reach and brand recognition persistent within the industry and is one of the major strengths that the company possesses in its current performance. Until date, the company has experienced many fluctuations and industry pressures not only in terms of competition but also owing to the continuous changes taking place within its internal organisational environment, with new policy implementations as well as updation of the existing policies. These experiences have rather increased the strengths of the company in augmenting its adaptability to crises (Ashrafia, 2014). Considering its recovering stock market performance in the KLSE (Kuala Lumpur Stock Exchange) as well as in NYSE (New York Stock Exchange), it can also be asserted that investor relations with the company is still in the position of betterment and therefore, can be considered as a strength. In other words, the maintained stakeholder relationship by the company, which has been effective in boosting investor confidence in favour of the brand, embarks another major strength of Malaysian Airlines (KLSE, 2015; MarketWatch, 2015). 3.2. Weaknesses Besides the above-mentioned strengths that Malaysian Airlines possesses, its weaknesses have also been transparent with reference to its performance related attributes. At the onset, under the impression of the recent happenings, financial performance of the company has been lagging severely with a sudden increase of monetary debt and losses. However, it must be noted that the financial struggles of the company predates the two disasters, wherein the occurrence have only made the scenario worse for the organisational leaders. On one hand, the company has been bearing upon the plummeting profit margin due to repeat cancellations or postponement of passenger tickets, lowering its sales revenue. On the other hand, the commitment made by the company leaders to compensate employees and passengers on board during the disasters have increased financial volatility to the brand (Barrabi, 2014). The two occurrences have further weakened its brand image among the targeted customers around the world as compared to its rival brands and hence, have led it to a poor competitive position. Overall, the current scenario indicates a vulnerable leadership position of the company, which only makes its sustainability in the long run more challenging (Nel, 2014). 3.3. Opportunities The challenges that the company faces in its current strategic practice has been embraced as challenges to the entire industry, which widens the options for assistance to be gained by Malaysian Airlines to secure its longevity. Notably, Malaysian Airlines operate under the guidelines implemented by International Air Transport Association (IATA) and therefore, can expect assistance from the regulatory body. In addition, the economic value of its brand is identified as strong to attract possible mergers that would help the company to recover successfully. To be noted in this regard, IATA has already implemented strategies intending to enhance safety measures that would help Malaysian Airlines to assure trust rebuilding amid its stakeholder groups (IATA, 2014). 3.4. Threats Although opportunities for its early recovery is observable in the industry context, there are many threats to Malaysian Airlines, those might inhibit its long-term sustainability if not managed through proper leadership approaches. Above all, the lowering trust among its stakeholders has made the brand too vulnerable to competitive dropouts, which might take place through either merger or acquisition. In both these instances, the longevity of the brand remains under question. In addition, the independent recovery of the company shall be sluggish with its failing financial strengths, making it a victim of corporate takeovers. The negative brand image hurting the company currently has also increased its pressure to public relation rebuilding, lowering its global market share and thereafter, making it prone to competitive challenges, provided it fail to manage its business communication channels effectively (Nel, 2014). The findings thus obtained through the SWOT analysis of Malaysian Airlines can be better observed from the matrix presented below. Note: Developed for the purpose of this study 4.0. Communication Strategy The above discussion based on the situational analysis of Malaysian Airlines apparently denotes the significance of business communication for the company to assist its faster recovery and a sustainable competitive positioning in the global airlines industry. Although it is assisted by IATA in taking correctional measures at the industrial level, the degree to which such support shall be beneficial for Malaysian Airlines remains susceptible, given the threats and weaknesses of the company in its current performances. It is therefore, important for the company to inform its stakeholders regarding the measures it has been taking in order to ensure safety of the passengers as well as its employees besides notifying them regarding the financial stance of the company. 4.1. Identifying the Target Audiences In order to ensure a successful implementation of a business communication plan, it is vital to identify the most appropriate and worthy target audiences. It is principally owing to the fact that perceptions and the beliefs of the target audiences play a crucial role in confirming the appropriate deliverance of the message with respect to the organizational goals determined (Dawkins, 2004). The objective of this communication plan, correspondingly, has been focused on informing the key customer groups of Malaysian Airlines as well as its other stakeholder groups about its current financial stance and the leadership changes planned to ensure adequate safety of its passengers as well as its employees. The aim behind informing the stakeholder regarding the financial health of the company correlates with the fulfillment of its commitment to compensate the victims of the two disasters in 2014 and hence, shall be crucial to regain the trust and rebuild its brand image. Thus, stating precisely, the target audience of this communication plan will comprise of the internal as well as external stakeholders to Malaysian Airlines. 4.2. Determining the Communication Objectives (SMART) The objectives mentioned above can be better observed with the application of the SMART framework, as presented hereunder. Specific: The objective of the communication plan is to inform the stakeholders of Malaysian Airlines regarding the correctional and recovery measures taken by the company to boost its leadership and financial positions. In accordance, the target audiences will also be informed about the transparency of the company in following the guidelines of IATA, which will help it in rebuilding trust amid its stakeholders and correspondingly, accelerate its recovery. Measurable: Besides being specifically notable by the targeted audiences, these objectives of the company must also be measurable so that it would permit ongoing rectifications to any loopholes of the communication plan. Correspondingly, the attainment of the stated objectives through the communication plan can be measured in terms of sales increase and stability in the global stock market, wherein both these features will help in assuring a better competitive position for the company over the long run. Achievable: From an overall perspective, these objectives can be stated as realistic and attainable with the implementation of a phase-by-phase strategic communication plan and the proper utilisation of communication channels with wider coverage within the mass. Notably, as the stakeholders of Malaysian Airlines range all around the world, making use of multiple communication channels will be essential to achieve the globalisation. Relevant: The relevancy of the objectives determined can be identified with respect to the alignment between organisational goals and the objectives of the communication plan when concerning its current strategic performance. Time-Bound: The objectives stated above in the plan will be a long-term strategic application. It is particularly because the objective of the plan will be to rebuild trust amid the stakeholders, which is only possible with the repeat communication of the intended messages focusing on the company’s overall financial health. Therefore, the plan needs to be implemented until the positive results are obtained through the stated measures and hence, the plan may not be a time-bound practice. 4.3. Designing Messages Comprehensiveness of the messages being communicated to the mass is essential in order to confirm that the audiences are able to identify the objective behind the messages and thus, align with the organisational goals. This will rather assist Malaysian Airlines to ensure its corporate reputation is strong and recover effectively (Lewis, 1999). With due significance to this particular aspect, the message to be communicated by Malaysian Airlines needs to be succinct, precise and informative. Notably, the intention of this communication plan is to inform the mass regarding the current health of the company and concerning the future recovery strategies applied by the company for its better performance. As the core objective of the communication plan is to strengthen stakeholder trust and rebuild the corporate reputation of Malaysian Airlines, transparency in the messages being delivered will be crucial. 4.4. Choosing Media As mentioned above, media must be selected with respect to its involvement within the targeted audiences, which shall comprise the prospective investors to Malaysian Airlines, its current investors as well as its loyal and flying customers around the world. Correspondingly, the appropriateness of selecting the online media will be most suitable for the attainment of the determined objectives, as stated above. Notably, the targeted audience groups are quite likely to be Information Technology (IT) dependent, owing to which the online media shall have greater exposure within the mass. In addition, online media communication shall assist the company to deal with misconceptions and rumors as well as controversies related to its long-term stance, which will in turn, reward credentials with regard to company reputation. To be precise, the company can select both the online news media and social networking sites besides having its organizational website to communicate with its stakeholders. 4.5. Media Schedule (GANTT Chart) 4.6. Summary The communication plan developed above aims at informing the stakeholders of Malaysian Airlines, regarding its current strategic positioning and the future recovery plans the company is expected to implement with the intention of recovering from its ongoing demanding phase. In this context, informing the stakeholders regarding the strengths as well as the challenges currently being faced by the company will be crucial besides informing them about the industrial measures taken by IATA in securing a safe journey experience. A the company objectives behind the communication plan is to strengthen its corporate reputation and rebuild its brand image within the stakeholder groups in the near future, it is also mandatory that Malaysian Airlines remain focused on maintaining transparency when communicating. It is in this context that the company can make use of online media, which is currently recognised to have a wider coverage as compared to other traditional means of mass communication. Emphasising the use of both news media and social networks online, besides the company website will also be crucial. Notably, this communication plan is not time-bound and therefore, the company must have a continuous measurement of the results derived from the communication strategies. Element B – Press Release For immediate release: 28th April 2015 The Current Stance and Future Possibilities for Malaysian Airlines: An Intimation to its Customers and Investors The challenges that Malaysian Airlines faces today is almost apparent to all. The sudden disappearance of MH370 and the disaster with MH17 has left many wondering regarding their safety when travelling through airways and the uncertainty that the entire industry is experiencing currently. Compensations to the victims can by no means be valued in monetary terms. However, the company has assured a sum of compensation to the victims of either of the disasters. With concern to the safety challenges, that the industry faces today, IATA, which is one of the regulatory enterprises of the global airlines industry, has implemented certain steps to enhance such measures those can make the airways safer and more trustworthy. Among these steps, frequent and routine assessments by the team for Operational Safety Audits have been a major step taken to rectify any such faults that might result in similar unlucky disasters. Malaysian Airlines has also been committed to follow these guidelines along with others, which have been implemented by IATA in order to enhance safety measures within the industry. Providing greater significance to emergency training for airline staff in all categories has also been an important facet in these corrective measures, which has been valued by both IATA and Malaysian Airlines. With a major leap forward towards better safety norms, Malaysian Airlines is looking forward to a better future that will only focus on the betterment of its services addressing every need of its valuable stakeholders. Nevertheless, to attain any objective, challenges must also be faced and mitigated with confidence. One particular challenge that the company currently faces is its increasing financial debt. It is with consideration to this challenge that the company is re-planning its financial strategies, which are quite likely to improve its position when concerned with finances. The stock market performances of the company, both in the KLSE and the NYSE have been rebounding, which shows a positive sign towards its recovery. On the contrary, the stock market performance of the company has been bearish since the occurrence of the two disasters. To be noted thus, the company has been much inclined towards continuing investigations as to the causes of the two disasters, among which, some identified causes have already been communicated in relation to technical faults during the flight. It is also notable in the regard that the two disasters are much different and does not directly hurt Malaysian Airlines’ commitment to assure safety of its passengers and its crewmembers on board. However, considering the responsibility of the organisation towards the victims of these disasters, the organisation has been focusing on bringing certain changes in its leadership practices and governance system as well. Safety of the travellers and the crew has become undoubtedly crucial at such an onset, wherein the entire industry has been much concerned with the challenges it faces currently. Technical innovation to assure the same has also been delivered with considerable significance by Malaysian Airlines that would assist in enhancing service efficiency for the company. Assuring these considerations, the company has also received beneficial assistance and encouragement from its industry partners, confirming its faster recovery. References Ashrafia, S., 2014. Mini Case Study: Malaysia Airlines. Adaptive Cycle. [Online] Available at: http://www.adaptivecycle.nl/images/Mini_case_study_MAS.pdf [Accessed April 28, 2015]. Barrabi, T., 2014. MH17 Crash: Malaysia Airlines Financial Struggles Predate 2014 Tragedies. IBTimes. [Online] Available at: http://www.ibtimes.com/mh17-crash-malaysia-airlines-financial-struggles-predate-2014-tragedies-1632438 [Accessed April 28, 2015]. Dawkins, J., 2004. Corporate Responsibility: The Communication Challenge. Journal of Communication Management, Vol. 9, No. 2, pp. 108–119. IATA, 2015. Annual Review 2014. Publications. [Online] Available at: http://www.iata.org/publications/documents/iata-annual-review-2014-en.pdf [Accessed April 28, 2015]. KLSE, 2015. Malaysian Airline System BHD. Counters. [Online] Available at: http://www.klse.info/counters/chart/stock/3786 [Accessed April 28, 2015]. Lehman, C. & DuFrene, D., 2010. Business Communication. Cengage Learning. Lewis, S., 1999. Measuring Corporate Reputation. Journal. [Online] Available at: http://www.angelfire.com/journal2/comunicarse/corp-rep.pdf [Accessed April 28, 2015]. MarketWatch, 2015. Masco Corp. Overview. [Online] Available at: http://www.marketwatch.com/investing/stock/mas [Accessed April 28, 2015]. Nel, P., 2014. The Two Malaysia Airlines Disasters in 2014: Lessons for Airline Management in a Global Context. Proceedings of World Business, Finance and Management Conference, pp. 1-12. Riel, C. B. M. V. & Balmer, J. M. T., 1997. Corporate Identity: The Concept, Its Measurement And Management. European Journal of Marketing, Vol. 31 No. 5/6, pp. 340-355. West, K., 2014. Is There A Future For Malaysia Airlines After Flights MH370 and MH17? The Guardian. [Online] Available at: http://www.theguardian.com/world/2014/jul/29/is-there-a-future-for-malaysia-airlines [Accessed April 28, 2015]. Bibliography Hiatt, K. L., 2014. Safety Performance, IOSA/ISSA and Task Forces. IATA. [Online] Available at: https://www.iata.org/pressroom/facts_figures/Documents/Safety-presentation-gmd-2014.pdf [Accessed April 28, 2015]. PwC, 2015. 2015 Aviation Trends. Industry Perspectives. [Online] Available at: http://www.strategyand.pwc.com/perspectives/2015-aviation-trends [Accessed April 28, 2015]. Reuters, 2015. Air Travel Safer Than Ever In 2014 despite MH370 and MH17 Disasters. World News. [Online] Available at: http://www.telegraph.co.uk/news/worldnews/asia/malaysia/11458363/Air-travel-safer-than-ever-in-2014-despite-MH370-and-MH17-disasters.html [Accessed April 28, 2015]. The Guardian, 2014. Malaysia Airlines to Cut 6,000 jobs in Wake of MH370 and MH17 Disasters. Airlines Industry. [Online] Available at: http://www.theguardian.com/business/2014/aug/29/malaysia-airlines-cut-6000-jobs-mh370-mh17-disasters [Accessed April 28, 2015]. Read More