Assignment On Southern Cross Business School

2266 words - 10 pages

Q1. Given the political complications, how attractive is the China mainland market? How would you evaluate the threat from Baiyun? What if China's economic expansion slows down?

Reading from the case study: "Cathay Pacific Airways", we can see China's mainland market is very huge, attractive, and expanding every day by applying two main powerful strategic models PESTEL and SWOT. PESTEL models analyze the macro-economic factors, such as Political, Economic, Social, Technological, Environmental, and Legal. China has a more sustainable economic and political environment than other countries. China started its phenomenal economic plan in 1978 by continuing its business in Hong Kong, and in February 1987, CITICHK China International Trust & Investment Corporation Hong Kong became the second-largest shareholder because of 12. A 5 percent stake was sold. It was considered a red chip company, which aimed to mark an open relationship with Britian Swire Pacific. In 1990, CITICHK immediately could acquire Tylfull Company Limited, then renamed to CITIC Pacific Limited, subsequently the major investment vehicle for CITIC HK. It carried on acquiring another big trading company, which has a 12 percent interest in Hong Kong's largest telecommunication, a 10 percent interest in Hong Kong Air Cargo Terminals Limited, and a 25 percent interest in Hong Kong's cross harbor tunnels not so long after that.

In order to evaluate the threats from Baiyun, SWOT models have illustrated the Strengths, Weaknesses, Opportunities, and Threats to Cathay: Baiyun International Airport is the second giant International airport of China and the nineteenth biggest airport in the world; it handles 25 million of passengers each year. It is located in Guangzhou, the capital of Guangdong, about 80 miles up the Pearl River from Hong Kong, arranging respective airspace to create tremendous operations. Hong Kong Airport could activate based on Baiyun's approach to airspace. Airplanes travel around boundaries is usually postponed if they want to arrive to another airspace. The inconsistent platforms in the process caused this problem. At any airport, the diversity in airstrips creates insufficient space for airplanes to fly en route also. Considerably, each of the restrictions above, combined with the PRD (Pearl Delta River) region complexity, decreased the flight schedules or ability to carry passengers from Cathay Pacific Airlines.

China is the most powerful house in leading economic development in the global economy, so China's economic crisis affects not only Asian countries but also everywhere in the world. With the unstable trade, the air cargo market becomes weak, yield in economy class reduces, and unrest in export and import leads to high jet fuel prices and obviously to Hong Kong home carriers, specifically here is Cathay. Because Asia's biggest airport is located in China, where Hong Kong exchanges and receives goods and machinery, Cathay Pacific earns profit thro...

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