Problem at China Airlines Essay Example | Topics and Well Written Essays - 3750 words

Problem at China Airlines - Essay Example This paper stresses that CAL has continuously faced different challenges within the Chinese market relating to political, social, economic as well as technological aspects that drastically affected in its overall performance. In accordance with the case study, it has been viewed that the organisation successfully performed its various business operations by offering superior services to the customers in its different operating areas. In this regard, the organisation has adopted an effective strategy during the year 1995 in terms of procuring 15 numbers of advanced Boeing 737 medium-haul jets for expanding its businesses. This essay declares that the political disturbances have been witnessed as one of the major difficulties for CAL while conducting its business operations. The political association between Taiwan and Mainland China has been observed to be quite strained because of the growing disputes concerning political status of Taiwan. The political problems between Taiwan and China have drastically affected the airlines business of CAL because the Chinese tourists are allowed to visit Taiwan in a group but they are not allowed to visit individually. In addition, the cargo transhipment service was also restricted between these two countries that also affected the business operations of CAL at large. Due to political disturbances, CAL and other Taiwanese airlines had changed its international flight route via southern region by connecting Southeast Asia and Middle East countries that ultimately emerged major difficulties for CAL.... In this regard, the organisation has adopted an effective strategy during the year 1995 in terms of procuring 15 numbers of advanced Boeing 737 medium-haul jets for expanding its businesses (Samanta & Faheem, 2010). Question 1) Macro-Level Issues The different macro level issues that faced by CAL can be understood by conducting a detailed environmental analysis based on PEST framework. PEST Analysis PEST analysis is regarded to be an important analytical model for an organization that assists to identify different circumstances concerning social, political, economic as well as technological factors (Lorat, 2009). Political Factors The political disturbances have been witnessed as one of the major difficulties for CAL while conducting its business operations. The political association between Taiwan and Mainland China has been observed to be quite strained because of the growing disputes concerning political status of Taiwan. The political problems between Taiwan and China have drasti cally affected the airlines business of CAL because the Chinese tourists are allowed to visit Taiwan in a group but they are not allowed to visit individually. In addition, the cargo transhipment service was also restricted between these two countries that also affected the business operations of CAL at large. Due to political disturbances, CAL and other Taiwanese airlines had changed its international flight route via southern region by connecting Southeast Asia and Middle East countries that ultimately emerged major difficulties for CAL (Samanta & Faheem, 2010). In this regard, it has apparently observed that the association between Taiwan and China remained quite strained because of the disagreement concerning political