There is a recent study about the working attitude of the Post 80s generation in Hong Kong. The study shows that the Post 80s work for better life. They want to have flexible working time and think highly of personal life. They are lacking loyalty and uncommitted to their work. As the Post 80s are the important work source, it is important to adjust the management strategy to retain the talented workers in Cathay Pacific. The Demographic Segment According to the statistics released by the Census and Statistics Department in mid-2012, the aging population is much serious.
Until 2039, the ratio of 65 years old to the overall population will raise to 25%. In order to alleviate the effect of aging population, Cathay Pacific should consider inviting the workable elderly who are under 65 years old for part time job. Moreover, Cathay Pacific may further extend the retire age of flight attendant from 55 years old to 60 years old. Extra medical care should be provided too. The Political/Legal Segment China and Hong Kong keep extending the “Individual Visit Scheme” which permits the mainland visitors travelling to Hong Kong.
They are going to issue multiple-visit permits to non-residents of Shenzhen. Much more mainland visitors are expected to come to Hong Kong. The demand for China-Hong Kong air tickets is likely to increase and the frequency of flights should be adjusted. Besides, the Competition law is going to execute in Hong Kong in the next one or two years. There are lots of doubts about Cathay Pacific charging the same additional costs with other airlines now. Cathay Pacific is under suspicion of coordinating the additional costs level with other airlines in private.
The Term Paper on Research On Hong Kong
Hong Kong, British dependency in eastern Asia, on the South China Sea, bordered by China on the north. It is made up of many islands, a portion of the mainland, and a considerable expanse of water surface. It has a land area of 1076 sq km (415 sq mi). Despite its small size, Hong Kong plays an important role in the world economy. The dependency can be divided into three main regions-Hong Kong ...
After the antitrust law comes into effect, Cathay Pacific may be investigated and goodwill would be damaged then. The Technological Segment Since the communication technology is advancing by strides, using computers or video call is capable to “meet” with foreigners that both sound and image can be transmitted. In the past, managers had to travel all around the world to hold a meeting with foreigners. With the communication applicants nowadays, managers are able to hold a digital meeting by just sitting in their offices.
Demand for first-class air tickets decreases which affects Cathay Pacific directly. The Economic Segment From January to September 2012, the petroleum price had been raised for four times amongst the four largest oil companies in Hong Kong. Cathay Pacific faces a big challenge as petroleum is necessary in the production of energy. The cost of operation becomes much higher and the only way to compensate it is increasing the airfare. On the other hand, Hong Kong Trade Development Council has just lowered the expectation of Hong Kong export by negative 1%.
The unfavorable export prospect affects Cathay Pacific cargo business aversely. The Global Segment Hong Kong and Taiwan signed the Air Service Agreement in 30-12-2011 which has come into immediate effect. The passenger capacity and cargo capacity have been raised by each side. These are beneficial to Hong Kong-Taiwan airline and freight development. Nevertheless, restriction on the airlines number has been released with the new agreement. New airlines may enter the market as competitors.
Besides, the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) has been signed for 9 years already and has achieved remarkable success. The next step of CEPA is accomplishing the objective of liberalization of trade in service between China and Hong Kong by 2014. It would boost the trade between two places and therefore provide benefits to air cargo business of Cathay Pacific. To sum up, Cathay Pacific should change its strategy for getting with the general environment in Hong Kong.
The Business plan on Cathay Pacific 3
... Rareness From the Hong Kong people’s point of view, Cathay Pacific Airways is a Hong Kong-based international airline registered in Hong Kong, offering scheduled passenger and cargo services to ... Company Profile Cathay Pacific is an international airline registered and based in Hong Kong, offering scheduled passenger and cargo services to 172 destinations in 39 countries and ...
