Environment Of Suvanabhumi Airport

Environment of Suvanabhumi Airport

1. Introduction

The new Suvarnabhumi Airport was scheduled to open in June 2006. However, this date was delayed until 28 September 2006 for testing and validation by cracked runways. The main reason for replacing Old Bangkok International Airport to the new one was unexpanded the old one. (BKK/VYB 2007)

2. Environment

2.1 Internal environment

Boyatzis (1982) discuss the idea that internal environment is composed of the elements within the organization.

According to airline industry information, construction workers at the new Suvarnabhumi international airport have been accused of sexual harassment by several female employees. The airline employees alleged that they were verbally or physically assaulted while working evening shifts at the airport. (M2 Communications Ltd 2006)

In this case, the new airport is lacking enough security management at the airport. As the area of the new airport is huge, security guards are not enough to take care of all airport area.

2.2 External environment

The external environment is outside situation, which cannot control. The external environment that divided to two components, the specific environment and the general environment (Robbins et al., 2006, p.82).

Figure 1 The external environment

(Robbins et al., 2006, p.83)

According to report of Airports of Thailand Public Company Limited, Airports of Thailand Public Company Limited has laid down a policy for environmental management that complies with national rules and regulations. (Airport of Thailand Public Company Limited 2005)

Figure 2 Suvarnabhumi Airport

(Airport of Thailand Public Company Limited 2005)

2.2.1 Specific environment

The part of the environment that is directly relevant to the achievement of an organization’s goals. It combines as the following information (Robbins et al. 2006, p. 82).

1) Customers- An organization exist to meet the needs of customers. (Robbins et al. 2006, p. 83)

According to research of Narin Turakavongsakun, a consultant of Chefron Co. Ltd mentioned that there are three groups of Suvarnabhumi Airport’s customer. Domestic and foreign airline company, logistic business groups and passenger of the airport (Narin Turakavongsakun 2006)

In this case, as the new airport has been replaced the old one, there would be more tourists and may become the center of business in Asia Pacific region.

2) Suppliers- Firms provide materials and equipment. (Robbins et al. 2006, p. 83)

According to a report of the Japan International Cooperation Agency, the Japanese government has been offering a Japanese Yen Loan to Thailand under Japan's Official Development Assistance Program through the Japan Bank for International Cooperation since 1996. (The Japan International Cooperation Agency 2007)

3) Competitors- All organizations have one or more competitors. (Robbins et al. 2006, p. 83)

According to managing director Foo Sek Min said, Suvarnabhumi Airport could become a formidable competitor to the award-winning Changi Airport with Singapore's Changi airport and Kuala Lumpur International Airport. (New Bangkok Airport Guide 2006)

4) Pressure groups- The special interest groups can influence the actions of organization. (Robbins et al. 2006, p. 85)

According to Kum Chad Luk Newspapaer, 359 residences who were affected noise pollution from Suvarnabhumi Airport had claimed to the government that there was the impact from the construction of Suvarnabhumi Airport such as noise pollution and no one has been responsible for this. (Kum Chad Luk 2006)

2.2.2 The general environment

External conditions includes economic, political, socio cultural, demographic, technological and global conditions. (Robbins, et al. 2006, p.86)

1) Economic Condition- The economic factors can affect management practices in an organization. (Robbins, et al. 2006, p.86)

According to economic review of Nondhanada, the capacity to handle 45 million passengers and 3.3 million tons of cargo a year of the airport in its first phase, Suvarnabhumi Airport is the key to Thailand's bid to double the number of tourists to 20 million by 2008. (Nondhanada Intarakomalyasut economic review 2004)

2) Political Condition- Government plays the major roles that have an impact on business. (Robbins, et al. 2006, p.86)

According to Suvarnabhumi Aeropolis Development research, the Thai government planed to develop land use, transportation, flood control, water supply, wastewater, solid waste management, and utilities in Suvarnabhumi area to become a as good as Bangkok area. (Suvarnabhumi Aeropolis Development research 2006)

It seems that the government was trying to target Suvarnabhumi area to become another business center in Thailand.

Figure 3 Proposed New Zoning Plan for Bangkok

(Suvarnabhumi Aeropolis Development research 2006)

3) Social Cultural Conditions- It concerns about practices that changing expectations of the society. (Robbins, et al. 2006, p.87)

According to Suvarnabhumi Aeropolis Development research, the BMA Governor announced that five local positions would be revoked. (Suvarnabhumi Aeropolis Development research 2006)

It seems that revoking household for the new airport will affect cultures of people in that area because of their life style and religion.

4) Demographic Conditions- It encompasses trends in the physical characteristics of a population. (Robbins, et al. 2006, p.87)

According to a research of Suvarnabhumi Aeropolis Development, the average number of family members in each household is 3.9. The average age of the family members is 32. The majority of households were found to have a monthly income of 10,000 to 25,000 Baht. (Suvarnabhumi Aeropolis Development research 2006)

Table 1 Population and Households