Business strategies enable the firms to develop a detailed framework for monitoring and evaluating the business goals and objectives. At below of the image, I also present the advantages and disadvantages of the organizational structure of geography. Chief Executive Officer (AirAsia Singapore) &... Chief Executive Officer (AirAsia Philippines), Chief Executive Officer (AirAsia Malaysia). The organizational structure of AirAsia has no ranks and there are no levels of hierarchy observed in the company. The Organisational Design describes the creation of structures, processes, and roles so that the goals and objectives of an organization can be realized. These airline companies possess an aggressive strategy of marketing and have competition with different kinds of transport carriers such as railways and road. What companies has AirAsia Group Berhad acquired? Furthermore, the report aims at highlighting the expansions of AirAsia with future expectations. In case you can’t find a sample example, our professional writers are ready to help you with writing Get Your Custom Essay on, By clicking “Write my paper”, you agree to our, By clicking Send Me The Sample you agree on the, Case Study of Air-Asia : Strategic Role of Information System in Business, Case Study of Air Asia: Economic Perspective, https://graduateway.com/air-asia-case-study/, Get your custom IR Calendar. This type of model caters the demand of the customers on the basis of extra payment. AirAsia encourages an environment that is free of racial, ethnic and cultural discrimination. The technological innovations by the company satisfy the customers and makes the company gain competitive advantage in the market. A journal on Porter’s generic strategies quotes, ‘Porter contends that by implementing one of these strategies, a company will have a competitive advantage and earn above average industry returns.’ According to the generic strategies by Porter, strategy by AirAsia can be classified into a cost leadership chart. It works very well with short haul traffic that is point to point and has high frequencies. Initially, when Fernandes purchased AirAsia, most of the leading entrepreneurs claimed that the airline won’t survive for long. Organizational Economics Theory, Power and Politics Organization Theory, Organizational Culture Theory, Reform Though Changes in Organizational Culture and Theories of Organizations and Environments. Corporate Profile; Corporate Structure; Board Of Directors; Group CEO's Statement; Major Shareholders; Strategy; IR Useful Links. If you need this or any other sample, we can send it to you via email. Human Resource: AirAsia provides cost effective training to its crew staff and also works towards providing them rewards and incentives to maintain their motivation level. Essay, Use multiple resourses when assembling your essay, Get help form professional writers when not sure you can do it yourself, Use Plagiarism Checker to double check your essay, Do not copy and paste free to download essays. How many employees are working in AirAsia Group Berhad? COMPETITIVE 2 COMPANY BACKGROUND AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. … Evaluating leadership and governance skills: All the staff at AirAsia is treated with equality and the company doesn’t believe in giving ranks to people. This exploratory study will focus on a single service organization in Malaysia, AirAsia. Thai AirAsia X Organizational Structure | airasia Find out more about the Thai AirAsia X organizational structure such as who is part of the board of directors and information on the shareholders. Relationship between Organizational Structure and Culture Since the organizational structure determines how the roles and responsibilities are allocated and how they will be monitored as well as the flow of communication between different levels and sectors, it is entirely dependent on the organizations goals and how it wants to reach them. The organizational structure of AirAsia has no ranks and there are no levels of hierarchy observed in the company. Organization design is a major factor determining an organization’s performance and how the people work together in these organizations. The chart below shows an example of the organization of geographical structure adopted by The Air Asia Management . AirAsia’s Business Strategy. Assessment of organization and its culture: Keeping in consideration the mission statement of AirAsia, it focuses on streamlining its organizational structure and integrates use of information and technology (IT) to make the structure even simpler. AirAsia’s value chain helps to analyze the determinants of how cost advantage is created. AirAsia apply point to point networks to make the operations simpler and cost effective. Tan Sri Tony is one of Asia’s most recognisable entrepreneurs, best known for co-founding AirAsia which has gone on to democratise air travel in the region. They define the resources needed to execute strategy and define the cost model of an organization. Secondly, AirAsia believes in honest and transparent relations with customers, staff and even with its partners. They possess high resource productivity. AirAsia Aims for Streamlined Revenue Management & Data Science... FoodTech startup AirAsia food is shaking up the food delivery scene in Malaysia. Their main sales are booked online which prevent them from giving commission to travel agents. As a conclusion, AirAsia is doing a wonderful job in terms of satisfying its customers by providing them with quality services. There are no assigned seats in these carriers; passengers have to take any seat that is available when they board the plane. Fernandes invested all his valuables and saving in purchasing this airline company that only possessed two Boeings and was deeply surrounded by many debts. The research aims to find and highlight the process, procedures, and practices at AirAsia that deem to fit the characteristics of simplicity and discipline in the original model. Businesses that excel high and dominate in the market tend to have a competitive advantage over others (Laudon & Laudon 2010). This saves a significant amount of cost that could have been gone to the travel agents if this feature wouldn’t have been made available. They have no levels of hierarchy that means no ranking discrimination happens. Analysis of process and infrastructure: AirAsia’s most significant competitive advantage is by providing the customers with the lowest fares and eliminating all the non essential services to the customers. AirAsia Group Berhad’s headquarters are in 5, Lapangan Terbang Antarabangsa, Kuala Lumpur, Kuala Lumpur, Malaysia. Sustainability, AirAsia has always been keen towards providing low fare to its passengers without any compromises in terms of quality and services. our expert writers, Please indicate where to send you the sample, Hi, my name is Jenn By providing quality services at a competitive price, AirAsia manages to develop and sustain its competitive advantage in the market. The second major challenge faced by all the airlines is the constant rise of fuel prices. In a company with flexible organizational structure, the top management of AirAsia should provide executive support to the employees to ensure a decision or a project can be successfully carried out because employees might be afraid to make decision in new environment. What is AirAsia Group Berhad's tech stack? Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With restaurants only allowed to offer take-out services, AirAsia food’s riders continue to do their part in […] The post FoodTech startup AirAsia food is shaking up the food delivery scene in Malaysia appeared first on Tech News | Startups News. It further aims at assessing the sustainability of the business model and its competitive advantage. An organization that is divided into semi-autonomous units Question 15 15. AirAsia Group Berhad's main competitors are: Nok Air, Wizz Air, easyJet, Ryanair. Increasing level of terrorism and attacks may cause severe damage to AirAsia. AirAsia’s Expansion, Since the relaunch of AirAsia in 2001, it has been excelling in different areas and operations. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Figure Positioning low cost airlines mainly target tourist, non-business passengers and those who are price conscious passengers. Within no time, AirAsia became a profit making firm from a debt ridden company. AirAsia Group Berhad’s phone number is +60 3-8660 4333. Most of the low cost carriers use secondary airports due to its cheap availability . 2. More details of sustainability are provided in the following section of AirAsia’s business strategies. When considering low cost carrier business model, cost management is the key that leads the company to leading position in the market. These features of AirAsia enable it to compete successfully with its rivalry airlines and dominate the market. Who are AirAsia Group Berhad’s main competitors? We will be using the three levels of organizational culture as defined by Edgar Schein (2010) to analyse AirAsia. AirAsia’s Business Model. By continuing your navigation, you consent to their use. AirAsia has no doubt given a new dimension to the low cost airlines and businesses. This case study aims at evaluating the rationale of AirAsia’s strategic plan and how have these strategies been associated with its structure and system. The most significant objective of AirAsia is to gain higher cost advantage as compared to its rivals. AirAsia’s feature of embracing technology to extend their services online to the customers allows them to do direct sales. Set up organizational hierarchies to view and report on your business from different perspectives. It charges low airport fees and spends low cost on maintenance and training of staff. Introduction The above mentioned sources of the cost advantage that AirAsia has over other airline companies are summarized in the flowchart below. In the light of its mission statement, AirAsia has developed the business strategy on cost leadership. Many low cost airlines have penetrated in the market giving direct competition to AirAsia. Firm Infrastructure: AirAsia is recognized worldwide for its simplicity and transparency. The main target audiences of the strategy laid by the company are the customers who are generally price conscious and need short-haul flights to travel. The two most important cost advantage over operations possessed by AirAsia is the high utilization of their planes and turnaround time as quick as twenty five minutes. These kinds of events contribute in maintaining healthy and friendly working environment. The organizational chart of AirAsia Berhad displays its 11 main executives including Riad Asmat and Adrian Jenkins × We use cookies to provide a better service. A journal explains the sustainability of low cost carrier model by stating, ‘The LCC model is appropriate for the Southeast Asia environment. Background of AirAsia. Capabilities also defines the assets of a firm and the efficiency with those assets are used.’ AirAsia’s capabilities and competitive advantage over other rivalry firms are discussed in details below: 1. These generic strategies can be further classified into differentiation, focus or cost leadership. By considering the rapid growth and successful expansion of AirAsia, it is expected that upcoming expansions will be sheer successes for the company too. Organization culture - Organization culture of the part to the development of AirAsia - Factors that make AirAsia have good culture - Vision mission 4. AirAsia’s operational strategies are as follows, 1. In the paper, we argue that designing organizations should be scientific-based and forward-looking. c. Technology:AirAsia works towards embracing technology for business requirements as well as to maintain cost effective strategies. Capabilities Analysis. The basic aim of low cost carrier model is to get the passengers travel from one place to another not paying any noticeable attention to the additional services. Organizational structure of geography distributes the workers by geographical areas according to different parts of its branch operations. The described culture that fits with Airasia is Task Culture. Organizational hierarchies. What is AirAsia Group Berhad’s official website? ‘No-frills’ means that the airlines eliminate all value added services such as meals and entertainment on flights. Modernized operations and integration of technology at different levels allows the company to dominate in the market with best products at best price. AirAsia Group Berhad’s stock symbol is AIRASIA. AirAsia’s performance and business process management will also be discussed in details. Air Asia Case Study. A team is an organization in which the members share a common responsibility, interest, or objective. Trying different innovative ideas and technologies has enabled AirAsia to dominate in the market and stay a step ahead from its rival competitors. The organizational structure of AirAsia is a semi-flat structure that starts with the CEO Tony Fernandes, following by Chairman of the board and other six directors (Shanmugam, 2013). These kinds of services do not offer frequent flyer programs to its customers. Challenges Faced by AirAsia a. Inbound Logistics: AirAsia gain cost advantage in this category by utilizing just one kind of aircraft. On receiving the boarding pass, passengers are to sit at any available seat and AirAsia’s flights are not classified into classes. your own paper. Which one of the following companies was one of the first to use of a divisional structure? BUSINESS Air Asia leading airline was established with the dream of making flying possible for everyone. AirAsia works with direct and indirect partners with an aim to make their services even better and low cost. Whereas, indirect partners include social media websites such as twitter, facebook etc. Organizational Structure of AirAsia Berhad Figure 2: Organization Structure of AirAsia Berhad Based on Figure 2, AirAsia is a decentralization organization. Not only that, AirAsia also takes initiatives for its employees and has provided them with friendly and tension free environment to work on. c. Marketing and Sales: The most significant feature of AirAsia is the low cost but creative advertisement they produce. This raises challenges in designing organizations in contexts and situations that are new and have not been seen before. b. Evaluation of staff, customers and partners: With an aim to provide quality service to its passengers, AirAsia focuses more towards the training of its crew and staff. AirAsia is recognized by its lowest fare, quality services and their tagline “Now Everyone Can Fly”. Teams cannot be used in organizational hierarchies. AirAsia reported a fifth straight quarterly loss in November and is in the process of raising funds through loans and investors. AirAsia Group Berhad’s official website is www.airasia.com, AirAsia Group Berhad’s revenue is $2 Million. 4. The agenda of the training sessions include procedures for in flight services, aviation terminology, safety and security procedures, gaining knowledge of the product and many more. AirAsia’s performance and business process management will also be discussed in details. Corporate Information. AirAsia Group operates scheduled domestic and international flights to more than 165 destinations spanning 25 countries. 3. The staff and crew understand their roles and responsibilities and understand the basic strategy of the company that is low cost maintenance resulting in high productivity. AirAsia has established the geographical structure. d. Customer Services: Call centers established by AirAsia enable them to efficiently and effectively deal with customer’s queries and complaints. AirAsia Group Berhad has 21,600 employees, AirAsia Group Berhad is in the industry of: Airlines, Airports & Air Services, Transportation. Corporate Structure *Click on the image to enlarge. Where teams are formed in Airasia like the waitress and the pilot to solve particular problems. Organizational Culture For Air Asia. Tony Fernandes appointed leading experts who possessed expertise in low cost airline strategies to reconstruct the business model of AirAsia. Determinants of how cost advantage is created helps to analyze the determinants of how cost advantage as to. 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