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. The CEO has the power to control and make decisions over his position. AirAsia is an airline headquartered in Kuala Lumpur, Malaysia and founded in 2001.... Read More, Rate Tony Fernandes as a Chief Executive Officer, AirAsia Group, Chief Executive Officer (AirAsia Thailand). 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. AirAsia Group Berhad’s phone number is +60 3-8660 4333. Increasing level of terrorism and attacks may cause severe damage to AirAsia. AirAsia’s structure is … On receiving the boarding pass, passengers are to sit at any available seat and AirAsia’s flights are not classified into classes. 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). SCOPE The described culture that fits with Airasia is Task Culture. It is also associated with the mechanical arrangement of reporting lines and positions on the organizational chart.. Since many years, Porter’s generic strategies are most commonly used by companies to discuss, categorize and decide on different strategies. The authority of the top management to take 9 d. Customer Services: Call centers established by AirAsia enable them to efficiently and effectively deal with customer’s queries and complaints. Tony Fernandes appointed leading experts who possessed expertise in low cost airline strategies to reconstruct the business model of AirAsia. Capabilities analysis takes place once the business plan and strategy are streamlined and in proper positioning. They have made the process simple for their customers and staff hence resulting in technical efficiency. 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. They organize various different social events for the staff to social and interact with each other. The above mentioned sources of the cost advantage that AirAsia has over other airline companies are summarized in the flowchart below. Business Model, The competition between airline companies that provide full services and no-frills is getting intense across the world (O’Connel & Williams 2005). In the light of its mission statement, AirAsia has developed the business strategy on cost leadership. These features of AirAsia enable it to compete successfully with its rivalry airlines and dominate the market. What is AirAsia Group Berhad's tech stack? AirAsia possesses the ability to face this challenge confidently because of its strong organizational structure. 2. Answer: The structure of Air Asia could be a semi-flat structure that starts with the CEO Tony Fernandes, following by Chairman of the board and alternative six administrators (Shanmugam, 2013). What is AirAsia Group Berhad’s official website? Air Asia Case Study. In case you can’t find a sample example, our professional writers are ready to help you with writing Although AirAsia lays extra emphasis on the safety and security of its stakeholder, still there are certain incidences beyond their control. The major challenge that AirAsia is facing currently is the increasing competition of low cost airline services. 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. These facilities are made available to passengers travelling from full-service airlines. Background of 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. An organization that is divided into semi-autonomous units Question 15 15. What is AirAsia Group Berhad’s phone number? Organization culture - Organization culture of the part to the development of AirAsia - Factors that make AirAsia have good culture - Vision mission 4. Management Style. They have no levels of hierarchy that means no ranking discrimination happens. The company encourages its staff to have open communication and learn from each other. Find related and similar companies as well as employees by title and much more. It charges low airport fees and spends low cost on maintenance and training of staff. These airline companies possess an aggressive strategy of marketing and have competition with different kinds of transport carriers such as railways and road. Where are AirAsia Group Berhad’s headquarters? AirAsia’s feature of embracing technology to extend their services online to the customers allows them to do direct sales. Organizational Economics Theory, Power and Politics Organization Theory, Organizational Culture Theory, Reform Though Changes in Organizational Culture and Theories of Organizations and Environments. Challenges Faced by AirAsia In the paper, we argue that designing organizations should be scientific-based and forward-looking. Furthermore, the report aims at highlighting the expansions of AirAsia with future expectations. Compare and … Organizational Structure of AirAsia Berhad Figure 2: Organization Structure of AirAsia Berhad Based on Figure 2, AirAsia is a decentralization organization. Retrieved from https://graduateway.com/air-asia-case-study/, This is just a sample. 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. A team is an organization in which the members share a common responsibility, interest, or objective. Applegate, Austin and Soule (2009, p. 215) defined capabilities as, What is AirAsia Group Berhad’s NAICS code? In order to avail any service such as meals etc, passengers have to pre-order the full meals and a wide range of menu is offered to the passengers. This is managed by the company by searching for cost reduction areas continuously including its value chain. An example can be installation of kiosks by AirAsia to speed up the process of checking in. It works very well with short haul traffic that is point to point and has high frequencies. 4. They possess high resource productivity. AirAsia is a centralized organization where every department has to follow the decisions made by the top management which consists of the Chief Executive Officer (CEO) and the deputy. The planes categorized for this model are with narrow seating arrangements and caters only a single class usually all economy flights. Most of the low cost carriers use secondary airports due to its cheap availability . The second major challenge faced by all the airlines is the constant rise of fuel prices. your own paper. 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. AirAsia has established the geographical structure. 2 COMPANY BACKGROUND AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. There are two main management layers in the organizational structure and the people in these positions are considered as main leaders of the company. In this case study, AirAsia’s business plan and strategy, sustainability, cost and competitive advantage it has and its management style has been discussed in details. Direct partners can be categorized to have strong ties with the company. Corporate Information. AirAsia’s Business Model. These kinds of services do not offer frequent flyer programs to its customers. A series of sessions are planned for the staff to enhance their skills to serve people better. Disadvantages Functional structure is : grouping of activities or tasks based on the basic functions Characteristics of this structure Marketing Production Finance Advantages Detail 4 each department has different activities and responbilities we can avoid duplication of tasks Corporate Structure *Click on the image to enlarge. Many low cost airlines have penetrated in the market giving direct competition to AirAsia. 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. b. AirAsia Aims for Streamlined Revenue Management & Data Science... FoodTech startup AirAsia food is shaking up the food delivery scene in Malaysia. For these incidences, AirAsia may have some contingency plans; however they don’t work at all times. More details of sustainability are provided in the following section of AirAsia’s business strategies. Organization design is a major factor determining an organization’s performance and how the people work together in these organizations. AirAsia’s one of the prime objectives is to keep innovating technology and keep on integrating it in its different operations. AirAsia Group Berhad's main competitors are: Nok Air, Wizz Air, easyJet, Ryanair. All you need to do is fill out a short form and submit an order. No matter how much an airline tries to chop their cost, fuel cost cannot be reduced or addressed. a. Low Cost Carriers, Low cost carriers (LCCs) offer low cost services to its passengers and in return provide ‘no-frills’ services to them. These kinds of events contribute in maintaining healthy and friendly working environment. AirAsia Group operates scheduled domestic and international flights to more than 165 destinations spanning 25 countries. By continuing your navigation, you consent to their use. Trying different innovative ideas and technologies has enabled AirAsia to dominate in the market and stay a step ahead from its rival competitors. There are two main reasons of having a competitive advantage over other competitors, one having some special and unique resources that others cannot access and second having the ability to use the commonly used resources effectively and efficiently. Secondly, AirAsia believes in honest and transparent relations with customers, staff and even with its partners. Capabilities Analysis. AirAsia accelerates the implementation of Eddy, Kambr’s revenue management software, which brings greater agility, fresh data insights and an intuitive working environment for its analysts (PRWeb January 25, 2021) Read the full story at https://www.prweb.com/releases/airasia_aims_for_streamlined_revenue_management_data_science_processes_with_kambr_s_eddy_software/prweb17675847.htm. These costs are considered to be the major expenses within an airline industry. View AirAsia Group Berhad (www.airasia.com) location in Kuala Lumpur, Malaysia , revenue, industry and description. c. Technology:AirAsia works towards embracing technology for business requirements as well as to maintain cost effective strategies. AirAsia reported a fifth straight quarterly loss in November and is in the process of raising funds through loans and investors. 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