Airasia Berhad

 Airasia Berhad Essay

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UNIVERSITY OR COLLEGE OF MALAYA

STRATEGIC ADMINISTRATION ACCOUNTING

CAEA 3301

AIRASIA BERHAD

DAY OF DISTRIBUTION: 2 THE SPRING 2008

QUERY 1

FIRM BACKGROUND

AirAsia is one of the businesses that have successfully adopted expense leadership through operational effectiveness and efficiency. The cost advantages have empowered AirAsia for being the Asia's leading low fare flight. Established in 12 12 , 2001, AirAsia has been such a big sensation in airline industry especially in Asia. With a simple although strong motto " Getaway Can Fly”, AirAsia has successfully positioned itself in customers' brain. Its net profit pertaining to the second 1 / 4 ending thirty-one December 2005 was reported RM forty-four. 4 million, a 323% increase above the previous 1 / 4 (AirAsia, 2005). The leading low fare airline in the Asia - AirAsia has been expanding rapidly as 2001, to get an award winning and the major low cost jar in Asia. With a fleet of 72 aircrafts, AirAsia flies to over sixty one domestic and international locations with 108 routes, and operates over 400 routes daily coming from hubs positioned in Malaysia, Asia and Indonesia. To date, AirAsia has flown over fifty five million guests across the area and continues to spread it is wings to produce more intensive route network through it is associate corporations, Thai AirAsia and Philippines AirAsia. AirAsia believes in the no-frills, hassle-free, low service business strategy and seems that keeping costs low requires very efficient in every part of the business. Performance creates savings which are then simply passed on to guests to ensure that affordable air travel can become a real possibility. Through our philosophy of ‘Now Everyone Can Fly', AirAsia has sparked a revolution in air travel with additional and more persons around the area choosing AirAsia as their favored choice of transport. As AirAsia continuously aims to promote flights, we as well seek to create excitement between our guests with our array of innovative and personalized assistance.

QUESTION 2

VISION

As the largest low priced airline in Asia and serving the 3 billion those who are currently underserved with poor connectivity and high fares. MISSION

AirAsia mission can be want to be the best company to work for where employees will be treated as part of a big friends and family, create a globally recognized ASEAN brand, to attain the lowest expense so that everyone is able to fly with AirAsia and maintain the highest quality item, embracing technology to reduce expense and boost service amounts to the consumers. VALUES

All of us make the low fare version possible through the implementation in the following essential strategies. • Safety 1st:

Partnering while using world's most famous maintenance companies and complying with the with world flight operations. • High Airplane Utilization:

Applying the locations fastest turnaround time of them costing only 25 minutes, assuring cut costs and higher productivity. • Low Service, No Frills:

Providing friends with the range of customizing services without limiting on top quality and services. • Improve Operations:

Making sure that processes will be as simple as is feasible.

• Lean Distribution System:

Offering a wide and innovative range of distribution channels to make booking and travelling easier. • Point out Point Network:

Applying the point-to-point network keeps functions simple and costs low. ENVIRONMENTAL SCANNING

Environmental scanning is performed to assess the attractiveness of Airline industry specifically in Asia. Ahead of Air Asia can discover its organization strategy, Air Asia should certainly scan their particular business environment in term of Macro-environmental and micro-environmental. Macro-environmental will probably be conducted by analyzing significant macro factors (Demographic principles such as large populations, rising middle classes with increasing leisure time and disposable earnings & Geographic such as swiftly increasing estate trends) that affecting the Airline sector. Whereas, Porter's five...

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