...Air Asia – Strategic IT Initiative Submitted by: Charles Kho Sandy Hofman Aruan Christian Tjitrahardja Ramaratnam Narayanaswamy Faculty of Economics and Commerce University of Melbourne 2005 306-669 Strategic Enterprise Systems Group Project Executive Summary IT is one of the major enablers of AirAsia’s successful low cost business model. Based on the environmental scanning performed, the demand for Low Cost Carrier (LCC) is expected to expand rapidly attracting more players to join the market thus increasing the degree of rivalry within the industry. In responding to this condition, it is imperative for AirAsia to continuously identify new sources of cost advantage so that it can provide the lowest possible price to the price sensitive customer and improve its market position. In this project, Advanced Planning and Scheduling (APS) system is recommended as the new source of AirAsia’s cost advantages. Using Venkatraman and Henderson’s model APS fits smoothly to the Technology Transformation Perspective where business strategy acts as a driver. The functionalities provided by APS system to improve AirAsia’s performance include event management technology, supplier portals, inventory planning, demand forecasting, maintenance management, and route profitability analysis. As a result of implementing APS system, AirAsia can obtain both strategic and operational benefits. AirAsia is strongly recommended to outsource the development of APS system. As project management...
Words: 7114 - Pages: 29
...PACE - Professional & Continuing Education ON-LINE DISTANCE LEARNING MASTER IN BUSINESS ADMINISTRATION NUR EFIZA AB. RAZAK SUBJECT: Strategic Management SUBJECT CODE: MGT6303 Coursework Assignment 2 Due Date: 31st March 2015 Executive Summary In this second assignment, I have choose AirAsia and AirAsia X Group to further illustrate their strategic direction and development which is crucial for their survival. With a new travellers on the scene, it is inevitable that AirAsia will keep on growing. With hubs in KL, Bangkok, Jakarta, Sabah and Sarawak, AirAsia operates in a region with the world’s largest population, Asia. AirAsia’s strategy for growth is based on the potential demand from this region, which is huge indeed. Section (a) described the Ansoff Matrix and how it can be used by organisation. In another words, at the corporate level, the decision makers ought to address questions and issues related to the overall direction and scope of the business and where it should be going, as well as to look at the organisation’s competitiveness and where in the future it can continue to be stronger (MacMillan and Tampoe, 2000). Section (b) described the tactical level strategies that can further allow the grand strategies discussed in section (a) to be acted upon. Also the merits and limitations in each strategy. Answer for (a) The Ansoff Product – Market Growth Matrix is designed by a mathematician, H. Igor Ansoff in 1957. The matrix provides ways...
Words: 3247 - Pages: 13
...Question 1 Why do companies such as Procter & Gamble target emerging markets? Do you agree with this strategy? For many years, multinational consumer goods company Procter & Gamble lagged behind its direct competitors Colgate-Palmolive and Unilever in emerging markets. Both Colgate and Unilever gain more than half of their revenue from emerging economies. P&G, on the other hand, only generates 40% of its revenue abroad, despite being the world's largest household product maker. P&G is famous for having a rich portfolio of well-recognized brands in the personal care, beauty, grooming, health and fabric segments. As Morningstar notes, some of its brands are essential for retailers to bring more traffic to their stores and therefore enjoy privileged product positioning. More than 20 of P&G's brands generate $1 billion or more in revenues per year and they are extremely popular. These brands are famous for their high quality. However, despite the strength of its portfolio and its presence in more than 180 countries, P&G's performance in global markets is far from amazing. Global growth has roughly been 3% on a dollar basis for the past few years. Considering that there's an emerging middle-class in emerging economies, P&G could not only find a growth catalyst but also find high-profit situations abroad. Big companies such as Procter & Gamble target emerging markets because they are determined to grow. Their strategy is to capture as much customers...
Words: 2153 - Pages: 9
...Customer Relationship Management is a concept used by the organization to manage the relationship with customers, including collecting, storing and analyzing customer information. CRM supports a company to provide service to customers in real time with a relationship with customers. Based on what is known of the customer, companies can create variations of supply, services, programs, messages, and media through the system that implement CRM, the company formed a closer relationship with customers, which the company can know the needs of customers and provide a choice of an appropriate product or service with their request. CRM is useful to help management better understand the customer. This is will enhance the ability of the company in targeting customers. CRM allows the selection of marketing more effective. That is will reduce costs and simultaneously enhance the effectiveness of a campaign. CRM will ultimately help companies improve profitability through a focus on handling high-value customers. In recent years, establishing a direct relationship with customers is one key to success is good for a company. As done by the AirAsia airline. AirAsia is a low-cost airline based in Kuala Lumpur International Airport. The leading airlines in Asia was established with a dream to make everyone can fly by plane. Since 2001, AirAsia has been breaking norms smoothly travel the world and has improved its position to become the best in the world. With a route network stretching across...
Words: 460 - Pages: 2
...Executive summary Air Asia Airline is one of the companies that once facing a critical financial crisis situation within the organisation. However Air Asia has successfully overcome this problem and expand this nearly bankrupt organisation to become million valued company within a short period of time. Air Asia only used 4 years times to change from a heavily debt organisation and become a high profit company that earn a net profit of RM112 million during 2004 (Air Asia 2005). This has illustrate that Air Asia has undergo a radically change within the organisation. Hence this report will mainly discuss and analyze on what has been done and how was the changes has been done to Air Asia so that the company could manage these changes properly as well as creates positive profit in this financial report. Table of content |Executive Summary |1 | |Table of Content |2 | |1.0 Introduction |3 | |2.0 Company Background |3 | |3.0 Drivers of Change ...
Words: 3051 - Pages: 13
...brand is Air Asia……………………………………………………….3 3.1 Favorite brand and the reasons brand makes great………………………4 3.0 Bad brand is Rayani Air…………………………………………………………6 4.2 The reason why the brand are bad……………………………………….7 4.0 The major competitor of the favorite brand…………………………………..8 4.1 Malaysia Airlines (MAS) the major competitor of Air Asia………….....9 4.2 Competing brands in term of strategy marketing……………………….10 4.3 Difference between Air Asia and Malaysia Airlines (MAS)……………11 5.0 Conclusion………………………………………………………………………13 6.0 Reference………………………………………………………………………..14 1.0 Introduction The aim of this individual assignment of subjects BPMM3113 Brand Management is to make a bit of criticism in connection with the preferred brand and the brand also not favored. This task is also to evaluate the performance of a popular brand of airline Air Asia and also the favored brand of Air Rayani. For the main competition for Air Asia is Malaysia Airlines (MAS). The airline industry is a big industry, a large and rapidly growing nowadays. In those years ago, air travel has increased by 6% a year and scheduled airlines carry more than 1 billion passengers in 2008. In addition, in this study, both the company and the challenges will be discussed in more detail in this report. It will be discussed further in this study are the weaknesses, advantages and competitive strategy used in the aviation industry. MAS Airlines and Air Asia on profitability...
Words: 3029 - Pages: 13
...Company – Air Asia Air Asia vision: To become a biggest low cost airline in Asia & serving the three billion of people who are presently underserved with poor connectivity and high fares. A vision is virtually comprises thinking strategically about the direction of the company in the future. After an assessment has been made on Air Asia original vision statement, there are some suggestion and improvement that needed. The new vision can be revised as: ‘To spearhead airlines industry and become most famous low-cost airline that provides the great flying experience in Asia’. Based on the revise vision statement, it showed that the formed is still within its scope as Air Asia is highlighting that they wanted to be the biggest low-cost airline in Asia. When the company expands larger, the more people will know more about Air Asia. And this will improve the strong brand identity to the consumers. Apart from that, the new vision statement shows that Air Asia wants to provide the great flying experience to the consumer or passenger. Other than that, Air Asia also can take noted that as consumers nowadays are more concern about the services quality rather than the facilities for an Airlines company. A vision statement is important to direct a company to be surviving in the future. If a company have a unreliable vision statement, it might lead a company to the wrong direction. The vision that created by Air Asia are achieving the expectations for its business. At the same time, Air Asia...
Words: 2598 - Pages: 11
...CONTENTS Page No 1. Introduction 2 2. Company Background 3 3. Asset Management and Leverage 5 4. Classification of Ratios 6 5. Ratio Analysis of the Performance of Air Asia and Malaysian Airlines System for the year 2011 7 6. Conclusion 11 Bibliography/Reference 13 QUESTION: Select any two listed companies of Bursa Malaysia from the Trading/Services sector and evaluate the companies’ asset management and leverage ratios using their financial statements for the year 2011 ANSWER 1. INTRODUCTION Malaysian Airlines System (MAS) and Air Asia are currently the two main airlines operating in Malaysia. These two companies are competing in the airline industry which is fiercely competitive. This is a very large and continuously growing industry giving the industry players the opportunity for immense financial gains. The different categories in the airline industry usually comprise of: International Category which has airplanes with adequate seating capacity that makes it possible for passengers to travel to any destination in the world. The earnings in this category gross over a billion dollars. National Category which has a lesser seating capacity and the gross revenues are less than one billion dollars. Regional Category with planes that operate short-haul flights. Cargo Category which has planes transporting goods. The airline industry is characterized by its large...
Words: 2846 - Pages: 12
...AIR ASIA AIRLINES COMPANY COMPANY BACKGROUND Air Asia Berhad is an established in 1993 with commenced operations in 1996. In 2001, Tune Air Sdn Bhd Tony Fernandes’s company purchased this airline from DRB-Hicom. Air Asia never look back after that. Air Asia’s first and main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport, while its secondary hubs are at Kota Kinabalu International Airport, Senai International Airport and Penang International Airport. Air Asia is well known as Malaysian low cost airline and even Asia’s largest low fare, no frills airline. The airlines claims ‘No Admin Fee’, but has some fees for services which are free on other airlines. Air Asia slogan is ‘Now Everyone Can Fly’. Being the home of Air Asia, the LCCT is the budget terminal in KLIA, opened on 23 March 2006. LCCT is said to be carried about 10 million passengers a year. The Air Asia subsidiaries are the likes of Thai Air Asia, Indonesia Air Asia, Viet Jet Air Asia and Air Asia Red Tix. Meanwhile, Air Asia associate companies are Air Asia X, Tune Hotel and Tune Money. MISSION AND VISION OF AIR ASIA Vision To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Mission To be the best company to work for whereby employees are treated as part of a big family Create a globally recognized ASEAN brand To attain the lowest cost so that everyone can fly with Air Asia ...
Words: 1571 - Pages: 7
...Introduction (256) Air Asia is the world low fares airlines and had won the Skytrax World's best low-cost airline award in 2009, 2010 and 2011. Air Asia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. The co-founder of Air Asia is Tan Sri Anthony Francis Fernandes or also known as Tony Fernandes. Tony bought 2 boeing airplanes 9M-AAA and 9M-AAB for around RM40 million after Mahathir advised him to buy it due to the plane is making debt for them. Tony dares to do so because he believes that Malaysian traveler will be attracted with the low fares airline according to the economic tight. In fact, he can clear all the debt within his periodic time and it was all out of the people prediction that he can do that. Air Asia now became famous with the slogan of “Now everyone can fly”. Although Air Asia is famous because of its price, but there are also a few problems occur at the management system such as delay problem, facilities problem and also the customer services problem. On this assignment, we try to give suggestions on how Air Asia should deal with these problems based on the management system. Management system is very important for a company because it can determine whether the company can achieve their goal on time or not. Besides that, customer will more concern on the quality that they get in order to decide for their next trip. Hence, they should solve the problems to compete with its competitors. Causes (163) ...
Words: 1279 - Pages: 6
...international joint ventures conducted by one of the world best low cost airlines, Air Asia, through their operation years. In particular, Air Asia Indonesia, Thailand, Expedia and Air Asia Japan are being chosen to probe into This research put priority on the factors that turn Air Asia Indonesia, Expedia and Air Asia Thailand into a success throughout their operational year. The Successful International Joint Ventures of Air Asia have gained themselves the benefits from acquainting the right market orientations, in which they have secured a great amount of customers respectively. This leads Air Asia Indonesia and Air Asia Expedia to gain a massive profit and become the dominant airline being in their respective nations. Besides, the commitment is also one of the main contributing factors to the success of Air Asia IJV as well as Economy conditions of host countries had been a major factor to success in IJV. In depth analysis of local GDP of Thailand had granted Thai Air Asia to achieve their business objectives. Throughout the research, it shows that Air Asia Expedia and Thai Air Asia and Indonesia Air Asia have spared no efforts in order to succeed in the aviation industry. Conversely, this research also identified a failed IJV in Air Asia operation with Japan. The main reason behind this failed IJV was usage difficulties found in online booking website of Air Asia. These factors have led to Air Asia Japan to suffer losses throughout their operation. Moreover, misunderstanding...
Words: 3916 - Pages: 16
...Management Infotmation System INTRODUCTION OF AIR ASIA [pic] Air Asia is one of the Malaysian Airline, as the second Malaysian National Airline, Air Asia was born in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit. Normally low-costs Airline has a lot of differences with traditional Airline. These differences such as ticketless travel, online ticket booking & pay, no international offices, no free food and beverages, use second city airports. These doesn’t make Air Asia hard to survive in Airline industry, whereas became the features of Air Asia. By using a simple but strong slogan “Now Everyone Can Fly”, Air Asia become a successful company in Airline industry. Now in this era Air Asia is one of the succeed low-costs Airline company in the world. Nowadays, Air Asia has put their investment to other areas. Air Asia is not only focus on Airline industry. Tune hotel is one of the good examples. Air Asia boasted total assets worth RM9.52billion in 2008, is the one of growing rapidly company in Malaysia. Nowadays, people use computer to let their life easier. Management information system is systems that use hardware, software, people, procedures and data to help companies work more efficiency. It included...
Words: 319 - Pages: 2
...Introduction: Management Control System: Methods of collecting information that are used to guide and direct the behavior of staff members and management in order to achieve a company's goals are Management control systems briefly. A management control system may use a variety of techniques to evaluate various areas to improve performance and productivity. Some areas addressed by management control systems may include accounting methods, employee incentive programs and performance measurement. Accounting methods are often implemented and evaluated as part of a management control system. To control financial activities within a company, the area may be broken down into financial and managerial accounting. Financial accounting generally focuses on internal issues, such as reporting sales costs, while managerial accounting may focus on methods for determining product costs. While both areas cover business accounting issues, their methods of application generally differ, and separate systems implemented by a management control system may aid in ensuring reports remain accurate and impartial. Managerial accounting is typically responsible for providing management with information on controlling costs and improving the production process. Managerial accountants may also provide cost information on new products, make pricing decisions and monitor actual and budgetary costs. General financial accounting within management control systems aims to focus on a company's internal...
Words: 1169 - Pages: 5
...Assignment One Task (One) 1) Cost Leadership Strategy Definition Companies that choose a cost leadership strategy offer relatively standardized products with features or characteristics that are acceptable to customers. In other words, with a minimum level of differentiation and also at the lowest competitive price. This means that companies offer standardized to an industry’s typical customer. Customers receive value when a company successfully implements a cost leadership strategy. Companies that wish to be successful by following a cost leadership strategy must maintain constant efforts aimed at lowering their costs which relative to competitors cost and creating value for customers. Cost reduction strategies include: • Building an efficient scale facilities • Establishing tight control of production and overhead costs • Minimizing the costs of sales. Product research and development, and service. • Investing in state of the art manufacturing technologies. In simply, cost leadership strategy is a type of competitive strategy with which the organization aggressively seeks efficient facilities, cuts costs, and employs tight cost controls to be more efficient than competitors. Undercut competitors’ prices and still offer comparable quality and earn a reasonable profit. Successful strategy to defend against the five competitive forces. Such protected from powerful customers and suppliers, because customers cannot find lower prices elsewhere,...
Words: 4896 - Pages: 20
...9/25/13 Air Asia Assignment - Term Papers - Haixzzz Get Access to over 1,148,422 More Essays. Upgrade Your Account Now. Upgrade Essays Book Notes AP Notes Citation Generator More | Hi ilaanabila Search essays Home » Business & Economy Air Asia Assignment By haixzzz, september 2011 | 9 Pages (2048 Words) | 2984 Views| | | Upgrade to access full essay This is a Premium essay for upgraded members Air Asia A. Introduction 1. Objective and scope This paper will analyze the internal and external environment of Air Asia and will look into how it uses Management Information System ( MIS ), specifically its online reservation system to gain competitive advantage. And also discuss why and how important is MIS to Air Asia in running its business. 2. The Important of MIS Low Cost Carriers (LCC) business model is based on no frills service. This means that cost savings is a critical success factor in their operations. Air Asia is no different. And Aie Asia uses MIS to runc this LCC business model. So, what is MIS? MIS is the useful information to support management in an organization so that we get what we want. And MIS tool in Air Asia is the Air Asia booking system. In the competition in the airline business, booking system is the advantage for Air Asia. “The early you book the tickets, the cheaper it will be.” This early booking promotion kills two birds with one stone. It gives customers opportunity for cost savings and encourages a lof of people to plan...
Words: 706 - Pages: 3
