...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 accounting issues. Financial accounting typically handles payroll and human resource issues affecting employees within the company. Accounts in this area may also manage employee costs...
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...Environment Analysis 2 4 Internal Environment Analysis 4 5 Current Strategy Analysis 7 5.1 Corporate and International Strategy 7 5.2 Business Strategy 9 6 Strategy Fit 9 6.1 Financial Performance Analysis 9 6.2 SWOT Analysis 11 7 Strategy Recommendations 14 References 15 * Figures page Figure 1: Structure of AirAsia 8 Introduction AirAsia is a Malaysian low-cost carrier (LCC) and has been established in 1994 by DRB-Hicom. In 2001 Tony Fernandes took over the company and remains the CEO of the AirAsia Group. Fernandes turned the company from a small airline with two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core values of AirAsia are presented. Next the external environment of the company will be analysed, followed by the internal environment analysis. Then the current strategy corporate, international and business is described. The strategy fit with the internal and external environment is analysed by looking into the financial performance and...
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...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 ...
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...25 Financial Budgeting 26 Implementation Control 27 References 31 Marketing Audit External analysis * Macroenvironment Political Environment Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval of government at the five airports which is Langkawi International Airport, Penang International Airport, Kuching International Airport, Terminal 2, Kota Kinabalu International Airport and the low-cost carrier terminal (LCCT) at KLIA. Air Asia...
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...1. INTRODUCTION OF PROJECT Information system is the study of complementary network of hardware and software that people and organizations use to collect, filter and process, create and distribute data. The system is many have in all organization or company in this world that act as a catalyst in managing their data perfectively. For this case, the company has chosen to identify what the system that they use in managing their information and data in their company. The company that has chosen is Air Asia Airlines. Air Asia has been successful low cost carrier in operating in Asia region for these past few years and IT is one the major enables for the Air Asia’s low cost business model. Every single primary activity is supported by specific information technologies, for example, utilization of Computer Reservation System (CRS) and Yield Management System (YMS) are critical in the aviation Industry. Besides that, without employing these systems, no airline including AirAsia can operate. In addition, all airlines in LCC industry compete on costs, AirAsia Airlines needs to offer the lowest possible fare in order to win the competition in lower the costs as possible as need. In the way they want to lower the cost regarding the others airlines agency also do the same thing in lower the cost, AirAsia Airlines must more cheaper and affordable. However, this AirAsia Airlines are situated in many place in Malaysia. AirAsia Airlines opened many branches in this country to make sure...
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...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...
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...| | 4.2 Weaknesses | 28-31 | | 4.3 Opportunities | 31-34 | | 4.4 Threats | 34-36 | 5.0 | Marketing Objectives | 37-46 | 6.0 | Marketing Strategy | 47 | | 6.1 Target Market | 48 | | 6.1.1 Behavioral Factors | 48 | | 6.1.2 Demographic Factors | 49-50 | | 6.1.3 Psychographic Factors | 50-51 | | 6.2 Marketing Mix | 52 | | 6.2.1 Product | 52-54 | | 6.2.2 Price | 54-55 | | 6.2.3 Place | 55-57 | | 6.2.4 Promotion | 57 | | 6.2.5 People | 58 | | 6.2.6 Performance | 58 | | 6.2.7 Process | 58 | | 6.2.8 Programs | 59 | 7.0 | Marketing Implementation | 60 | | 7.1 Marketing Organization | 61-63 | | 7.2 Activities, Responsibilities, Budget and Timetable for Completion | 63-67 | | 7.3 Monitoring Procedures | 67-69 | 8.0 | Financial Summary | 70-72 | | 8.1 Financial Performance | 73-82 | | 8.2 Financial & Operational Statistics...
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...company. Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy, inflation levels and such helps the company make better decision on how to operate their company effectively. Besides that, the social drive is a crucial part on PEST analysis. Creating and developing a social culture takes time and effort and a new motive driven company such as Air Asia has to develop me method on how to connect with the society's lifestyle, demographics, and media. Technological point of PEST analysis relates with competing technology development with other competitors and effective information and communication between the market and the company. Political Analysis Political Analysis mainly states about the aviation acts and regulation which needed by aviation company such as Air Asia to operate their business. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Political stability is inessential to create a safe economy market that enables the market to grow. Political issues may cause problems in the outcome of the company. Some of the political factors that may affect a company are events that affect the operation of the...
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...2013 >> Version of Record - Jan 8, 2013 What is This? Downloaded from bmc.sagepub.com at Fachhochschule Kufstein on December 3, 2013 Case Business Turnaround Plan: The Experience of Malaysia Airlines Herwina Rosnan Razmah Mahmod South Asian Journal of Business and Management Cases 1(2) 211–221 © 2012 Birla Institute of Management Technology SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/2277977912459444 http://bmc.sagepub.com Abstract Malaysia Airlines (MAS) is the Malaysian national air carrier. It was incorporated during the early days of air travel in 1937. From a humble beginning, MAS has developed into a renowned international airline with award-winning products and services. It managed to achieve cost efficiency and operates slightly below industry average. MAS has gone through several changes in its management over the years and still survives. However, being a national air carrier...
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...Executive Summary Malaysian Airlines System Berhad is the holding company for Malaysia’s national airline carrier, one of the fastest growing airlines in Asia. Malaysia Airlines has three airline subsidiaries, which is Firefly, MAS wings and MAS cargo. Although MAS had provide an excellent services and won many award, they still facing financial problem since year 2002. Situation become worse in year 2014 due to the MH370 and MH17 tragedies occurred. MAS are facing three main problems. First will be financial turbulence. In recent years, MAS has struggled financially. In 2013, the company reported a loss of 1.17 billion ringgit, its third consecutive year in the red. The airline had already been suffering from years of poor performance. The company’s stock price has dropped since MH370 missing and MH17 crashed occurred. A double tragedy of this nature after such a short period is unheard of in the industry, which could deal a crippling reputational and financial blow to Malaysia Airlines Malaysian Airline System Bhd. The second problem is lost confidence of passengers toward the Malaysia Airlines. Due to the disasters of MH370 and MH17, the airlines passengers lost confidence to the Malaysia Airlines which bring the feeling of fear and afraid toward MAS. Those passengers may switch to other airlines such as Air Asia and Singapore Third problem is reputation of Malaysia Airlines be damaged. At the beginning, Malaysia Airlines have a very high reputation and images in airlines...
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...by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." Strategic Management can also be defined as "the identification of the purpose of the organization and the plans and actions to achieve the purpose. It is that set of managerial decisions and actions that determine the long term performance of a business enterprise. It involves formulating and implementing strategies that will help in aligning the organization and its environment to achieve organizational goals."( Hambrick, D. C.; Chen, M.-J (2007).) Air Asia was established in 1993 and commenced operations on November 18, 1996.Initially established by the Government of Malaysia, state-run group DRB-Hicom. December 2, 2001, the former Time Warner manager Tony Fernandes private company Tune Air Sdn Bhd M & A heavily indebted airline, in order to 1 Ringgit acquire, together with the debt of 40 million ringgit. The turnaround in 2002, the creation of a number of new routes to the hub airport as the center of Kuala Lumpur, to attract passengers to the promotional price of 1 Ringgit price erosion Malaysia Airlines previously dominant market. Air Asia is Malaysia Airlines, Asia's largest low-cost airline. A total of more than 400 domestic and international scheduled flights of Air Asia Group waypoints, spread across 25 countries, its main hub airport for low cost to Terminal...
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...Financial Policy Project - Air Arabia and Gulf Airlines Name University Introduction The project is based on the financial analysis of the two companies from the airline industry. The first company is Air Arabia and the second company is Gulf Airline. Air Arabia which was established by the King of Sharjah in the year 2003 is known as the best economic mode of air travelling in the United Arab Emirates. The company continued to provide economic and valued services to its customers through the last decade and has been successful in penetrating the Air traffic business. The company did not limit its operation only to the Arab countries but also expanded its business operations to the Europe and other parts of the world. The Air Arabia destinations not the Arab countries but also reached the European destinations like Casablanca and the Cairo. The company believes in expanding its business operations and for this reason, it has established its subsidiaries airlines in the other Arab countries as well. The company is performing air travelling operations through its subsidiaries companies in Egypt and Morocco as well. The company today operates its flight to 88 destinations across the globe. The company planes lands on the destinations ranging from Arabia, Middle East, Asia to Europe and Africa. The company believes in offering comfortable and reliable journey for its passengers at the lowest possible fares and with this business strategy, millions of passengers have travelled...
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... Selangor Darul Ehsan, Malaysia. A R TI C L E I N F O Art i c l e h i st ory : Received: 9 July 2012; Received in revised form: 13 October 2012; Accepted: 30 October 2012; K ey w or d s Strategic analysis, Region, Low cost, Extensive. ABSTRACT This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline industry within the ASEAN region. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. This research exhibits critical analysis pertaining to the current macro environment of the aviation industry which includes the PESTEL framework and Porter’s Industry Analysis. The competitive environment analysis for AirAsia Berhad is thoroughly scrutinised to examine the driving determinants that attributed to the organisation’s competitive advantage in the industry. Further analysis using the Ansoff Matrix, lends evidence to the successful growth of the organization. Additionally, the international...
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...Campos, VP of Sales From: Kate Chaplain, Senior Sales Associate Date: April 5, 2013 Subject: Quarterly Review Mr. Campos, Purpose: Air Asia X Berhad Initial Public Offerings (IPO) of Ordinary Shares Road Show was held on the 29th of June 2013. The purpose of this memo is to determine whether we, as large foreign institutional investors should buy or not to buy Air Asia X Berhad IPO shares with fundamental analysis and findings. Besides deciding whether to buy or not to buy, we will justify the reasons underlying our decision that we have come across that we are not buying Air Asia X Berhad IPO shares. Background: Air Asia X is a long-haul, budget airline based in Malaysia. The airline is operated by Air Asia X Sdn. Bhd. It is claimed by the company’s management that they are a leading low-cost, Long-haul airline, operating primarily in the Asia Pacific Region. Also, they believe that they have the lowest unit cost base of any airline in the world. This in turn has enabled them to offer fares that are targeted, on average, to be 30% - 50% lower than FSCs and to stimulate new market demand, whereby passenger volumes between Kuala Lumpur and other destinations they serve grew by an average of over 90% from the year before the launch of each route to the year ended 31December 2012. They currently serve 14 destinations across Asia (Tokyo, Osaka, Seoul, Taipei, Beijing, Hangzhou, Chengdu, Shanghai and Kathmandu), Australia (Sydney, Melbourne, Perth and Gold Coast) and...
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...problems-------------------------------------------------------------------------------19 Conclusion-------------------------------------------------------------------------------------------------23 References-------------------------------------------------------------------------------------------------25 INTRODUCTION : BACKGROUND OF THE COMPANY AirAsia Berhad [Company No: 284669-W] [Incorporated in Malaysia with limited liability under the Companies Act, 1965] First Quarter Report Ended 30 September 2004. This is the first quarterly announcement made by AirAsia to the Bursa Malaysia Berhad since its listing on 22 November 2004. AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone...
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