...ASSIGNMENT ON MANAGEMENT INFORMATION SYSTEM Air Asia has passengers that have reached more than 50 million passengers by now. This achievement s would not have been possible if not through IT technology, management and organization combined effort. Unlike MAS that provided costly but quality service, Air Asia provides quality and cheap service. These actions are accomplished not just through the strategic steps undertaken by Air Asia’s management but by the right use of information system in its organization. The online ticket reservation system is one example of how information system is applied with technology to achieve its goal of its organization. The online sales are no longer done through agents but through websites in the internet and therefore its easy and accessed worldwide. The number of clients increased in huge number due to easy access through the websites as transactions are done online. The operational management level to the executive level never lose out in keeping their communication intact. The information system manager have kept track by giving the right information to the executive and decision support officers and at the same time making sure of the cheap cost of the flight as well which is not easy to do at this competitive age. Air Asia can use management information system in other areas as well. It can employ both traditional as well as IT technology to further improve its services. I recommend that a person is employed to meet their potential clients...
Words: 380 - Pages: 2
...HISTORY OF THE AIR ASIA AirAsia Berhad is also known as AirAsia which is a Malaysia low cost carrier (LCC). It is an aviation company which provides main activity that is air transportation service. AirAsia is the starter and leading the low cost travelling in Asia where operate scheduled domestic and international flight and is Asia’s largest low fare. Air Asia has been established seen 1993 and it has been executed start from 18 November 1996. When it is being established, AirAisa was originally founded by the government owned conglomerate, DRB Hicom. But unfortunately, the incident of World Trade Center attacked by terrorist on 11 September 2001 which influence the airline market trend and leading the worst loss in financial. On 2 December 2001, it was purchased by former Time Warner executive Tony Fernandez’s company Tune Air Sdn Bhd and who has remarkable turnaround which making a profit in 2002. AirAsia is the first aviation industry in the region to adopt fully ticketless travel and unassigned seats by implement and maximize their IT field such as yield management system (YMS), computer reservation system (CRS) and enterprise resource planning system (ERP). Those systems given a lot of beneficial in their area such as create its own web page which provides the facilities to book the seat via online and lead the low expenses. However, as of 5 February 2009, AirAsia has adopted allocated seatings across all AirAsia flights, including in their sister airlines...
Words: 8856 - Pages: 36
...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 plays critical role in ensuring successful implementation, it is suggested that AirAsia follows the recommendation provided in terms of planning, structure,...
Words: 7114 - Pages: 29
...asia------------------------------------------------- the AirAsia Company strategic management: “ How AirAsia can be a leader in the lowest cost carrier in the airplane industry” August 31, 2009catatanraufmenduniaLeave a commentGo to comments 1.0 Introduction “Without a strategy the organization is like a ship without rudder, going around in circles”. (Joel Ross and Michael Kami) Nowadays, the competition among airplane industries is very tough. According to Daniel Chan (2000), with just about two years to go to the turn millennium, air wars over Asia are hotting up, with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To compete with their competitor in the business environment, a company needs to make a strategy to achieve their long terms objective and can be successful for doing their business. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. Regarding this issues, the strategic management becomes important due to the following reason such as globalization to survival their business, and...
Words: 6436 - Pages: 26
...which can perform a high performance even in a high turbulence environment will be success in the market. The AirAsia Berhad is successfully had a high performance in the previous turbulence environment it faced. Now, the AirAsia Berhad had become the leader in the lowest cost carrier in the airplane industry. Cost Leadership Strategy Datuk Tony Fernandez as CEO of AirAsia Berhad said his philosophy is very clear: before a business can grow, it needs to have its costs under control. It must be cost-efficient and profitable, and it must create value. Costs that do not add value must be contained, reduced and even eliminated. It means that AirAsia can be growing in the airline business if they can control their cost. The cost that they have to running there must be efficient and reliable. Everything that can make inefficiencies must be reduced and possibly to eliminate. AirAsia can be possibly competing with other airplane industries if they can make efficiencies to reduce cost and make the low possible fare than other airplane industries. Alignment with what Datuk Tony Fernandez said AirAsia business strategy was centered on cost leadership which targets specific markets which are price sensitive customers. The cost leadership in AirAsia Company is already approving because AirAsia more focused and concentrated in the lowest cost carrier in airplane industries. AirAsia builds and sustains its competitive advantage by providing services at a price that simply lower than competitors...
Words: 1973 - Pages: 8
...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 plays critical role in ensuring successful implementation, it is suggested that AirAsia follows the recommendation provided in terms of planning, structure,...
Words: 7114 - Pages: 29
...International Journal) Management Arts Elixir Mgmt. Arts 51 (2012) 11164-11171 AirAsia Berhad: Strategic analysis of a leading low cost carrier in the Asian region Yasmin Yashodha Taylor’s University Lakeside Campus, No. 1 Jalan Taylor's, 47500 Subang Jaya, 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...
Words: 6757 - Pages: 28
...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 plays critical role in ensuring successful implementation, it is suggested that AirAsia follows the recommendation provided in terms of planning, structure,...
Words: 7166 - Pages: 29
...international flights to 80 destinations (including subsidiaries routes) across 25 countries and with over 400 daily flights covering Indonesia, Malaysia and Thailand and for international routes mostly from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam. Air Asia’s main hub is at Kuala Lumpur International Airport as well as the head office of the company and its affiliated airlines, Thai Air Asia and Indonesia Air Asia, have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport.In this assignment,we will obtain information about AirAsia more. TASK A: DEFINITION OF MARKETING #1: * “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Source: Chartered Institute of Marketing (CIM) (http://www.studymode.com) DEFINITION OF MARKETING #2: * "Marketing is human activity directed at satisfying needs and wants through exchange process." Source: Philip Kotler (http://www.learnmarketing.net/marketing.html) COMPARISON All two definitions mention specifics of marketing and give an a concept about marketing today. One important thing,...
Words: 4252 - Pages: 18
...This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model. The main outcomes of the report are: 1.1 Conclusions reached: 1.2 Recommendations reached: 2. Introduction The company chosen for this report was AirAsia. The assignment required that: • A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess the impact of external and internal factors on the organization and evaluate the organization’s responses • In relation to technological change, analyze how it influences policies and decision making, critically evaluate the effectiveness of the organization and recommend areas for improvement in response for the organization. The company has been analyzed using the aforementioned procedures and tools; and conclusions and recommendations have been reached from these tools. 3. Background to AirAsia 3.1. Organization Definition A ‘no-frills’ airline is defined as one “That uses charter and/or scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. (i) 3.2. Looking at the Organization AirAsia is one of the fastest growing airline companies in the world...
Words: 3385 - Pages: 14
...Abstract……………………………………………………………………...3 1.1 Conclusions……………………………………………………………...3 1.2 Recommendations……………………………………………………….4 2. Introduction……………………………………………………………….…5 3. Background to AirAsia……………………………………………………..6 3.1. Organization Definition………………………………………………..6 3.2. Looking at the Organization…………………………………………… 4. Industry Framework Analysis……………………………………………….. 4.1. Porter’s 5-Forces Model………………………………………………… 4.2. External factors using a PEST analysis………………………………… 4.3. Internal factors using a SWOT analysis………………………………… 5. Conclusion and Recommendations………………………………………….. 5.1. PEST 5.2. Task 2: Technological Change……………………………….. 5.2.1 Analyze Policies and Decision Making 5.2.2 Evaluate Effectiveness and Response 5.2.3 Demonstrate Areas of Improvement 5.3. SWOT………………………………………………………………… 6. References…………………………………………………………………. 7. Appendices………………………………………………………………… Appendix 1 Porter’s 5 Forces Model………………………………………….. 1. Abstract This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model. The main outcomes of the report are: 1.1 Conclusions reached: 1.2 Recommendations reached: 2. Introduction The company chosen for this report was AirAsia. The assignment required that: • A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess the impact of external and internal factors on the organization...
Words: 3613 - Pages: 15
...AirAsia Berhad (284669-W) 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel : (603) 78809318 Fax : (603) 78806318 E-mail : investorrelations@airasia.com Website : www.airasia.com CONTENTS AirAsia Berhad | annual report 2007 Our Dreams and Aspirations To be the largest low cost airline in Asia serving the 3 billion people who currently are underserved with poor connectivity and high fares. G G 2 4 7 8 12 20 22 24 26 30 32 34 36 40 42 43 44 46 47 48 52 53 54 56 60 62 66 68 72 76 81 82 83 152 156 157 G Our Dreams and Aspirations Corporate Profile Five Year Financial Highlights Share Performance Chairman’s Statement Group Chief Executive Officer’s Report AirAsia’s Strategy for Success Route Network Safety Product Development Go Holiday The Sky is Your Limit Champion of Low Fares AirAsia Roars Into Formula One One AirAsia Our People, Our Pride Investing In Our Future Major Milestones Serving You Better from Our 2nd LCC Terminal Awards & Accolades AirAsia Cares AirAsia Group Corporate Information Board of Directors Directors’ Profile Senior Management Senior Management Profile Managing Risk to Maximise Returns AirAsia Financial Snapshots Statement on Corporate Governance Audit Committee Report Statement on Internal Control Additional Compliance Information Financial Statement Analysis of Shareholdings List of Properties Held Notice of Annual General Meeting Proxy Form To be the best company to work for where employees...
Words: 22238 - Pages: 89
...AirAsia Low Cost Leadership Analysis: It was by 2009, that AirAsia was established as the most-successful low cost airline in Asia, but what makes AirAsia successful? We refer to why the unit costs are different between enterprises in the same sector, as in this case would be the airline industry, when their basic cost factors (such as technology, product design, productive process, capabilities) are very similar, if not the same. This can be explained by using drivers of cost advantage: Economies of Scale: AirAsia operates in a single type of aircraft, the Airbus A380, and also a single class. This helps with the economies in purchasing, maintenance, and aircraft utilization. Economies of learning: Production techniques: Most the activities done by AirAsia are outsourced, third parties help the business activities run more efficiently and effectively. Also the Information Technology are also outsourced. Product design: Ticketless. Passengers do not need to worry about collecting ticket before the flight and it is cost-efficient for AirAsia (printing, paper, distributing). This makes the job easier for both the parties. Input cost: About 80% of ticket sales are generated from the AirAsia website. This is the most cost saving distribution systems. The airline does not pay any commission for the travel agent, which will affect the price. AirAsia also does not participate in the Worldwide reservation system; thus save costs Capacity Utilization: Information...
Words: 334 - Pages: 2
...that everyone can fly with Air Asia and to maintain the highest quality product, embracing technology to reduce cost and enhance service levels. Air Asia has a well-developed strategy that encompasses several core ideas that make their company both unique and profitable. Safety first – AirAsia partners with renowned maintenance crews and complies with world airline regulations. The company does not own a maintenance shop. Everything with maintenance and repair is outsourced to keep costs down. High aircraft utilization – having the fastest turnaround time in the region, they assure lower costs and higher productivity. AirAsia has the newest and most efficient fleet flying in the Asia region. The planes have a single seating class and hold more passengers than competitors. This allows for more revenue per flight. Low fare, no frills – keeps ticket prices cheap. Customers have the ability to customize for an extra fee. AirAsia focuses on price sensitive customers. Keeping lower prices is better for both the passenger and the airline. Streamline operations – simple is good. Using all the same planes saves on training pilots, contracting mechanics, and replacing parts. Lean distribution system – book flights online or on the phone. No travel agents. Passengers do not even use tickets. They simply show photo identification and are allowed to board the plane. This saves booking/ticketing costs. Point to point network – A to B, or A to C service, no B to C service. Standardized...
Words: 2563 - Pages: 11
...MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved...
Words: 3087 - Pages: 13
