Air Asa Case Study

Improved Essays
1.1Discuss the range of decisions to be taken. The first type of decisions that need to be taken are structured decisions, for Air Asia is a low-cost airline based in Malaysia. The slogan of Air Asia is “Now everyone can fly”. It is an example of structured decision due to the plainly characterized and no space for elucidation and is essential to settle on organized choice so that organization misfortune or negative association advancement can be averted. The strategic level will take over the non-structured decision too. This is because the non-structured decision are some organizational choices made by the managers inside of their authority according to the organizational policies, goals, strategies and procedures for instance …show more content…
Information technology enables customer to access information easily only by clicks. With this technology, Air Asia didn’t have to prepare room for negotiation so customer had strong bargaining power.
Power of Suppliers Supplier just pack in few hands. On account of there are just couple of suppliers in market, this has expanded the bargaining force of supplier. Just the person who increasing most dealing force could be flying machine supplier as there are just two in operation, Boeing or Airbus. The other supplier are fuel supplier, sustenance supplier and more may be rely on upon economic situation.

Rivalry among existing firms. In these day and in every industry there is some negative and positive trends, airline industry has limited customer so growth rate is not too high, and so Air Asia has to try to be winner between its competitors. Air Asia offers flights with lower price that other companies, but there are some companies that also offer service by the same price such as tiger Airways and firefly and also these companies provide service with the same level of Air Asia so, in this case rivalry among existing competitor is quit high to Air
…show more content…
For instance, Air Asia distributes its yearly provide details regarding aggregate deals, benefit and misfortune, credits, wages to workers and more which are a samples' percentage of data that stream upward. The legitimacy of this yearly report is vital as though it is legitimate and precise, it will unquestionably acquire trust so that more financial specialist will put resources into Air Asia’s shares. Next, internal source of data are the operational units in Air Asia. For example, promoting division, money related office and that's only the tip of the iceberg. They give sorts of critical data and the data must be in convenience and area as the organization can get any imperative data whenever, anyplace when they require it. Next, commercially available databases. Air Asia can do some research of information to help them to increase the sales as well as level of interest in their business from the database by paying them. This will helps to run AirAsia,s business as the information got from the research are accurate and reliable. This is one type of external source of information worth paying for as it is absolutely essential to be sure about accessing relevant information to prevent false decision making which will cause a big loss to the

Related Documents

  • Great Essays

    Net profit margin 27.32 25.91 24.89 1.813 4.10 Return on equity 30.45 35.72 36.39 29.16 -2.61 Return on assets 17.87 19.34 16.69 9.71 -0.65 Return on Capital 22.33 23.85 22.08 16.06 2.08 Income/Employee 960 1,043 934 655 -55 Revenue Employee 5,342 6,186 15,727 4,782 5,594 Revenue turn over 1.00 1.15 1.02 0.83 0.56 Inventory turnover 61.80…

    • 595 Words
    • 3 Pages
    Great Essays
  • Superior Essays

    2. Evaluate American’s 1992 announcement of a new rate structure: a. What changes did American make? American instituted a “simpler” four-tier fare system which sought to lower its top fares by as much as 50%.…

    • 1209 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Relevant costs are costs that relate to individual management decisions (What). Furthermore, the cost will change in the future based on the outcome of the decision made by management (What). The concept of relevant costs is very appropriate for eliminating unnecessary information in the decision-making process (What). Delta Air Lines can benefit in terms of relevant costs. As mentioned earlier, the airline can eliminate unnecessary information regarding certain decisions in the decision-making process for their future projects.…

    • 468 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Based on the video, how do we make ourselves vulnerable or not so vulnerable with decision-making? We make ourselves vulnerable by embracing fear, shame, and not engage in our daily lives, in the video “The Power of Vulnerability,” Dr. Brené Brown, discusses vulnerability, and she states, that vulnerability is “uncertainty, risk and emotional exposure” (Brown, n.d.). Dr. Brown also implies that “vulnerability is the birthplace of love, belonging, joy, courage, empathy and creativity” (Brown, n.d.). She is encouraging us to live wholeheartedly also, to embrace vulnerability and imperfections in order to have control over our decisions in life.…

    • 817 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Due to these days, there are many low cost airways appear worldwide. Thus, the firms that can tender the cheaper price will be gain the customers. Jetstar want to reach the lower price than others fare airlines so the company designs to adapt another strategy such as partnership strategy to transaction with the main competitors. For instance, according to Business Traveller Asia-Pacific (2010), Alan Joyce state that ‘‘Jetstar and AirAsia offer unmatched reach in the Asia-Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale.” “Figure 3 is image of Tony Fernandes, Alan Joyce and Bruce Buchanan share a laugh at the January 6 launch of the Jetstar - AirAsia alliance”.…

    • 747 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    BP and the Deepwater Horizon Disaster of 2010 Case Study Analysis o What lead to the Deepwater Horizon Disaster? The popular oil company known as BP publicly prided itself on the company’s commitment to safety and the environment; however, shifts in leadership roles giving individuals more power caused the company to choose a less costly and more time friendly method of securing the rig for the drillings. This method ultimtely came at a huge cost to the environment as the largest marine oil spill to ever occur in U.S. waters. o One the of the immediate leadership issues outlined in the case is the lack of hierarchy. BP should have continued having multiple leaders sign off on a decision verses allowing a few BP project managers to choose the…

    • 1246 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Given that the services an airline provides isn’t a something that can be imported or exported, it makes taking a look at the global strategy within this industry a little more complex than most. In most cases, airlines rely on alliances, mergers or acquisitions as a way of expanding into new markets or for global penetration. Southwest Airlines is one the largest domestic operations in the United States, and recently the company acquired AirTran in a bid to boost its global…

    • 900 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Bargaining power of suppliers. Since there are no switching costs for customers, they can easily switch suppliers. However, big companies like Amazon, eBay and Provide Commerce have developed a business branding and strategy that allows them to offer quality service, competitive prices, and fast shipping. These competitive advantages give these companies a certain power to retain its customers, making hard for the competition to match that kind of service. 5.…

    • 1745 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    The Airlines Hub, dubai is consider as a booming tourist destination which attracts potential customers to visit the city using emirates , also dubai’s strategic location lures transit passengers. Since the aviation industry contains large number of airline companies, it provides an opportunity for emirates to codeshare (partnership) with various other airlines to increase its network and gain new customers. The airlines network consists of international destination which are popular among customers. Threats The airline faces immense competition from other airlines companies, especially from the increase in competition within the Middle Eastern region.…

    • 797 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Academic Paper Review Andrzej A. Huczynski and David A. Buchanan 1985, 2007. Organisational Behavior.731-761 At the beginning of the chapter, Huczynski and Buchanan both acceded that decision making is one of the most important element in an organisation. Decision making are made by both manager and none manager and plays as a backbone in all organisation. Decision making is one of the key elements of formal organisation apart from specialization, incentives and authority (Barnard 1938).…

    • 1043 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Air Mauritius Case Study

    • 1601 Words
    • 7 Pages

    This group used Air Mauritius’ official website and the 2014-2015 annual report as the primary source of secondary data. The secondary data provides information like financial activities, risk management strategies, comprehensive profit and loss reports, cash flows, information on its shareholders and its subsidiary companies. It also provides information on members and staff of the company notably the board of Directors. - Discussion of how the secondary data will be used As can be seen in this report, information like profits, organisational structure, information on the board of directors, information on the various shareholders, customers/passengers, is integrated in the report in several instances. Also, Information like the Company vision, mission statement, strategic roles and company objectives were also obtained from secondary data.…

    • 1601 Words
    • 7 Pages
    Improved Essays
  • Decent Essays

    Air Asia positioned itself as a moderate standard with lower rates. As the company offers lower rates to their customers. Their taglines “Now everyone can fly” explained that Air Asia is offering the lowest rate among the airline industry to everyone. Hence, everyone includes the rich and poor are able fly with Air Asia. Lastly, Air Asia is trying to meet their customer’s expectations by improving their services and facilities in the…

    • 904 Words
    • 4 Pages
    Decent Essays
  • Great Essays

    Airasia Case Study

    • 1214 Words
    • 5 Pages

    I. INTRODUCTION a. Objectives and Scope AirAsia is a malaysian low-cost airline. It scheduled domestic and international flights and is Asia’s largest low fare airline. Nowadays, MIS is a significant factor that influence the airlines system. In this article, the writer will focused on the online booking department that generized with the MIS system.…

    • 1214 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Manufacturers: 3-3. Competitors: Steeper competition plays important role in airline industry. Today, many airlines compete each other to attract more customers to use their services over a limited demand for certain routes. SIA is no exception of this. Singapore Airlines has to compete with other airliners that operates in Changi Airport with similar service, like Thai Airways or Cathay Pacific.…

    • 1363 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Alaska Airlines had numerous problems before their transformation. These issues ranged from internal issues, to end user problems that left some customers unsatisfied with the Airline’s services. In time, these hitches eventually became problematic when in terms of doing businesses, and therefore needed to be ironed out if they were to stay competitive with other airlines. Two key issues were found in Alaska Airline’s performance were highlighted in their survey.…

    • 1215 Words
    • 5 Pages
    Great Essays