Essay on Revenue Recogniation

1352 Words Oct 7th, 2014 6 Pages
University Malaysia Kelantan (UMK)

Malaysian Graduate School of Entrepreneurship and Business (MGSEB)

Course Name: Financial Reporting & Controlling

Course Code: GST 5033

“Revenue Recognition of AirAsia” Submitted To:
Prof Dr. Zulkarnain Bin Muhamad Sori
Submitted By:
Mohammad Osman Goni (Matric No. P13D179F)
Hayder Alwan Kadhim – P13D20F
Wesam Esam Hamzi - P14D482F
Assel Faisal - P14D484

To better understand and analyze the specific activities through which AirAsia can create a competitive advantage, a value chain analysis for airline industry has been conducted as below to model AirAsia as a chain of value creating activities. The goal of these activities (Inbound logistics,
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Services: Now a days retaining a customer is a difficult task so to overcome this Air Asia provide different type of services to its customer like if flight is delayed by more than three hours then e-gift voucher is given, passenger can also pre-book their checked baggage for a lower rate, and customers can also online book hotels, hostels, rent a car and medical services.
Support Activities: The value chain analysis has some$ support activities as well. The support activities that Air Asia has to follow in order to keep their business clean and operational are; 1. Firm Infrastructure: Air Asia has a strong firm infrastructure they have evolved from a classic LCC into an integrated service provider, they are focusing towards their goals, they are providing the cheapest fare, they are exploring new markets, and decision making process is simple. 2. Human Resource Management: Air Asia hire capable workers and they assign multi skilled people so that they can overcome their price in term of human resource and can maintain their company mission of low price airline, and they also compensate their employees in terms of performance. 3. Technology Development: Air Asia uses different type of technology to minimize its cost and to make their operation easy and

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