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the organizational structure of airasia is a semi

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Recently. They define the resources needed to execute strategy and define the cost model of an organization. Low Cost Carriers, Low cost carriers (LCCs) offer low cost services to its passengers and in return provide ‘no-frills’ services to them. Capabilities analysis takes place once the business plan and strategy are streamlined and in proper positioning. Later, AirAsia X, a sister organization was introduced with an intention to facilitate specifically long-haul flights. The chart below shows an example of the organization of geographical structure adopted by The Air Asia Management . What is AirAsia Group Berhad’s phone number? The technological innovations by the company satisfy the customers and makes the company gain competitive advantage in the market. AirAsia gets competitive advantages and makes their business successful by using these key strategies: Safety First – Safety is the most vital criteria in every part of the organization operations; safety is the area where AirAsia will never compromise on. The results of the mentioned reasons lead to profitability, productivity and growth of an organization. Sustainability, AirAsia has always been keen towards providing low fare to its passengers without any compromises in terms of quality and services. (Saha & Theingi 2009). Positioning low cost airlines mainly target tourist, non-business passengers and those who are price conscious passengers. AirAsia is recognized by its lowest fare, quality services and their tagline “Now Everyone Can Fly”. Whereas, indirect partners include social media websites such as twitter, facebook etc. Initially, when Fernandes purchased AirAsia, most of the leading entrepreneurs claimed that the airline won’t survive for long. The major challenge that AirAsia is facing currently is the increasing competition of low cost airline services. IR Calendar. Tony Fernandes appointed leading experts who possessed expertise in low cost airline strategies to reconstruct the business model of AirAsia. This feature helps them to stay aware of their weaknesses and satisfy customers in the best possible way. The basic aim of low cost carrier model is to get the passengers travel from one place to another not paying any noticeable attention to the additional services. The CEO has the power to control and make decisions over his position. AirAsia gives rewards and incentives to its employees to maintain the level of motivation in them. Increasing level of terrorism and attacks may cause severe damage to AirAsia. No matter how much an airline tries to chop their cost, fuel cost cannot be reduced or addressed. It further aims at assessing the sustainability of the business model and its competitive advantage. In the light of its mission statement, AirAsia has developed the business strategy on cost leadership. Challenges Faced by AirAsia AirAsia, being a world class leading low cost airline firm has developed a wide range of strategies and plans to help its customers benefit from quality services. Which one of the following companies was one of the first to use of a divisional structure? AirAsia’s value chain helps to analyze the determinants of how cost advantage is created. SCOPE Find out more about the AirAsia India organizational structure such as who is part of the board of directors and information on the shareholders. At AirAsia, the bond between the staff and other stakeholders is considered to be the strongest. AirAsia’s Expansion, Since the relaunch of AirAsia in 2001, it has been excelling in different areas and operations. Human Resource: AirAsia provides cost effective training to its crew staff and also works towards providing them rewards and incentives to maintain their motivation level. Answer: The structure of Air Asia could be a semi-flat structure that starts with the CEO Tony Fernandes, following by Chairman of the board and alternative six administrators (Shanmugam, 2013). In the paper, we argue that designing organizations should be scientific-based and forward-looking. AirAsia Group Berhad's main competitors are: Nok Air, Wizz Air, easyJet, Ryanair. The technologies that are used by AirAsia Group Berhad are: IBM SPSS, Microsoft Project, Ada Support, WordPress, AirAsia Group Berhad's CEO is Tony Fernandes, AirAsia Group Berhad's CFO is Pattra Boosarawongse, AirAsia Group Berhad's CTO is Sadim Mahmud, See more information about AirAsia Group Berhad, 5, Lapangan Terbang Antarabangsa, Kuala Lumpur, Kuala Lumpur, Malaysia. A journal on Porter’s generic strategies quotes, ‘Porter contends that by implementing one of these strategies, a company will have a competitive advantage and earn above average industry returns.’ According to the generic strategies by Porter, strategy by AirAsia can be classified into a cost leadership chart. Power is derived from the team with the expertise to execute against a … What is AirAsia Group Berhad's tech stack? Furthermore, the report aims at highlighting the expansions of AirAsia with future expectations. The planes categorized for this model are with narrow seating arrangements and caters only a single class usually all economy flights. The Organisational Design describes the creation of structures, processes, and roles so that the goals and objectives of an organization can be realized. Organizational structure of geography distributes the workers by geographical areas according to different parts of its branch operations. Who are AirAsia Group Berhad’s main competitors? The organizational structure of AirAsia has no ranks and there are no levels of hierarchy observed in the company. An organization that is divided into semi-autonomous units Question 15 15. What is AirAsia Group Berhad’s NAICS code? Low Operating Cost can be classified as a characteristic of the model that has very low operational cost and a very lean structure. Its vision is to be known as the largest low cost airline whose objective is to let the passengers enjoy low fares with premium service in terms of safely, hospitability and simplicity. Management Style. The company further assigns no seat to the passengers. (2016, Jul 06). AirAsia’a success factors can be analyzed in the core values of the organization. AirAsia works with direct and indirect partners with an aim to make their services even better and low cost. 3. AirAsia Group Berhad’s stock symbol is AIRASIA. Narrow Target Just after one year of his takeover, the company cleared all the debts it had and opened many new routes leaving behind the most dominating airline of that time, Malaysia Airlines. b. A series of sessions are planned for the staff to enhance their skills to serve people better. Their main sales are booked online which prevent them from giving commission to travel agents. Tool Kits. By considering the rapid growth and successful expansion of AirAsia, it is expected that upcoming expansions will be sheer successes for the company too. There are two main reasons of having a competitive advantage over other competitors, one having some special and unique resources that others cannot access and second having the ability to use the commonly used resources effectively and efficiently. AirAsia has a firm belief of integrating technology into all its operations hence aims at strengthening ties with its customers through online communities too. The above mentioned sources of the cost advantage that AirAsia has over other airline companies are summarized in the flowchart below. These kinds of services do not offer frequent flyer programs to its customers. Background of AirAsia. By continuing your navigation, you consent to their use. It is also associated with the mechanical arrangement of reporting lines and positions on the organizational chart.. AirAsia’s operational strategies are as follows, 1. a. This will boost the employee’s motivation and lead them to be more positive. It works very well with short haul traffic that is point to point and has high frequencies. The staff and crew understand their roles and responsibilities and understand the basic strategy of the company that is low cost maintenance resulting in high productivity. COMPETITIVE ADVANTAGE As a conclusion, AirAsia is doing a wonderful job in terms of satisfying its customers by providing them with quality services. Get Your Custom Essay on, By clicking “Write my paper”, you agree to our, By clicking Send Me The Sample you agree on the, Case Study of Air-Asia : Strategic Role of Information System in Business, Case Study of Air Asia: Economic Perspective, https://graduateway.com/air-asia-case-study/, Get your custom Its strong organizational structure affects both the overall behavior of firms and the geographical area skills to people... Airasia negatively and may lead to profitability, productivity and growth of an organization second major challenge by... Towards providing low fare to its employees to work on market tend to have a competitive.... Operation cost - Investment - Increase in revenues, incomes and Proportion of profit.... We use cookies to give you the best experience possible the operations simpler and cost advantages since 2001 due its. Reduction areas continuously including its value chain organization design is a formal delegation of power all! 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