This document provides background information on AirAsia, a low-cost airline based in Malaysia. It first defines organization and stakeholders, noting that AirAsia is a public limited company made up of individuals structured to meet goals. It then discusses AirAsia's services, markets, and focus on customers. AirAsia's mission is to be the best company to work for while also providing low fares so everyone can fly. The document provides context on AirAsia's type of business organization and history of growth since its founding in 1993.
This document provides background information on AirAsia, a low-cost airline based in Malaysia. It first defines organization and stakeholders, noting that AirAsia is a public limited company made up of individuals structured to meet goals. It then discusses AirAsia's services, markets, and focus on customers. AirAsia's mission is to be the best company to work for while also providing low fares so everyone can fly. The document provides context on AirAsia's type of business organization and history of growth since its founding in 1993.
This document provides background information on AirAsia, a low-cost airline based in Malaysia. It first defines organization and stakeholders, noting that AirAsia is a public limited company made up of individuals structured to meet goals. It then discusses AirAsia's services, markets, and focus on customers. AirAsia's mission is to be the best company to work for while also providing low fares so everyone can fly. The document provides context on AirAsia's type of business organization and history of growth since its founding in 1993.
This document provides background information on AirAsia, a low-cost airline based in Malaysia. It first defines organization and stakeholders, noting that AirAsia is a public limited company made up of individuals structured to meet goals. It then discusses AirAsia's services, markets, and focus on customers. AirAsia's mission is to be the best company to work for while also providing low fares so everyone can fly. The document provides context on AirAsia's type of business organization and history of growth since its founding in 1993.
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Assignment f1
Name :Nur Azlinda binti Mohamed Ibrahim
Id number:16085482 To: Mr Bill
Context 1. Introduction Definision of organisation and stakeholder 2. Background Type of Business organization Sevice , market and customer Mission, culture, philosophy, values Outline of organization structure 3. Exiting social collaborating tools The current tool that being used The weakness of the tools 4. Recommendation and solution Justification and rationale Benefits the recommendations and solutions Proposed implemented strategics 5. Reference 6. Appendices
INTRODUCTION AirAsia is one of the main airline in Malaysia. AirAsia is the low-cost airline that based near Kuala Lumpur, Malaysia. AirAsia is registered at office Petaling Jaya but its main
office is at Kuala Lumpur International Airport (KLIA). In 2007, AirAsia was described as a pioneer of low-cost in travel in Asia by Joshua Kurlantzick of The New York Times. AirAsia is also sponsor a lot kind of team such as Malaysian nasional football team, Singapore nasional football team and Queens park ranger. Airasia is also a former sponsored to Manchester United and Asia Red Tour. Now AirAsia sponsor to KBS Korean Drama. AirAsia was established in 1993 and its founded by a government. On 2 December, the airlines was bought by former Time Warner executives Tony Fernandes with only the sum of one ringgit (USD 0.26 at the time).When Tony Fernandes bought the airline, it was heavily-indebted, the debt worth about 40 million ringgit (USD 11 million). In 2002, Fernandes turn the company around, the airlines producing a profit. Airlines first hub was placed at Kuala Lumour and launching a new routes with a promotional fares as low as RM 1 (USD 0.27). In 2003, AirAsia opened its second hub near Singapore that is in Johor Bahru. After that, AirAsia started to iffiliate and began to fights to many places such as Thailand, Singapore, Macau and others. Malaysia Airliness Rural Air Service roads in Sabah and Sarawak has been taken by AirAsia in August 2006. After a year, this roads were returned to MASwings because of citing commercial reasons. At the end, Fernandes plan to further AirAsias presence in Asia. AirAsia started to adding a lot of new routes and because of this, AirAsia passengers increased in 2007. AirAsia faced a problem in 2007, passengers from The Barrier-Free Environment and Accessible Transport Group" protested against the airlines because the airlines did not gives the immobile passengers to fly. They claimed discriminad against the airlines when the people are booking through online tickets, was a wheelchair-passengers.
AirAsia has announced 106 new routes is to be added in the old routes. AirAsia and Malaysia Airline has formed an alliance through share swap. This alliance has been stuck down by Malaysia government because of disrupt the concept of both airlines. In the early of 2013, AirAsia profit increased by year-over-year compared to the same
period 2012. The airlines net profit stood at 350.65 million ringgit (USD114.08 Million) in the ending of December 2012.
Definision 1.Organisation
AirAsia is made up of individuals (employees) that is structure and arrange together to
meet their own goals that is to attain the lowest cost to the passenger so that everybody can fly. AirAsia has its own system to control the performance of its objectives that is to maintain the highest quality product and to gives a best products and services to their passengers. All organization
have a management structure
that determines
relationships between the different activities and the members same goes to AirAsia. Fernandes needs to combine their all airlines hub to get full support from the management and the employee. So that AirAsia will be able to overcome the limitations of working alone, to make their airlines achieve their goals more efficiently and effectively. AirAsia are follow the principle of specialization which mean the employee are working under a department that they love to work such as marketing department, finance department and producting department. Each department have a different responsible and activities. It will be easy to train a new employees when they in a department that they love to do. Because of this, synergy occurs when the strength of the employee are maximized, and the weaknesses are irrelevant in the airlines so that they can performed faster and became more skillful person as they gain more experienced in their work. They also can make a decision with quickly whenever face a problem with more efficient. So it can reduces the cost and management problems.
2.Stakeholder
AirAsia organization is an open system. Stakeholder are a person, group or
organization that are interested or concern about an organization. Stakeholder can affected an organization activities or affects the way an organization operates. Since AirAsia stellar a good performance in 2001 has bought a value for the stakeholders because they received a positive return from the Aiasia. AirAsia stakeholders can be divide into three, that is capital market stakeholder (connected stakeholder), product market stakeholder (external stakeholder) and organization stakeholder (internal stakeholder). Example of capital market of stakeholder is shareholders and major suppliers of capital like banks while customer, government, suppliers and host communities are the product market stakeholders and managers and employee is the organization stakeholders. Every stakeholders have their own interest. AirAsia has a strong support from the banks since November 2004. Without compromising with the quality and services, AirAsia also satisfies its customers by offering low fares. Becase of this, its helps to attract a new customers as well as retain the existing ones. In order to understand the host communities, the Airasias key staff travel regularly to their house and they also are ensure to all specific needs to their customer. Not all stakeholders are equal, different stakeholders influenced organization differenty (Mendelows Stakeholder Mapping Matrix). CEO and the department managers are the key players that should be treated with highest importance because they has a very interested in the airlines and also have the power to change the decision of the organizations. Auditors are a person who may have high power but may not have a interested in the running of airlines, this group of stakeholders is called kept satisfied. Consultant and pilot are the stakeholder should be kept informed. They have high interested in the welfare in the organization but have little power in the organization and the last stakeholders are minimal effort (customer and government). They should be treated with low importance because they may not have any interested in the organization and also dont have any power to change the decision of the airlines.
BACKGROUND
1. TYPE OF BUSINESS ORGANIZATION
There are five different type of business organization and they exist for a different reasons, commercial, not-for-profit, public sector, non-govermental organization, cooperative and mutual organization. AirAsia is a commercial organization. There are two type of commercial organization that is limited and unlimited organization. Limited organisation is created from the phrase limited liability. In a limited companies the shareholder is the owns of the company while the managers was the one who authorized by the shareholders to manage and run the operations of the company. The type of limited companies depends on the number of shareholders, transferability of shares, directors as shareholders and the source of capital. There are two type of limited company, one is private limited company and other is public limited company. So, AirAsia is a public limited companies that providing air transport services. It is similar to the private limited company but the main different is that the ownership is open to the public. Airasia is listed on the stocks exchange in Bursa Malaysia. The main aim for this company is to maximize the wealth of the shareholders. AirAsia was the first successful low-cost airlines. It also is the second national airlines.
2. i. PRODUCT/ SERVICES AirAsia provides a lot of services to their customer. Fisrtly, Airasia gives a service on the board, they offers snack attacks on the board, where the passengers can purchase food and drinks in the board. AirAsia does not sell alcohol and pork on the regional AirAsia groups flights but on AirAsia X flights, they sell all. This is because, pork and
alcohol are forbidden in Islamic. Other than that, AirAsia also started their own frequentflyer program. Under this programme it will issue loyalty points to the AirAsia customer, they also can redeemed AirAsia flights. AirAsia also have their guide travels. It is more cheaper and acceptable.
ii. MARKET AirAsia is the lowest carrier with the widest route connectivity in the Asia. AirAsia recognized as the lowest fare, quality services and with unmistakable tangeline that is NOW EVERYBODY CAN FLY. AirAsia follow five fundamental values that is, safety, valuing our people, customer focused, integrity and excellence in performance.
iii.CUSTOMER AirAsia has recognized customer as their assets for efficient and effective customer relationship management (CRM). So, what is the CRM and why AirAsia used this concept? CRM is putting customer at the heart of the business. So, AirAsia establishing and strengtening the long term relationships with customer. Tony Fernandes also said that a great customer services is ensuring that the customer can comunicated with you is the most important things. Its one of the key to success. AirAsia also identified their high value customer, and provide loyalty program to serve them better.
3. MISSION AirAsia have a lot of mission to achieved. First of all, AirAsia want to be the best company to work for the employees while the employee are also treated as part of a big family. Its also want to create a globally recognized ASEAN brand and also want to attain the lowest cost airlines so that everyone can fly with AirAsia. AirAsia is also want to maintain the highest quality product, embracing technology to reduce cost and enhance service levels
In December 2001, Tune Air Sdn Bhd is the highest shareholdings (19.09%) in the AirAsia. The company has also acquired a 99.25 per-cent of equity in AirAsia. Now, Tune Air Sdn Bhd is the holding company, while AirAsia remains as the operating company.
