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the organizational structure of airasia is a semi

Organizational Structure – 5 Factors to Consider in Designing the Structure . When considering low cost carrier business model, cost management is the key that leads the company to leading position in the market. 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. He was appointed as a Non-Independent Executive Director and Chief Executive Officer of AirAsia Group Berhad (AAGB) on 30 March 2018. BUSINESS Air Asia leading airline was established with the dream of making flying possible for everyone. The described culture that fits with Airasia is Task Culture. Low Operating Cost can be classified as a characteristic of the model that has very low operational cost and a very lean structure. 2 COMPANY BACKGROUND AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. We use cookies to give you the best experience possible. These costs are considered to be the major expenses within an airline industry. AirAsia being a low cost airline follows the business model of Low Cost Carrier (LCC) for achieving its desired goals and objectives. The company encourages its staff to have open communication and learn from each other. The low cost approach with high productivity has enabled the company to sustain good standards and continue to satisfy its valuable customers. AirAsia’a success factors can be analyzed in the core values of the organization. Tool Kits. … A series of sessions are planned for the staff to enhance their skills to serve people better. AirAsia’s Business Strategy. The organizational structure of AirAsia is a semi-flat structure that starts with the CEO Tony Fernandes, following by Chairman of the board and other six directors (Shanmugam, 2013). In the light of its mission statement, AirAsia has developed the business strategy on cost leadership. Recently. Charles Handy popularized with linking organizational structure to organizational culture. More details of sustainability are provided in the following section of AirAsia’s business strategies. Teams cannot be used in organizational hierarchies. AirAsia’s one of the prime objectives is to keep innovating technology and keep on integrating it in its different operations. Within no time, AirAsia became a profit making firm from a debt ridden company. Business strategies enable the firms to develop a detailed framework for monitoring and evaluating the business goals and objectives. With restaurants only allowed to offer take-out services, AirAsia food’s riders continue to do their part in […] The post FoodTech startup AirAsia food is shaking up the food delivery scene in Malaysia appeared first on Tech News | Startups News. a. Inbound Logistics: AirAsia gain cost advantage in this category by utilizing just one kind of aircraft. This act results in reducing the maintenance cost along with administrative cost and inventory cost. This raises challenges in designing organizations in contexts and situations that are new and have not been seen before. Business Model, The competition between airline companies that provide full services and no-frills is getting intense across the world (O’Connel & Williams 2005). d. Customer Services: Call centers established by AirAsia enable them to efficiently and effectively deal with customer’s queries and complaints. They have no levels of hierarchy that means no ranking discrimination happens. COMPETITIVE Corporate Profile; Corporate Structure; Board Of Directors; Group CEO's Statement; Major Shareholders; Strategy; IR Useful Links. Find out more about the AirAsia India organizational structure such as who is part of the board of directors and information on the shareholders. AirAsia Group Berhad’s official website is www.airasia.com, AirAsia Group Berhad’s revenue is $2 Million. It further aims at assessing the sustainability of the business model and its competitive advantage. The company further assigns no seat to the passengers. 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. Capabilities Analysis. AirAsia works with direct and indirect partners with an aim to make their services even better and low cost. Last but not the least, AirAsia, strives hard to maintain the quality of its services and operation nationally and internationally. The developed framework highlights the potentials for gaining competitive and cost advantages . 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. AirAsia’s value chain helps to analyze the determinants of how cost advantage is created. This is because the market environment in Southeast Asia remains favorable for the LCC model. A high portion of AirAsia costs was the salaries and benefits for its employees.Hence, the airline implemented flexible work rules, streamlining administrative functions that allowed employees to perform multiple roles within a simple and flat organizational structure. Low Cost Carriers, Low cost carriers (LCCs) offer low cost services to its passengers and in return provide ‘no-frills’ services to them. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. AirAsia’s Expansion, Since the relaunch of AirAsia in 2001, it has been excelling in different areas and operations. AirAsia Group Berhad’s headquarters are in 5, Lapangan Terbang Antarabangsa, Kuala Lumpur, Kuala Lumpur, Malaysia. Power is derived from the team with the expertise to execute against a … They have very simple process of boarding, no air freight, no hub services and have short cleaning times. Organizational hierarchies. An example can be installation of kiosks by AirAsia to speed up the process of checking in. The company favors the employees by giving them incentives and in return demands for staff loyalty and credibility. Analysis of process and infrastructure: AirAsia’s most significant competitive advantage is by providing the customers with the lowest fares and eliminating all the non essential services to the customers. As a conclusion, AirAsia is doing a wonderful job in terms of satisfying its customers by providing them with quality services. AirAsia accelerates the implementation of Eddy, Kambr’s revenue management software, which brings greater agility, fresh data insights and an intuitive working environment for its analysts (PRWeb January 25, 2021) Read the full story at https://www.prweb.com/releases/airasia_aims_for_streamlined_revenue_management_data_science_processes_with_kambr_s_eddy_software/prweb17675847.htm. Thai AirAsia X Organizational Structure | airasia Find out more about the Thai AirAsia X organizational structure such as who is part of the board of directors and information on the shareholders. 3. 2. c. Technology:AirAsia works towards embracing technology for business requirements as well as to maintain cost effective strategies. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. This is managed by the company by searching for cost reduction areas continuously including its value chain. Lower Cost Differentiation, Broad Target This advantage cuts down major costs of marketing for the company. AirAsia’s Business Model. Figure 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. For these incidences, AirAsia may have some contingency plans; however they don’t work at all times. In the paper, we argue that designing organizations should be scientific-based and forward-looking. By providing quality services at a competitive price, AirAsia manages to develop and sustain its competitive advantage in the market. (2016, Jul 06). Set up organizational hierarchies to view and report on your business from different perspectives. Modernized operations and integration of technology at different levels allows the company to dominate in the market with best products at best price. "You must agree to out terms of services and privacy policy", Don't use plagiarized sources. There are two main management layers in the organizational structure and the people in these positions are considered as main leaders of the company. How many employees are working in AirAsia Group Berhad? SCOPE Organizational Economics Theory, Power and Politics Organization Theory, Organizational Culture Theory, Reform Though Changes in Organizational Culture and Theories of Organizations and Environments. This case study aims at evaluating the rationale of AirAsia’s strategic plan and how have these strategies been associated with its structure and system. Organizational Culture For Air Asia. AirAsia has established the geographical structure. A journal explains the sustainability of low cost carrier model by stating, ‘The LCC model is appropriate for the Southeast Asia environment. Mission Statement of AirAsia, The broad term mission of AirAsia is to gain global recognition as an ASEAN (Association of Southeast Asian Nations) brand and provide high quality products to its customers by reducing cost and enhancing the level of services provided. AirAsia encourages an environment that is free of racial, ethnic and cultural discrimination. Sustainability, AirAsia has always been keen towards providing low fare to its passengers without any compromises in terms of quality and services. The main target audiences of the strategy laid by the company are the customers who are generally price conscious and need short-haul flights to travel. Decentralization organization is a formal delegation of power at all branches of administration or management and within the organization. The CEO has the power to control and make decisions over his position. Relationship between Organizational Structure and Culture Since the organizational structure determines how the roles and responsibilities are allocated and how they will be monitored as well as the flow of communication between different levels and sectors, it is entirely dependent on the organizations goals and how it wants to reach them. a. AirAsia has no doubt given a new dimension to the low cost airlines and businesses. AirAsia’s feature of embracing technology to extend their services online to the customers allows them to do direct sales. A team is an organization in which the members share a common responsibility, interest, or objective. AirAsia is one of the award winning and largest budget airlines in the Asia increasing rapidly since in 2001, they have fleet of 72 aircrafts all airbus A320-200. Capabilities analysis takes place once the business plan and strategy are streamlined and in proper positioning. Firm Infrastructure: AirAsia is recognized worldwide for its simplicity and transparency. The second major challenge faced by all the airlines is the constant rise of fuel prices. What is AirAsia Group Berhad's tech stack? Organizational structure affects both the overall behavior of firms and the situations of individuals and subunits within firms. Meaning of Organisational Design. Trying different innovative ideas and technologies has enabled AirAsia to dominate in the market and stay a step ahead from its rival competitors. Evaluation of staff, customers and partners: With an aim to provide quality service to its passengers, AirAsia focuses more towards the training of its crew and staff. They have made the process simple for their customers and staff hence resulting in technical efficiency. The two most important cost advantage over operations possessed by AirAsia is the high utilization of their planes and turnaround time as quick as twenty five minutes. We will be using the three levels of organizational culture as defined by Edgar Schein (2010) to analyse AirAsia. They possess high resource productivity. Corporate Structure *Click on the image to enlarge. Tony Fernandes appointed leading experts who possessed expertise in low cost airline strategies to reconstruct the business model of AirAsia. 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. The technological innovations by the company satisfy the customers and makes the company gain competitive advantage in the market. 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. They organize various different social events for the staff to social and interact with each other. Air Asia Case Study. The case study will also discuss the culture and management style of AirAsia and its ability to address to the challenges faced by the company. Which one of the following companies was one of the first to use of a divisional structure? Airasia Organizational Culture In Edgar Schein Theory, Organizational Culture can be identified through three distinct levels that is: 1. Where are AirAsia Group Berhad’s headquarters? These generic strategies can be further classified into differentiation, focus or cost leadership. Where teams are formed in Airasia like the waitress and the pilot to solve particular problems. 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. AirAsia possesses the ability to face this challenge confidently because of its strong organizational structure. By continuing we’ll assume you’re on board with our cookie policy, The input space is limited by 250 symbols. 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). Applegate, Austin and Soule (2009, p. 215) defined capabilities as, All you need to do is fill out a short form and submit an order. What is AirAsia Group Berhad’s phone number? 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. Most of the low cost carriers use secondary airports due to its cheap availability . The chart below shows an example of the organization of geographical structure adopted by The Air Asia Management . Conclusion. Tan Sri Tony is one of Asia’s most recognisable entrepreneurs, best known for co-founding AirAsia which has gone on to democratise air travel in the region. ‘Capabilities enable a company to execute current strategy while also proving a platform for future growth. By continuing your navigation, you consent to their use. AirAsia’s structure is … c. Marketing and Sales: The most significant feature of AirAsia is the low cost but creative advertisement they produce. Management Style. The most significant objective of AirAsia is to gain higher cost advantage as compared to its rivals. The organizational structure of AirAsia has no ranks and there are no levels of hierarchy observed in the company. The airlines in this category pay low wages to their staff, they usually don’t hire very experienced crew member and usually pick on the freshly graduated candidates. At AirAsia, the bond between the staff and other stakeholders is considered to be the strongest. The research aims to find and highlight the process, procedures, and practices at AirAsia that deem to fit the characteristics of simplicity and discipline in the original model. The two main features and characteristics of running low cost companies are effectiveness in operations and possessing outstanding efficiency. AirAsia’s performance and business process management will also be discussed in details. AirAsia Group Berhad's main competitors are: Nok Air, Wizz Air, easyJet, Ryanair. AirAsia also aims at integrating technology to cut down cost and enhance services for the valuable customers. Organizational Structure of AirAsia Berhad Figure 2: Organization Structure of AirAsia Berhad Based on Figure 2, AirAsia is a decentralization organization. In case you can’t find a sample example, our professional writers are ready to help you with writing AirAsia apply point to point networks to make the operations simpler and cost effective. Essay, Use multiple resourses when assembling your essay, Get help form professional writers when not sure you can do it yourself, Use Plagiarism Checker to double check your essay, Do not copy and paste free to download essays. In Airasia, their primary color is red which … In order to avail any service such as meals etc, passengers have to pre-order the full meals and a wide range of menu is offered to the passengers. Many low cost airlines have penetrated in the market giving direct competition to AirAsia. What is AirAsia Group Berhad’s NAICS code? your own paper. AirAsia’s performance and business process management will also be discussed in details. The agenda of the training sessions include procedures for in flight services, aviation terminology, safety and security procedures, gaining knowledge of the product and many more. Sorry, but copying text is forbidden on this website. Fernandes invested all his valuables and saving in purchasing this airline company that only possessed two Boeings and was deeply surrounded by many debts. AirAsia gives rewards and incentives to its employees to maintain the level of motivation in them. Direct partners can be categorized to have strong ties with the company. Whereas, indirect partners include social media websites such as twitter, facebook etc. What is AirAsia Group Berhad’s stock symbol? The planes categorized for this model are with narrow seating arrangements and caters only a single class usually all economy flights. View AirAsia Group Berhad (www.airasia.com) location in Kuala Lumpur, Malaysia , revenue, industry and description. There are no assigned seats in these carriers; passengers have to take any seat that is available when they board the plane. Their main sales are booked online which prevent them from giving commission to travel agents. The Organisational Design describes the creation of structures, processes, and roles so that the goals and objectives of an organization can be realized. Background of AirAsia. IR Calendar. This will boost the employee’s motivation and lead them to be more positive. An organization that is divided into semi-autonomous units Question 15 15. This type of model caters the demand of the customers on the basis of extra payment. AirAsia food is a Malaysia super app launched in May 2020 to help support local and small food and beverage businesses during the coronavirus pandemic. The organizational structure of AirAsia has no ranks and there are no levels of hierarchy observed in the company. In this case study, AirAsia’s business plan and strategy, sustainability, cost and competitive advantage it has and its management style has been discussed in details. The organizational chart of AirAsia Berhad displays its 11 main executives including Riad Asmat and Adrian Jenkins × We use cookies to provide a better service. Challenges Faced by AirAsia AirAsia was relaunched by the end of 2001 in Malaysia introduced as a low cost airline for domestic travels with three Boeings. No matter how much an airline tries to chop their cost, fuel cost cannot be reduced or addressed. AirAsia Group Berhad has acquired the companies: Batavia Air, Technically AWAIR Limited. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. Introduction Compare and … The above mentioned sources of the cost advantage that AirAsia has over other airline companies are summarized in the flowchart below. COMPETITIVE ADVANTAGE In a company with flexible organizational structure, the top management of AirAsia should provide executive support to the employees to ensure a decision or a project can be successfully carried out because employees might be afraid to make decision in new environment. They define the resources needed to execute strategy and define the cost model of an organization. Furthermore, the report aims at highlighting the expansions of AirAsia with future expectations. Assessment of organization and its culture: Keeping in consideration the mission statement of AirAsia, it focuses on streamlining its organizational structure and integrates use of information and technology (IT) to make the structure even simpler. Initially, when Fernandes purchased AirAsia, most of the leading entrepreneurs claimed that the airline won’t survive for long. AirAsia Group Berhad has 21,600 employees, AirAsia Group Berhad is in the industry of: Airlines, Airports & Air Services, Transportation. Primary. 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. You can get your custom paper from b. Increasing level of terrorism and attacks may cause severe damage to AirAsia. Who are AirAsia Group Berhad’s main competitors? Businesses that excel high and dominate in the market tend to have a competitive advantage over others (Laudon & Laudon 2010). Focus or cost leadership 25 countries aims at assessing the sustainability of cost... 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