Business Management and Strategic Management Report for AirAsia

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Business Management and strategic management
Report
8/5/2018
Student Name

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Contents
Introduction................................................................................................................................2
Purpose of study.....................................................................................................................2
Description of AirAsia...........................................................................................................2
AirAsia Values and Principles................................................................................................4
Mission and Vision statements...................................................................................................4
SMART Principle...................................................................................................................5
Revised Statements: Vision....................................................................................................6
Mission...................................................................................................................................6
Environmental Analysis.............................................................................................................6
PESTLE Analysis...................................................................................................................6
Porter 5 Forces Analysis.........................................................................................................8
Capability Analysis..................................................................................................................10
Value Chain Analysis...........................................................................................................10
Primary Activity...............................................................................................................11
Supportive Activity...........................................................................................................12
KPI’s and benchmarking..........................................................................................................12
Financial metrics..................................................................................................................13
Customer Metrics.................................................................................................................16
People Metrics......................................................................................................................16

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Process Metrics.....................................................................................................................17
SWOT Analysis.......................................................................................................................17
Proposed Strategy.....................................................................................................................18
TOWS...................................................................................................................................18
Conclusion................................................................................................................................19
Strategy Evaluation..............................................................................................................20
References................................................................................................................................22

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Introduction
Strategic management is the formulation and implementation of the major goals and
initiatives taken by the top level of the management to achieve the desired goals and
objectives. The report examined the strategic plan for the AirAsia, by analyzing the company
vision, mission, assessing the micro and macro environment using the pestle and Porter’s five
forces model, which led to the identification of near opportunities and threats present in the
market (Morden, 2016). Not only the opportunities and weakness are analyzed along with
that strengths and weakness are also analyzed and then proposed the strategic changes that
should be implemented by the company in order to have the competitive advantage to the
company. The report concluded by analyzing the suitability, acceptability, and feasibility in
the market (Renz, 2016).
Purpose of study
The purpose of this report is to make a strategic plan that:
 Determines and evaluates AirAsia vision and mission statements
 Analyse the macro and microenvironment in which the company is operating its
business to know the upcoming opportunities and threats of the market.
 Propose the new strategies using the TOWS matrix and evaluates which is suitable for
the organization.
 Evaluating the proposed strategies using SAF
Description of AirAsia
AirAsia is a Malaysia based company involved in providing the services of air transportation.
The company is operating the fleet of 90 aircraft and flies to more than 60 destinations from
hubs in Malaysia, Thailand, and Indonesia. The company is able to operate more than 3500

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flights per week. AirAsia has considered the world leading lowest fare airline in Asia and win
awards for the major low carrier in Asia. From the table, it can be analyzed that the AirAsia
is showing the upward trend in its revenues and profit too (AirAsia, 2018a).
(Source: Airasia, 2018)
RM MILLION, UNLESS
OTHERWISE STATED) 2015 2016 20171
Revenue 6,298 6,846 9,710
Net total expenses 4,702 4,780 7,549
Operating profit 1,596 2,066 2,161
Profit before taxation 215 1,705 2,088
Taxation 326 -86 -516
Net profit 541 1,619 1,571

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(Source: AirAsia, 2018a)
AirAsia Values and Principles
AirAsia focuses on the core values, which include:
Safety consciousness
The company is very much concern about the safety measures used while traveling from one
place to another. The company focuses on the theme that a safe and protected airline is a
happy airline. The safety of guest is the principal concern of company.
Hardworking
The top level and other levels in the company are working with integrity so that services that
are provided should be worth all times. This means that the team is working together to
achieve the common organisational goal.
Fun
The fun here refers to the celebration in life, laughing louder, a broad smile on their faces and
their own uniqueness. They are a friendly bunch and they like sharing thoughts and solution
to make the things even improved (AirAsia, 2018b).
Mission and Vision statements
Vision
AirAsia wishes to be the biggest low-cost provider in Asia and serving the majority of the
individuals who are presently underserved with the poor quality and connectivity with high
fares