Business Creativity and Problem Solving | PPT

BUSINESS CREATIVITY AND PROBLEM
SOLVING
Name of the Student
Name of University
Author Note

INTRODUCTION
• Creativity and innovation are recognized as
important tools that help in driving a business
organization towards growth and development.
• The highly competitive business environment of
the global airline industry requires the
organization operating within its scope to devise
effective strategies that may help in the
enhancement of their overall profitability
(Oliveira and Oliveira 2018).
The presentation will further discuss application of
business creativity in AirAsia Berhad.

OVERVIEW OF AIRASIA
AirAsia Berhad, popularly recognized as
AirAsia, is a low cost airline company based
in Malaysia with its headquarters in Kuala
Lumpur (Newsroom.airasia.com 2020).
The company was founded in the year 1993
and commenced its operations in the year
1996 through international flight services
in Indonesia and Singapore.
The mission of AirAsia is to ensure that all
customers can avail their flight services at
low costs (Newsroom.airasia.com 2020).

SWOT ANALYSIS
Strengths
Brand position
Engagement in e-commerce retail
services
Service quality and performance of
employees
Brand perception and loyalty among
customers
Weaknesses
Geographical limitations of flight
services
Alleged case of bribery against the
CEO
Reduced market shares
Opportunities
Diversification of services
Enhancement of marketing strategies
Expansion of operations in new locations
Improvement of customer engagement
and interaction
Threats
Presence of large number of
competitors
Increasing operational costs due to
rise in fuel prices

PEST ANALYSIS
• Political factors – Aviation regulations, political stability of countries
in which the company operates, regulations adopted due to terror
attacks or outbreaks of diseases.
• Economic factors – Purchasing power and disposable income of
consumers, gross domestic product, employment rate, availability of
skilled and unskilled labor.
• Social factors – Tastes and preferences of consumers, cultural and
linguistic diversity among consumers in different countries as well as
the employees of the company.
• Technological factors – strength of internet connectivity,
technological infrastructure at airports, servicing and maintenance of
aircrafts, fuel efficiency of aircraft engines.

IDENTIFICATION OF PROBLEM
• The issue faced by the company is the present times is
that of a loss of positive brand identity and image due
to the allegations of indulgences in acts of bribery by
the Chief Executive officer of AirAsia, Tony Fernandes
(Nst.com 2020).
• Due to this event, the CEO had to step down from his
activities and functions for a brief period of time,
thereby causing discrepancies in the business
operations of the company.
• The importance of the issue is identified through the
manner in which unethical practices may affect the
business operations of a company and also pose a
negative impact on the various internal and external
stakeholders (Dash 2019).

KEY DRIVERS INFLUENCING ISSUE
• The rising cost of operations, through increased
maintenance costs and fuel prices in the airline
industry, may have prompted the organization to
indulge in unethical means of gathering funds for its
operations.
• High threat of competition in the airline industry may
have prompted the organization to indulge in
unethical means for the purpose of gaining a larger
market share.
• Improvement of brand identity and image through
partnerships may have prompted the Chief Executive
Officer to establish a presence in the formula racing
games.

BUSINESS MODEL CANVAS
Key
Partners
1. Aircraft
manufacturer
s
2. Travel
agents
3. Affiliate
airlines
4. Fuel
providers
5. Investors
6. AirAsia
Expedia
7. Suppliers of
other
technology
Key
Activities
1. Ticketing
2. Marketing
3. Customer
services
4. Catering
5. Passenger
assistance on
flight
6. Pricing
7. Operations
8.
Maintenance
of fleet and
infrastructure
9. Training
10. Finances
11. Planning
and
management
12. Corporate
social
responsibility
activities
Value
Propositio
ns
1. High
quality
services at
low prices
2. A large
number of
destinations
covered
3. Wide
range of
services
available
4. The
brand
identity of
one of the
best low
cost carriers
5.
Environmen
tal
sustainabilit
y through
Customer
Relationshi
ps
1. Frequent
discounts
and offers
2.
Competitive
prices of
flights
3.
Promotional
offers
4. Unique
digital
services
5. High
quality of
customer
services and
flight
assistance
6.
Customizable
travel
insurances
Customer
Segments
1.
Demographic-
Customers
belonging from
low and middle
income groups
2. Geographic-
Customers
belonging from
the regions and
countries in
which the
company
operates
3. Behavioral-
Individuals
preferring high
quality services
at low costs
4.
Psychographic-
Individuals who
travel for
leisure, study
Key
Resources
1. Aircrafts
2.
Employees
3. Resource
efficient
technologica
l
infrastructur
e
4.
Partnerships
5. Network
Channels
1.Travel
agencies
2.Website
and mobile
applications
3.Social
networks
4.Expedia
5.Call centers
Cost
Structure
1.Maintenance
of aircrafts
2.Maintenance
of
infrastructure
3.Taxes and
airport
charges
4.Maintenance
of media
platforms
5.Employee
wages and
salary
6.Technologica
l development
and fleet
renewal
Revenue Streams
1.Net sales of tickets
2.Customized services
3.Baggage and insurance
facilities
4.Car rental
5.Ad space sales

RECOMMENDATIONS
Enhancement of fuel efficient technology - AirAsia must make investments in enhancing the
existing technology available to them for the purpose of improving fuel efficient flight operations.
This will reduce the environmental impact of flight operations, thereby propagating environmental
sustainability and creating a positive brand perception among the global consumers.
Indulgence in Corporate Social Responsibility activities - The Company may also indulge in
corporate social responsibility activities in order to improve its brand image and identity in the South
East Asian airline market.
Anti-corruption training - The Company may also aim to strengthen its Human Resources
Management System in order to monitor unethical activities within the scope of their business
activities. The establishment of clear corporate guidelines and organizational values may also provide
the members of the organization to direct their business activities and functions accordingly.

RECOMMENDATIONS
Improvement of service quality - The company may engage in the improvement of the
quality of products and services offered by it so as to efficiently and effectively satisfy the
needs and requirements of the targeted customers.
Diversification of services - The Company may also engage in the diversification of the
services available to the targeted customers. This may include the provision of flight services to
different countries where the company does not operate at present.
Improvement of marketing strategies - The improvement of marketing strategies adopted
by AirAsia will help them to restore their presence in the market, by appealing to the interests
and needs of the targeted customers.

CONCLUSION
From the above discussion regarding the problems faced by the widely recognized
airline company AirAsia, it may be deduces that business creativity and innovation
aids in solving the problems faced by the company in an efficient manner. The
problem faced by the company pertains to the domain of unethical business
practices in the form of bribery accusations against the Chief Executive Officer of the
company. In order to effectively tackle and solve this problem certain
recommendations have been provided.

REFERENCES
Dash, M., 2019. Comparison of Performance of Indian Aviation Service Providers Us
Newsroom.airasia.com (2020). About us — AirAsia Newsroom. [online] AirAsia Newsroom. Available at:
https://newsroom.airasia.com/about-us [Accessed 26 Feb. 2020].
Newsroom.airasia.com (2020). Sustainability — AirAsia Newsroom. [online] AirAsia Newsroom. Available at:
https://newsroom.airasia.com/sustainability [Accessed 26 Feb. 2020].
Nst.com (2020). AirAsia's Fernandes denies Airbus bribe involving his former F1 team. [online] NST Online.
Available at: https://www.nst.com.my/news/nation/2020/02/562454/airasias-fernandes-denies-airbus-bribe-
involving-his-former-f1-team [Accessed 26 Feb. 2020].
Oliveira, M.V. and Oliveira, A.V., 2018. What drives effective competition in the airline industry? An
empirical model of city-pair market concentration. Transport Policy, 63, pp.165-175.

THANK
YOU