AirAsia's Green Service Industry Strategy

This assignment analyzes AirAsia's implementation of green service industry practices, focusing on the airline's commitment to environmental sustainability. It examines various factors influencing these initiatives, drawing upon academic research, annual reports, and official company statements. The analysis aims to evaluate the effectiveness of AirAsia's strategies and their contribution to overall business performance within a competitive market.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Authors Note

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Table of Contents
Part A...............................................................................................................................................2
Answer 1:.....................................................................................................................................2
Strategic Management Process in Globalization, Innovation, and sustainability............................2
Introduction..................................................................................................................................2
Challenges for Globalization.......................................................................................................2
Communication challenge...........................................................................................................3
Currency fluctuation challenges..................................................................................................3
Cultural innovation......................................................................................................................4
Property issue and Legal risk.......................................................................................................4
Product life cycle and sustainability............................................................................................5
Leadership....................................................................................................................................5
Conclusion...................................................................................................................................6
References........................................................................................................................................7
Answer 2:.....................................................................................................................................9
Air Asia and its competitive advantages.........................................................................................9
Introduction..................................................................................................................................9
Porter Five Forces of Air Asia.....................................................................................................9
Level of competition..................................................................................................................10
Threat of New Entrants..............................................................................................................10

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Bargaining power of Suppliers..................................................................................................11
Bargaining power of Customers................................................................................................11
Substitute threat and product sustainability...............................................................................12
Conclusion.................................................................................................................................12
References......................................................................................................................................13
Part B.............................................................................................................................................15
Answer 1:...................................................................................................................................15
Competitive Tourism in Malaysia and Singapore.........................................................................15
Introduction................................................................................................................................15
Importance of Tourism Industry................................................................................................15
Malaysian tourism industry.......................................................................................................16
Singapore tourism industry........................................................................................................16
Impact of tourism in these nation and difference......................................................................17
Conclusion.................................................................................................................................18
References......................................................................................................................................19
Answer 2:.......................................................................................................................................21
Research-based approach to gain competitive advantage.............................................................21
Introduction................................................................................................................................21
Mission and Vision of Air Asia.................................................................................................21
Analysis of Mission and Vision statement................................................................................22

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Cascading effect of Mission and Vision statement....................................................................23
Competitive advantages and market sustainability....................................................................23
Conclusion.................................................................................................................................24
References......................................................................................................................................25

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Part A
Answer 1:
Strategic Management Process in Globalization, Innovation, and sustainability
Introduction
Strategic management is an innovative relationship that enhances better outcomes and
objectives of organization. In case of globalization, all those surrounding aspects are
interconnected for the better management quality of the marketing organization. Political
economy causes economic production, production differenceand cultural aspects of globalization
all these are considered as better globalized aspect that can change the dimension of international
business territory. Cost and benefits issues and trade relationship with the organization
outsourcing process is the key connection that can provide a lot of extra revenue for the company
(Wheelen & Hunger, 2017). Innovative production processes are also liable for extra production
and that enhance better economic sustainability for the company and this is the most significant
part of organization upgradation.
Challenges for Globalization
Extension of globalization in all countries does not happen in an automated way rather
this is a chain process that globalized some section of the world and employees are the
concerning factor of this expansion. Another challenge in globalization is the fear of instability
(Schaltegger&Burritt, 2014). In case of most of the developing world, the situation is leading to
unstable condition that shaken that place of sustainable condition. The third challenge is the
trepidation from other industrial sectors which are growing in numbers and quality. The

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competitive market structure and quality environment are practiced over there and this is the
reason to improve globalization (Schaltegger & Wagner, 2017). There are other challenges relate
critical and complicated problems that signify better ways for globalization but globalization is
not that way rather than reflected by their countries and people and their behavioral change
management.
Communication challenge
Communication challenge is the key prospect in organization that mitigates conflict
situation in organization and provide better opportunities in organization. Performance
management and better execution ways are the defined structure that instigates the ways of team
bonding and improve product generation for the organization and communication play a major
role over there (Voegtlin & Scherer, 2017). In some cases, leaders’ languages are not elucidated
enough to make sense for employees so their knowledge and understanding are being hampered
by the situation. Sometimes lack of communication creates certain major trouble in business and
the project might get severely affected due to that lack of communication (Carayannis &
Rakhmatullin, 2014). Departmental language and communication are also difficult to understand
by the people from other department and this is reason behind communication gap and
challenges.
Currency fluctuation challenges
Currency fluctuation is affecting major economic cases and impact over the floating
exchange rate system. There are some technical factors and fundamental ways that influence the
exchange rate and the valuation of currency. In case of import, foreign travel, marketing and
business expansion in external market, importance of currency fluctuation rate are important but

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the possible challenge like weak currency; monetary policy in different countries and even the
interest rate are the possible factors that impacted over the situation (Carayannis, Sindakis
&Walter, 2015). Another challenge is the impact on economy in a wider margin and domestic
currency flow is the responsible factor for that. The basic GDP growth is determined by the
difference between exports and imports and production addition of consumption, investment and
government spending.
Cultural innovation
Cultural innovation in organization is focused on the leaders' process and thinking which
applied over culture of the organization that provides innovative cultural aspect in an unorthodox
manner. Cultural innovations in society or in exhibition or conservation of certain social places
are associated with that (Lopez-Valeiras, Gomez-Conde & Naranjo-Gil, 2015). Industrial
capabilities and strategic planning are important for cultural innovation as most of the
organizations are planning for better chances and involvement and this is certainly reflected in
their work culture. Innovations are likely influenced by the common goals and tried to meet the
objective of the company in a simpler way. The capabilities are known to leaders and they
implement such innovative steps that can only bared by the organization fund (Beske, Land &
Seuring, 2014). Promotion and upgradation of organization are depending on the purpose of
organization that reflects better organization value and goals, so this is the way out that surfaces
better chances in external business reach.
Property issue and Legal risk
There are certain legal risks associated with the organization change as strategic
implantation needs some legal actions that may be introduced by the organization. In this kind of

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introductory situations, problems may arise like planning permit, assurance of licensing, area
permission for the development of organization, equipment uses permission, government
initiation for the development of work, business license, export or import license, travelling
passport and help business agents to peruse their works anal these are legal aspects that
encourage business enhancement and progression (Varadarajan, 2017). If the place is considered
as own property of owner then it is very relevant to have business in that place but if it is not
then all sorts of legal prospects will come.
Product life cycle and sustainability
Product lifecycle sustainability is an crucial approach that identifies all possible negative
approaches over product and mitigates them so that sustained conditions can maintain. The
product lifecycle has started from the beginning of product life. The product is designed at this
stage and creates significant impact on environmental condition. In that stage, the entire possible
decision-making situation has happened and product is finalized for delivery (Zedtwitz et al.,
2015). The objective of sustainability and product lifecycle can be reused or recycled but
innovative processes and product materials can be used in an innovative way to get better
outcomes from those products.
Leadership
Leadership in an organization is most impactful part that can change dimension of the
company. In case of organization leader, the basic understanding of leadership and their explore
mindset is the key perspective that can change revenue generation option which is good for the
company. Leaders have to invent strategies and those strategies will be implemented by
executives of organization (Monczka et al., 2015). Leaders can direct the mission and vision of

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the company and motivate employees for better production. The dynamic, exciting concepts and
inspiring management skills are qualities of leader and they provide the way of market
sustainability to organization.
Conclusion
Hence, innovative implementation in organization is important for globalized
acceleration of revenue generation. For better business opportunities, organization needs to make
some innovative process so that better product can be generated. Leaders influence and
employees motivation are key perspectives that develop business opportunities in globalized
market.

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References
Beske, P., Land, A., & Seuring, S. (2014). Sustainable supply chain management practices and
dynamic capabilities in the food industry: A critical analysis of the literature. International
Journal of Production Economics, 152, 131-143.
Carayannis, E. G., & Rakhmatullin, R. (2014). The quadruple/quintuple innovation helixes and
smart specialisation strategies for sustainable and inclusive growth in Europe and
beyond. Journal of the Knowledge Economy, 5(2), 212-239.
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
Charter, M., & Tischner, U. (Eds.). (2017). Sustainable solutions: developing products and
services for the future. Routledge.
De Massis, A., Audretsch, D., Uhlaner, L., & Kammerlander, N. (2018). Innovation with limited
resources: Management lessons from the German Mittelstand. Journal of Product Innovation
Management, 35(1), 125-146.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. Academy of Management Annals, 8(1), 1-56.
Lopez-Valeiras, E., Gomez-Conde, J., & Naranjo-Gil, D. (2015). Sustainable innovation,
management accounting and control systems, and international performance. Sustainability, 7(3),
3479-3492.

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Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.
Nikolova, L. V., Kuporov, J. J., & Rodionov, D. G. (2015). Risk management of innovation
projects in the context of globalization. International Journal of Economics and Financial
Issues, 5(3S).
Rothaermel, F.T., (2015). Strategic management. McGraw-Hill Education.
Schaltegger, S., & Burritt, R. (2014). Measuring and managing sustainability performance of
supply chains: Review and sustainability supply chain management framework. Supply Chain
Management: An International Journal, 19(3), 232-241.
Schaltegger, S., & Wagner, M. (Eds.). (2017). Managing the business case for sustainability:
The integration of social, environmental and economic performance. Routledge.
Varadarajan, R. (2017). Innovating for sustainability: a framework for sustainable innovations
and a model of sustainable innovations orientation. Journal of the Academy of Marketing
Science, 45(1), 14-36.
Voegtlin, C., & Scherer, A. G. (2017). Responsible innovation and the innovation of
responsibility: Governing sustainable development in a globalized world. Journal of Business
Ethics, 143(2), 227-243.
Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.
Zedtwitz, M., Corsi, S., Søberg, P. V., & Frega, R. (2015). A typology of reverse
innovation. Journal of Product Innovation Management, 32(1), 12-28.

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Answer 2:
Air Asia and its competitive advantages
Introduction
Air Asia is one of the companies who adopt cost leadership strategy for their competitive
advantages. Everyone can fly and this slogan can impact over people as well and customers are
finding well-revised fare cost for their journey. It is the level of promotion that Air Asia have
implemented in their business styles (Airasia.com,2016). Customers can go anywhere as the fare
cost in affordable for them. Effective leadership is the key aspect of their established formation
and they have gained competitive advantages as per the previous year report. 44.4 million
Revenue increase is proving for this report. Competitive advantages are the lowest cost,
technological innovation, cost focus, broad target; accumulate all people, product differentiation,
customer satisfaction all these are helping Air Asia to push their company forward compare to
other companies.
Porter Five Forces of Air Asia
Air Asia airline operates across more than twenty countries and delivers lowest cost
Airbus organization in world. There are three more hubs for Air Asia and these hubs are
increasing level in business, there are some problems and opportunities also faced by the
company (Airasia.com, 2016). Thus, these value-adding options are the basic motive of this
discussion of Porter Five Forces.

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Level of competition
One of the most common and significant understandings of business enhancement is to
determine the high aspect of competitors. Industry barrier and better market entry will be
possible if the level of competition reduced; however, the chances of these facts are not possible
as there are some low-cost carriers are also available in world and all these are trying to match up
with Air Asia (Zhang & Findlay, 2014). If market segmentation or target market is not set in a
proper manner then it creates problem for new entrants but other than this, level of competition
reflected by other companies (Pearson, Pitfield & Ryley, 2015). Some new organizations are
establishing their business with huge amount of money and at the initial stage of business
preceding those companies can provide better offers or free tickets, but for the long-term
business operation, they need to identify the way in which they sustain their offers as well (Fu &
Oum, 2014). Air Asia controls those barriers and maintains their brand loyalty in airline industry
by implementing different technological aspect and deliver lowest price fare to engage customers
with them for all season.
Threat of New Entrants
New entrants in this industry are quite common not in aspect of Airbus companies
increase situation but also from the market environment and determinants. Access to raw
material and their companies, scarcity of important resources, distribution channel all these are
creating threats for parental company. In other aspect, companies from the other region who got
high investment at the initial time can make a threat (Homsombat, Lei & Fu, 2014). Air Asia has
some existing customers and those customers are not taken any risk to change their brand but
some people who love to experience new opportunities may engage with new brands, this is
another aspect of threat. Legislation and government-related laws are creating some problem for

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new entrants and for existing companies as well, where Air Asia ha to bare less time to take
permission for making hub in some other places or increase their business by making offices or
air grounds for training.
Bargaining power of Suppliers
The supplier provides goods and services to company and they need to have better power
than consumer production can be acclaimed. If there are multiple suppliers available then
company need to choose one of the suppliers who can provide quality material at low price and
this particular decision is made by the company (Suri, 2016). There are some cases where
monopoly exists and just company manufacturing the product; in that case, there is no leverage
to negotiate with that product. This is the power that suppliers need for producing large quantity
of material and maintain quality for the future profitability and strength. Air Asia has opted ERP
system for mitigation of supplier problem and this system supports fuel suppliers, merchandise
suppliers, and aircraft suppliers' management.
Bargaining power of Customers
Price sensitivity and negotiating power has two type powers of buyers. Both these powers
are related to customer satisfaction and tend to express their approach and mentality. Economic
condition and compatible profitability is the key important factor, for this reason, customers have
to choose affordable price margin and select the low-cost case by maintaining quality (DaSilva &
Trkman, 2014). Air Asia opted for high and low demand patterns and gaining an advantage for
customers. There are various prices for seat and routes and destination are different as well. So
effective price distribution and demand for better pricing is the key power for customers and they
implement these powers to evaluate the best and suitable Airbus for their journey (Krishna, Ojha

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& Barrett, 2017). If any company provides better rates of fare then the customer can choose their
profit. Better pricing strategy and anticipated reactions are the key basis of price allocation and
seats, amenities, behavior in quality.
Substitute threat and product sustainability
Air Asia has tried to implement high switching cost and they analyze those models for
fair use in fuel, maintenance and capacity. Reduced fuel cost help the airline company to have
better production in their other aspects (Wensveen, 2016). Air Asia provides the lowest cost from
their end and this is the reason technological innovation needs to be implemented in all sections
so that better up gradation in production quality has maintained. If operating cost can be
controlled then all hardware, software, telecommunication, database, and management section
can revise (Herrera, 2015). A better set of all these aspects can be revised and this process can
mitigate threats over company and deliver secure product sustainability to maintain their
business.
Conclusion
Therefore, a competitive advantage gained by Air Asia is important and relevant to their
business expansion. In case of better networking in business reduced price of recourse, materials
are important for delivering low range in ticket price. In this situation, the marketplace and profit
margin are highlighted by strength and opportunities of the company and how they used it for
their promotion in brand and class. Technological innovation and strategic management plan for
suppliers, customers provide better outcomes and that reflected in their revenue generation.

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References
Adler, N., Fu, X., Oum, T. H., & Yu, C. (2014). Air transport liberalization and airport slot
allocation: The case of the Northeast Asian transport market. Transportation Research Part A:
Policy and Practice, 62, 3-19.
Airasia.com (2016) Air Asia Annual Report 2016 Retrieved by:
https://www.airasia.com/cdn/docs/common-docs/investor-relations/airasia-annual-report-
2016.pdf [Accessed on 2nd January]
DaSilva, C. M., & Trkman, P. (2014). Business model: what it is and what it is not. Long range
planning, 47(6), 379-389.
Fu, X., & Oum, T. H. (2014). Air Transport Liberalization and its Effects on Airline Competition
and Traffic Growth–An Overview. In The economics of international airline transport(pp. 11-
44). Emerald Group Publishing Limited.
Hanaoka, S., Takebayashi, M., Ishikura, T., & Saraswati, B. (2014). Low-cost carriers versus full
service carriers in ASEAN: The impact of liberalization policy on competition. Journal of Air
Transport Management, 40, 96-105.
Herrera, M. E. B. (2015). Creating competitive advantage by institutionalizing corporate social
innovation. Journal of Business Research, 68(7), 1468-1474.
Homsombat, W., Lei, Z., & Fu, X. (2014). Competitive effects of the airlines-within-airlines
strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and
Transportation Review, 63, 1-16.

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Krishna, S., Ojha, A. K., & Barrett, M. (2017). 12 Competitive Advantage in the Software
Industry: An Analysis of the Indian Experience. Information Technology in Context: Studies
from the Perspective of Developing Countries: Studies from the Perspective of Developing
Countries.
Lee, V. H., Ooi, K. B., Chong, A. Y. L., & Lin, B. (2015). A structural analysis of greening the
supplier, environmental performance and competitive advantage. Production Planning &
Control, 26(2), 116-130.
Leong, L. Y., Hew, T. S., Lee, V. H., & Ooi, K. B. (2015). An SEM–artificial-neural-network
analysis of the relationships between SERVPERF, customer satisfaction and loyalty among low-
cost and full-service airline. Expert Systems with Applications, 42(19), 6620-6634.
Pearson, J., Pitfield, D., & Ryley, T. (2015). Intangible resources of competitive advantage:
Analysis of 49 Asian airlines across three business models. Journal of Air Transport
Management, 47, 179-189.
Suri, R. (2016). It's about time: the competitive advantage of quick response manufacturing.
CRC Press.
Wensveen, J. G. (2016). Air transportation: A management perspective. Routledge.
Zhang, A., Hui, G. W., Leung, L. C., & Cheung, W. (2017). Air cargo in mainland China and
Hong Kong. Routledge.
Zhang, Y., & Findlay, C. (2014). Air transport policy and its impacts on passenger traffic and
tourist flows. Journal of Air Transport Management, 34, 42-48.

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Part B
Answer 1:
Competitive Tourism in Malaysia and Singapore
Introduction
Tourism is turn out to be one of the most significant universal industries nowadays. The
simplicity of association across borders has gained tourism business an arrangement as the
world’s largest export earner. It appears as an increasing feature for numerous nations on its
involvement of foreign switch over revenues for administration whilst motivating better reserves
in infrastructure that eventually enhanced the living customary of the fastidious nation
(Purwomarwanto & Ramachandran, 2015). In that scenario, importance of tourism management
plays important role for economic development of nation and that ultimately proved the upgrade
situation of the nation’s GDP.
Importance of Tourism Industry
The most obvious reason behind tourism is economic development of a nation. There is
another significance as well that extend the global reach and provide benefits to travelers.
Economic progress and upgradation of GDP is the basic understanding of that process. Source of
income is another significant factor that comes in the form of tax (Hanafiah, Hemdi & Ahmad,
2017). Private and public sector along with the hospitality sector, transport sector and
entertainment sectors are the major forms of revenue generation resources that provide enough
profit to grow tourism business (Mosbah & Saleh, 2014). Development in infrastructure and

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social progress is also highlighted things in tourism. Maintaining cultural heritage and impose
the concept of conservation of those heritage sites is another importance of tourism.
Malaysian tourism industry
Malaysia is ranked as 9th tourist arrival in all over the world and among 141 countries
mentioned in Travel and Tourism Competitiveness report, the national has ranked as 25th.
Malaysia is the 3rd largest nation of foreign exchange income and government initiation is the
reason behind that (Tourism.gov.my,2017). Most of the Tourism Promotional Board and
campaigning over Malaysia has launched a worldwide marketing campaign named as “Malaysia,
Truly Asia”. Medical tourism in Malaysia is very significant and government initiation is major
aspect for motivating their medical tourism process in Malaysia (Henderson, 2016). There are
several islanded and beaches are on Tropical Island and this is voted as most beautiful place in
world. 0.4% more tourist amalgamation happened in 2016 and most of the packages help their
tourism aspects to promote Malaysian business.
Figure: Travelers arrival in months in Malaysia
(Source: tourism.gov.my, 2017)

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Singapore tourism industry
Singapore tourism has contributed immense engagement in their GDP and government
initiation is the major aspect of encouraging them. Almost 16.4 million people have come as
tourist in 2016 which is 3times greater than Singaporean population. The nation considers is the
most environmentally friendly nation and people loved to visit there for this reason. The reason
behind traveling nation is their lowest rate of crime (Lean, Chong & Hooy, 2014). Singapore
ranked 13th out 136 countries and the third best in Asia in aspect of tourism (Stb.gov.sg,2017).
There are many historic places that are center of attraction and almost 50 million travelers are
traveling over the region in a day so this also impacted over business and economy of the
country as well. Island resorts, historical places, nature sighting all these are major attraction
point and Singapore enrich their GDP by their tourism business.
Figure 2: Singapore tourism data
(Source: singstat.gov.sg 2017)
Impact of tourism in these nation and difference
A huge impact has been noticed in tourism sector and most of the cases are related to
economic growth and the new business opportunities. There are some reciprocal matters like

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revenue high and low generation or ranking systems, but most of the cases expanse in business in
this two regions are the center of concern. International trade and exchange rate is the reason
behind market expanse and that impacted over effective marketing and making good relation
with travelers (Tang & Tan, 2017). This helps also in case of increasing economy and provides
relativity with tourism market and provides better opportunities for business.
Figure 3: Comparison of tourism between Malaysia and Singapore
(Source: ijem.upm.edu.my, 2014)
Conclusion
Therefore, it can be concluded that tourism is an important factor for economic
development of a country. GDP, tax increment, trade opportunity, small-scale business
expansion, economic growth in all sectors and competitive exchange in business are the most
effective changes those tourism activities has done in these two regions. Malaysia is little bit
ahead than Singapore in terms of ranking but most of the case the beauty in all those regions

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have is quite schematic and people loved to visit there and their interest will remain same if both
these government has taken this initiative to promote their tourism.

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References
Abd Mutalib, N. S., Soh, Y. C., Wong, T. W., Yee, S. M., Yang, Q., Murugiah, M. K., & Ming,
L. C. (2017). Online narratives about medical tourism in Malaysia and Thailand: a qualitative
content analysis. Journal of Travel & Tourism Marketing, 34(6), 821-832.
Ganguli, S., & Ebrahim, A. H. (2017). A qualitative analysis of Singapore's medical tourism
competitiveness. Tourism Management Perspectives, 21, 74-84.
Hanafiah, M. H., Hemdi, M. A., & Ahmad, I. (2017). The Influence of Tourism Core Resources
on Travel and the Tourism Competitiveness Index and Tourism Performance. In Balancing
Development and Sustainability in Tourism Destinations (pp. 377-384). Springer Singapore.
Henderson, J. C. (2015). Destination development and transformation: 50 years of tourism after
independence in Singapore. International Journal of Tourism Cities, 1(4), 269-281.
Henderson, J. C. (2015). The new dynamics of tourism in South East Asia: Economic
development, political change and destination competitiveness. Tourism Recreation
Research, 40(3), 379-390.
Henderson, J. C. (2016). Halal food, certification and halal tourism: Insights from Malaysia and
Singapore. Tourism Management Perspectives, 19, 160-164.
Lean, h. H., Chong, s. H., & Hooy, c. W. (2014). Tourism and economic growth: Comparing
Malaysia and Singapore. International Journal of Economics & Management, 8(1).
Mosbah, A., & Saleh, A. A. (2014). A review of tourism development in Malaysia. Euro J Bus
and Manage, 6(5), 1-9.

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Purwomarwanto, Y. L., & Ramachandran, J. (2015). Performance of tourism sector with regard
to the global crisis-a comparative study between Indonesia, Malaysia and Singapore. The Journal
of Developing Areas, 49(4), 325-339.
Rahman, M. K., Rahman, M. K., Zailani, S., Zailani, S., Musa, G., & Musa, G. (2017). Tapping
into the emerging Muslim-friendly medical tourism market: evidence from Malaysia. Journal of
Islamic Marketing, 8(4), 514-532.
Seow, A. N., Choong, Y. O., Moorthy, K., & Chan, L. M. (2017). Intention to visit Malaysia for
medical tourism using the antecedents of Theory of Planned Behaviour: A predictive
model. International Journal of Tourism Research.
Stb.gov.sg (2017) Singapore Tourism Board retrieved from: https://www.stb.gov.sg/ [Accessed
on 2nd January 2018]
Tang, C. F., & Tan, E. C. (2016). The determinants of inbound tourism demand in Malaysia:
another visit with non-stationary panel data approach. Anatolia, 27(2), 189-200.
Tang, C. F., & Tan, E. C. (2017). The Relevance of the Tourism-Led Growth Hypothesis to
Malaysia: A View Through Rolling-Samples and Disaggregated Tourism Markets. In Tourism
and Opportunities for Economic Development in Asia(pp. 229-243). IGI Global.
Tourism.gov.my (2017) Malaysia Tourism Statistics in Briefretrieved from:
https://www.tourism.gov.my/statistics [Accessed on 1st January 2018]

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Answer 2:
Mission and Vision of Air Asia with their cascading effect
Introduction
A firm performance depends on the applied strategy over the firm and how the firm
implements those strategies in an effective way. The behavior, approach and chosen strategy is
the most important part for organization as these parameters are creating better chances for
sustains competitive advantage. In this business research methods dominant approach in business
is important and possible advantages get from all internal and external factors. In this project
case, Air Asia is selected by the researcher (Airasia.com,2017). The inward approach impacted
over influential strategic issues that provide sustainable advantages and diversification. The
competitive value of resources and change in customer service rate is the basic objective of
company. In case of Air Asia, a Malaysian low-cost airline that has domestic and international
flights operation and it covers almost 25 countries. The breakeven load factor of this airline is
52%. It was established in 1993 but the actual operation has taken place on 18th November 1996
(Airasia.com, 2016). The company has five other secondary hubs and they earn 1.12 billion
increments in revenue in last year.
Mission and Vision of Air Asia
The Mission of Air Asia company is to deliver the best service to their customers.
 To be the best company in Asia where employee engagement is treated as a family.
 To create a global brand and wants the reorganization will spread all over the world.

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 To accomplish the lowest price so that everyone can access their flight and Air Asia will
be the most available brand for people.
 To maintain the quality product and implement reduce cost policy and enhance the
technological aspect so that service level will improve.
The vision of the company is to be the largest low-cost airline company in Asia and serve
almost 4.4 billion people brace the high-level connectivity at low fare rates (Airasia.com, 2017).
Analysis of Mission and Vision statement
Air Asia celebrated their 15th year of numerous milestone of maintaining their low-cost
carrier and has awarded for 8 consecutive years to maintain this. The company has evaluated
their global marketing space and tried to implement strategic change in their company. The
mission statement of the company has signified their fact as well. The first mission is signifying
employees' engagement. To be a big brand company, engagement of employees is the major
issue that can change production rate of the company and help all other aspects that actually
impacted the business enhancement (Pearson, Pitfield & Ryley, 2015). If employees' motivation
is successful to deliver from the company perspective then better chances of business
engagement will also generate. The next mission incorporates the global acclamation so that
business will enhance in an effective order. Air Asia provides lowest fare rate comparing to any
other airline companies. People are different in economic class and this is the reason they have to
choose other option of transport rather than Airbus, Air Asia tried to mitigate the fact and
implement better opportunities of the people so that they can use this transport system
specifically their services, which also enhance their business opportunities as well (Roy, 2014).
Maintaining product quality is the challenge for company; hence innovative implementation is
the key prospect that Air Asia has focused on. They have used different productive technologies

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that reduce the cost of the production and ultimately the company has not bare the expected
amount (Jayakumar & Jayakumar, 2017). This is the reason that company can enhance their
service level and maintain their qualities as well.
Cascading effect of Mission and Vision statement
Cascading effect signifies the unforeseen chain of event in case of meeting goals and
objectives of Air Asia. This is an inevitable part that effectively impacted over the negative
aspect of the company but it can be visualized by tree structure that delivers the theoretical
possibilities. The basic principle of Air Asia is to provide low-cost carriers which have high-
quality facilities and to maintain safety and security of people. Employees' get high level of
training and they deliver caring attitude to customers (Lin, 2015). The passionate purpose is
larger than life in their company case as they believe that passionate people can win anyone
heart. Hardworking mentality, full of integrity, fun elements all these are accompanied by
employees and this is the reason they deliver quality time to their service and that cascade over
customers. This is the lowest fare airbus organization in Asia and people love to use their service
if company can manage more innovation within that lowest price range that people engagement
and revenue generation will get a boost (Jonathan&Hamidi, 2017). In case of vision of the
company other factors like maintaining ethical culture and value is important as most of the
cases, people love the belief and service of the organization and people try to judge their
objectives through their values and ethics.
Competitive advantages and market sustainability
Competitive advantage is very important for Air Asia as they produce customer journey
at very low cost. Their network spreads in 18 countries and covers almost 109 destinations. From

28STRATEGIC MANAGEMENT
these entire destinations, they serve people from 240 countries and impacted over the annual
conversion rate by 2.35% in a year (Airasia.com,2017). All social media sites want to collaborate
with them and they have 10.6 million fans are on Facebook (Rufer, 2015). Almost 86% of load
has been consumed by them. The range of business and innovative business project like improve
any technology that reduces the usage. 220 normal routes and 66 unique routes that Air Asia has
been covered by Air Asia and this is the reason they are getting competitive advantage for
company (Airasia.com,2017). In case of market sustainability, they are the pioneer in airbus
section not in section of age but the fare rate they deliver is the best for customers. In case of
long routes, the rates are still making a difference from other companies and this is the major
reason behind that. Air Asia has connected 10 Asian countries and 40% batter operating margin
has gained by the company (Airasia.com,2017).
Conclusion
Therefore it can be concluded that meeting mission and vision is the primary objective of
the organization. Investor relationship and Social influence is the key strategy that Air Asia has
taken for better production, service, and revenue. In case of Malaysia, Air Asia’s headquarter is
located in that region. 49% market share only acculturated from Malaysia and for that reason,
their business infrastructure and proper logical business process accelerated in that nation.

29STRATEGIC MANAGEMENT
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