Air Asia Strategic Management Recommendations Essays

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

AirAsia is a strong company with several unique strengths that offer itself could not be defeated by others competitor companies.

Strategic Planning: They try to do a lot of promotion and low-cost air ticket because Airasia company want to help everyone can afford the price to buy their air ticket to travel all around the world.

AirAsia had played the game very well and had ambitious growth plans to keep ahead of the pack. Time would tell if Fernandes and his team could maintain the company 's position as Asia 's -or perhaps the globe 's -most successful budget airline.

Rising fuel prices has a huge impact on the airline industry. In an article published by the New York Times in 2007, oil prices were hovering ‘near $100 a barrel’ which caused the International Air Transport Association (IATA) to ‘slash’ their predicted profits for 2008 from ‘$7.8 billion to $5 billion’ (Clark, 2007). In 2008 high fuel prices were ‘dominant factor’ in the losses that faced the industry, and continued to same effect in 2009 (Dunn, 2009). Diagram 2 shows how fuel price has increased and fallen over the last 5 years.

Companies today are heavily influenced by the demands of customers and stakeholders. Corporate social responsibility (CSR) refers to the social and environmental responsibility policies and practices developed by an organization to increase its positive influence and reduce its negative activity towards society (Parks, 2008). The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. "Going green" or being eco-friendly is one such demand. Environmental and sustainability concerns originate most often from governments, consumer activists, and the general public (Schlosser, 2008). Thus, organizations must implement sustainability into daily practices. In addition, sustainability alters the nature of competition and drives companies to think differently about products, processes, and technologies (Parks, 2008).

In other words, these socially responsible companies will evaluate not only the short and long term economic outcomes of their present decisions but also the long-term environmental and societal outcomes of their current actions. This thus leads to the triple bottom line approach of reporting environmental, social, and economic performance. In addition, Wilson from the Ivey Business Journal argues about corporate social responsibility or the CSR. The CSR has been around longer than the term and implication of “sustainable development” but has similar guidelines. From about 1953 the on, the main debate was whether corporate managers had an ethical responsibility to consider the needs of society and by 1980, it was generally and consensually accepted that corporate managers should and did have this moral responsibility. So by incorporating sustainability plans or even creating a separate branch dedicated to doing so, the company’s reputation often is increased, which over the long term, will contribute to accentuate customer loyalty, market share, and brand value and awareness. (Wilson, 2003) This case study done on Johnson & Johnson published by the IMA Educational Case Journal analyzes the impact that implementations of these sustainability

Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.

As a result of the 9/11 terrorist attacks, the airline industry was faced with a decreasing demand, leading to numerous bankruptcies in the sector. Additionally, the demand for flight services further decreased during the current economic crisis, which has taken its tool on the purchase powers of the population (Investopedia, 2012). In such a setting, of increasing success within the airline industry are the low cost flights.

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

Economy airlines suffer during down economies and reduce their orders, and the industry has become dependent on the Middle East and Asia in recent years to offset this (Crooks & Weitzman, 2010).

AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.

To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel

Air Asia is one of main low cost airlines in the world. It’s based in Kuala Lampur Malaysia. It’s the biggest airline based in Malaysia and it has more affiliation in other airlines around the than another airline. They operate domestic and international services all around the world in more than 22 countries. Air Asia has been nominate as the cheapest to fly airlines in the world by New York Times Magazine, which as lowest as it’ll get.0.023 US dollars to be exact and it has been named as the “pioneer” of low cost airline in all over Asia. Plus they have sponsor Queens Park Rangers football team Barclay Premier League in the UK.