Airasia

KM324 Business Management Strategy

Individual assessment 2

Chapter 1 Introduction

In year 1993, AirAsia was formed. Since the operations started on 18th November 1996, AirAsia has gone from strength to strength becoming the leading low cost and budget carrier in Asia. Initially, it was a government-owned conglomerate founded operation, which goes by the name of DRB-Hicom. On the fateful date of 02 December 2001, Tony Fernandes, whom was a ex employee from Time Warner, with his company of Tune Air Sdn Bhd took over the much indebted airline company for merely a token sum at RM1. After that, a concept of no frills, low fare flights was introduced, citing AirAsia, 2007. Fernandes finally reaped his rewards from the fledging airline company by the year of 2002 (Air Asia, 2006).

Organization Structure

The airline structure of organization is:

Figure 1.0: Organization Structure Of Air Asia

AirAsia covers extensive flight routines in Asia such as Thailand, Malaysia, Myanmar, Vietnam, Cambodia, Philippines, China as well as Macau just to name a few. By the time in November 2003, they started off its routes to Phuket, Thailand, along with flights to Bangkok and then Hat Yai from the KLIA (Kuala Lumpur International Airport). As for Indonesia, AirAsia covers Bandung, Jakarta and Surabaya from April 2004 onwards. Later on, they have also launched the new routes to Bali, Padang and Medan as well (Air Asia, 2006).

Chapter 2 Choose an organisation from the service industry, Conduct a detailed PESTEL Analysis. Discuss how the PESTEL issues are affecting your organisation. Give examples to support your arguments.

PEST Analysis

According to Haberberg and Rieple (2001), factors which might affect vital variables that are likely to influence an organization’s supply and demand levels and its cost will be able to identify by analyzing the macro-environment. As a result, PEST framework, which consists of political or legal, economic, social or cultural, will be used...