TASK 1

1.0 Background of the company

Air Asia Berhad is founded on 1993 and start their operations is on 18 November 1996 at
Kuala Lumpur, Malaysia. AirAsia Berhad, located at Kuala Lumpur International Airport,
Malaysia, is a low-cost airline. The airline, which was founded in 2002 by Tune Air, is operated
by CEO Tony Fernandes and has been the founder of a cross-border strategic partnership in Asia,
setting up Thai and Indonesian units based in Bangkok and Jakarta. The airline has also
partnered with other airlines and investors in the Philippines, India and Japan to create ventures.
The main objectives of Air Asia Berhad are to be the biggest low-cost carrier in Asia and to
serve 3 billion customers with weak connections and high quality who really are lack of
employment opportunities. There are several missions of this company which are to be the safest
organization for workers to work for as part of a large family, build an ASEAN brand recognized
globally, to get the lowest price so that anyone with AirAsia can travel and maintaining the best
quality commodity, implementing cost control technologies and improving service standards.

Following that, AirAsia launched its Thai AirAsia subsidiary, which began flying to
Singapore and Indonesia. Flights to Macau began in June 2004, followed by flights to Xiamen,
China, and Manila, Philippines, in April 2005. In 2005, Thai AirAsia began flying to Vietnam
and Cambodia, following by Brunei and Myanmar in 2006. AirAsia took over Malaysia Airlines'
Rural Air Service routes in Sabah and Sarawak in August 2006, rebranding them as
FlyAsianXpress. One year afterward, the operations were restored to MASwings for business
reasons. Fernandes outlined a five-year strategy to expand AirAsia's footprint in Asia towards
the end of 2006. AirAsia suggested increasing its route network by linking most of its current
locations across the area and strengthening into Vietnam, Indonesia, Southern China like
Kunming, Xiamen, Shenzhen and India as part of the strategy. The strategy planned for a focus
on strengthening its hubs in Bangkok and Jakarta through its sibling firms, Thai AirAsia and
Indonesia AirAsia. AirAsia raised passenger traffic to 13.9 million in its 2007 fiscal year, thanks
to greater frequency and the inclusion of additional routes. When comparison to the same time in
2012, AirAsia's earnings had climbed by 168 percent by early 2013. The airline's net profit for
the quarter ended December 31, 2012 was 350.65 million ringgit (US$114.08 million). Despite a
1% increase in the average fuel price, the airline made RM1.88 billion in profits for the whole
2012 fiscal year. In February 2013, AirAsia, through its investment arm, AirAsia Investment
Limited, applied to the Indian Foreign Investment Promotion Board for permission to begin
operations in India. AirAsia requested a % ownership in its Indian sister airline, which was the
highest the Indian government would allow at the time. AirAsia has committed to a $50 million
investment in the new airline. AirAsia will start operations in Chennai and expand its network
across South India, where it currently has flights from Malaysia and Thailand.

In Kuala Lumpur, AirAsia established its first restaurant serving airline meals in 2019.
AirAsia did not finish the acquisition of six Airbus A320neo aircraft that were already built to
their specifications in November 2020. This was due to the coronavirus outbreak. In September
2021, Airbus decided to lower pricing in order to save a ten-billion-dollar deal with the airline,
resuming the partnership between the two companies. After the Malaysian government relaxed
travel restrictions in October 2021, AirAsia resumed foreign flights. The Board of Directors
(BOD) of AirAsia is in charge of quality. The BOD reviews the Group's sustainability strategy
and performance, as well as validating all sustainability-related actions. The Sustainability
Working Group Committee, at the operational level, identifies, discusses, reviews, implements,
and monitors sustainability measures or projects (SWGC). This committee, which is led by the
Head of Sustainability and reports to the Board yearly, is made up of Group leaders of key
divisions. As part of the continuing supervision in 2020, the BOD assessed and confirmed the
Group's ten material concerns. The SWGC currently consisting of representatives from airasia
super app, Santan, and Teleport as a result of the Group's expansion into digital industries, which
come with their own set of risks and problems. We've added Group Operational Quality
Assurance, Communications, and AirAsia Foundation (AAF) to the SWGC to improve and
reinforce our sustainability management, while Group Safety and Group Engineering have been
consolidated and are now under Group Operations.
 Graph 1: Organization Chart

There are several responsibilities of Board of Directors (BOD) which are as the Group's
ultimate decision-making organization, it has the ability to support SWGC actions for the Group
and its stakeholders. Provides the management of the Group's overall sustainability goals and
incorporates sustainability into strategic decisions by taking into consideration EES impacts
originating from company operations.
2.0 Mission and Vision

AirAsia is an Asean pioneer in low-cost air travel, applying the lean, no-frills business
model used in the United States and Europe to the local context to democratise air travel. One of
the most important aspects of our business strategy has been to eliminate physical sales shops by
encouraging travellers to buy flights online. Digital data acquired in this manner has opened up
new commercial opportunities over time. We've changed into a digital travel and leisure brand as
a result of seizing these chances. Following an assessment of AirAsia's previous vision
statement, the new vision statement which are 'To lead the flight industry and be the most
recognised low-cost airline business in Asia that offers the greatest flying experience.' As can be
seen, the newly created vision statement is still within its scope; AirAsia continues to emphasise
its desire to be Asia's leading low-cost airline carrier. As the firm expands, more individuals will
be able to readily know AirAsia, resulting in a strong brand identification for consumers. Apart
from that, in the new vision statement, AirAsia is regarded as being the leader in the Asian air
sector, which is definitely not included in the original vision statement of AirAsia. Furthermore,
the updated vision statement adds that AirAsia intends continue providing customers with the
finest flying experience possible; in reality, this is another new approach that AirAsia should
consider, since customers nowadays are more concerned with the operations than the capabilities
that the company can offer.

Creating a vision statement is essential for guiding a firm and securing its future. A weak
vision statement, on the other hand, may steer a firm in the wrong way. When AirAsia develops
a vision, it is truly expressing AirAsia's commercial expectations. Although the new vision does
not specify how AirAsia will get at their final objective, it does set the route for their business
strategy. Being a leader in the industry, for example, is a relatively recent ambition for AirAsia.
AirAsia could consider implementing a differentiated value offer that competitor will not copy,
such as having a huge and loyal client base, employing cutting-edge technology that competitors
lack, providing the safest security assistance, and so on. In this regard, AirAsia had to make more
difficult strategic decisions, such as which technology to use and so on. After that, the mission of
this company is to provide complete premium services to consumers while maintaining the
lowest flying cost, to provide a productive and engaged staff, as well as to develop tight
relationships between employees and senior management comes next. Finally, AirAsia is
constantly updating and adopting technology in order to satisfy the company's aim of reducing
costs to the lowest possible level. The updated AirAsia mission statement is simple and
memorable, making it understandable to the majority of the target demographic. Furthermore, it
explicitly states the aim of the specific task that must be completed in a limited amount of time.
For instance, AirAsia's new mission statement, which states, "To deliver complete premier
services to consumers while offering the cheapest flight cost," has influenced the airline to boost
customer value and provide full premier services, as do its competitors. Increasing customer
value is difficult because it necessitates strategic management activities and strategy.

AirAsia's updated stated mission emphasises the importance of having a productive and
engaged team. This merely means that AirAsia must continue to provide training and educate its
staff in order to ensure that the project schedule is effective and productive. While arranging
team building and implementing appropriate working policies to the AirAsia staff can help to
establish positive connections between employees and top management. This mission statement
aids AirAsia in building a well-structured and flat organisation structure.

3.0 External Analysis

 3.1 Economic Analysis

Firstly, for the customer relationship management, their major priority is the guests. They
have strived to guarantee a fantastic experience when flying with AirAsia since day one, not only
to enable everyone to fly but also to ensure a great experience while flying with AirAsia. They
understand that satisfied customers are repeat customers who also act as the finest advocates.
Apart from promoting AirAsia, the firm is also trustworthy. This is why their customers are
enamoured with their Customer Happiness (CH) Team and have high expectations of them.
Customer-facing Customer Happiness is critical to maintaining high levels of customer
satisfaction. All stars has access to an Empowerment Matrix, which allows them to handle
consumer complaints and problems as they occur. One of numerous benefits of digitising all of
business operations is that they'll have access to a lot of information on their customers. For
example, data from the many digital channels they are using to connect or interact with guests is
put into the Customer Service Management (CSM) platform. CH also uses this information to
focus on Customer-Led Change.

An Insights Team creates reports based on visitor input to tell decision-makers about how
their goods and services are perceived by their customers. They aggressively convey this to each
of their airline CEOs, and they meet on a regular basis to discuss activities that may be
performed to improve their passengers' experience even more. Their client interaction systems
have improved over time, particularly with the addition of a full suite of online contact channels
to supplement in-person communications at their sales offices and airport booths. All new
recruits have been required to complete offline and online Code of Conduct training since 2018.
AirAsia's Workday systems was updated to include the ABAC Policy, which sends notification
to each personal Allstar. 90% of Allstars had indicated that they have been aware and understand
the policy as of February 2021. The goal is to reach out towards the remaining 10% by the first
quarter of 2021. We will also adapt the policy into Bahasa Malaysia, Bahasa Indonesia, Thai,
and Tagalog in 2021 for Allstars Group-wide comprehension.
 3.2 Technology Analysis

AirAsia has transformed from a traditional airline to a digital travel and leisure brand.
This firm has grown their service utilising data from online bookings, first into auxiliary goods,
then adjacency companies, and finally into a totally new core business, AirAsia digital. The
AirAsia super app, Teleport, Santan, BigPay, and BIGLIFE are all included. The shift was made
feasible by investing in the correct technology, which enabled them to construct a solid digital
infrastructure. They are currently building their own digital goods and systems at the AirAsia
Software Engineering & Technology Centre in Bengaluru, India, with the help of partnered tech
heavyweights like as Google, GE, and Oracle. Redbeat Academy, a digital training facility for
Allstars and others, will open in 2020. The goal is to improve their artificial intelligence (AI),
machine learning (ML), data analysis, and cloud infrastructure skills in order to provide better
goods and services to their customers. Along with the transition to digital platforms, AirAsia has
made it a priority to protect their data, as well as that of its guests, Allstars, and third parties.

As a consequence, we created a data governance strategy for the years 2018 to 2021 in
order to provide a solid framework for protecting the confidentiality of all data within its
systems. This includes putting in place data security management mechanisms as well as
monitoring tools to see how successful they are. At the same time, they're raising awareness
among Allstars about the significance of data security and how they can help by changing how
they access and use data. As a technology and lifestyle company, they depend on a lot of vendors
to keep things running smoothly. They believe in treating suppliers fairly and equitably because
of the essential role they play. At the same time, they want their suppliers to follow AirAsia's
lead in terms of ethics. Their supplier selection method includes sending out Requests for
Quotation or Requests for Proposal to a number of vendors and then evaluating them on an equal
footing based on their commercial and contractual responses.

3.3 Environmental Analysis

 As Asia's premier low-cost carrier, AirAsia is dedicated to exceeding customers'
expectations and providing the greatest goods and services while also upholding our
environmental responsibility. They are established a worldwide market-based plan to achieve
carbon neutral growth, in accordance with the airline industry's climate change policy. By
agreeing to CORSIA, designed by the International Civil Aviation Organization, AirAsia took its
first steps forward towards a future of net zero carbon emissions (ICAO). All civil aviation
technicians recorded in countries involved, such as Malaysia, Thailand, Indonesia, and the
Philippines, are required to report verified carbon emissions data on international flights to their
respective civil aviation bodies annually beginning in 2019, in advance of the implementation of
a carbon offsetting regime in 2023. Offsetting was originally planned to begin in 2021. However,
because to the pandemic's devastating impact on the aviation industry, this has been postponed.
Having submitted Emissions Monitoring Plans (EMPs) and the very first verified carbon
emissions reports for 2019 to the relevant civil aviation regulators in Malaysia, Thailand,
Indonesia, and the Philippines to comply with CORSIA obligations. Each AOC's manual was
also created to identify responsible individuals and define data gathering methods and
procedures.

AirAsia created a complete environmental dashboard in early 2020 to allow for effective
control and tracing of pertinent data, including not just carbon emissions from flights, but also
our utility use, printing usage, and recycling activities across all AirAsia offices. Multiple
engagements with relevant departments were made to bridge data gaps, develop uniform data
collecting techniques, and improve data integrity in order to assure data robustness. They hired
an independent third-party certification agency recognised by ICAO to verify our 2019 emissions
data between February and April 2020, after strenuous efforts to move physically collected
emissions data into flight systems that feed data into the environmental dashboard.
 3.4 External Environmental Factor Matrix (EEFM)
External Organizational Factors Weights Rating Weighted Score
Opportunities
Increase in career development due to multi-cultural 0.15 3 0.45
and enjoyable environment.
Increase cooperation with foreign production 0.10 3 0.30
company.
Higher demand from the users because the price is 0.45 4 1.80
cheaper and the quality is better than other company.
Threats
Increase in competitors from times to times. 0.05 4 0.20
Has a low switching cost that will affect the 0.15 3 0.45
customer to explore and move over to a more
attractive substitute
Reduce the trust and interest of the shareholders due 0.10 3 0.75
to the drop of share price.
Total 1.00 3.95

4.0 Internal Analysis

 They implemented strong cost-cutting tactics and tight cash flow management across the
Group as soon as it became clear that Covid-19 would have a significant impact on airlines
around the world. They were negotiated with, and payment deferrals were allowed by, numerous
suppliers and lenders. They also worked with supporting counterparties to restructure a large
amount of their fuel hedges. Asset optimization and the deployment of newer aeroplanes that are
further away from major checks cut maintenance expenses significantly. Their personnel
expenditures were reduced by 38 % of headcount optimization, wage reductions, and natural
attrition. They were also able to reduce user fee charges by saving money on ground handling as
a consequence of new developments, such as contactless operations. Cuts in marketing spend,
renegotiation of ICT expenses, and the deferral of all non-essential expenditures were among the
other operational cost savings. They were also able to reduce user fee charges by saving money
on ground handling as a consequence of new developments, such as contactless operations. Cuts
in marketing spend, renegotiation of ICT expenses, and the deferral of all non-essential
expenditures were among the other operational cost savings. However, extraordinary times need
some extraordinarily difficult judgments. For AirAsia, this meant shutting down AirAsia Japan
and significantly reducing the stake in AirAsia India, which is no longer an affiliate airline.

While these decisions are largely motivated by financial considerations, they also support
a crucial strategic decision to focus our efforts and resources on Asean, where they have had the
most growth and where their brand continues to have the most devoted support. Furthermore,
they want to raise between RM2.0 billion and RM2.5 billion through a combination of debt and
equity financing to safeguard the Group's liquidity. They are glad to report that two banks have
agreed to provide finance for AirAsia via the Malaysian government's Danajamin PRIHATIN
Guarantee Scheme, and we are working to acquire additional agreements from other institutions.

4.1 Internal Organizations Factor Matrix (IOFM)

Internal Organizational Factors Weights Rating Weighted Score

Strengths
Provide most efficient and effective training for the 0.15 4 0.60
development of the employee.
Great number of suppliers and do not depend only 0.20 3 0.60
one supplier
Able to cutting cost for training 0.15 5 0.75
Better strategy planning by having clear vision and 0.10 4 0.40
mission
Proven capabilities by improving its financial 0.05 3 0.15
situation.
Weakness
Weak Marketing 0.10 2 0.20
Lack of financial management 0.10 1 0.10
Poor performance management system in terms of 0.05 3 0.15
performance evaluation
Inconsistent profit and excessive debt 0.05 2 0.10
Principal-agent conflict where investors did not fund 0.05 2 0.10
the company
Total 1.00 3.45

TASK 2
5.0 SWOT Analysis

5.1 Strength and Opportunities (SO) Strategy

i. Efficient and effective training provided for employees able to increase the career
development

AirAsia Berhad enhances preparation and growth for its workers to remain active on a functional
basis under Human Capital. AirAsia Berhad also uses apprenticeship preparation, which helps
workers to pursue professional trades by obtaining guidance and hands-on practise with both the
practical and theoretical facets of the job. When workers face challenges at work, they may use
the knowledge they learned through preparation to overcome them. Employees have a good
chance of increasing or expanding their professional growth by teaching. As a result, the
company's competitiveness will improve as workers are prepared quickly and professionally, as
well as assisting employees in broadening their understanding of their work scope.

ii. Because of good strategy preparation and the ability to improve financial condition,
foreign companies would not hesitate to collaborate.

An organisation with a stronger vision and purpose would be able to plan the strategies more
efficiently. While AirAsia Berhad has experienced a minor loss in recent years, with its share
price falling sharply, it has been shown that the company has been able to boost its financial
situation over time. It reveals that AirAsia Berhad is worried with their financial position, and
that international firms would not be afraid to partner with AirAsia Berhad because of the
structure of their financial results. As a result of the company's sales growth and increased
performance, customers and international companies would be enticed to invest in Focus Point.
5.2 Opportunities and Weaknesses (OW) Strategy

i. Create a more positive working environment for multi-cultural employees and assess
employee success on a regular basis.

A decent working environment is important for a company's operations to run smoothly.

About the fact that Malaysia is a multi-cultural nation, AirAsia Berhad would need to adopt a
multicultural workforce that includes many people from various cultures. As a result, the one-
supper tradition that once ruled the workplace has dissolved. The workplace climate will change
as a result. Furthermore, Focus Point's Human Resource Department must evaluate each
employee on a regular basis to ensure that the employees' output is in accordance with the
company's goals.

ii. Engage a business collaboration with foreign entertainment company to increase the
company’s market.

AirAsia Berhad has bad campaign management; the firm's marketing has deteriorated as
a result of the marketing budget being cut. AirAsia Berhad marketing success will be aided by a
partnership with an international film corporation. Because of the partnership with a foreign film
corporation, the competition will be widened. As a result, AirAsia Berhad entertainment
offerings will appeal to a larger audience and will be more readily recognised. In comparison,
there are other benefits of working together. AirAsia Berhad would see a rise in sales as the
industry gets more diversified. Increased revenue will assist AirAsia Berhad in improving the
present financial situation. Furthermore, if AirAsia Berhad is collaborating with a well-known
overseas film group, it would not waste too much money on ads.

5.3 Weaknesses and Threats (WT) Strategy

 i. Inconsistent profit and excessive debt will reduce the trust and interest of the
shareholders because the drop of share

The share price is one of the challenges that AirAsia Berhad is struggling with. The firm has
been facing financial troubles over the past five years, and the share price has fallen as a result of
the company's sales falling for the past half-decade, suggesting that the company will not be able
to expand in the long run. Then there's the fact that AirAsia Berhad owners are down too much
for the year, which is higher than the economy as a whole. In a declining economy, it's
unavoidable that certain stocks will be oversold. As a result of the decrease in share price, it
could reduce shareholders' confidence and interest in continuing to invest in AirAsia Berhad, as
well as split shareholder and consumer satisfaction as a result of the market transition, which
may affect their trust in the company.

ii. The low switching cost because of lack of financial management will lead to
customer find more attractive substitute

In terms of switching costs, as technology evolves and improves, most shoppers can now
visit whatever shops they choose and all of the most up-to-date designs. As a result, AirAsia
Berhad has limited leverage over the influence of buyers in this area. When the switching cost is
low, it means that the buyer capacity is high. Furthermore, shoppers can be competitive at times,
requiring the latest available offerings at the lowest possible price.

5.4 Strength and Threats (ST) Strategy

 i. Provide shareholder with a value relevant information and make strategic decisions
that can maximize the expected value

It is important for AirAsia Berhad shareholders to receive updated reports with valuable factual
information so that they can plan for the future. Both potential situations that may affect the
estimated benefit must be calculated by AirAsia Berhad. This is due to the fact that as a
shareholder, what they care about is benefit. As a consequence, it is AirAsia Berhad duty to offer
it to them. To do so, AirAsia Berhad may need to strengthen their financial management, and the
increased number of competitions will cause their shareholders to lose confidence in the
business.

5.5 General Electric (GE) Matrix

5.5.1 Industries Attractiveness Score

Weights Rating Weighted Score

Business Size 0.20 3 0.60
Business Growth Rate 0.30 4 1.20
Industry Profitability 0.40 3 1.20
Social Issues 0.10 2 0.20
Total 1.00 3.20

5.5.2 Business Strengths Score

 Weights Rating Weighted Score
Business Size 0.20 2 0.40
Growth Rate 0.15 3 0.45
Business Profit 0.70 2 1.40
Cash Flow of Company 0.05 2 0.10
Total 1.0 2.30
6.0 Corporate and Business Strategy

The first approach suggested to AirAsia Berhad is to create a more positive working
atmosphere for multi-cultural workers and to assess employee output on a daily basis. As we all
know, AirAsia Berhad is about to embark on a new process of restructuring that will involve the
majority of their workforce, implying that only a select few wills be retained. These staff who
stay have a strong chance of having new career openings. As a result, it will inspire and comfort
workers by creating a more positive working atmosphere. The result of creating a successful
working environment could be the birth of multi-cultural employees, which will help not only
the firms but also the employees themselves by allowing them to develop their skills and become
better employers. Multicultural workers are also known as chameleons because of their
adaptability, which helps them to change their actions and attitude based on the circumstance and
context. They're even more inclined to venture outside the box and take risks because they're
able to take on new challenges. This is a useful expertise since AirAsia Berhad is one of the
firms that must meet consumer demands to keep up with new trends. AirAsia Berhad should also
assess their employees' success on a regular basis. This is because it allows them to keep track of
their employees while still providing opportunities for them to develop. It is preferable if Focus
Point implements these remedies by rewarding workers who work well. This will raise their
productivity and motivate them to work harder for the company.

After that, AirAsia Berhad sales declines every year over the past half-decade, implying
that the firm is unable to expand in the long run, which may justify the stock's low price. As we
all know, it has the ability to affect shareholder confidence and interest in continuing to invest in
AirAsia Berhad. It also shattered shareholder and consumer loyalty as a result of the corporate
transition, which jeopardised their interest in the company. As a result, the approach introduced
to AirAsia Berhad is to use advanced technologies to help broaden the company's digital
footprint in the industry. AirAsia Berhad will work with an international corporation to produce
interactive games as a way to re-establish confidence and interest in continuing to invest in them.
This would improve investor trust in AirAsia Berhad while still the sales for the firm. Then, to
solve the problem the AirAsia Berhad is facing, a successful strategy is needed. Focus Point’s
financial results suffered as a result of the decline in advertising sales. Another factor AirAsia
Berhad is losing money is that its investors are no longer willing to put money into the business.
AirAsia Berhad has to locate a decent partner who is able to invest in the company in order to
achieve good financial results. AirAsia Berhad should be able to deliver their best idea to an
investor in order to convince them that the enterprise is worthy of their investment.

Lastly, the AirAsia Berhad should propose a corporate partnership plan with a
multinational film in order to expand the company's market. As a result, AirAsia Berhad will be
able to manage and continue its operations without disrupting other areas of the business. This is
due to the fact that when a corporation collaborates, the demand for the commodity increases.
changing its marketing strategies and internal restructuring, causing a slew of issues, especially
among investors who may lose interest in the company. AirAsia Berhad is changing its business
strategy and restructuring internally, which has resulted in a slew of problems, including
customers losing interest in the group. As a result, in order to solve the issue, AirAsia Berhad
must become more ambitious and imaginative in order to improve Malaysia's airlines company.

7.0 Evaluation and Control

 The AirAsia Berhad organisation will use a variety of strategies to ensure that their
workers pursue a new approach that the company has developed. To continue, employers must
create a new atmosphere for their workforce in order to create a more efficient workplace. When
preparing the new climate, employers should ask their staff to obey certain tactics and, in most
situations, employees would not object to the employer's advice or orders. The other approach is
for AirAsia Berhad to keep up with the current theme or trend in order to keep their clients
interested from time to time. To ensure that the organisation has adopted and completed this
plan, the board of directors (BOD) must ensure that they are aware of the current situation, as
well as the current strategies that are often used by young people, such as Focus Point promising
a discount on all purchases. So, if AirAsia Berhad wishes to draw more customers, they should
open their online website to everyone because, today, everyone prefers to use their smartphone
over their computer to make a booking process.