1 List Of Key Internal FactorsStrengthWeakness

Topics: Financial ratios, AirAsia, Airline Pages: 6 (836 words) Published: December 2, 2014
1. List of key internal factors
Strength

Weakness
Do not have own maintenance
Have lot of complaint from customer
Limited human resource worker
Limited service resource
Government interference and regulation
New airlines entrant

2. IFE Matrix
AirAsia IFE Matrix
Key Internal Factors
Weight
Rating
Weighted-score
Strength
Fully employed committed
0.18
4
0.72
Service in cabin
0.11
3
0.33
New aircraft
0.05
3
0.15
Using the excellent IT
0.05
3
0.15
Online ticket
0.1
3
0.3
Promotions
0.1
3
0.3
First of low cost airline
0.05
3
0.15
Low cost operation
0.20
4
0.8
Potential for the market penetration
0.04
3
0.12
Weakness
Do not have own maintenance
0.04
2
0.08
Have lot of complaint from customer
0.01
1
0.01
Limited human resource worker
0.01
2
0.02
Limited service resource
0.02
2
0.04
Government interference and regulation
0.01
1
0.01
New airlines entrant
0.03
2
0.06
Total
1

3.24
Table 2.1

3. Financial Ratio
Profitability Ratio
1) Profit Margin

PM = Net Income x 100
Sales
= 184980 x 100 = 6.1%
3004429

2) Return on Asset

ROA = Net Income
Total Asset
= 184980 x 100 = 10.8%
17475291

3) Return On Equity
i. Provide opportunities for company to know the total expenditure based on sales made. (10.8% x 0.168 = 1.8%)

ii. TATO describe the total profit margin of the company of each year for each sale, and the percentage is the rate of assets acquired.

iii. Companies need to know that to find the ROI, the ROE must be known in advance. (1.8% x 3.57 = 6.42)

Net Income x Sales x Assets
Sales Assets Equity

= 326 124 x 3004 429 x 17 856 094
3004 429 17 856 094 5 000 932
= 10.8% x 0.168 x 3.57
= 6.55%

Liquidity Ratio
Current Ratio
CR = CA
CL
= 2934891 = 0.28 times
10 282 907

Long-term solvency/Leverage Ratio

1) Debt to equity Ratio
DER = TD
TE
= 12 781 135 = 2.72
4 694 156

2) Total Asset Turnover Ratio
TATO = Sales
Total Asset
= 3 004 429
17 475 291
= 0.17

4. Comparison of IFE Matrix between other’s group
Based on questions one and two, we will make a comparison key internal factor evaluation matrix with group five. There are eight key internal factors evaluation of strength and there are seven key factors for evaluation of internal weakness. Key internally factor in the strength of our group, there are two in the fourth rating of fully employed and low cost committed operation while the group of five there were three in the fourth rating of low operational cost, low maintenance fees and pilot training costs, customer relationship management (CRM). There is one similarity rating between group 4 and 5 of the low operation cost. Here we can see the Air Asia Airlines have low costs in operations, so, as they provide cheap fares for the rest of the world in accordance with the terms and conditions. In addition, there are seven key internal factors in the rating of a third force, namely service in cabin, new aircraft, using the excellent it, online ticket, promotions, first of low cost airline, and potential for the market penetration. For the group of five, there are five key factors that are internal strength rating, the three is key internal factor is systematic management levels, simple that consistently been proven business model delivers the lowest fares (ticket price), penetrate and stimulate the potential markets, multi-skilled staffs, low maintenance fees and the pilot training costs and excellent utilization of IT. The key internal factors weaknesses for group four, there are six of key internal weakness is do not have own maintenance, have lots of complaint from a customer, limited human resources worker,...
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