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Topics: AirAsia, Organizational structure, Low-cost carrier Pages: 8 (911 words) Published: October 2, 2014


AirAsia originally was founded by government and on 2 December 2001 was bought by Tony Fernandes. AirAsia was established in year 1993. AirAsia has travel around the earth and ascend to become the world’s best in year 2001. AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries. There are some companies which link with AirAsia such as AirAsia X, Thai AirAsia, Philippines’ AirAsia Inc., AirAsia Japan and Indonesia.

In addition, for the vision part in AirAsia, AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. While for the mission of AirAsia, AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family. Besides, AirAsia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. Lastly, create a globally recognized ASEAN brand will be the mission part of AirAsia.

SWOT analysis will be a tool to identify strength, weakness, opportunities and threat of an organizational. This can be internal and external. (Investopedia,n.d.) For the strength part, AirAsia has maintained the low operational and maintenance cost by changing the type of Airbus from Boeing 737 to A 320. Besides, AirAsia having the low operating cost due to the online reservation system, no frill, quick checked in and etc. There is huge untapped market in district, especially for business travelers and segment of “for-the-first-time-flying”. And the last benefit of AirAsia will be the low cost airline.

Planning

Mission
AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family

Vision
AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares

Objective

Organizing

Strategic implementation is the activity which performed according to the plan in order to achieve an overall goal.

Organization structure

Organizational structure cares with the division of labor and coordination of task. There are few types of organizational structure in term of how well the structures satisfy the trade between specialization and coordination.

The simple or entrepreneurial structure exists when the owner is also the manager. The organizational structure major strengths will be vision and flexibility. And, the increasing specialization functional needs to bring in by manager. For the functional structure, jobs or tasks are group together according to functional specialization. This structure can promote through division of labor and allow individuals to exploit inimitable abilities. But, the one disadvantage will be each department focus more on own department more than organizational goal. While the division, this structure focuses on the decision making and can be organize according the products and services market or geographical areas. The advantage of division structure will be higher level of motivation and innovation while the disadvantages will be resource allocation based on short-term contribution. For the matrix structure, matrix structures helps in increasing the organizational flexibility and meet the needs of environment changing rapidly. This can aim for the benefits increasing of functional specialism while improving the coordination functions. And the last will be network structure. In this structure involves formation of outsourced activities confine by central hub and this structure useful for the unpredictable environment such as fashion industry. The...
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