Topics: Strategic management, Low-cost carrier, AirAsia Pages: 15 (4937 words) Published: April 20, 2014



This report is about new management accounting techniques that AirAsia can apply in their organisation to enable them to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). In this report, it’s also stated types of new management accounting technique and the important of these techniques. Besides, this report also explain in detailed about balanced scorecard for example, the definition, person that responsible in introduce this techniques and how this technique can be apply in the organisation and help the organisation to improve their service. There is also a brief description of the background of the AirAsia to explain the main activities carried out by this company. The competitive environment analysis for AirAsia Berhad is thoroughly scrutinised to examine the driving determinants that attributed to the organisation’s competitive advantage in the industry. Further analysis using the Ansoff Matrix, lends evidence to the successful growth of the organization. The study concludes by adopting the balance scorecard framework to evaluate the organization from four pertinent perspectives of an organization which includes financial performance, customer knowledge, internal business process and learning and growth. LITERATURE REVIEW

Worldwide competitive pressures, deregulation, growth in the service industry and advances in information and manufacturing have changed the nature of our economy and caused many manufacturing and service industries to dramatically change the way in which they operates. These changes, in turn have prompted the development of innovative and new management accounting techniques practices. New management techniques consist of Target Costing, Benchmarking, Activity Based Costing (ABC), Strategic Management Accounting, Strategic Management Costing, Benchmarking and others. For example, ABC system have been developed and implemented in many organizations. Balanced scorecard is also one of the new management accounting technique. Balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and non profit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals ( BalancedScorecard/tabid/55/Default.aspx). According to Investopedia, balanced scorecard is a performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes. The balanced scorecard attempts to measure and provide feedback to organizations in order to assist in implementing strategies and objectives. Based on Wikipedia, balanced scorecard (BSC) is a strategy performance management tool, a semi-standard structured report, supported by design methods and automation tools that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. Balanced scorecard was introduced by Drs. Robert Kaplan (Harvard Business School) and David Norton to provide a clear prescription as to what companies should measure to 'balance' the financial perspective. It is a management system that is not only a measurement system but enables organizations to clarify their vision and strategy and translate them into action. Balanced scorecard provides feedback on both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard is a strategic planning changed from an academic exercise into the nerve center of the company (https://balancedscorecard. org/Resources/AbouttheBalancedScorecard/tabid/55/Default.aspx). In balanced scorecard, its focus on the organization view from...

References: i.
vii. AirAsia, Annual Report 2012
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