Assignment f1

Name :Nur Azlinda binti Mohamed Ibrahim

Id number:16085482
To: Mr Bill

Context
1. Introduction
Definision of organisation and stakeholder
2. Background
Type of Business organization
Sevice , market and customer
Mission, culture, philosophy, values
Outline of organization structure
3. Exiting social collaborating tools
The current tool that being used
The weakness of the tools
4. Recommendation and solution
Justification and rationale
Benefits the recommendations and solutions
Proposed implemented strategics
5. Reference
6. Appendices

INTRODUCTION
AirAsia is one of the main airline in Malaysia. AirAsia is the low-cost airline that based
near Kuala Lumpur, Malaysia. AirAsia is registered at office Petaling Jaya but its main

office is at Kuala Lumpur International Airport (KLIA). In 2007, AirAsia was described as
a pioneer of low-cost in travel in Asia by Joshua Kurlantzick of The New York Times.
AirAsia is also sponsor a lot kind of team such as Malaysian nasional football team,
Singapore nasional football team and Queens park ranger. Airasia is also a former
sponsored to Manchester United and Asia Red Tour. Now AirAsia sponsor to KBS
Korean Drama.
AirAsia was established in 1993 and its founded by a government. On 2 December, the
airlines was bought by former Time Warner executives Tony Fernandes with only the
sum of one ringgit (USD 0.26 at the time).When Tony Fernandes bought the airline, it
was heavily-indebted, the debt worth about 40 million ringgit (USD 11 million). In 2002,
Fernandes turn the company around, the airlines producing a profit. Airlines first hub
was placed at Kuala Lumour and launching a new routes with a promotional fares as
low as RM 1 (USD 0.27). In 2003, AirAsia opened its second hub near Singapore that is
in Johor Bahru.
After that, AirAsia started to iffiliate and began to fights to many places such as
Thailand, Singapore, Macau and others. Malaysia Airliness Rural Air Service roads in
Sabah and Sarawak has been taken by AirAsia in August 2006. After a year, this roads
were returned to MASwings because of citing commercial reasons. At the end,
Fernandes plan to further AirAsias presence in Asia. AirAsia started to adding a lot of
new routes and because of this, AirAsia passengers increased in 2007.
AirAsia faced a problem in 2007, passengers from The Barrier-Free Environment and
Accessible Transport Group" protested against the airlines because the airlines did not
gives the immobile passengers to fly. They claimed discriminad against the airlines
when the people are booking through online tickets, was a wheelchair-passengers.

AirAsia has announced 106 new routes is to be added in the old routes. AirAsia and
Malaysia Airline has formed an alliance through share swap. This alliance has been
stuck down by Malaysia government because of disrupt the concept of both airlines. In
the early of 2013, AirAsia profit increased by year-over-year compared to the same

period 2012. The airlines net profit stood at 350.65 million ringgit (USD114.08 Million) in
the ending of December 2012.

Definision
1.Organisation

AirAsia is made up of individuals (employees) that is structure and arrange together to

meet their own goals that is to attain the lowest cost to the passenger so that everybody
can fly. AirAsia has its own system to control the performance of its objectives that is to
maintain the highest quality product and to gives a best products and services to their
passengers. All organization

have a management structure

that determines

relationships between the different activities and the members same goes to AirAsia.
Fernandes needs to combine their all airlines hub to get full support from the
management and the employee. So that AirAsia will be able to overcome the limitations
of working alone, to make their airlines achieve their goals more efficiently and
effectively. AirAsia are follow the principle of specialization which mean the employee
are working under a department that they love to work such as marketing department,
finance department and producting department. Each department have a different
responsible and activities. It will be easy to train a new employees when they in a
department that they love to do. Because of this, synergy occurs when the strength of
the employee are maximized, and the weaknesses are irrelevant in the airlines so that
they can performed faster and became more skillful person as they gain more
experienced in their work. They also can make a decision with quickly whenever face a
problem with more efficient. So it can reduces the cost and management problems.

2.Stakeholder

AirAsia organization is an open system. Stakeholder are a person, group or

organization that are interested or concern about an organization. Stakeholder can
affected an organization activities or affects the way an organization operates. Since
AirAsia stellar a good performance in 2001 has bought a value for the stakeholders
because they received a positive return from the Aiasia. AirAsia stakeholders can be
divide into three, that is capital market stakeholder (connected stakeholder), product
market stakeholder (external stakeholder) and organization stakeholder (internal
stakeholder). Example of capital market of stakeholder is shareholders and major
suppliers of capital like banks while customer, government, suppliers and host
communities are the product market stakeholders and managers and employee is the
organization stakeholders. Every stakeholders have their own interest. AirAsia has a
strong support from the banks since November 2004. Without compromising with the
quality and services, AirAsia also satisfies its customers by offering low fares. Becase
of this, its helps to attract a new customers as well as retain the existing ones. In order
to understand the host communities, the Airasias key staff travel regularly to their house
and they also are ensure to all specific needs to their customer. Not all stakeholders are
equal, different stakeholders influenced organization differenty (Mendelows Stakeholder
Mapping Matrix). CEO and the department managers are the key players that should
be treated with highest importance because they has a very interested in the airlines
and also have the power to change the decision of the organizations. Auditors are a
person who may have high power but may not have a interested in the running of
airlines, this group of stakeholders is called kept satisfied. Consultant and pilot are the
stakeholder should be kept informed. They have high interested in the welfare in the
organization but have little power in the organization and the last stakeholders are
minimal effort (customer and government). They should be treated with low
importance because they may not have any interested in the organization and also dont
have any power to change the decision of the airlines.

BACKGROUND

1. TYPE OF BUSINESS ORGANIZATION

There are five different type of business organization and they exist for a different
reasons, commercial, not-for-profit, public sector, non-govermental organization,
cooperative and mutual organization. AirAsia is a commercial organization. There
are two type of commercial organization that is limited and unlimited organization.
Limited organisation is created from the phrase limited liability. In a limited
companies the shareholder is the owns of the company while the managers was the
one who authorized by the shareholders to manage and run the operations of the
company. The type of limited companies depends on the number of shareholders,
transferability of shares, directors as shareholders and the source of capital. There
are two type of limited company, one is private limited company and other is public
limited company. So, AirAsia is a public limited companies that providing air
transport services. It is similar to the private limited company but the main different is
that the ownership is open to the public. Airasia is listed on the stocks exchange in
Bursa Malaysia. The main aim for this company is to maximize the wealth of the
shareholders. AirAsia was the first successful low-cost airlines. It also is the second
national airlines.

2.
i. PRODUCT/ SERVICES
AirAsia provides a lot of services to their customer. Fisrtly, Airasia gives a service on the
board, they offers snack attacks on the board, where the passengers can purchase
food and drinks in the board. AirAsia does not sell alcohol and pork on the regional
AirAsia groups flights but on AirAsia X flights, they sell all. This is because, pork and

alcohol are forbidden in Islamic. Other than that, AirAsia also started their own frequentflyer program. Under this programme it will issue loyalty points to the AirAsia customer,
they also can redeemed AirAsia flights. AirAsia also have their guide travels. It is more
cheaper and acceptable.

ii. MARKET
AirAsia is the lowest carrier with the widest route connectivity in the Asia. AirAsia
recognized as the lowest fare, quality services and with unmistakable tangeline that is
NOW EVERYBODY CAN FLY. AirAsia follow five fundamental values that is, safety,
valuing our people, customer focused, integrity and excellence in performance.

iii.CUSTOMER
AirAsia has recognized customer as their assets for efficient and effective customer
relationship management (CRM). So, what is the CRM and why AirAsia used this
concept? CRM is putting customer at the heart of the business. So, AirAsia establishing
and strengtening the long term relationships with customer. Tony Fernandes also said
that a great customer services is ensuring that the customer can comunicated with you
is the most important things. Its one of the key to success. AirAsia also identified their
high value customer, and provide loyalty program to serve them better.

3. MISSION
AirAsia have a lot of mission to achieved. First of all, AirAsia want to be the best
company to work for the employees while the employee are also treated as part of a
big family. Its also want to create a globally recognized ASEAN brand and also want
to attain the lowest cost airlines so that everyone can fly with AirAsia. AirAsia is also
want to maintain the highest quality product, embracing technology to reduce cost
and enhance service levels

In December 2001, Tune Air Sdn Bhd is the highest shareholdings (19.09%) in
the AirAsia. The company has also acquired a 99.25 per-cent of equity in AirAsia.
Now, Tune Air Sdn Bhd is the holding company, while AirAsia remains as the
operating company.

Read more: http://www.businessdictionary.com/definition/organization.html

http://www.airasia.com/la/en/about-us/corporate-profile.page
https://prezi.com/yxxvlg2ysppp/air-asia-s-organizational-structure/
https://www.coursehero.com/file/p3q6jj/Stakeholder-Management-AirAsias-

stakeholders-can-be-divided-into-capital-market/
http://www.answers.com/Q/What_is_the_stakeholder_of_air_Asia?#slide=2
https://www.ukessays.com/essays/management/description-of-key-stakeholders-

management-essay.php
http://www.slideshare.net/partha89mahanta/air-asia-case-study-on-growth-

diversification-and-low-cost-strtegy
http://www.airasia.com/my/en/about-us/corporate-profile.page#AirAsiaGroup
http://www.studymode.com/subjects/air-asia-products-and-services-offered-

page1.html
http://www.codewit.com/articles/cgn/Understanding%20Marketing%20Mix%20in
%20Air%20Asia%20Airline%20Bhd%20by%20Onwutalobi%20Anthony-

Claret.pdf
http://in.reuters.com/finance/stocks/companyProfile?symbol=AIRA.KL
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http://www.airasia.com/my/en/about-us/ir-major-share-holders.page
http://www.thestar.com.my/business/business-news/2016/04/01/share-

placement-on-the-cards-for-airasia/
https://en.wikipedia.org/wiki/AirAsia
http://www.bursamalaysia.com/market/listed-companies/company-

announcements/#/?category=all
http://www.airasia.com/my/en/about-us/our-offerings.page
https://www.scribd.com/doc/25333038/CRM-AirAsia
http://www.airasia.com/kh/en/about-us/airasia-mission-vision-values.page