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Air Asia Berhard - Research Paper Example

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20 March 2012 Management: Paper 1. Air Asia Berhad Air Asia Berhad is a Malaysian based organization that operates local and international flights. In its effort to attract large number of travelers, the company has embarked on provision of services that are cheap as compared to other airline companies in Asia…
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Air Asia Berhard
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"Air Asia Berhard"

Download file to see previous pages This section of the paper seeks to assess how Air Asia would change its business model in its effort to expand its operations in the UK market. One of the major initiatives that the company has emulated in order to improve its profitability is expansion of operations through increasing the number of routes. For example, the company has created connection with various regions within Asia such as Vietnam, Shenzen, Indonesia among others. Even though the company enjoys strong customer loyalty in the domestic market, it has to emulate different strategies in order to penetrate UK market. This is based on the stiff competition and diversified environmental factors that determine the operations of UK airline industry. In the Malaysian market, Air Asia has remained competitive by offering low travelling fares to its customers. However, this is achieved at the expense of its employees who are given lower salaries. Due to the stiff competition in the UK airline industry, Air Asia has to increase its wages and salaries in order to motivate its employees. Otherwise, its employees will search for jobs in UK airline companies that are offering competitive prices. In the same way, Air Asia has low overhead costs. It is fundamental to note that in its effort to attain a significant share in the UK market, the company must emulate expansion strategies that are similar to those of UK companies. This implies that the company will have to increase the fare in order to generate more revenue thus enhancing its ability to carry out its operations in the UK market. In order to effectively penetrate the market, Air Asia will need to establish its own maintenance, repair and overhaul (MRO) facility in UK (Aruan 36). Additionally, the company must establish administration offices in various UK cities. Thus resulting to increased administration costs an aspect that the company is currently trying to avoid. Based on the above discussion, it is clear that Air Asia will have to break a number of its business model to remain competitive in the UK market. However, it is crucial to note that a strategy such as increasing the travelling costs will ultimately affect the loyalty of its customers both locally and internationally. In the same way, increasing employee’s salaries is a strategy that the company will not only initiate in UK but also in all countries it has established operations. Thus resulting to increased costs and reduced profits. This implies that Air Asia entry of the UK market will be difficult. Paper 2. First Solar’s multinational business context and internal resources First Solar is a technology company that is based in Arizona. One of the key aspects that have enhanced the production capacity of the company is experienced and motivated work force. With more than 5,200 associates, the company has been able to raise a significant capital that has made it possible to diversify its product line thus attracting large number of customers especially in the European market. During its establishment, First solar specialized in the production of glass products rather than manufacturing of photovoltaics. Based on the expertise of the company founder Harold McMaster in the glass manufacturing, he diverted his skills to the solar industry. He was also ...Download file to see next pagesRead More
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