How the Executive Management Team at Air Asia Ensures Continued Growth - Assignment Example

Business Integration Student Name: Tutor’s Name: Course: College Name: Business integration Introduction The two selected cases to focus on are; how corporate values are associated with strategy implementation and business conduct and how the executive management team at Air Asia ensures continued growth and sound financial performance. How corporate values are associated with strategy implementation and business conduct Corporate values and business conduct are based on values and philosophy that guide a company’s daily routines. It provides a means to combine guidelines, policies, principles of conduct and best practices for the benefit of the organization. The airline industry has grown significantly, and the business environment is becoming complex and competitive rapidly. It is therefore, necessary to integrate corporate values with business conduct and strategy implementation if desired goals are to be realized. How the executive management team at Air Asia ensures continued growth and sound financial performance The management of any organization should have the aim of ensuring continued growth as well as sound financial performance. This is often ensured through improvements and aiming to provide up to the standard products and services (Oliver, J 2009, pp. 558-560). The same for Air Asia as they have ensured this through the provision of quality services that are dependable. What the two cases seek to provide is an advanced look at Air Asia. A detailed analysis of their operations will be provided as well as how their quality services have enabled it achieve a competitive edge from its competitors. The essay will provide analysis of ways in which the industry achieves its financial soundness and how integration can be useful. Responsible airlines will monitor, measure and report impacts and risks that come with unethical behavior and failure to provide quality services (Welford, 2010, p. 2). The airline industry in Asia has undergone fundamental changes driven by stronger competition, market liberalization and changing business models. How learning and knowledge management will assist Air Asia achieve a sustainable future The connection between knowledge management and learning is not understood because these two fields have been kept separate from the firm’s point of view. Knowledge is like fuel that provides energy for wealth creation, corporate innovation and workforce productivity (Noordin, Othman & Zakaria, 2013, p. 223). AirAsia has an aim to establish itself as the leading airline in the market by putting value on its customers. This is done through cost advantages created by operational efficiency and effectiveness. Most of the customers are now able to fly because of the low charges, which has been able to capture certain segments of customers that could not afford to fly in the previous years (Noordin, Othman & Zakaria, 2013, p. 226). Growth in the airline industry often stems from low-cost travel and quality services (Abdullah & Jasmine, 2009, p. 750). Another is the growing norm of open-skies agreements, which are seen as a means to power long-term growth. The management should however take caution if they want to reach its full potential. They should recognize that the market needs to boost attempts in dealing with challenges (Welford, 2010, p. 2). A thorough research should be done to understand the impact of internal and external carriers. Most airlines in Saudi Arabia are facing the challenges of aging work force. AirAsia is not left out in this challenge. The awareness is increasing and is bound to cause problems due to knowledge loss and widening skills gap (Shirazi, Mortazavi & Azad, 2011, p. 170). This is however, not complemented by the knowledge that management methods and concepts may be of help in the mitigation of negative impacts on the organization of such things (Zawawi, Akpolat & Bagia, p. 3). Knowledge management and learning is often confused with information management in organizations. This is mainly the result of inadequate understanding of knowledge management concepts. Knowledge management is important for the airline industry. There are several benefits associated with knowledge management. The benefits include reduction of the learning curve especially for the new recruits or graduates to be fully functional as aircraft engineers (Mathew, Nair & Rodrigues, 2012, p. 30). Another benefit is elimination or reduction of silo behavior when handling expert knowledge. There will be reduction of maintenance downtimes. This will be ensured through knowledge sharing (Zawawi, Akpolat & Bagia, p. 4). The initiative will see engineers have a broader knowledge base to enable them perform their tasks. This will result in the reduction of time needed to accomplish a task (Lo & Chin, 2009, pp. 451-456). Learning and knowledge management enables the management team become aware of the standards of conduct required of all processes, resources and employees. This is especially so because of the broad knowledge base available. This assists in the resolution of concerns and questions about business ethics. A periodic discussion should be conducted where business conduct issues and ethics will be discussed. The discussions will enable information of employees about the legal and standard requirements. The work environment should be open which encourages honest and open communication regarding business conduct issues and concerns as well as ethics (Lo & Chin, 2009, p. 457). The values of the organization will only be fostered if employees are in their best behavior. Conflicts of interests are common in every organization. Knowledge management will enable the elimination of such issues. This is because the work force will be working in unison with the aid of knowledge sharing. The airline is not an exception since it consists of employees from different walks of life. The management team must be able to devise a procedure that will enable employees identify potential areas of conflict (Lehner & Haas, 2010, p. 82). Company values should always be at the top of the list for all individuals. It is for this reason that company resources should be utilized appropriately. Company resources include information, time, equipment and materials, which are provided for the purpose of conducting business operations. An occasional use of company resources may be allowed as long as they do not affect the interests and values of the company (Lehner & Haas, p. 849). Employees should be trusted to use their good judgment and behave responsibly to conserve company resources. The airline industry is an industry that is highly regulated. It follows guidelines for data reporting and recording for any maintenance accident, incident and action. This is to ensure the worthiness of aircrafts and for efficient monitoring of outcome quality (Zawawi, Akpolat & Bagia, p. 4). Knowledge is managed to keep records and also store documentations for aircraft engineering. Knowledge hoarding has been the biggest barriers to the successful efforts to learning and knowledge management. What AirAsia should do is reward as well as recognizes knowledge sharing behavior. This should be their major concern. This should be done in combination of tactics that include communications, learning or education, performance management that are being used to combat the problem of hoarding knowledge (Jennex, 2008). Learning is the process where organizations are enabled to adapt to change and move ahead by acquiring new skills, knowledge and behaviors. By so doing, they are transformed. Learning in the airline industry should be continuous. Knowledge should be shared and the company culture should support learning (Noordin, Othman & Zakaria, 2013, p. 226). Each company has unique values as well as ethical business characters. The values are often laid down by the management and are meant for the work force to learn and articulate them into their practice. The character guides what the members do, say or think in a quiet manner. It influences the way external stakeholders view the company. Responsible business conduct, which includes compliance, ethics and social responsibility, is essential for the identity of a company. It influences the way the community views the company as well as how the company sees itself. How the firm deals with the issue may be an essential aspect of defining the identity of the company. Association of corporate values with business conduct provides an important core of the competitive strategy (Ryapolov, 2011, p. 340). Employees should ensure that the services they provide comply with legal and ethical policies and procedures (Boeing, 2012, p. 22). In an organization with diverse employees, conflict of interest is bound to occur. Proper learning and utilization of knowledge can help an organization like AirAsia to make decisions faster as well as closer to the point of action. The industry will be able to overcome external and internal barriers. The initiative will also provide more opportunities to innovate and also enhance customer relationships (Lo & Chin, 2009, p. 85). The focus on innovation and customer knowledge are the areas that will lead to breakthroughs and future growth of the firm. Sharing knowledge with customers, suppliers as well as potential customers is essential for the industry. The result will be loyalty from customers and other important stakeholders. This will in turn enable the firm to obtain a competitive advantage over its competitors. The marketplace is very volatile and there are continuous changes. The rules guiding competition, customer relations as well as employment relationships are changing daily. AirAsia should therefore operate as an adaptive system and also anticipate change under the new set of market conditions (Jennex, 2008). Competitive pressure is present and should be dealt with in a careful way. Vigilance should be exercised while still providing the best customer value. Innovation should also be sustained in a pace that encourages success. Maintaining a good relationship with external auditors is essential. This is because the company needs to get financial audits and statements so that they can gauge if they are using their resources in a proper manner. Updates provided will highlight areas that need attention so that any challenges can be dealt with way before they occur (Jennex, 2008). Investing in the latest technology will see the advancement of the industry. Fuel efficiency and reduction of harmful emissions will be ensured. Adoption and effectiveness of knowledge management is the growing experience as well as better understanding of the ideas underpinning organizational learning. Employee participation has been utilized for years but now new knowledge management methods and tools have given firms a new way to further incorporate older organizational learning principles (Oliver, 2009, p. 550). The airline needs to create a workplace where knowledge is shared. It needs to create an environment where the workforce is encouraged to learn and take action as per the lessons learnt. This is one of the surest ways to ensure competition in a market-driven economy (Said & Bretones, 2009, pp. 12-15). A knowledge-sharing environment creates more opportunities and can make retention of the human resource less problematic. Best practices are essential since the company is in the best position to capitalize on their growth. With their simple distribution systems, low cost structure, strong brand and renowned customer service and comprehensive route network, the best value proposition in air travel is offered. Conclusion The aim of every organization is to use the worker’s knowledge productively, to provide greater individual identification with goals and to involve the workforce in decisions affecting their jobs. By attempting to manage the workforce in different styles, organizations seek to make their firms significantly more competitive, more adaptable and more productive. It has been noted that knowledge management is immature in the airline industry. Knowledge management is essential for AirAsia as the issue will boost the corporation into a better and sustainable future. Continued learning will also boost the knowledge base and skills of the work force. Business integration is essential for any business especially if technology is involved. Corporate values are the responsibility of the entire airline community. The company recognizes that it plays a critical role in the many diverse areas it is established. This means that it should take the role seriously. Both cases discussed aim at providing an insight into the topic. The management team should take seriously the highlights provided so that they can sustain their growth. Success can only be achieved if the management is aware of the current issues in the market. The association of corporate values with strategy implementation and business conduct enables the tackling of operations according to the accepted standards. Both cases highlight main issues that if the industry in question takes into consideration, will achieve a competitive advantage over its competitors. Bibliography Abdullah, HS & Jasmine, A 2009, "The Fit Between Organizational Structure, Management Orientation, Knowledge Orientation, and the Values of ISO 9000 standard: A Conceptual Analysis", International Journal of Quality & Reliability Management, 26, 8, pp. 744-760, Academic Search Complete Baroto, MB, Bin Abdullah, MM & Wan, LH 2012, Hybrid Strategy: A new strategy for competitive advantage. 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