Question

What is the internal environment (Finance) facing by Air Asia? Please explain in more detail in at least 3 areas.

Answer 1

Internal environment:

Internal environment is defined as a component of the business environment, which is composed of various elements present inside the organization that can affect or can be affected with, the choices, activities and decisions of the organization.

Internal environments facing by Air Asia:

Like in any other airline, Air Asia has its own unique technology environment. Initially, Air Asia used Boeing 737-300 aircraft flight operations. But since 2005, they started to change for the Airbus A320 aircraft, which is more spacious, fuel-efficient. Airlines in Asia, mainly through the online booking system approach. They introduced online booking method, because it is more cost and convenience. By the way, they still practice the traditional way of booking tickets.

Air seems very consistent economic environment in Asia each year. Asian Airlines was established in 1993 and started operations in 1996. Air Asia is a low-cost airline company that offering cheap rate on its tickets are available in the region more attractive. Air Asia has been used to manufacture low-cost airline, has a huge population base and the most intensive component, understanding the emergence of regional airports, some of upward mobility in the tendency of population growth, tourism and Internet usage is relatively high. . Air Asia, Malaysia’s budget carrier, has sold USD260 26 at three per cent share of foreign investors in the United States, as it prepares to meet the competition in Southeast Asia. With the economic downturn, more people will want to enjoy, rather than expensive full-service flights cheap tickets.

Air Asia on the social environment is so diverse. Aviation in Asia and their employees are mostly Malaysians. Because of this, we can understand that their employees are from different races and religions here. Air Asia staff will still be able to work together, without any discrimination. Company as a low-cost airline, Air Asia staff than the other relatively long, full-service airlines such as Malaysia Airlines. This is because the company wanted to maximize the productivity of their employees and aircraft in order to generate profits, and cheap flights available to customers. For customers, their customers are mostly the one who is like the cheap flights. We can say that Asian air passenger revenues came from all levels of customers. Their primary priority is a cheap ticket, rather than any service throughout the flight.

The competitive environment for the Asian Aerospace is so intense. There are many competitors in the airline business environment in Asia exist. To overcome these competitors, they choose the cheapest tickets available to the passengers. The Asian aviation Implemented the strategy of low prices seems to be the reason for the success of Air Asia to overcome their competitors.

Internal environments (Finance) facing by Air Asia:

INTERNAL ANALYSIS :

* INTERNAL ANALYSIS (7 S):

Internal analysis framework will be utilized to analyse Air Asia’s internal environment. By using this framework, companies can easily understand their current situation and strategies so that they can improve company performance.

*Shared values:

The most common shared value of Air Asia is to become the largest low cost airline in Asia by continually insisting on the development of the low-cost carrier model. Air Asia always tries to attain the lowest cost so that a majority of people can afford to fly through its planes and hubs. Although Air Asia expanded its business to many countries, the shared values of Air Asia as a Low-Cost Carrier never change. Value consistency…show more content…

These points can then be converted into free Air Asia Flights. Air Asia’s members can also enjoy priority booking, other special offers and discounts as well.

* Structure:

The structure of Air Asia is very much flexible and flat in order to make the business environment more open and creative. Senior managers communicate with middle managers and employees via the Internet and employees can share information with other same or different level employees via the internet as well. The company collects ideas and thoughts on how to save money from every member in the company thanks to the horizontal structure, and this helps achieve the cost-savings business model. Air Asia has three main business structures, which are subsidiaries, associates and jointly controlled entities.

* Skills & Staff:

Air Asia always provides efficient training to employees to make sure their skills are well developed for the required jobs and tasks. What’s more, employees are encouraged to get different roles with a flexible work schedule. This approach maintains employee satisfaction, loyalty and retention while involving every individual in the main cost-reduction strategy.

* Summary:

In conclusion, it is clear that air Asia adopted a different business environment than other airlines that is why they still maintain their own sales, even if a strong opponents exists. This shows a good business environment, leading to the success of an organization. This is because each enterprise has its own four-owned business environment, they are the economic environment, technological environment, competition and social environment, to challenge the competitors and their business success. As suggested, for example, the economic environment, they must have to access to the customer’s personal and business needs; the technical environment, encouraging them to build a good website and online customer service, enabling customers to access any information on the organization vulnerable to its competitive environment, they must show their customers what is good, better and best, and for society, they must improve their work, safety and quality. These are the proposals to establish a good business environment.