Case Study Report: Air Asia

Case Study Report: Air Asia

In the current situation, globally almost everyone is suffering from the Global Financial Crisis. Globally it is accepted that, this is not the best time to involve in any business. On the other hand, budget airline; Air Asia Malaysia’s second largest National carrier proves that, this is the best time, with the success and expansion through the financial crisis (Ng, 2011). Air Asia is buying more aircrafts, expanding destination and routes. Many wonder, how does Air Asia succeed in this crisis situation? Some of the factors that contributed to the success of Air Asia are, Management Structure and Decision Making, Foreign Exchange Risk Management, Market Research and Product Promotion and Corporate Social Responsibility.

Management Structure and Decision Making Process

Management or Organization structure plays an important role in daily operation of an organization. The designation of power, work specialization, and employee reporting structure are some of the elements that help determine what organizational structure should be. An efficient structure will facilitate decision-making process or scope of managers will have during the operation (Prosci, 2011). Air Asia likewise, has clearly defined and laid out management structure as shown in figure 1. From the structure it is very clear that, Tony Fernades the CEO of AirAsia, works closely with his hands on to all the other departments. AirAsia mainly focused on building Culture of teamwork, equality and constant communication. In the headquarters of AirAsia in Kuala Lumpur, the employees have a open space structure in order to emphasize on the fact that everyone is equal, even the CEO, Tony Fernandes does not have his own office. AirAsia hired employees regardless of the race and gender (Howell, 2009). This approach has clearly contributed towards the success of the organizational