Sunday, 2 March 2014

THE NINETEENTH CHAPTHER



Yeayyy finally we it is a new chapter !!! wohooooooooo :O so the ending chapter for our MGT300 is OUTSOURCING IN THE 21 CENTURY. Iam so happy and excited to share about our last chapter !


OUTSOURCING PROJECTS

Insourcing  (in-house-development) – a common approach using the profesional expertise within a organization to develop and maintain the organization’s information technology systems.
Outsourcing  - an arrangement by which one organization provides a services or services for another organization that choose not to perform them in-house
Onshore outsourcing – engaging another company within the same country for serices.
Nearshore outsourcing – contracting an outsourcing arrangement with a company in a nearby country
Offshore outsourcing – using organizations from developing countries to write code and develop systems

Factor driving outsourcing growth include :
  •  Core competencies
  •  Financial savings
  • Rapid growth
  • Industry changes
  • The internet
  • Globalization

Outsourcing benefits :
  •  Increased quality and efficiency
  •   Reduced operating expenses
  • Outsourcing non-core processes
  • Access to advanced technologies
  • Increased flexibility

Outsourcing challenges include :
  •  Contact length

- Difficulties in getting out of a contract
- Problems in foreseeing future needs
-Problems in reforming an internal IT department after the contract is finished
  • Competitive edge
  • Confidentiality
  • Scope definition

Thank you for reading my blog . Btw my final is just around the corner wish me luck !! and thank you again for visit my blog :D


THE FIFTEENTH CHAPTER


So for our next chapter the topic is about CREATING COLLABORATIVE PARTNERSHIPS.

TEAMS , PARTNERSHIPS AND ALLIANCES

Organizations create and use teams, partnerships and alliances to :
  • Undertake new initiatives
  • Address both minor and major problems
  • Capitalize on significant opportunities

Collaboration systems : supports the work of teams by facilitating the sharing and flow of information




  • Organization form alliances and partnerships with other organizations based on their core competency

Core competency : an organization’s key strength a business function that it does better than any of its competitors
Core competency strategy : organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes.

Information technology can make a business partnership easier to establish and manage
Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer.

COLLABORATION SYSTEMS

An  IT based set of tools that supports the work of teams by facilitating the sharing and flow of information.

2 categories of collaboration :

·         Unstructured collaboration (information collaboration) : includes documents exchange, shared whiteboards, discussion forums and email.
·         Structured collaboration ( process collaboration) : involves shared participation in business processes such a workflow in which knowledge is hardcoded as rules.

Collaboration systems include :
  •  Knowledge management systems
  • Content management systems
  • Workflow management systems
  • Groupware systems

KNOWLEDGE MANAGEMENT SYSTMES

Knowledge management (KM) - Involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions
Knowledge management systems – supports the capturing and use of an organization’s “know-how”

EXPLICIT AND TACIT KNOWLEDGE

Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the of IT.
Tacit knowledge – knowledge contained in people’s heads.

Two best practices for transferring or recreating tacit knowledge :

Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work.
Joint problem solving – a notice and expert work together on a project

KNOWLEDGE MANAGEMENT AND SOCIAL NETWORKING

Social networking analysis (SNA) – a process of mapping a group’s contacts (whether personel or profesional) to identify who knows whom and who works with whom.
SNA provides a clear picture of how employees and divisions works together and can help identify key experts.

CONTENT MANAGEMENT

Provides tools to manage the creation, storage, editing and publication of information in a collaboration environment.

CMS marketplace includes :
·         Document management systems (DMS)
·         Digital asset management systems (DAM)
·         Web content management systems (WCM)

WORKING WIKIS

Wikis – web based tools that make it easy for users to add, remove, and change online content
Business wikis – collaborative web pages that allows users to edit documents, share ideas or monitor the status of a project.

WORKFLOW MANAGEMENT SYSTEMS

Workflow – defines all the steps or business rules, from beginning to end required for a business process
Workflow management system – facilitates the automation and management of business processes and controls the movement of work trough the business process
Messaging -based workflow systems – sends work assignments through an e-mail system
Database-based workflow systems – stores documents in central location and automatically asks the team members to access the document when it is their turn to edit the document.

GROUPWARE SYSTEMS

  • Software that supports team interaction and dynamics including calendaring, scheduling and videoconferencing.

Videoconference – a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously.
Web conferencing – blends audio, video, and documents sharing technologies to create virtual meeting rooms where people “gather” at a password protected web site.
Instant messaging – type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the internet.

THE FOURTEENTH CHAPTER




Hello you guys ! whatchu' doing ? So today I would like to share with all of you another new topic which is E-BUSINESS. 

E – BUSINESS

The internet is a powerful channel that present new opportunities for an organization to :
·         Touch customers
·         Enrich products and services with information
·         Reduce costs
E – commerce : the buying and selling of goods and services over thw internet.
E – business : the conducting of business on the internet including, not only buying and selling but also serving customers and collaborating with business partners.

E – BUSINESS MODELS

An approach to conducting electronic business on the internet.

Business – to – business (B2B)
  • applies to business buying from and selling to each other over the internet.

Electronic marketplace (e – marketplace) : interactive business communities providing a central market where multiple buyer and sellers can engage in e-business activities

Business – to – customer (B2C)
  • applies to any business that sells its products or services to customers over the internet.

Common B2C e-business models include :

e-shop : a version of a retail store where customers can shop at any hour of the day without leaving their home of office.
e-mail : consists of a number of e-shop, it serves as a gateway through which a visitor can access other e-shops

Business type :
  •  Brick-and-mortar business
  •   Pure play business
  •  Click-and-mortar business


Customer – to – business (C2B)  
  • applies to any customer that sells a product or services to a business over the internet. The example of C2B is priceline.com
  • the demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices.

Customer – to – customer (C2C)
  • applies to sites primarily offering goods and services to assist customers interacting with each other over the internet.

Online auctions
·         Electronic auction (e-auction) : seller and buyers solicit consecutive bids from each other and prices are determined dynamically
·         Forward auction : sellers use as a selling  channel to many buyers and the highest bid wins
·         Reverse auction : buyers use to purchase a product or services, selecting the seller with the lowest bid.

C2C communities include :

·         Communities of interest : people interact with each other on specific topics, such as golfing and stamp collecting.
·         Communities of relations : people come together to share certain life experiences such as cancer patients, senior citizens and car enthusiasts.
·         Communities of fantasy : people participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan.

E-BUSINESS BENEFITS

E-Business benefits include :
  • Highly accessible
  • Increased customer loyalty
  • Improved information content
  • Increased convenience
  • Increased global reach
  •  Decreased cost


E-BUSINESS CHALLENGES

E-Business challenges include :
  •  Protecting consumers
  • Leveraging existing systems
  • Increasing liability
  • Providing security
  •  Adhering to taxation rules

·      
MASHUPS

Web mashup : a web site or web application that uses content from more than one source to create a completely new services
Application programming interface (AP) : a set of routines, protocols, and tools for building software applications
Mashup editor : WSYIWIGs (What You See Is What You Get) for mashups.

Saturday, 1 March 2014

THE TWELFTH CHAPTER

 Hellowwww everyone ! we meet again for another new topics :) so for this new topic we learn about INTEGRATING THE ORGANIZATION FROM END TO END - ENTERPRISE RESOURCE PLANNING.

Enterprise resource planning (ERP) : at the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system.

THE EVOLUTION ERP

 ERP (1990)
Materials planning
Order entry
Distribution
General ledger
Accounting
Shop floor control

EXTENDED ERP(2000)
Scheduling
Forecasting
Capacity planning
E – commerce
Warehousing
Logistics

ERP – II (PRESENT)
Project management
Knowledge management
Workflow management
Customer relationship management
Portal capability
Integrated financials


INTERATING SCM, CRM AND ERP

Integrating of SCM, CRM and ERP is the key to success for many companies. Integration allows the unlocking of information to make it available to any user, anywhere, anytime. General audience and purpose of SCM , CRM and ERP :



INTEGRATION TOOLS

Middleware : several different types of software which sit in the middle of and provide connectivity between two or more software applications.
Enterprise application integration (EAI) middleware : packages together commonly used functionality which reduced the time necessary to develop solutions that integrate application from multiple vendors.

ERP systems must integrate various organization processes and be :
Flexible
Modular and open
Comprehensive
Beyond the company

ERP solutions are growing because :
ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses
ERP addresses the need for global information sharing and reporting
ERP is used to avoid the pain and expense of fixing legacy systems





Sunday, 16 February 2014

THE ELEVENTH CHAPTER

     


         Are you excited about the other topic as much as I am ? haha. On this chapter the tittle is BUILDING A CUSTOMER-CENTRIC ORGANIZATION - CUSTOMER RELATIONSHIP MANAGEMENT . This chapter is more about how the organization want to build a strong relationship with their customer which its a very important to the company or organization to take care their valuable customers.

Customer relation management (CRM)

CRM can enables an organization :
Provide better customer services
Make call centers more efficient
Cross sell products more effectively
Discover new customer

The evaluation of CRM

CRM reporting technology : help the organizations identify their customers across other application
CRM analysis technologies : help organization segment their customers into categories such as best and worst customers
CRM predicting technologies : help organizations make predictions regarding customer behavior such as which customers are at risk of leaving

Using analytical CRM to enhance decision

Operational CRM : supports tradisional transactional processing for day to day front office operations or systems that deal directly with the customers
Analytical CRM : supports back office operations and strategic analysis and includes all systems that do not deal directly with the customer

Customer relationship management success factors

Clearly communicate the CRM strategy
Define information needs and flows
Build an integrated view of the customer
Implement iterations

     Wait patiently for the other chapter okey :) thank you so much for your time .

THE TENTH CHAPTER

       


               Hai guys , so on this 10th chapter the topic is about EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT . This topic is so interesting . Im so excited to tell you more about this chapter !!

 Basic of supply chain

Factor driving Supply Chain Management :

Visibility
the ability to view all areas up and down the supply chain

Consumer behavior 
companies can respond faster and more effectively to consumer demands through supply chain enhance

Competition 
Supply chain planning (SCP) software – uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain
Supply chain executive (SCE) software – automates the different steps and stages of the supply chain

Speed 
3 factors fostering speed :
- Pleasing customer has become something of a corporate obsession. Serving the customer in the best, most efficient , and most effective manner has become critical, and information about issues such as order status, product availability, delivery schedules and invoices has become a necessary part of the total customer services experience.
- Information is crucial to managers’ abilities to reduce inventory and human resource requirements to a competitive level.
- Information flows are essential to strategic planning for and deployment of resources.
Supply chain management success factors

7 principle of supply chain management :

1. Segment customers by service needs, regardless of industry and then tailor services to those particular segments.
2. Customize the logistics network and focus intensively on the services requirements and on the profitability of the preidentified customer segments
3. Listen to signals of market demand and plan accordingly. Planning must span the entire chain to detect signals of changing demand
4. Differentiate product closer to the customer since companies can no longer afford to hold inventory to compensate for poor demand forecasting.
5. Strategically manage resources of supply , by working with key suppliers to reduce overall costs of owning materials and services.
6. Develop a supply chain information technology strategy that supports different levels of decision making and provides a clear view of the flow product, services and information.
7. Adopt performance evaluation measure that apply to every link in the supply chain and measure true profitability at every stage.

SCM industry best practices include :

Make the sale to supplier
Wean employee off traditional business practices
Be future oriented

THE NINTH CHAPTER

      On the 9th chapter we learn about STREAMING BUSINESS OPERATIONS 

Decision making
Reasons for the growth of decision making information systems :
People need to analyze large amounts of information
People must make decisions quickly
People must apply sophisticated analysis techniques ,such as modeling and forecasting, to make good decisions
People must protect the corporate asset of organizational information.

Transaction processing systems

Transaction processing system : the basic business systems that serves the operational level in an organization.
Online transaction processing (OLTP) :The capturing of transaction and event information using technology to
Process the information according to defined business rules
Store the information
Update existing information to reflect the new information
Online analytic processing (OLAP) : the manipulation of information to create business intelligence in support of strategic decision making

Decision support systems

Decision support system (DSS) : models information to support managers and business professionals during the decision making process.
Quantitative models used by DSSs include :
Sensitivity analysis : the study of the impact that charges in one or more parts of the models have on other parts of the models
What –if analysis : checks the impact of a change in an assumption on the proposed solution.
Goal-seeking analysis : finds the inputs necessary to achieve a goal such as a desired level of output
Executive information systems
A specialized DSS that supports senior level executives within the organization
Most ISs offering the following capabilities :
Consolidation – involves the aggregation of information and features simple rolls-ups to complex groupings of interrelated information.
Drill-down – enables users to get details and details of details of information
Slice-and-dice – looks at information from different perspectives.

Digital dashboard – integrates information from multiple components and presents it in a unified display.
Artificial intelligence (AI)
Intelligent system : various commercial application of artificial intelligence.
Artificial intelligence : stimulates human intelligence such as the ability to reason and learn. Its ultimate goal is the ability to build a system that can mimic human intelligence.

4 categories of artificial intelligence :
Expert system – computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.
Neutral network – attempts to emulate the way the human brain works
Fuzzy logic : a mathematical method of handling imprecise or subjective information
Genetic algorithm : a artificial intelligent system that mimics the evolutionary , survival of the fittest process to generate increasingly better solutions to a problem
Intelligent agent : special purposed knowledge based information system that accomplishes specific tasks on behalf of its users

Data mining

Common form of data mining analysis capabilities include :
Cluster analysis 
 technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible
Association detection
Reveals the degree to which variables are related and the nature and frequency of these relationship in the information.
Statistical analysis 

Performs such function as information correlations, distributions, calculations and variance analysis.

THE EIGHTH CHAPTER

        So on this eight chapter we learn about ACCESSING ORGANIZATIONAL INFORMATION (DATA WAREHOUSE). So what it is data warehouse ? You want to know more about this ? ok read this !

Data warehouse 

A logical collection of information of information
Gathered from many different operational databases
That supports business analysis activities and decision making tasks

Purpose of data warehouse is to aggregate information throughout an organization into a single repository for decision making purposes.

Extraction, transformation and loading (ETL) – A process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions and loads the information into a data warehouse.
Data mart – contains a subset of data warehouse information.

Multidimensional analysis and data mining

Databases contain information in a series of two dimensional tables.
In a data warehouse and data mart, information is multidimensional  it contains layers of columns and rows
Dimension – a particular attributes of information.

Cube – common term for the representation of multidimensional information.
Data mining - the process of analyzing  data to extract information not offered by the raw data alone. To perform data mining users need data- mining tools.

Information cleansing or scrubbing

A process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information
Information cleansing activities :
Missing records or attributes
Redundant records
Missing keys or other required data
Erroneous relationships or references
Inaccurate data


Business intelligence

Information that people use to support their decision making efforts.

Principle business intelligence include :
Technology
People
Culture

THE SEVENTH CHAPTER

       

 Well hello everyone !! long time no see . haha. well today as you know we are already learn the 7th chapter. on this chapter we learn about STORING ORGANIZATIONAL INFORMATION (DATABASES) . In this chapter we learn more about how to manage and arrange the organizational information effectively.


Database – maintains information about various type of objects (inventory), events (transactions), people (employee) and places (warehouses)

Database models include :

Hierarchical database model – information is organized into a tree like structure which using parent/child relationships in such a way that it cannot have too many relationships.

Network database model – a flexible way of representing objects and their relationship 


Relationship database model – store information In the form of logically related two-dimensional tables.



Entity – a person , place , thing, transaction or event about which information is stored
Attribute (fields, columns) -  characteristics or properties of an entity class

Primary keys- field or group of field that uniquely identifies a given entity in a table

Foreign keys – a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two table

The primary keys and foreign key identify the various entity classes (table) in the database.

The advantages of database :

Increase flexibility

  A well design database should :
Handle changes quickly and easily
Provide users with different views 
Have only one physical view
Physical view – deals with the physical storage of information on a storage device. Example : hard disk

Increased scalability

A database must scale to meet increased demand , while maintaining acceptable performance levels
Scalability – refers to how well a system can adapt to increased demand.
Performance – measures how quickly a system performs a certain process or transaction.

Reduced information redundancy

Database reduce information redundancy
Redundancy- the duplication of information or storing the same information in multiple places.
Inconsistency is one of the primary problem with redundant.

Increased information integrity (Quality)

Information integrity – measure the quality of information
Integrity constraint – rules that help ensure the quality of information
Relation integrity constraint – rule that enforces basic and fundamental information based constraint.
Business critical integrity constraint – rule that enforce business vital to an organization’s knowledge than relational integrity constraints.

Increased information security

Password – provides authentication of the user
Access level – determines who has access to the different type of information
Access control – determines type of user access such as read only access.

Database management system (DBMS) – software through which users and application programs interact with a database.

Data-driven web sites – an interactive web site kept constantly update and relevant to the needs of its customers through the use of a database.

Data-driven web site advantages :

Development – allows the web site owner to make changes any time all without having to rely on a developer or knowing HTML programming. A well-structured, data driven web site enables updating with little or no training.
Content management – a static web site requires a programmer to make updates. This adds an unnecessary layer between the business and its web content , which can lead to misunderstandings and slow turnarounds for desired changes.
Future expandability – having a data-driven web site enable the site to grow faster thnk would be possible with a static site. Changing the layout , display, and functionality of the site is easier with data-driven solution.


Integration – allows separate systems to communicate directly with each other.

Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes.
Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes.

Without integration an organization will :

Spend considerable time entering the same info in multiple system
Suffer from the low quality and inconsistency typically embedded in redundant info

Sunday, 12 January 2014

THE SIXTH CHAPTER

       So for the sixth chapter we learn about VALUING ORGANIZATIONAL INFORMATION which is very interesting .

                                             ORGANIZATIONAL INFORMATION

 Employee must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions . Employee will need to compare these different types of information for what they commonly reveal to make strategic SCM decisions. Successfully collecting , compiling, sorting, and finally analyzing information from multiple levels in varied formats, exhibiting different granularity can provide tremendous insight into how organization is performing.

                                          THE VALUE OF TIMELY INFORMATION

Timeliness is an aspect of information that depends on the situation . In some industries , information that is a few days or weeks old can be relevant while in other industries information that is a few minutes old can be almost worthless.
Real-time information is immediate , up-to-date information , while real-time system is provides real-time information .

                                         THE VALUE OF QUALITY INFORMATION

Business decisions are only as good as the quality of the information used to make decisions . Characteristics of high quality information include :

  • Accuracy
  • Completeness
  • Consistency
  • Uniqueness
  • Timeliness

Example of low quality information :

  • Missing information
  • Incomplete information
  • Duplication information
  • Wrong information
  • Inaccurate information


                         UNDERSTANDING THE COST OF POOR INFORMATION

The four primary sources of low quality information include  :

  • Online customers intentionally enter inaccurate information to protect their privacy .
  • Information from different systems have different entry standards and formats
  • Call center operators enter abbreviated or erroneous information by accident or to save time
  • Third party and external information contains inconsistencies , inaccuracies and errors . 

Bad information can cause serious business ramifications such as :

  • Inability to accurately track customers , which directly affects strategies initiatives such as CRM and SCM.
  • Difficulty identifying the organizations 's most valuable customers.
  • Inability to identify selling opportunities and wasted revenue from marketing to nonexisting customers and nondeliverable mail.
  • Difficulty tracking revenue because of inaccurate invoices.
  • Inability to build strong relationships with customers which increase buyer power.


                          UNDERSTANDING THE BENEFITS OF GOOD INFORMATION

High quality information can significantly improve the chances of making a good decision which can directly impact an organization's bottom line. High quality information does not automatically guarantee that every decision made is going to be good but it ensure that the basis of the decisions is accurate.


       Hopefully this information will give benefit to you and hope that you are excited for the other new chapter !


Thank you again :)

Saturday, 11 January 2014

THE FIFTH CHAPTER

Holla everybody ! Its been two weeks I am not updating my blog . Bet you all are very upset dont you . haha . Btw I think its still not too late to wish all of you a HAPPY NEW YEAR



Okey I have lot to tell you about this new chapter which is ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INIATIVES

There are several IT positions in the organization which is :

CHIEF INFORMATION OFFICER (CIO)
Responsible for oversees all uses of infromation technologies and ensures the strategic alignment of IT with business goals and objective . Broad functions of a CIO include :

  • Manager : Ensuring the delivery of all IT projects , on time and within budget .
  • Leader : Ensuring the strategic vision of IT is in line with the strategic vision of the ogranization
  • Communicator : Building and maintaining strong executive relationship . 
What concern CIOs the most ?
  • Enhancing customer satisfaction
  • Security
  • Technology evaluation
  • Budgeting
  • Staffing
  • ROI analysis
  • Building new application
  • Outsourcing hosting
CHIEF TECHNOLOGY OFFICER (CTO)
Responsible for ensuring the throughput, speed , accuracy , avaibility , and realibility of an organization's information technology .

CHIEF SECURITY OFFICER (CSO)
Responsible for ensuring the security of IT systems and developing strategies and IT safeguards againts attacks from hackers and viruses .

CHIEF PRIVACY OFFICER (CPO)
Responsible for ensuring the ethical and legal legal use of information within an organization .

CHIEF KNOWLEDGE OFFICER (CKO)
Responsible for collecting, maintaining, and distributing the organization's knowledge . The CKO design programs and systems that make it easy for people to reuse knowledge .

                       SKILL PIVOTAL FOR SUCCESS IN EXECUTIVE IT ROLES

  • Ability to communication effectively
  • Strategic thinking and planning
  • Understanding business processes and operations
  • Negotiation or sales skills
  • Thorough knowledge of technology options
  • Technical proficiency


                  THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL

Business personnel posses expertise in functional areas such as marketing , accounting , and sales while IT personnel expertise in technologies . This typically causes a communications gap between the business personnel and IT personnel . To overcome this gap they must improving communication between them . Business personnel and OT personnel must seek to increase their understanding about each other . This is CIO responsibility to ensure that the effective communication between business personnel and OT personnel.

               ORGANIZATIONAL FUNDAMENTALS - ETHNICS AND SECURITY

Ethnics and security are two fundamental building blocks that organizations must base their businesses on to be successful . The value of highly secure organization should be evident .

                                                                 ETHNICS

Ethnics is the principle and standards that guide our behaviour toward other people . Privacy is a major ethnical issue . Privacy is the right to be left alone when you want to be, to have control over your own personal possessions , and not to be observed without your consent . Issues affected by technologies advanced :


  • Intellectual property : Intangible creative work that is embodied in physical from
  • Copyright : The legal protection afforded an expression of an idea such as song , video game , and some types of proprietary documents
  • Fair use dictrine : In certain situations , it is legal to use copyrighted software
  • Pirated software : The unauthorized use , duplication, distribution or sale of copyrighted software
  • Counterfeit software : Software that is manufactured to look like the real thing and sold as such .


                                                               SECURITY

Information security is the protection of information from accidental or intentional misuse by persons inside or outside an organization. E- business automatically creates tremendous information security risks for organizations . Organizational information is intellectual capital it must be protected .



For your time :D

Thursday, 9 January 2014

CASE STUDY : AIRASIA NOW EVERYONE CAN FLY



QUESTION 1

Identify five (5) of competitive advantages used by AirAsia
  • Low cost travelling
  • The first airline in the region to implement fully ticketless travel and unassigned seats.
  • AirAsia operates with the world's lowest unit cost
  • A crew productivity level that is triple that of Malaysia Airlines and achieves an average
    aircraft utilisation rate of 13 hours a day.
  • It has hedged 100% of its fuel requirements for the next three years

QUESTION 2

Which of the Porter's generic strategies were applied by AirAsia in the case study and explain with examples.

The porter's generic strategies used by Airasia is narrow market which its offer the transportation services to the customers with the low prices . For example :
  • AirAsia operates scheduled domestic and international flights 
  •  Asia's largest low fare,no frills airline
  • AirAsia operates with the world's lowest unit cost of US$0.023/ASK(available seat perkilometer) and a passenger break-even load factor of 52%.
QUESTION 3

Based on Porter's Five Force Model, analyze AirAsia's buyer power and supplier power.

Buyer power

Buyer power high when buyers have many choice of whom to buy from and low when their choice are few . In this case AirAsia are Asia's largest low fare , this means the customer have very limited choices about the airlines services . This is because only AiAsia offer a very low prices compare to the other . This make the buyer power is low because the did not have many choices and the AirAsia is the cheapest . 

Supplier power

Supplier power high when buyers have few choices of whom to buy from and low when their choices are many . AirAsia have high supplier power because they have many choices to buy their needs to operate . For example , AirAsia is currently the main customer of the Airbus A320. The company has placed an order
of 175 units of the same plane to service its routes. This make the supplier power is high because AirAsia have many choices of supplier .