AirAsia Berhad (AirAsia) | Analysis

AirAsia Berhad (AirAsia) | Analysis Introduction AirAsia Berhad (AirAsia) is one of the leading low cost airlines in South East Asia which has expanded rapidly since 2001. The company is based in Kuala Lumpur, Malaysia and has successfully positioned itself in customers mind through the simple slogan Now Everyone Can Fly (AirAsia, 2009). The company is currently valued at approximately RM2.7 billion and has a total of 60 aircrafts that fly to over 50 domestic and international destinations with over 400 domestic and international flights daily (Euromonitor International, 2009). The operation for the short and long haul are handled by AirAsia and its sister company, AirAsia X Sdn Bhd (AirAsia X). AirAsia aims to establish itself as a leading low cost carrier in market by valuing its customers through cost advantages created by operational effectiveness and efficiency. More customers are able to fly taking into consideration the low fare charges as AirAsia capture segments of customers that previously could not afford the airlines fare. Whether the strategy exploits the companys key resources Each organisation is unique in terms of it resources and capabilities and the key to success merely depend on its ability to find or create a competence that is distinctive (Teece et.al.,1997). The Resource Based View (RBV) combines two perspectives, the internal analysis of phenomena within an organisation and an external analysis of the industry and its competitive environment (Collis and Montgomery, 1995). It goes beyond the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis by integrating internal and external perspectives. The ability of an organisations resources to present competitive advantages could not be determine without taking into considerations the boarder competitive concept. Barney (1995) indicated that organisations resources and capabilities must be evaluated in terms of value, rarity, imitability or non-substitutability (VRINE model). The value of the resources and capabilities interacts with the market sources and will differ based on time and industry. The three fundamental market forces; scarcity, demand and appropriability determines the value of a resources and capabilities (Collis and Montgomery, 1995). In order to answer the question of value, organisation could identify whether the resources and capabilities are able to meet market demand. As for AirAsia, the organisation relies on its human resources and management capabilities wherein these two components have satisfied the value requirement as it has been able to meet the demand for the Low Cost Carrier (LCC) market. The resources and capabilities own by AirAsia are homogenous in the market however aspect such as work culture and innovative routes differs it from the competitors. In applying the RBV concept, AirAsia has a competitive parity based on its valuable and not rare resources and capabilities. Immitability is something generic in the airline in dustry as aircraft, fast turnarounds time and others are easily duplicate. One of AirAsias imitable characteristics is path dependency wherein a characteristics of resources is developed and/or accumulated through a unique series of time. AirAsias work culture of openness between employees as well as the leadership from its Chief Executive Officer is something have been built up over a period of time which is difficult to duplicate. Moreover, the high capital requirement for market entry is another factor that leads to difficulty to imitate the resources and capabilities. It is undeniable that the said resources and capability be imitated as competitors will identify the same however it will take time and meanwhile, AirAsia gain the competitive advantages. Having a control and exploiting the resources and capabilities provides competitive advantages to the organizations (Carpenter and Sanders, 2009). AirAsia has exploited it resources and capabilities which is shown in the financial performance. AirAsia has gradually increased its performance throughout the years. AirAsias s net profit for the 3rd quarter of 2009 totalled RM130 million ($38.4 million) which is sustained by rising passenger numbers and income from add-on services. The profit achieved was a turnaround from a RM466 million ($137 million) net loss in the same period last year (www.airasia.com). The fit of the strategy to current industry conditions The competitive environment consists of many factors that are particularly relevant to an organisations strategy. Analysing the external environment particularly the industry is a starting point for firms to develop a strategy. Porters five forces include the overall structure rather than focusing to any one element. However the forces are not stagnant which tendency to change may occur. AirAsia operates within the airline industry and forces that are driven in the industry would identify the strength and weaknesses of the organisation. There is potential market in the Asia for LCC due to the rapid economic and disposable incomes growth. Infrastructure such as high speed trains and highways has yet to meet the high standard level and therefore customers tend to choose the air as mode of transportation. Hence, threats of substitutes are low as the geographical structure of Asia has made air travel the viable, efficient and convenient mode of transportation. Looking into this scenario, AirAsia entered the airline industry concentrating on the LCC and noted that at the initial stage there were less rivalry but as the industry grows, the rivalry among established firms become higher partly due to price issues. AirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. Knowing the said changes, AirAsia applied the adaptation process (Hanan Freeman, 1984) by expanding its operation to long haul services to various destinations. Moreover, AirAsia realise the price is destructive and try to avoid direct price c ompetition and try to create a friendly competition environment. As there is positive growth in the airline industry, full service airline carriers have refocused its operation related to costs and yields as it is seen as a requirement to maintain profitability (Graham and Vowles, 2006). There is possibility of new entrance by other LCC which creates further competition in the industry. For example, Firefly set up by Malaysia Airline System Berhad is a part of LCC industry in Malaysia that has adapted AirAsias low cost concept. However, it would not be a threat to AirAsia as Hanan Freeman (1984) highlighted it is difficult to imitate as tacit amount of knowledge is required on the targeted firm. The high capital requirement and government barriers air service agreement can act as barriers to entry. Due to significant growth within the industry, demand for additional aircraft has increased and suppliers will be in a powerful position. It was reported that Asia accounts for 40% of new aircraft orders for Boeing and Airbus and seat capacity on LCC worldwide has more than doubled in the past four years (Shameem, 2006). Due to few players, Boeing and Airbus and lack of competition in the market, the bargaining power of suppliers are low. Consequently there is not much competition in terms of pricing occurring between the two companies so an airline carrier will have to accept an offer from one of the suppliers. The bargaining power for buyers is low as there is no room to bargain for cheaper tickets as AirAsia provides the lowest price compared to other carriers. The biggest threats for AirAsia are the rivalry and risk of entry with the existing and potential competitors. LCC business is viable and there is healthy profitability provided AirAsia continuously improves itself and is flexible in the challenging market. The sustainability of the differentiators Porter (1996) indicated that to outperform rivals, an organisation need to deliver greater value to customers or/and build comparative value at a lower cost. The airline industry is at the growing stage and therefore stiff competition from existing and new LCC is expected in the future. In order to sustain its competitive advantage, AirAsia needs to leverage its competency in creating cost advantages. At present, AirAsia differentiates by providing substantially low fares with no frills concept by offering innovative routes. Murray (1988) indicated that there is uncertainty for sustainable differentiation to be achieved through product innovation and suggested that the area that could be concentrated for the said differentiation is quality and service. While, Porter (1996) highlighted that positioning are successful based on activity system and simple consistency between each activity aligning with the organisation strategy. AirAsia builds it brand name by providing a good quality service at a low price. During inception, AirAsia focused on internal destinations and have further entered the international destinations. AirAsia X is differentiated by its long haul LCC as customers would not need to look at different carriers to reach different destinations at a lowest price. It is based on the same no frills service model wherein the price is 80% lower than its competitor together with additional services that requires customer to pay additional payment such as food, entertainment and others. AirAsia also seek to create excitement amongst their customers with the range of innovative and personalized service such as self check-in. Due to AirAsias success in the industry, competition might one to adapt the companys business model. However, AirAsia had some advantages over its competitors by the advantage of experience and its brand enjoyed good recognition. AirAsia gain from the first mover advantage which allows it to establish itself before competition perceive further in this low cost segment, apart from competition that already exists across segments (low cost vs full service carriers). AirAsia has the strength to lay down the rules and framework in the industry for business and operational suitability. Through AirAsia philosophy of Now Everyone Can Fly, AirAsia has embarked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As Air Asia continuously strives to promote air travel, AirAsia also seek to create excitement amongst their guests with they range of innovative and personalized service. Moreover customer loyalty is build by the differentiation which could act as a defense against rivalry (Eng, 1994). Whether the elements of the strategy are consistent and aligned with the strategic position Strategy works as a driver in a firm in achieving goals and objectives (Carpenter and Sanders, 2009). AirAsias five strategy elements are as follows: Porter (1996) presented three generic strategies that an organisation could use to overcome the five forces and achieve competitive advantage. However, there were studies resulting that adapting one or more forms of competitive advantage will outperform better (Murray, 1988). In the LCC segment, cost is the competitive priority and it determines market position. In lieu of this, Airasia has applied the focused cost leadership strategy wherein it targets on specific markets; price sensitive customers as well as lowering its overall costs (Flouris and Walker, 2005). With the positive growth in the LCC, it will create opportunity to others to enter the market. Competition between carriers using the same business model will inevitably be intense. One of the major pitfall against attempting to differentiate is by trying to combine low cost and differentiation strategy by starting to add frills in its business model. However, by applying the said strategy, carriers have lost their source of competitive advantage by narrowing the strategic cost gap. Every frill or service adds to cost and reduced the strategic cost gap, thus curbing the flexibility to offer innovative price deals. Murray (1988) disagrees that cost structure is vital in relation to the output performance compared to the price sensitivity. Factors such as economy of scale and quality of management teams within the organization could be the benchmark for cost leadership. Under the cost leadership strategy, level of operation efficiency is vital as it assist in achieving cost advantages than the rivals by searching continuous areas for cost reduction along its value chain that leads to economies of scale (Eng, 1993). AirAsia increases its efficiency through increased route network and its operating activities by adapting cost optimising techniques such as quick turnaround times and maximizing of flight utilisation for its aircrafts (Shari, 2003). As the result from efficient operation, it minimizes the cost that is then passed on to customers so that affordable air travel can become a reality. In 2005, the cost per available seat mile (ASK) for Airasia was only 0.3 compared to the next lowest valu e from 0.6 being Firefly (www.airasia.com). AirAsia took advantage from the existence of e-commerce which is cheaper and easier technique in providing information about products and services. Furthermore, it gives a better and more convenient way of promoting the companys product and services. The cost related to web is very low compared to other methods like advertisement on television. AirAsia has taken advantage from this method to reduce the cost of operations that leads to operating on a low rate. Malaysia government has supported AirAsia through the opening of the LCC terminal in Kuala Lumpur International Airport which enhanced its competitive edge by reducing costs and better logistic planning (Euromonitor International, 2009). Competitors tend to know how big the market is and how good the opportunity is in Asia. Therefore, there is threat by competitors which could imitate AirAsias low cost base. Most of the competitors have the same concept of no frills and low price strategy and will continuously try to reduce its costs than AirAsia in order to gain sustainability in the market. The challenge for AirAsia is to reduce cost effectively which it is difficult for the competitors to copy. Possible issues associated with implementation Strategy formulation and implementation are interdependent with the objectives being a coherent set of strategy elements and implement levers (Carpenter and Sanders, 2009). In order to succeed in the LCC segment, AirAsia will need to maintain its low cost elements in their business design as it is critical to the long term success. The main reason is because the more gap between arises between the competiting airlines, the more flexibility will be available to offer lower price and gain market share. An extended route system will most certainly be a key differentiator and to sustain its competitive advantages, resources and capabilities need to be analysed further. Around the world, it has been observed that low cost airlines pursuing a generic business design have emerged as the most successful. Conclusion AA actual main strength was based in its innovative ways to keep the cost low which was hard to imitate. AirAsia has indicated that synergies between the internal and external factors could develop a competitive advantage. This has allowed AirAsia to positioned and be the market leader in the LCC. The brand name brand equity is a major strength that AirAsia must successfully capitalize. Bibliography Barney J.B. Looking Inside for Competitive Advantage (1995) Academy of Management Executive. 9(4) pp. 49-61 Carpenter, M.A., Sanders W.G. Strategic Management: A Dynamic Perspective Concepts and Cases (2009) Pearson International Edition. Collis, D. J.,Montgomery, C. A. Competing on Resources (1995) Harvard Business Review. pp. 118-128 Graham B., Vowles T.M. Carriers within Carriers: A Strategic Response to Low-Cost Airline Competition(2006) Transport Reviews, pp. 105-126 Porter M.E., What is Strategy (1996) Harvard Business School, pp. 61-78 Shameen A. AirAsia Takes Flights on Low Cost Carriers (September 26, 2006), Business Week Teece, D.J., Pisano G., Shuen, Amy. Dyanmic Capabilities and Strategic Management (1997) Strategic Management Journal. 18(7), pp. 509-533

A Path to Education Essay example -- Teaching School Philosophy Essays

A Path to Education Life is unpredictable and there are an infinite number of paths for one to choose from as they journey through life. One â€Å"trail† that seems to be a popular choice to travel is that of an educator. Why is this? What makes the sharing of knowledge so special? Perhaps there is an unparalleled joy in enlightening someone else. Perhaps it is a combination of unlimited elements that drives individuals to be educators. And perhaps there is no one sure answer to these questions. One thing is for sure, our world has seen its share of tremendous and inspiring teachers come and go with the passing years and generations of people. Unfortunately, this world has also seen its share of educators who were not so noticeable and effective. Again, I ask why is this? What makes some teachers more effective and inspiring than others? Could the difference be discovered through viewing their individual philosophies on education? My personal conclusion to this question is a resounding YES. It is an educator’s philosophy on teaching that makes the difference. Up to this point in life, I’ve simply been a student of this world, but as I move forward in life I aspire to cross the line that all before me have crossed to become educators. How will I achieve this? More importantly, will my personal philosophy elevate me to become an inspiring and encouraging teacher? And most importantly, what exactly is my philosophy on education? In a general sense, I simply hope to look at each child I teach as an individual and to make the best situation for each child. I will achieve this goal by developing my own views on the nature of students, the nature of knowledge, the purpose of public education, teaching met... ... relative to that time period. No two educators are the same, and no two students are the same. Somewhere in the balance of teaching and learning there is a place where educators and students can come together and pass and receive knowledge in a creative and fun way. I feel that my personal philosophy can take my students and I to that place. Being an educator is the road I have chosen, and while the path I will walk will be unique it draws from the successful paths of educators that have come before me. I realize my philosophy is not set in stone and will change as I am exposed to yet more teachers. More importantly, it may change as I, myself, begin to teach. There is no hard and fast evidence claiming that my philosophy is better than any others, but I truly feel it provides a model that will enable me to be the best teacher I can be.

Madame Bovary Personal Response

In part two of Madame Bovary by Gustave Flaubert we see Emma’s development as a character in a negative way. Emma’s development is seen as she embarks on a path to moral and financial corruption all for a search of love and passion. The passion and love Emma seeks cannot be found in the reality of that time causing her to feel imprisoned in society with Charles whom she has no passion or lust for. To Emma love is defined as lustful, spontaneous action which she only reads about in her romance novels. SHe learns to fulfill this inner lust by undertaking in adultery with different men.Throughout this section of the novel we see the emotions Emma encounters, guilt, anger, lust, passion and spiritual longing. â€Å"The more Emma became aware of her love, the more she suppressed it. She would have liked Leon to guess at it†¦ † [p. 86] This quote shows the change is Emma’s character from part one due to the fact that in part one she only longed for such a r elationship and what she read in books and took pity on herself while now she has taken action by committing adultery. When Emma first meets Leon there is a spark and common interests emerge unlike between Emma and Charles.This is seen in the quote â€Å"Their Eyes indeed were full of more serious conversation; and, while they were struggling in search of banal phrases, each felt assailed by the same langour; it was like a murmur from the soul†¦ † [p. 88] Emma’s Lust for Leon is an example of the commencement of her thoughts of adultery actions, once Leon leaves she becomes even less satisfied by Charles than before and continues to seek for that same love she had for Leon. She goes to such extremes with love due to her idea of love coming from novels, this is seen when she considers ruining after Leo after he had left for Paris.This part of the novel is seen as Emma’s attempt at filling an empty gap in her hear in search of romance that she has always long er for yet never grasped. She seems to do this by committing such unfaithful acts. â€Å"†¦ but i always relish the upheaval; I do love being on the move. † This quote emphasizes the fact that Emma cannot stay with one decision or be in one place for a long period of time because she is easily bored and dissatisfied. Once Leon leaves Mme. Bovary has an understanding of her feelings for Leon and her regret for not pursuing these feelings. the bad days form Tostes came back again. † [p. 114] Emma then realizes the option of adultery and Leon was the one to open this idea up to her.This is what leads her to commit adultery later on in this section of the novel. The second major development is the love affair between Mme. Bovary and Rodolphe. This love affair fulfills the dream of the romance she has always longed for from the books that she has read. â€Å"She merged onto her own imaginings, played a real part, realizing the long dream of her youth, seeing herself as one of those great lovers she had so long envied! † [p. 51] This quote emphasizes Emma’s happiness and sense of accomplishment that she feels during the affair. This is a development in her character because this can be compared to previous areas in the book where she was bored and unhappy waiting for something to occur this sudden even has now changed this view on life to a more happy one.This is because there was now an aspect of excitement that allows her to experience her dreams that she has so long longed for which causes her to isolate herself from reality. This is seen when she wants to run away with Rodolphe â€Å"Take me away! † [p. 80] This also shows Emma’s selfish behavior because she is acting only to please herself while Charles sacrifices his love and lets Emma be with Rodolphe to treat her depression (illness). The final major development in Emma is when she is plunged back into reality with the letter the Rodolphe sends her. This letter a llows her to realize the difference between the romantic novels and dreams and reality. The fact that she had so many ideas to pursue with Rodolphe such as running away which she though would allow her total freedom.However these longings are all crushed and the caged feeling from before begins to come back again. why have not done with it? Who was to stop her? She was free† This quote shows her thoughts of running away with Rodolphe and how she want to be free. In conclusion these major developments such as the love for Leon and the introduction to the idea of adultery as well as the affair with Rodolphe and the longing for freedom show Madame Bovary’s change throughout part two of the novel. One is also able to see the constant unstable actions of Emma and her decisions. She is one to go from being spiritual to wanting to commit suicide, then desiring a proper family household and yet none of these make her happy for very long.

Apple Financial Analysis Essay example - 10900 Words

Financial Analysis Project APPLE INC. Rev 1.1 A Financial Analysis Project By Josie Chavez Submitted to Kendra Huff, Ph.D. Assistant Professor of Accounting and Finance College of Business Administration Texas Aamp;M University-Kingsville BUSINESS FINANCE 3338 Spring 2011 TABLE OF CONTENTS LIST OF TABLES iii LIST OF FIGURES v 1. CORPORATE OVERVIEW 1 1.1 Overview of Industry 1 1.2 Overview of Corporation 2 1.2.1 Product/Service Description 4 1.2.2 Earnings History 7 1.2.3 Stock History 8 1.2.4 Current News 9 2. FINANCIAL STATEMENTS 5 2.1 Income Statement 11 2.2 Balance Sheet 12 2.3 Statement of Stockholder’s Equity 14 2.4 Statement of Cash†¦show more content†¦1.1.1 Yahoo Finance (2011) Industry Browser - Technology - Personal Computers - Company List (2011) The figure above shows Apple Inc, the Market cap lead, and Dell, the Market cap last, corporations and their market share compared to the industry and the technology sector. As you can see above Apple Inc. is almost as close to the market cap for the Personal Computers industry. Although, it does have a smaller P/E ratio compared to the industry it still is the highest among the top leaders within the industry. Compared to the industry Apple’s does not have a debt to equity ratio, which is excellent. Apple’s net profit is also the highest within the top competitors and the industry. The price to free cash flow exceeds the industry as well as the technology sector. 1.2 Overview of Corporation Apple, Incorporated, 1 Infinite Loop is located in Cupertino, CA 95014. Their website is www.apple.com.Their Industry category is Computer Hardware/Personal Computers located in the Technology Sector. The Fiscal Year-end of 09/2011 recorded revenue of $65.23B with net income of $14.01B. Their 2010 Sales Growth was 52.0% and now has a total of 49,400 employees. Apple inc. is a corporation that was created in 1977 in California. The company product lineup consists of a large range of personal mobile communication devices, media devices, computing devices, and a variety of services and software. It also consists ofShow MoreRelatedApple Financial Analysis2661 Words   |  11 Pages Midterm Paper: Financial Analysis on Apple EXPECTATIONS amp; EVALUATIONS The objective of this paper is to thoroughly analyze Apple’s financial history and status for the last five years (2003 – 2007). Other important topics will be discussed which include: the company’s background, its assets, bonds, stocks, etc. To support the analysis, different relevant ratios will be calculated for Apple Inc in order to estimate the company’s current status, and also to compare Apple Inc. to the computerRead MoreFinancial Analysis of Apple Inc.795 Words   |  4 PagesFinancial Analysis (Submitted by) Abstract The following paper aims at discussing the financial position of the American multinational corporation, Apple inc., which designs and markets consumer electronics, computers and personal computers mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. Apple Inc. together with subsidiaries sells its products worldwide through its onlineRead MoreFinancial Analysis of Apple, Inc.2114 Words   |  9 PagesCompany Background Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users. For nearly twenty years, Apple computers have been the industry standard for creative industriesRead MoreApple Financial Analysis 11911 Words   |  8 Pagesfollowing paper is a Financial Analysis of Apple, Inc. The paper is an unorthodox Financial Analysis of Apple, but will cover all the key aspects of a Financial Analysis - albeit in a different way. The first section of the Financial Analysis will have preconceived notions of Apple (what an individual thinks of Apple, without the facts in his hand - in this case the Financial Analyst of this paper), the Financial Analysis - which includes stock performance, various financial ratios, dividend payoutRead MoreApple Dell Financial Analysis4034 Words   |  17 PagesAPPLE amp; DELL Financial Analysis Project INTRODUCTION Dell and Apple are American companies that participate in the industry of Electronic Computers, according to the SIC 3571. This industry is oriented to the manufacture of diverse kind of data processing systems. In 2001, the largest computer makers in the United States were Dell, Compaq, Hewlett-Packard and IBM. They produced about 40 percent of personal computers shipments in the world according to International Data Corporation (IDC)Read MoreMicrosoft And Apple Inc. Financial Analysis Essay1012 Words   |  5 Pages Financial Ratios Name of student Name of institution â€Æ' Microsoft and Apple Inc. Financial Analysis The financial analysis expressed in this paper shows a comparison of two large firms in the communication and technology industry. Microsoft and Apple Inc. both deal in telecommunication gadgets and accessories within the United States and around the world. The paper focuses on the financial comparison of the two companies for two fiscal years of the year 2014 and 2015. A close analysisRead MoreFinancial Analysis And Assessment Of Apple Inc. Essay937 Words   |  4 PagesThis paper intends to provide a financial analysis and assessment of Apple Inc. from the years of 2005 to 2009. The evaluation is based on the numbers calculated from the data on Apple Inc.’s Financial Performance Worksheets. This paper covers three areas. The first part of the paper contains a brief history of Apple and the position of the organization in the market of computers. The second part is a calculation of Apple s performance and the reasons for their success. Finally, a conclusionRead MoreEssa y on Apple Incorporated: Financial Analysis3684 Words   |  15 PagesWRITING ASSIGNMENT: FINANCIAL ANALYSIS FIN 534 – Financial Management Student Name Instructor Name Abstract The focus of this analysis is to perform a thorough examination of Apple, Inc.’s financial performance over the past three years and its growing success since being founded in 1976. Apple’s main focus is on design, manufacturing and marketing of personal computers, peripherals, computer related software, digital music player and related accessories, and is maintained by. The portfolioRead MoreFinancial Analysis Of Apple, Inc. Essay1861 Words   |  8 PagesCompany Background Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users. For nearly twenty years, Apple computers have been the industry standard for creative industriesRead MoreAnalysis of Financial Management Processes of Apple3136 Words   |  13 Pagesï » ¿Analysis of Financial Management processes of Apple Inc. Analysis of Financial Management processes of Apple Inc. One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even