Organisational Behaviour and Global Strategy Assignment Sample

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Introduction

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One of the main notions behind conducting this study is to show the major concept behind using the topic of strategic management. The study will provide its main focus on the use of strategy by a selected company and will also analyses its competitive advantages in the internationalized trading ecology. In correspondence to this the development of important comprehension of the corporal conduct comprising the headship, change administration hypothesis as well as their usage over the selected company will be discussed in detail. Overall the subject will especially circle the concept of strategic management which is considered to be an important part of any organization. 

The company which has been selected to do the research is named Air Asia. Capital A Berhard which is functioning as Air Asia is a Malaysian multinational-inferior-cost flag whose main office is located near Kuala Lumpur, Malaysia. Air Asia is identified to be the biggest flag in Malaysia both the fleet and total destination covered.  Air Asia functions both national and global flights in an excess of 165 destinations spinning around twenty-five nations. Although the company is always known for its low-cost nature but due to the sudden onset of the pandemic they are facing major challenges which will be discussed in this study (Berhad,AirAsia , 2022).

Strategy of the organization and the competitive advantage of the organization

The term global strategy can be defined as the tactics which a firm builds up to increase within the international business sector. The main aim of creating international tactics is to expand the dealing crossways to the entire planet (Zou, 2006). In this segment of the study, the global strategy of Air Asia will be discussed in detail. 

The strategy used by Air Asia

When a company like Air Asia operates internationally it has to adapt to some global strategy so as to stay competitive in the business world. Likewise, Air Asia adopted the global strategy to be a low-cost airline that will provide a comfortable flight to its passenger with not expending much on the tickets. Air Asia provides its main focal point by offering the passenger solace by means of capable administration that fulfil industry guidelines, in addition to customary flights and secure highlight point availability (Nair, 2021). The company is identified for its low charges and straightforward approach. It utilizes an anchor estimating strategy, which lays out a benchmark for evaluating all Air Asia-functioned flights. Air Asia utilizes anchor estimating to provide unimaginably inferior rates on its administrations and charges, tempting purchasers to think about going with the Air Asia. Also, not entirely settled by the class of flight, aircraft load aspects, travel dates, and days, in addition, to contender estimating in the carrier business (Ahmad, 2006). So, from the overall discussion, it can be said that Air Asia is mainly focused on giving the best services by maintaining low cost so that every group of people can afford their services

Competitive advantage of Air Asia

The cutthroat benefit of Air Asia, the renowned budgeted aircraft in Asia is "Minimal expense". Air Asia is the main and biggest minimal expense transporter (LCC) in Asia. The competitive advantage of Air Asia is broadly explained below:

• The Air Asia flights utilize less time on the base ad provide the most number of flights to the passengers, This caused the maximum plane deployment as well as the efficiency of the employees.
• Considering the space deployment segment plays a key aspect whilst planning the seating framework. This in return expands the profit which again provides a competitive advantage to Air Asia. 
• Airs Asia is not just focused on providing readymade services to its passengers but on fun work, they motivate to do it yourself activities also. For example independent online checking. This in return assists in reducing the manpower as well as also saves the functional expenses (Mamrina, 2016). 
• The competitive advantage of Air Asia also shows that they believe in providing no-frill amenities which assist the company in achieving the cutthroat benefit.
• Air Asia utilizes the least kinds of airplanes, predominantly Airbus A 320 family. This reduces the expenses of re-coaching the employees as well as keeping up with spare parts stock. Air Asia accomplishes better eco-friendliness by utilizing Airbus A320 planes introduced with 'shark let wing tips' (Man, 2011).

A recent challenge faced by the company

After the pandemic has started most the industries are going through various kinds of challenges due to which the overall functioning of the company is getting affected. The most devastated sector which hit hard by the pandemic is the airline as well as hotel industry which is entirely a client base industry. As a result due to pandemics, Air Asia also faces a few major challenges due to which they are currently facing a huge loss. 

The most notable challenge which Air Asia is facing currently is related to incurring a huge loss. The coronavirus pandemic which hits the entire planet currently is unquestionable, in addition, to certainly exceptionally persuasive on the existence of each individual all around the planet. Numerous exercises halted because of the presence of the pandemic as well as this ongoing circumstance has caused numerous awful effects on a large portion of the organizations, particularly aircraft businesses. The monetary exhibition which evidently ought to have been moving along as expected has experienced an incredible misfortune due to the Covid-19 pandemic. In 2020, the income of Air Asia Berhad has gone by a radical change as a result of the tragic pandemic.  The adverse transformation of profit that has been felt by Air Asia at the time of the pandemic might have been triggered by different kinds of aspects. For any company earning profit as well as providing the best services to its clients are considered to be the two most important aspects especially when the company serves as a service-based company (Nagenthran, 2021).

From the above-given table, it can be identified that the net earnings of Air Asia for the year 2019 were augmented from Q1 to Q1. However, in Q3it drop down although yet was getting the revenue but in Q4 the company begins to experience deprecation because of the Covid outbreak. Additionally, in the starting phase of 2020, the company confronted an overall loss all through the quarter as well as a net deficit persistent to augment. This ongoing turbulent circumstance has created an incredible deficit for the travel industry sector as well as carrier enterprises. As the flight has been stopped and the boundaries have been shut, the value of abrupt loss surpassed billions of dollars. The carriers began to end financially as well as began to be trapped paying off debtors. Air Asia Berhad was very badly impacted by this pandemic. Overall it can be said that the issues related to finance have made this company go under tremendous loss which still they are trying to recover by adopting various methods that will be discussed in the latter part of the study (Inc, Nikkei, 2022).

How the challenge was managed by the organization

For every organization when it goes through any kind of challenge it is the duty of the entire team including leaders, employees and stakeholders to use few of the important approaches to deal with the challenges tactfully. In case of Air Asia it has been seen in the above discussion that due to the pandemic they are going through major loss which is affecting the goodwill and customer segment of the company. Now in when the pandemic situation is under control and international movements has started again the manager of the Air Asia have implemented few of the important leadership skills to recover the loss of the past 3 years.

Considering the focus on leadership aspect the company is functioning under the command of Tony Fernandes and Kamarudin Meranun. Assisted by the both the CEO’s as well as with other active inventors they planned to create a fund-raising program which has already been implemented last year to recover the loses when he entire group has experienced due to the pandemic. The fund raiser activity was named as the Redeemable Convertible Unsecured Islamic Debt Securities (RCUIDS). Altogether with the right to publish proceeds as well as the 500 million ringgit assured credit from Malasyian state-owned Danajamin Nasional Bhd, the company by now gained 2.5 billion ringgit in new capital. This idea of funding will offer influential liquidity for the Air Asia to upgrade the function al through the coming year as indicated by the CEO (Burgos,Jonathan, 2021).

Now considering the human relation aspect it can be said that  Air Asia are giving numerous endeavours in turning out to be additionally customer-focus specially after this pandemic, Their motto has changed and now is focuses on “We care and we make it easy”.  It usually shows that whatever work they do it finally be looking after the company’s people who are its workers and customers. 

Noting the culture and human centric approach within Air Asia it has been seen that their well-being agenda entails three pivotal facets of their Allstars live which are: 

• Personal funding
• Physical well-being
• Mental well-being 

Thus, for example, the entire of the Air Asia's Allstars has got right to use monetary enlightenment, cost free physiotherapy on location, cost free enthusiastic treatment meetings with prepared guides, and get financed dinners at their cafeteria. With an intention to create the stay of living of the Allstars simpler, People and Culture itself is going through a computerized change.  This is just not concerning the introduction of applications. The company is way ahead of these strategies as well as reevaluating the manner in which we get things done according to the point of view of our workers. In addition to this Air Asia as a strategy to recover the losses also utilizes information to get those bits of knowledge.

So, overall it can be said that the issues of ongoing loss is moreover managed by the entire with the main motive of incurring the profit as well as to maintain their image as the low-cost carrier without compromising the service and without increasing any sort of prices.

How the organization’s strategy impacted the management of the challenge

The leaders of the company had to focus on aligning the activities on the basis of the objectives of the company so that they can provide the customers with cost effective advantages and increase their suitability and sustainability in the competitive business environment that has been affected due to the covid-19 pandemic. Air Asia focused on the leadership aspect of the company so that they can actively create a fundraising program in order to recover from the losses. To carry out the organisation strategy that has been formulated by Air Asia, the HR department of the company focused on recruiting suitable individuals who are capable and talented in managing the challenge in accordance with the strategy implemented by the organisation (Collings et al., 2021). With the help of anchor estimation strategy, the company has been able to provide in future rate on its administration and charges that has helped in tempering the purchases to think about getting the tickets done from the company. Although it can be seen that in order to do so, the management of the company as well as the marketing department had to focus on providing various deals and offers so that the customers are aware of the offers provided to them on behalf of the organisation. The strategy implemented by the organisation has been helpful in managing the challenge that has been faced by the company and it has been helpful for them in changing their motto which now focuses on providing a suitable rate and making the journey of the customers easy (Owen et al., 2021). It is also helpful for the company in looking after the requirements and needs of the employees and the customers which have resulted in employee and customer satisfaction. 

All the departments and their employees have started working towards enhancing the efficiency and willingness to create the best suited operation that will provide support to the organisational strategy implemented by the management of the company. The organisational strategy has been helpful in providing the company with consistency where the management of the company has been able to focus on the business priorities (Owen et al., 2021). It has been easier for the company to adopt the changes as well as reduce the number of decisions that they had to face on a daily basis by clarifying the most effective strategy that will be suitable to mitigate the encountered challenge. With the help of strategy implementation, the business has been able to define success and show what activities they are required to put first in order to achieve the goal that will provide them with competitive advantage in the marketplace and will help in mitigating the challenges that they have faced (Collings et al., 2021). The strategy that has been implemented by the organisation of Air Asia has been helpful for them in terms of making them understand the significance of adapting to the changes that take place within the business environment for the purpose of moving forward which is one of the ultimate goals. 

The impact of the challenge on the organization’s strategy

Due to the recent challenges faced by Air Asia, the organisation faced a huge loss. Several exercises and operational aspects of the company halted because of the covid-19 pandemic. There was a huge rate of employee turnover that the organisation faced which halted most of the major operational activities of the company (Ibn-Mohammed et al., 2021). In order to carry out and implement the organisational strategy, it requires skilled workforce who are motivated and additionally to carry out the duties. But due to covid-19 pandemic, the mental health conditions of these individuals were severely impacted that has resulted in halting several operational activities of the organisation and leading them to undergoing a huge loss. Due to the recent outbreak of the global pandemic, the well-being of the individuals have been impacted which have reduced the operational activities of the company as well as the efficiency of the individuals to carry out any kind of activities of the company (Dwivedi et al., 2020). It has been found out that 38% of the workers have been impacted by the serial lockdown which have left them with a negative impact on their mental well-being and physical well-being as well (COVID and Post-Acute Care Study Group, 2020). With the recent transformation of working culture that took place due to the covid-19 pandemic where the workers are remotely working from their comfort of their own places, 55% of the employees have showcased deterioration of productivity level during the lockdown. 

With the demotivated set of employees who are suffering from mental health conditions or physical health conditions, formulating organisational strategy has not been easy on their path as they were not confident and motivated to perform the job that has been given to them. Even during this crisis, Air Asia had to lay off many existing employees, which halted the formulation of organisational strategy which will be beneficial in the process of reducing the challenge faced by the company and its management team (Parker, 2020). The employees of the company were busy formulating strategies that will help them and the organisation in achieving sustainable and inclusive growth in the business environment which has been impacted severely during the pandemic.  There has been a huge pressure from the consumers and the customers who wanted to be associated with the companies in the process of formulating strategy to also make a positive difference (He and Harris, 2020). Air Asia was much more focused on accelerating inclusivity and sustainability by having an awareness of real challenges and by committing to various changes that has been encountered by the organisation where they are allowed to reward the change and the employees who were working towards mitigating it by providing them with proper training and development so that they can help in facilitating the change in a systematic way. 

Conclusion

So, from the overall study which has been done above can be concluded that due to pandemic most of the companies have gone through tremendous changes which are notably negative. The study has also revealed that the selected company Air Asia has been went through financial losses which have been recovered by using various strategies. With the help of the study it has been also identified using proper strategies and considering both leadership and human centric focus helps in achieve the desired notion. 

Also from the study it has been recognized that whenever a company implements new strategies to overcome the challenges they have to face both negative and positive consequences which happens same with the Air Asia. Considering the strategy which has selected by Air Asia of raising fund and creating good environment for the workers it has helped the management to deal with the challenges to a great extent. Considering the negative effect it can be said that the credit which they have taken they have to repay it again which is again a struggle for the company. 

References

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Berhad,AirAsia , 2022. ABOUT AIRASIA. [Online] Available at: https://newsroom.airasia.com/about-us [Accessed 04 April 2022].

Burgos,Jonathan, 2021. AirAsia Sees Robust Recovery Next Year As Cash-Strapped Airline Raises $233 Million From Rights Issue. [Online] Available at: https://www.forbes.com/sites/jonathanburgos/2021/12/30/airasia-sees-robust-recovery-next-year-as-cash-strapped-airline-raises-233-million-from-rights-issue/?sh=72008d5e2dc0 [Accessed 25 April 2022].

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