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Air Asia Management Strategy Essay

7114 words - 29 pages

Air Asia – Strategic IT Initiative

Submitted by: Charles Kho Sandy Hofman Aruan Christian Tjitrahardja Ramaratnam Narayanaswamy

Faculty of Economics and Commerce University of Melbourne 2005

306-669 Strategic Enterprise Systems

Group Project

Executive Summary

IT is one of the major enablers of AirAsia’s successful low cost business model. Based on the environmental scanning performed, the demand for Low Cost Carrier (LCC) is expected to expand rapidly attracting more players to join the market thus increasing the degree of rivalry within the industry. In responding to this condition, it is imperative for AirAsia to continuously identify new sources of cost advantage so ...view middle of the document...

................ 1 Table of Content................................................................................................................ 2 1.0 2.0 Introduction .............................................................................................................. 3 Business Strategy Analysis ...................................................................................... 5 2.1 2.2 2.3 2.4 3.0 Company Background..................................................................................... 5 Mission Statement and Value of AirAsia ......................................................... 5 Business Strategy .......................................................................................... 6 Environmental Scanning ................................................................................. 7

Strategic Alignment Analysis.................................................................................... 9 3.1 3.2 Current IT Implementations ............................................................................. 9 IT Implementations and Strategic Alignment................................................. 12

4.0

Advanced Planning & Scheduling (APS)................................................................ 14 4.1 4.2 4.3 4.4 Why APS Matters and Its Role In The Supply Chain Management .............. 14 APS Development ......................................................................................... 15 Functions Provided by APS System.............................................................. 16 Benefits of APS implementation .................................................................... 16

5.0 6.0

Outsourcing ............................................................................................................ 20 Project Management .............................................................................................. 23 6.1 6.2 6.3 6.4 Planning ........................................................................................................ 23 Structure........................................................................................................ 25 Project Implementation Practices .................................................................. 27 Post-Implementation Planning Strategy ........................................................ 28

References...................................................................................................................... 30 Appendices ..................................................................................................................... 34 Appendix 1 AirAsia’s Value Chain.......................................................................... 34 Appendix 2 Sources of AirAsia’s Cost Advantages along Its Value Chain ............ 35 Appendix 3 Porter’s Five Forces – LCC Industry in Asia ....................................... 36

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306-669 Strategic Enterprise...

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