its all about the growth of airasia and how the survive in order to remain at the top

1. PREPARING FOR AND EVALUATING THE CHALLENGES OF GROWTH ON AIR
ASIA
PREPARED BY

2. CONTENT
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History
Product and services
Things air Asia can do to prepare for growth
Warning signs that AIR ASIA is growing too fast
Reasons for growth in air Asia
Stages of growth
Challenges of growth in air Asia
Conclusion
references

3. HISTORY OF AIR ASIA
• Asia's leading airline was established with the dream of
making flying possible for everyone. Since 2001, Air Asia has
swiftly broken travel norms around the globe and has risen to
become the world's best. Air Asia was named the World’s Best
Low Cost Airline in the annual World Airline Survey by Skytrax
for five consecutive years in 2009, 2010, 2011, 2012 and 2013
and has been ranked Top 5 among the most recognized and
admired airlines in the Asia Pacific Top 1000 Brands 2008. With
a route network that spans through to over 20 countries, Air
Asia continues to pave the way for low-cost aviation through
our innovative solutions, efficient processes and a passionate
approach to business. Together with our associate companies,
AirAsia X, Thai AirAsia, Indonesia AirAsia, Philippines' AirAsia Inc
and AirAsia Japan , AirAsia is set to take low-cost flying to an
all new high with our belief, "Now Everyone Can Fly".

4. AIR ASIA PRODUCT AND SERVICES

5. THINGS AIR ASIA CAN DO TO PREPARE FOR GROWTH
Know what growth means for you and your company.
To prepare for something, you have to know what it is and how you'll recognize it. Growth is more
than just hitting a set of numbers--it's a package that includes changes to your company in terms of
operations, production, staffing and facilities. In addition, think about what growth means to you
personally. What will your life be like when your company grows and profits increase? How hard are
you going to have to work? Are you ready and willing to do what it takes?
Maintain relationships with your funding sources.
The faster you grow, the more cash you're likely to need. Growth financing is every bit as hard--if
not harder--to obtain than startup funding. Do regular cash-flow projections so that you know how
much credit you're going to need well before you have to start writing checks. Develop and
maintain strong relationships with your funding sources and be sure to have primary and backup
sources available. In today's financial climate, it's harder than ever to predict credit availability, so
stay on top of your cash and financial needs to give yourself have plenty of room to maneuver
when it's time to borrow.
Get comfortable being in the spotlight.
Successful owners of growing companies are almost always in the spotlight to some degree-maybe not always to the general public but certainly within your industry and with your employees.
Be prepared for a level of attention that you probably haven't received before.
Hire people based on where you want to be, not where you are.
The team that can successfully run a $1 million company is not the same team that can run a $100
million company. If your goal is growth, hire people who can perform in the size company you want
to be--they'll help you get there.
Put the right people in the right places.
The right people doing the right jobs is absolutely critical to sustain growth. Whole person
assessments and job benchmarking will allow you to take a systematic approach to hiring and
career development, which will reduce your mis-hires and employee turnover.

6. THINGS AIR ASIA CAN DO TO PREPARE FOR
GROWTH CONT’D
• Take care of your people.
Your employees are what keep you successful. Recognize and reward that. Working in a highgrowth organization is stressful and challenging. Take note of your employees' work and
respond appropriately, or risk losing top talent. Create an environment where people are willing
to work through the growing pains. In addition, take care of your suppliers, professional advisors
and anyone else who can have an effect on your operation.
• Listen to the experts.
You may be an expert in your business, but you don't know it all. What's more, there often will be
experts who know more about particular parts of an industry than the insiders. Identify the
experts, listen to them and learn from them. Let them help smooth out your learning curves and
keep you on your growth track.
• Stay close to your customers.
No company can do without customers, and if you don't stay close to them, you'll lose them.
Know what they need, but more important, know what they want and do everything you can
to give that to them. Most important, communicate. Never let your customers wonder what's
going on. Tell them--whether it's good or bad.
• Focus on your core business and don't get distracted.
Stick to the business your company knows best. Be sure any diversification or product line
expansion you do makes sense. If it has nothing to do with your core business don't get into it
just because it seems like a good opportunity. Otherwise, you'll you confuse your customers and
your employees--and you'll likely find that dividing your efforts reduces the quality and
profitability of everything.
• Just as you plan for when things go wrong, also plan for when things go well. When you're
prepared for growth, you better can manage the changes it brings and let it take you to the
goal you set when you started.
•

8. WARNING SIGNS THAT AIR ASIA IS GROWING TOO FAST
But there is such a thing as a business growing too fast. When that happens, it can be bad news for air Asia. They
could run out funds to keep supplies in stock. You could run out of manpower to fulfill client requests or orders. And
once you hit a major snag, the effects can ripple throughout the rest of your business.
So how can you tell if your business’s growth is getting out of control? Watch for these signs.
You need to borrow to make ends meet: When your outgoing cash flow isn’t matched by your incoming cash flow,
you’ve got problems. And relying on your business or personal credit to make up the difference is a bad idea. What
happens if you need unforeseen electrical repairs in your planes or to get a new air-plane and you have no
available cash to pay for it? Borrowing money is a sure sign that you’re growing before your business is ready.
Your employees are over-worked and unhappy: Are you asking too much of your staff, forcing them to work
overtime or work on projects outside their field? It might be time to take a step back and re-evaluate the products
and services you are offering. Focus on providing a few services really well and make sure employees get the down
time they need.
Complaints are mounting: One of the first things that happen when a company gets too big, are they have to cut
corners when it comes to customer service. When this happens, complaints will rise. Not only will the volume of
customer service issues increase, but word will start to spread about your business’s incompetence. It’s imperative
that you nip this problem in the bud before the damage becomes irreversible.
Your profit margins are too tight: Small profit margins mean less wiggle room when things get tough. Small errors in
accounting or unforeseen expenses can be disastrous. If you notice that your profit margins aren’t leaving you much
of a cushion, there’s a good chance you need to scale back on your operation.
You can’t remember the last time you saw daylight: Everyone needs time to relax, including the boss. If you’re
working seven days a week and spending every minute of daylight in the office to keep up with the growing
demands of your business, that’s not good. If you’re not burned out already, you will be very soon. When business
owners deny themselves much needed R&R it’s usually because they’re spreading the business beyond its
reasonable limits based on available manpower.
Growth is good, but it’s important that you’re reasonable about your expectations and your timeline for getting
there. To prevent you from suffering the consequences of growing too big too quickly, set reasonable goals and
develop a plan for responsible growth.

9. REASONS FOR GROWTH IN AIR ASIA
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Attract and retain talented employees: growth is a firm’s primary goal to generate
promotional opportunities for employees
Accommodate the growth of key customers: they are compelled to grow to
accommodate the large numbers of important customers
Influence, power and survivability: larger businesses usually have more influence and power
than smaller firms.
Market leadership: occurs when a firm holds the number one or the number two position in
an industry in terms of been the best among the rest
Economies of scales: occurs when increasing production lowers the average cost of each
unit produced and meeting the needs of customer
Economies of scope: occur when the scope of a firm’s operations creates efficiencies.

10. HOW DO AIR ASIA MANAGE THEIR
GROWTH
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2.
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Create a Scalable Management Model: they remained constant in their activities by
meeting the needs of customers and making sure everything is in order
Define a Quality Control System: As your company grows you must make sure that the
quality of your goods or services is maintained despite its increasing size. As such, you
must determine what elements should exist in a quality control system and then assign
the responsibility of maintaining that quality to someone within your management
model.
Execute the Systems 100 Percent of the Time: Now that you have created a scalable
management model with a defined quality control system it’s time to make sure it is
executed to perfection.
Listen to the Numbers. Numbers Do Not Lie: Lastly, even when you set up the systems
and grow management and quality control systems in pace with your organization’s
growth you must still always be mindful of the numbers. Numbers don’t lie. If used
properly, they will tell you where additional oversight or changes are needed within your
organization to increase efficiency, sales, and quality.

11. STAGES OF GROWTH
Early growth: two things happen in this stage, either
the person starts working on the business rather than in
the business and formalities i.e. procedures and
policies are developed
Continuous growth: decisions takes place and the
business will start developing related products and
services
Maturity: this is where the growth of the business stall
and also focused in managing efficiently than
developing new products
Decline: it is not inevitable that a business enter the
decline stage

12. CHALLENGES OF GROWTH IN AIR ASIA
Mergers & Acquisitions: Merger & Acquisition strategies
for growth can be significantly improved in their
effectiveness with the Market Engineering system.
 New Product Launches: Many new products are
launched into the marketplace with little prior planning.
Market Engineering can ensure that your organization is
fully equipped to address all aspects of a new product
launch.
 New Growth Opportunities: The demand for growth is
endless. Market Engineering can help identify and rank
the most promising growth opportunities available.
 R&D Idea Evaluation: New ideas are often presented by
the lab based entirely on the development of a new
technology without regard to the customers, market, or
competition. By adding the market perspective, you will
greatly improve your probability of success.

13. CHALLENGES OF GROWTH IN AIR ASIA
CONT’D
Problems with Competitors: Occasionally, a competitor begins to
create significant problems for your company and the market.
Frost & Sullivan's Market Engineering Research can help you
successfully address it.
Ineffective Business Plans: In today's fast-moving and
competitive business environment, it is rare that we see an
effective business planning process in high-technology businesses.
 Lost In The Market: Being "Lost in the Market" is a problem you
are facing if your company is completely unaware of what is
going on with the competition and customers in the market in
which you are competing.
Falling or Flat Market Share: Market share is the number one
health indicator for your company. Market Engineering
techniques can help you avoid market share problems and
ensure your organization is not surprised by market share
fluctuations.

14. CONCLUSION
• The strategies of Air Asia focus more on the management and access of
information rather the creation of irrelevant airline services.
• For this reason, Air Asia has developed a unique set of guiding principles simplicity, cost-efficiency and effectiveness.
• Total commitment to these principles makes the airline services of Air Asia
very user-friendly to its customers.
• SWOT analysis of AirAsia with reference to sustainability and future growth
shows more opportunities than threats.
• AirAsia is fully determined to exploit these opportunities and convert more
threats into opportunities for success.

15. REFERENCES
• Corporate profile. (2012). Air Asia. Retrieved from
http://www.airasia.com/ot/en/about-us/corporateprofile.page
• Dr. Abang N Dahlan . (2013). Seminar 3 Topic 5
Strategy Research
• Lawton, T. & Doh, J. The ascendance of Air Asia:
building a successful budget airline in Asia. Ivey
Case Study No. 2.

16. THANK YOU !
NOW EVERYONE CAN FLY