This document contains an essay analyzing the management approach of AirAsia. It begins with an introduction stating that AirAsia uses a contingency management approach to address business issues as they occur rather than using a rigid system. The next section discusses how AirAsia aims to be flexible to meet customer needs using a balance of internal and external factors. It shows how AirAsia applies some classical and behavioral management approaches, such as minimizing costs, maximizing resources, and maintaining employee motivation and integration. The conclusion restates that AirAsia's contingency approach connects internal and external factors for success. It also includes a SWOT analysis of AirAsia's strengths, weaknesses, opportunities, and threats.

1. QIBT
1001IBA
Essay title: Management in practice in AirAsia
Class 54
Tutor: Dr Evelyn Anderson
Student name: Alexander Daniel Gonzalez
Student Number: GONAD1403
Due date: 23th
Jule 2015
Total words: 300 (+ - 10%)

2. I
TABLE OF CONTENTS
CHAPTER TITLE
PAGE
Table of contents……………………………………….……………………………………………………………..I
1. Introduction………………………………………………………………………………..……………………………1
2. Management approach…………………………………………………………………………………………….1
3. Conclusion……………………………………………………………………………………………………………..1-2
4. SWOT analysis………………………………………………………………………………………………………….3
5. References………………………………..………………………………………………………………………………5

3. 1
1. Introduction
AirAsia management operates particular business issues as they occur. Therefore, AirAsia is
not using a rigid system to manage the enterprise. This report argues that AirAsia mainly
uses contingency management approach, which is explained below. Secondly, it will be
shown how classical approaches fit into this approach. Finally, it will demonstrate some
examples of how AirAsia uses classical and behavioural approaches in order to improve the
enterprise's management.
2. Management approach
AirAsia aims to be flexible in order to meet customers’ needs and wants as the main goal. A
good balance between internal management and the external environment will result in
better efficacy. According to Parr (1992), steadily learning the best value for customers and
the firm, as well as constant advancement in organisational design must be the focus of
main tasks in the new paradigm. The AirAsia paradigm or model consist of having minimal
structure in order to be cheaper and meet customer expectations. AirAsia also duties the
position of employees as an access to the best possible results. Additionally, Mr Fernandes
is committed with many tasks in the company, such as baggage handler, cabin crew or
check-in clerk (Schermerhorn, Davidson, Poole, Simon and Wood, 2014). This can be
explained as the core of the essential business suprasystem. As mentioned by
Schermerhorn, Davidson, Poole, Simon and Wood (2014), in classical approach, the
orientation must be saving costs and maximising resources and workers. Finally, AirAsia
maintains a great feeling toward integration of all their employees, which is strong
behavioural approach.
3. Conclusion
In conclusion, dealing with AirAsia management becomes easier if the firm is adaptable to
the circumstances. Additionally, it has been shown how contingency approach is used in

4. 2
order to make good connection between internal and external factors. Finally, AirAsia
applies small sights both classical and behavioural approaches, saving in costs, and keeping
good motivation as well as integrity in its path to success.

5. 3
4. AirAsia SWOT analysis
STRENGHTS WEAKNESSES
- Cheap operator.
- Good performance in management with a
small structure.
- Tries in new trades.
- Good performance in staff.
- Minimize costs in order to get cheaper
prices.-
- Very limited service.
- Scarcity of workforce for dealing with
unusual issues.
- Regulations and government intrusion.
- Bad location out of main airports.
- Brand is essential and development
always the goal.
- Strongly linked to outsourcing.
- New ways to develop price services
consciously.
OPPORTUNITIES THREATS
- Long flight can be a challenge to achieve
new markets.
- Add new customer assistance or/and
services.
- Consolidation has got new flights and
airport deals.
- Expensive prices in fuel wear down our
weaker competitors.
- Other competitors start to cut costs.
- Entry of new low cost airlines.
- Fuel decrease performance.
- Natural disasters, accidents or terrorist
attack.
- Government laws and aviation policies
and regulations.
- Increase in costs for services of value-
added.
- Dependence on online purchases of
flights.

6. 4
5. References
Parr, W. (1992). A new paradigm for management. Survey of business, 28(1). 18-21.
Schermerhorn, J.R., Davidson, P., Poole, D., Simon, A., Woods, P. & McBarron, E. (2014).
Management: Foundations and applications, 2nd
Asia-Pacific Edition. Milton Qld:
Wiley.