Business Management Issues – Strategic Analysis of AirAsia

Assignment Task

You are required to:

Select a real organisation (preferably your own company or a Malaysian-based organisation) and identify a current and complex business issue related to one or more of the following:

• ESG / sustainability pressure
• Governance challenges
• Digital transformation
• Economic or regulatory changes

The issue must:

• Be strategic and ambiguous
• Involve multiple stakeholders
• Require decision-making under uncertainty

Structure Of Assignment

Part A: Context & Problem Framing (15%)

Clearly define the business issue by:

• Explaining the organisational background
• Identifying the problem with clarity and depth
• Supporting with real data (financial reports, industry data, policies)
• Linking the issue to global and local trends (economic, technological, political)

Part B: Stakeholder & Sustainability Analysis (15%)

• Identify key stakeholders (internal & external)
• Analyse their interests, power, and influence
• Evaluate impact using ESG / sustainability lens
• Highlight conflicts, tensions, and trade-offs

Part C: Analytical Framework Application (40%)

You MUST apply at least FOUR frameworks:

• PESTLE (macro-environment analysis)
• MOST (strategic alignment)
• BPM or Design Thinking (process or customer perspective)
• CBA (financial justification)

Requirements:

• Integrate insights across frameworks
• Show causal relationships
• Demonstrate critical reasoning and evaluation

Part D: Governance & Strategic Evaluation (15%)

• Evaluate governance implications:
  o Leadership decisions
  o Board structure/diversity
  o Stakeholder alignment
• Analyse:
  o Risks
  o Ethical concerns
  o Long-term sustainability

Part E: Strategic Recommendations (15%)

Propose actionable strategies that:

• Address the core issue
• Include:
  o Trade-offs (what is sacrificed?)
  o Implementation plan
  o Risk mitigation

Data Requirements

You MUST:

• Use real and recent data:
  o Annual reports
  o Industry reports (IMF, World Bank, etc.)
  o Policy/regulatory documents
• Apply APA referencing style
• Avoid unsupported claims

Deliverable Format

• Individual assignment
• 4,000 – 6,000 words
• Professional report format:
  1. Executive Summary
  2. Introduction
  3. Analysis Sections
  4. Strategic Recommendations
  5. References
• Include:
  o Tables
  o Figures
  o Framework diagrams

Experts Answer on Above Questions on AirAsia Strategic Analysis

Analysis of business issues

The organization selected for analysis is AirAsia and the current business issue faced by the company is balancing its digital transformation and sustainability goals during the time of increasing competition in Southeast Asia along with recovering from its rising operational cost post Covid 19 recovery phase.

Organisational background

AirAsia is known as one of the leading low cost airlines of Malaysia that operates throughout Asia offering Aviation and digital businesses.

Problem identification

The main problem with the company is to make significant investment in digital technologies and undertake sustainability initiatives, and at the same time remain competitive by offering affordable ticket prices to customers.

Supporting data

The rising operational cost is evident from the increasing fuel cost because of global uncertainty.
The commitment of Malaysia to achieve net zero emissions by 2050.
Increasing preference among the customer for airline operators offering digital self service and an environmental friendly travel option.

Global and local trends

There is an increasing requirement for ESG reporting at global level, and airline companies are also making use of AI and automation to offer distinctive services to customers. The rising inflation and regulatory requirements creates additional pressure on the airlines to remain competitive.

Stakeholder and sustainability analysis

The important stakeholders include the shareholders that are interested in high profitability and growth, and have significant influence on the business. Customers expect affordable fares and service quality, and they also have a significant impact on the performance of the business. Employees consent with job security and career development while they have a medium level of impact, and the Malaysian government expects Airlines to contribute towards economic growth and has significant influence. Finally the environmental groups are concerned with reduced carbon emissions and have a medium level of impact on the operations.

ESG Impact – the airline operators have significant impact on the environment in terms of aircraft emissions and fuel consumption, while they account for a significant amount of job creation and customer safety which indicates positive social impact. From a governance point of view, airlines are expected to ensure transparent reporting and achieve regulatory compliance.

Analytical Framework application

PESTLE Analysis

The PESTLE analysis indicates that the political factor significantly influences the airline operators by requiring them to comply with regulations and carbon policies, while the economic factor effect is evident in terms of inflation and fuel price volatility. The demand for affordable travel is a significant social trend while the use of AI and automation to offer customized services indicates the impact of technology on Airlines. The legal requirements indicate a complete ESC disclosure while the environmental factor has an impact in terms of pressures on the airlines to reduce emissions.

MOST analysis

The mission of Air Asia is to democratise air travel while the objective has been to increase profitability and sustainability performance. From a strategy aspect, AirAsia aims at digital transformation and operational efficiency while the tactics include aI powered customer service and fuel efficient operations.
Design thinking – It is important to identify the customer expectations from booking and travel, develop digital self service solutions aimed at exceeding travellers expectations.

Cost Benefit Analysis (CBA)

In the digital transformation process, the cost to AirAsia is in terms of technology investment which will benefit from lower operating cost. The cost of additional staff training would benefit in terms of higher productivity level while the sustainability initiatives would support improved brand reputation. The increasing ESG reporting requirement benefits AirAsian in terms of improved investor confidence.

Governance and strategic evaluation

From governance aspect, it is important for AirAsia to maintain a proper balance between short term profitability with long term sustainability through effective leadership. It is also important to encourage strategic decision making through board diversity, and strong stakeholder engagement is crucial in maintaining trust. The risks are failure from huge technology investment and implementation, and regulatory changes can also impact its business directly. The risks are also from rising fuel prices which act as a barrier in the process of providing affordable services. The ethical concerns would be in relation to employee displacement because of automation.

Strategic recommendations

It is recommended to implement AI driven operational management for enhanced efficiency, make investment in sustainable aviation fuel, and expand digital service platforms for better customer services.

Want Detailed Answers with References?

The strategic analysis of AirAsia as carried out above considering the ESG, governance, digital transformation initiatives and strategic tool application like PESTLE, MOST and CBA revealed significant findings leading to appropriate recommendations to the company. You can also get a similar kind of analysis for your assignment by hiring our professional assignment helper in Malaysia for all types of strategic management assignments. You can also access samples on strategic management assignment to learn the application of different tools and frameworks in performing the analysis.