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Name : Revathi A/P S.N.

Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

Case Study 1: Air Asia plan to be regions biggest carrier a) AirAsias competence: A low-cost no frills airline, with an extensive regional network in Asia that caters people of all income levels. AirAsias core competence: Offers low-cost and affordable airfares Offers in-flight services that promote Malaysian hospitality and a huge variety of the local food. Offers internet and mobile services as mediums for check-in and booking. AirAsias distinctive competence: A low cost carrier which offers five-star service where everybody can fly. b) i) Business model focuses on how to make money in a particular business and the capability of achieving good bottom line results. It also indicates whether revenues and costs came from the planned business strategy can be sufficiently profitable and feasible. ii) AirAsias business models: Fast turnaround times, for full utilization of aircrafts. Land at smaller uncongested airports, which incur a lower landing fee. Direct sales of tickets, to avoid fees and commissions charged by travel agents. All passengers sit in the same class. Free seating encourages passengers to board early and quickly. Aggressive fuel hedging programs. Uses one type of aeroplane only (A320), thus reduces training and maintenance costs. Minimal set of optional equipment on the aero plane, eliminating luxury and optional equipment to reduce costs. Profit from in-flight sales/services such as ala carte food sales, and commission based

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

products like AirAsia t-shirts and souvenirs. Employees working multiple roles; flight attendants are also in charge of cleaning the aircraft and work as gate agents, hence personnel costs are reduced. Offer various promotions frequently that attract customers like the RM 0.99 ticket promotion.

c) Three specific defensive actions taken by AirAsia: AirAsia is in the lookout for potential joint-venture opportunities like in Philippines and Vietnam where there are symbiotic benefits for the parties involved. By jointventuring, AirAsia can penetrate the market in other countries by covering more routes, sustaining and strengthening the firms position as a low cost carrier. AirAsia plans on introducing more routes add frequencies and develop existing ones. This will fortify AirAsia hold on the budget carrier market as its network is vastly expanding to other major cities, providing access to more locations while maintaining the low ticket price. Air Asia also have worked to build the necessary foundation for the airline, namely in terms of network and the brand as low-cost carrier, and they already acquired the aircraft to support their growth. Air Asia already publicly recognized as the fastest growing low-cost carrier in history which influenced challengers to aim their efforts at other rivals.

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

Case Study 2: Glomac Reviewing property Launches a) Competence: Preserving a developing land for township, residential and commercial purposes, targeting medium and high-end projects in the areas of Klang Valley and Kuala Lumpur. Core competence: Projects done by Glomac are sold out upon being launched. Develop properties that are highly in demand (strategic location), since the projects being done had not been badly affected by the currents situation of economic turmoil. Specializes or have expertise in residential, township and commercial development. Distinctive competence: Glomac has 1000 acres of land bank, and with gross development worth about RM 3.5 billion. b) Opportunities: Since Glomac is generating growing revenue, the firm can attain better access in the technology, research and development, qualified personnel and etc. to strengthen their bargaining power amongst other property developing companies. Unstable economy may cause smaller firms to drop out of the market, giving way for Glomac to conquer and gain control of the segment. The firm can expand their business by penetrating the market in the Middle East by joining ventures with Al Batha Group of the United Arab Emirates.

Threats: Recession period could adversely affect the sales of Glomacs projects, since the number of potential buyers will decrease as people will prefer low-cost properties, thus lowering the bargaining power of the firm. Unstable oil price may increase the costs of the material and machinery used.

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

Economic turmoil may lead people to purchase properties or housing areas on rental instead of purchasing the unit. The business of Glomac which is focused more in Klang Valley area have a risk of the natural disaster such as landslides and floods that occur occasionally. Destruction of the property will of course means more cost in redeveloping the land.

d) i) Glomac continues to launch its high-end niche products as the take up rate of such projects had not been as badly affected by the current situation (inflationary pressure and slowdown in demand) in the market. By having this differentiation factor, Glomac will be able to command a premium price, increase unit sales and build the brand loyalty thus resulting in having a competitive advantage.

ii) For residential properties, people would be interested in buying land that is convenient. Saying this means the land has to be close to places with job opportunities, recreation, entertainment and commercial values. Thus three applicable niche strategies for Glomac in view of the current challenging environment are: Shopping complex where residents can go there to purchase supplies or to find entertainment. Office/shop buildings will increase the job opportunity in the area thus attracting people to stay in the residential area close by. Sport complex to carry out recreation activities and great hall to conduct events such as birthday parties and weddings.

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

Case Study 3: Bumpy Road ahead for Transmile a. In your opinion, what are the key success factors (KSF) for the future growth of Transmile Group in air express transport services industry? Explain Key success factors (KSF) refers to the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities that are necessary for competitive success by a firm in an industry. In the case of Transmile, it requires to hire a management team who has the capability to deal with challenging business environment and global financial crisis. Hiring professional advisers to study the underlying problems and come up with new strategies can turn around the company. This because behind each successful company stands a flexible team that can efficiently turn vision into a growing business. Another key success factor is Transmile require is to make sure that the company shareholders equity not falls less than 25% to in or der to get trust and support from bank. Apart from that, another key success factor is Transmile can expand the groups business if they managed to look for new routes to expand their service. b. Turnaround strategies are needed for Transmile since it has making lost profit and fallen shareholders equity for the last 3 years of its operations. Explain two (2) main causes of their business trouble. One of the main causes of their business trouble is the larger scale accounting fraud discovered in 2007 when the company was under a different management team resulted in the groups poor credit ratings persisting to this day. Besides, this mismanagement caused banks to loss in trust upon the company which consequently cause banks to only provide support to the company at certain extent. Another causes of business trouble is the challenging business environment as a result of the slumping demand for Transmiles service which cause the firm to dispose some of its assets in an effort to streamline its operations also ended in deadlock.

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

c. Explain what are the FIVE (5) actions of Mr. Liu Tai Shin as Transmiles managing director in leading the effort to good strategy execution process of business turnaround? i. Mr. Liu Tai Shin waiting for professional advisers to study underlying problems and come up with new strategies to turn around the company. ii. Transmile currently boasts strategic landing rights in Asia-Pacific region, including countries like China, Japan, Thailand, Singapore, India, Indonesia, Taiwan, Sri Lanka, the Philippines, South Korea, Myanmar and Cambodia. iii. Mr. Liu Tai Shin hire a management team that can be trustworthy as well as can contribute efficiently turn vision, mission and objective into a growing business. iv. Transmile continuously look for new routes to service as part of its efforts to expand the groups business. v. Mr. Liu plan to dispose of some of its assets in an effort to streamline its operations.

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

Case Study 4: Haier on a differentiation drive a. According to Haiers president, many people have negative perception China-based companies but yet haier able to be ranked No. 1 in home appliances recently. In your opinion, what are the key success factors (KSF) of Haiers products? Explain. i. Product diversification and range of home appliances from LED TVs to blenders. ii. Products design based on the certain niche market demand. For example, for American families, Haier offer 500 cubic liter refrigerators that include a pull out drawer big enough to store a turkey. iii. iv. Products with international standard quality Provide reliable customer service

b. Write down THREE (3) strategic objectives of Haier in Malaysia in order to achieve 50 percent growth in sales. i. ii. iii. create new and creative items Capitalize administration focuses without bounds Concentrate on development to make items and after-deals

benefits more available to clients.

c. Identify THREE (3) strategy elements that are well-suited for Heir that is in matured industry of electrical appliances. i. Arenas - The particular geographic markets and the channels and quality chain exercises in those business sectors. ii. Differentiations - How being universal separates the association from contenders, makes items or administrations more magnetic to future clients, and fortifies the viability of the separation in the picked coliseum. iii. Staging and pacing - When you begin growing, how rapidly you stretch and the arrangement of your development deliberations.

Name : Revathi A/P S.N.Pattu ID : 14981 Course: BIS Strategic Management Individual Assignment

d. Which one of the following best describes the strategic approach, Haier is taking in trying to compete successfully on an international basis? (a) Think local, act local (b) Think global, act local (C) Think global, act global

Heir is taking in Think global, act local strategic approach to compete successfully on an international basis. i. Explain your answer and indicate TWO (2) elements of Haiers strategic approach to competing in many different geographic regions. Haier is organization working on worldwide scale, the most well-known comprehension and requisition of Think Global, Act Local is to expand on a solid worldwide brand and stable of items by adjusting to nearby societies and business requests, as it were, customizing items and administrations to help. One of the components of Heir's vital methodology to contending in numerous distinctive geographic districts is coliseums. Enclosures are regions in which a firm will be dynamic. Choices around a company's stadiums may envelop its items, administrations, conveyance channels, business portions, geographic ranges,

innovations, and even phases of the worth creation process. Subsequently, Heir require to consider which item classifications, business sector fragments need to be think and most suitable for specific range. Case in point in Pakistan Heir outlined a super vast clothes washer that can wash 32 robes immediately. An alternate technique component is differentiators. Differentiators are characteristics and qualities of an organization's item or administration that helps it beat its rivals in the commercial center. Firms might be fruitful in the commercial center along various basic measurements, including picture, customization, specialized prevalence, value, quality, and dependability. Heirs do produce items dependent upon certain corner business request.

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