The Nature of Business and Ownership There are many types of business ownership‚ below is information about four types of businesses that I have researched. Sole trader An example of a sole trader would be Amro‚ a hair salon. It offers beauty services such as haircuts‚ manicures‚ pedicures etc. A “sole trader” business is owned by one single person‚ although it may have a number of employees. There are no legal requirements for setting up as a sole trader and the owner does not even need to
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analysis is to conduct an environmental analysis in the context of AirAsia’s international business operations‚ describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that‚ this analysis also helps to identify AirAsia’s competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato’ Tony Fernandes in 2001. In December 2001‚ Fernandes and his partners
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AIR ASIA AIRLINES COMPANY COMPANY BACKGROUND AirAsia was established by a Malaysian conglomerate in 1993 and commenced operations in 1996. In 2001‚ due to the airline heavily in debt‚ AirAsia was bought by Tony Fernandes of Tune Air Sdn. Bhd from DRB-Hicom. Tony took up the RM40million debt as part of the purchase. In 2002‚ AirAsia generates a profit and launching new routes from its hub in Kuala Lumpur. In 2003‚ the airline opened a second hub at Senai International Airport‚ Johor Bahru and launched
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Part 2 1.0 Introduction AirAsia‚ a famous low cost airline in Asia‚ as Malaysia second National Airline‚ provides a different type of service to benefit all citizens and worldwide travelers. Low cost airlines generally have several differentiate to the traditional carriers. For example‚ low cost airline implement ticketless travel‚ online ticket‚ no free food and beverages and etc. AirAsia provides low airfares flight to the travelers‚ offering 40%-60% lower than other airline. This low airfares
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Blue Ocean of Airasia: introduction Blue oceans might provide profitable high-growth for companies with new competitive advantages. Many companies over the worldhi have created blue oceans but these blue oceans only remain in a short periods and quickly become red oceans. Kim and Maugne claimed in their book that in order to have sustainable competition advantages‚ blue oceans should be different attached by low cost. However‚ the fact shows that innovations are expensive so it is difficult to
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its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US $0.27). In 2003‚ AirAsia opened a second hub at Senai Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary‚ added Singapore itself to the destination list‚ and commenced flights to Indonesia. Flights to Macau started in June 2004‚ while flights to Mainland
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External Analysis of AirAsia Perform an external analysis of AirAsia and identify possible opportunities and threats encountered by AirAsia. Industry Analysis An industry analysis was performed to assess the budget airline industry. 1. Bargaining Power of Supplier Overall‚ power of supplier is high as there are limited (availability of) suppliers (only Boeing and Airbus)‚ the switching cost is high (i.e. airplanes and their maintenance are costly)‚ and there are few substitutes for airplanes (i.e
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Analysis Strengths The achievement that AirAsia received in 2012 is the world’s best low cost airline (AirAsia Berhad‚ 2013). The strength of AirAsia is that‚ they are leading low cost airline in today’s world and have good company strategic management with a successful story in the airplane industry. Their operational strategy that they have formulated at the beginning is consistent with their company’s objectives and was well conducted. Due to this‚ AirAsia able to create strong brand equity and
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Strength and weakness of AirAsia |strength |weakness | |Low cost operations. |Service resource is limited by lower costs. | |Fewer management levels‚ effective‚ focused and aggressive |Government interference and regulation on airport deals and | |management.
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The Nature of International Business A company engages in international business when it conducts any business functions beyond its domestic borders. What kinds of business activities might make a company international? The most apparent activity‚ of course‚ is international sales. When a company produces in its own country and sells in another‚ it engages in the simplest level of international activity. However‚ as you will see in much more detail later in the book‚ crossing national borders
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