Sample Thesis Chapter 1 on Change Management in Air Asia ...

Change Management in Air Asia

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1.0 Chapter 1 Introduction

The first chapter focuses mainly on the issue that the study explored which is the change management processes within Air Asia. Main areas are covered herein including background, company overview, problem, aims and objectives and importance of the conducted study as well as scope and limitations. In this chapter, the researcher established the need to explore the subject in an organisational context.

1.1 Background

The world of business is facing different changes in the environment which create opportunities and threats. As a result, businesses make changes in different processes that are related to work place more abruptly and often compare before. Currently, the business world is facing different changes that are related to technology, regulation and competition and economic condition which affect the perceptions and behaviour of the customers and other stakeholders of the company.

??????????? Due to this, change is considered as inevitable in the world of business, because change constitute growth and development. According to Peter Drucker, any change in any organizational culture and management is considered as normal and healthy. It will be impossible for any business to grow and improve without improving any changes in order to cope with the changes happening in the environment it?s operating. Any change to be done inside and outside the organization can help the entire organization to adjust to the current situation of the market and industry. Therefore, it is important to consider that change is the most important decision of the top level management of different companies.

??????????? Change is inevitable, particularly in the world of business. Change can cause both positive and negative results for any company. First, change means growth and improvement, thus it can help companies to focus on the different threats and opportunities which can be implemented and prevented inside the organization in order to ensure success and maintain position in the market and industry. On the other hand, change can also cause negative results for any company, particularly in the aspect of management. It can cause huge amount to be spent, at the same time great effort to be exerted in order to ensure that the change will not affect the behaviour and attitudes of the employees and other important stakeholders towards the company.

This paper focuses on how Air Asia implements change management, by what nature and its dynamics. Air Asia commits itself to strengthening the brand, widening portfolio and delivering high level of customer service. Because of the dominance and leadership of Air Asia in different consumer travel categories, it is important for the company to focus on the improvement to be done in its overall operation. The company focuses on adopting new changes and seizes new opportunities that the company created.

1.2 Overview of the Company

??????????? Air Asia refers to a Malaysia-based airline that is a pioneer of low-cost air travelling. As such, Air Asia is the largest low-fare, no-frills airline with a record of $0.035/seat-kilometre operating cost in 2010, operating scheduled domestic and international flight to over 400 destinations that span across 25 countries. Air Asia?s main hub known as the Low-Cost Carrier Terminal (LCCT) is situated in Kuala Lumpur International Airport (KLIA).

??????????? ?Air Asia envisions itself ?to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares?. According to the company, the low fare model is made possible by the implementation of key strategies. Included in these strategies are safety first; high aircraft utilisation; low fare, no frills; streamline operations; lean distribution system and point to point network.?

1.3 Statement of the Problem

??????????? The following questions are given answer to in the next chapters of this study:

1)??? What are the commonly implemented changes within Air Asia?

2)??? What are the processes involved in the changes occurring within Air Asia?

3)??? How does the company address the tradeoffs of the changes implemented within Air Asia?

4)??? How does the company prepare for the impending changes within Air Asia?

5)??? How does the company evaluate the success of the changes implemented within the company?

1.4 Aims and Objectives

One of the important characteristics any company is its ability to cope with change. What are the different changes that help that help the company to improve its performance is explored in this study. Further, there is the need to determine the willingness of Air Asia to unlearn habits as well as assumptions that were rapidly becoming obsolete and challenge traditional skills as well as strengths. However, there is also a need to determine the various problems or threats that might affect the operation of the company because of the change. In lieu with this, there is a need to evaluate the systems of change and the processes employed by Air Asia. How Air Asia evaluates the change employed is also investigated in this study.

1.5 Importance of the Study

This study will be a significant endeavour in promoting effective change management processes within the airline industry. In addition, this study will provide recommendations to airline companies like Air Asia on how it can further make sense of the organisational changes. The findings of the study may result in rethinking the airline industry as a whole and how it approached the change management process. On the other end of the spectrum, other airline companies can learn from Air Asia on how to effectively change organisational processes.

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