DIPLOMA IN MANAGEMENT

SEMESTER MAY 2023

BDOE 4103

ORGANISATION AND ENVIRONMENT

NAME : MUHAMMAD SYAFIQ SOBRI

MATRIKS NUMBER : 000321090167001
IC NUMBER : 000321090167
PHONE NUMBER : 0135251878
E-MAIL : syfiqsxbri@oum.edu.my

LEARNING CENTRE : ALOR SETAR LEARNING CENTER

 INTRODUCTION

Malaysia-based AirAsia is a prominent low-cost airline. Here is an overview of the

organisation:

Name: AirAsia Berhad

Industry: Aviation/Airline

Headquarters: Kuala Lumpur, Malaysia

Founded: 1993

CEO: Tan Sri Tony Fernandes (as of September 2021)

AirAsia was founded as a government-owned, full-service airline in 1993. In 2001, the airline
encountered severe financial difficulties and was acquired by Tune Air Sdn Bhd, a
consortium commanded by Tony Fernandes. AirAsia undertook a transformation and
relaunched as a low-cost carrier on December 8, 2001, under new management.

The objective of the rebranding was to make air travel more affordable and accessible to
the general public. AirAsia employed a no-frills business model, streamlining operations,
removing traditional services, and concentrating on offering competitive fares. This strategy
enabled the airline to rapidly expand and acquire a substantial market share in Southeast
Asia. AirAsia has grown considerably since its relaunch and is now one of the largest low-
cost airlines in the world. The AirAsia Group operated several subsidiaries as of my most
recent knowledge update in September 2021, including AirAsia Malaysia, AirAsia Thailand,
AirAsia Indonesia, AirAsia Philippines, and others. In Asia and beyond, these subsidiaries
served both domestic and international routes.

AirAsia is a low-cost carrier operating within the aviation industry. The airline's primary
objective is to provide passengers with affordable air travel options. AirAsia seeks to make
air travel accessible to a larger segment of the population by providing affordable fares, a
diverse network of destinations, and a streamlined customer experience. The airline employs
a point-to-point network, connecting multiple cities and destinations without requiring a
traditional hub-and-spoke structure. AirAsia caters primarily to leisure and budget-minded
travellers, providing a basic level of service while enabling passengers to select additional
services and amenities based on their preferences.
 AirAsia has expanded its operations, introduced new routes, and embraced digital
innovation to improve the consumer experience. Additionally, the airline has expanded into
related industries such as e-commerce, financial services, and lifestyle products.
ECONOMIC AND SOCIAL WELFARE POLICIES

The 20th century brought about a great many improvements that benefited people all around
the world. The residents of a developed industrial nation will often be provided with their
own specialized social service system by the government. Our nation has made enormous
strides towards improving the level of social welfare in a variety of contexts, and these
advancements will continue to be made in tandem with the expansion of our economy, by
implementing policies to achieve the objectives.

One of the implemented economic policies is Economic Transformation Program (ETP). It is

an initiative by the government implemented in 2010 with the objective to push Malaysia
transforming into a high-income economy by the year 2020. The government targeted that the
policy will help Malaysia to lift the gross national income (GNI) per capita from USD6,700
or RM23,700 in 2009 to more than USD15,000 or RM48,000 in 2020. To ensure that the
policy will be successful, Malaysia will need to hit GNI growth of 6 percent per annum.
Along the way, the services sector will be estimated to grow from 58 percent to 65 percent in
the same period and about 3.3 million new jobs will be created across the country.

The policy mainly focused on a few key growth engines: the 12 National Key Economic
Areas (NKEAs). These NKEAs are expected to make substantial contributions to Malaysia’s
economic performance, and they will receive prioritised public investment and policy
support. The ETP will be led by the private sector and receive guidance by the government.
Most of the funding will be funded by the private sector around 60 percent, another 32
percent from government linked companies, and the remaining 8 percent from the
government. In May 2010, a Thousand Person Workshop was run to help identify the 12
NKEAs. The private sector continued to play a large role, when the labs began in June, with
500 of the best minds from the private sector (350 persons from 200 different companies) and
the Government (150 persons from 60 different public institutions, ministries and agencies)
coming together to develop plans for the 12 NKEAs. Among the 200 companies that joined
the lab, Air Asia is one of them.

Malaysia’s government also managed to come up with a social welfare policy named
Malaysian Vision Valley (MVV). It is a development project focused mainly on Negeri
Sembilan. The 30-year-mega project handed by Sime Darby Property Bhd is going to develop
an area of 379,000 acre that covers the land from Sepang in Selangor to the districts of
Seremban, Nilai, and Port Dickson. In 2015, Sime Darby Property Bhd owned 2,838 acres of
land and planned to acquire another 8,796 acres from Sime Darby Bhd and Sime Darby
Plantation Bhd by 2020. The MVV is estimated to generate a gross development value
(GDV) worth RM640 billion and will be attracting investments of some RM300 billion and
create about 1.4 million jobs. The focus of MVV is to decentralize the Greater Kuala
Lumpur, with a population of two million. To achieve that, the government will be focusing
on providing affordable homes with well-planned and orderly facilities such as public
facilities and recreational areas with green spaces. In addition, the federal government also
has plan on constructing several infrastructure projects, including upgrading the Nilai-Pajam
stretch to the Kajang-Seremban highway, constructing a new road from Sendayan to Tanah
Merah Site A as well as the KLIA-Labu-Seremban-Port Dickson rail link, and restoring an
abandoned 39km-long Seremban-Port Dickson railroad.
THE IMPACT OF THE SOCIAL WELFARE POLICY ON
BUSINESSES
SUGGESTIONS FOR ORGANISATION’S CHARITY AND
STEWARDSHIP-PRINCIPLED SOCIAL RESPONSIBILTY
PRACTICES
SUMMARY
PART II: ONLINE CLASS PARTICIPATION