1. Abstract
This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model. The main outcomes of the report are:
1.1 Conclusions reached:
1.2 Recommendations reached:
2. Introduction
The company chosen for this report was AirAsia. The assignment required that:
• A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess the impact of external and internal factors on the organization and evaluate the organization’s responses
• In relation to technological change, analyze how it influences policies and decision making, critically evaluate the effectiveness of the …show more content…

• Terrorism has occurred in Thailand and Indonesia; most notably the Bali bomb of 2002.
• AirAsia holds 49% of Thai AirAsia with 1% held by a Thai individual. The remaining 50% is held by Shin Corp., owned by the former Thailand prime minister, Thaksin Shinawatra. Shin Corp. has financial strength, synergy in information technology and telecommunications, which support AirAsia Internet and mobile phone bookings. • National trends:
- Malaysia's economy may expand as little as 4 percent in 2009, growth will probably be between 5 percent and 5.5 percent this year, below the official 2008 forecast of 5.7 percent. (v)
- Real GDP % Growth forecast is from 5.1 in 2008 to 1.4 in 2009. (vi)
- Interest rates % dropped from 3.5 in Jan.2008 to 2% in Jan.2009. (vii)
- The inflation rate may fall below 4 percent before the second half of 2009. (viii)
- Unemployment has remained constant at an average of 3.6% in July 2008 to 3.1% in Oct.2008. However, the global credit crisis has raised fears that “the unemployment rate could double to 6 per cent by 2010 if global demand remains weak”. (ix)
• International trends:
- Malaysia ranks 20th for its ease of doing business out of a total of 181 economies surveyed in the World Bank Doing Business 2009 report. (x)
- International global credit crisis has resulted in increasing unemployment and ‘global trade will shrink by 9 percent this year’ (xi)
- Asian governments are defending less national-flag