EXAMPLE OF MNC

INTRODUCTION
Company Background

AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of Now Everyone Can Fly, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport.

Vision

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.

Mission

To be the best company to work for whereby employees are treated as part of a big family Create a globally recognized ASEAN brand To attain the lowest cost so that everyone can fly with AirAsia Maintain the highest quality product, embracing technology to reduce cost and enhance sevice levels.

 Establishment

AirAsia was established in 1993 and commenced operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB Hicom -. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner Executive TonyFernandes's company. This was after great deliberation as the initial offer was fifty sen.Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from 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 International Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. Since then, AirAsia started 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 China (Xiamen) and the Philippines (Manila) started in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai Airasia.

A new budget terminal, the first of its kind in Asia was opened in Kuala Lumpur International Airport on 23 March 2006. Built at a cost of RM108 million (US $29.2 million) and spanning some 35,000 square metres(116,000 square feet), the Low Cost Carrier Terminal (LCCT) is the new home for AirAsia Bhd.

Airbus A320 fleet

AirAsia is the largest single customer of the Airbus A320.The company has placed an order of 175 units of the same plane to service its routes and at least 50 of these A320 will be operational by 2013. The first unit of the plane arrived on

8 December 2005. On August 2006, AirAsia took over Malaysia Airlines' Rural Air Service routes in Sabah and Sarawak, operating under the Fly Asian Xpress brand. The routes were transferred back to new Malaysia Airlines subsidiary in East Malaysia, MA Swings from August 2007 since they were pulling down profits.

Subsidiaries

Thai AirAsia

Thai AirAsia was established on 8 December 2003 as joint venture with Shin Corporation. Flight operations commenced on 13 January 2004 from its base in Don Mueang International Airport. Since 25 September 2006, the airline is based at the new Suvarna bhumi Airport.

Indonesia AirAsia

AirAsia acquired the then defunct Awair in 2004 with a 49% stake in the airline. Awair commenced services on behalf of AirAsia in December 2004; full rebranding to Indonesia AirAsia was completed on 1 December 2005. The airline is based at Soekarno- Hatta International Airport with a secondary hub at Denpasar (Bali) Airport.

Leanest Cost Structure Efficient and simple point to point operations Attracting and retaining hardworking and smart people Passion for continuous cost reduction

Maximise Shareholders' Value Resilient profit growth through our lower cost base Expansion of the AirAsia network in a prudent and disciplined manner Invest and enhance the AirAsia brand to increase investors' returns

Safety Comply with the highest International Aviation Safety Standards and practices Keep operations simple and transparent Ensure the security of our People and Guests

Passion for Guests' Satisfaction Maintain simplicity in every application Practice the unique and friendly AirAsia experience at every opportunity Recognise the linkage between guests' satisfaction and long-term success

Transparency Transparency in decision-making and information sharing Optimum disclosure - higher than industry norms Timeliness in disclosing information

Human Capital Development Invest in both hard and soft skills Recognise all our People as contributors to our success Reward excellence and individual contributions Maintaining one brand across the Group

 Destinations

AirAsia domestic route map

AirAsia Group operates over daily 400 flights, with both domestic and international routes covering Indonesia, Malaysia and Thailand and with international routes, primarily from Kuala Lumpur, to Australia, Bangladesh, Brunei, Cambodia, the People's Republic of China, India, Laos, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan (the Republic of China), the United Kingdom, South Korea and Vietnam. Flights to Japan and Iran will be mounted in December.

SWOT Analysis

Strengths

Lower fares:

AirAsia is a vibrant company that is involved in offering a simple no frills service at fares that are on average significantly lower than those offered by traditional full-service airlines.

Coverage:

Currently, AirAsia flies to 12 destinations in Malaysia, using a fleet of seven Boeing 737300s. More interestingly, it has started flying to secondary airports near Bangkok, Manila, Jakarta, and Hong Kong. With these affiliates and subsidiaries in various countries, AirAsia can adequately operate in foreign environments. This is strength since key the first major customers are acquired.

Well rounded and managed business:

Another observable strength of AirAsia would be well-rounded and managed business and their turnover rate; this gives them an added advantage over other Airlines.

Managing Competition:

It not only managed to compete with major carriers like Malaysian Airlines (MAS) and Singapore International Airlines (SIA), but it also became the benchmark for several other

low-cost airlines in that market. So great was AirAsia's impact that analysts said the airline, with its minimal fares, was living up to its tag line, which said 'Now Everyone can fly'.

Trained and Quality Staff:

AirAsia also employs and trains staffs with superior interpersonal skills, and they manage the entire creative process effectively. Due to proper management and creativity, AirAsia has many offering for their services.

Steady increase in services:

Their initial product can evolve into range of offerings and for the past five years have been creating at least 5 new destination centers. Their offering of ticket-less service gives them an advantage to offer their customers hassle free services.

Trustworthiness:

AirAsia also has a team of very focus minded management staff, and a team of experienced professionals with an established record in the Airline services. In addition to the team of professionals, AirAsia has developed a credible record of accomplishment over five years of operation, which gives them the acceptance and trustworthiness.

Ability to change the dynamics of the airline industry:

AirAsia is one of the most successful airlines in the Southeast Asian region and the pioneer of low cost, no frills travel in Malaysia, AirAsia was often in the news for its low fares and fast growing operations. However, within three years of operation, AirAsia changed the dynamics of the Asian airline industry.

 Weakness

AirAsia at a glance would appear to be a weakness-free enterprise, but there are underlying weaknesses inherent at AirAsia.

Minimum technical staff:

One of the weaknesses includes minimal technical staff workers and overdependence on few key staff. AirAsia would need an enormous number of technical professionals, especially in the implementation of their internet booking and distributors.

Need of high technological equipments:

AirAsia also would need to have high technological equipments, and connections to sustain and serve such a huge network of company subsidiaries and affiliates, as appropriate. Their delays of flight or calling their customer line to confirm booking shows that their system is not yet robust to handle booking efficiently. This might cause a lot of customer change their mind.

Narrow organization:

Looking at the organization structure of AirAsia, their Board of Directors is too narrow and that could cause the shallow decision-making.

Absence of strong sales:

AirAsia is having weakness also in their absence of strong sales/marketing expertise, which causes lack of awareness amongst prospective customers.

Opportunity

E-commerce:

As they venture into internet booking and ticketless services for their marketing processes, they would be open to electronic commerce business solutions for their enterprise, such as SCM, ERP, and EDI etc.

Use of Internet:

The use of internet services for their services would open more opportunities for AirAsia in the process of solving network, communication, and information related problems that could be inherent in the organization and their market segment is poised for rapid growth.

AirAsia stands to encounter a lot more opportunities than outlined above, but as they progressively emerge into their various facets of developmental processes, numerous opportunities would be foreseen like:

Export markets offering great potential Distribution channels seeking new products

 Threats

Security:

One of such threats would be security of their networks. The internet is a public domain and as such is vulnerable to attacks from hackers and viruses, AirAsia ought to be conscious of these threats and have proper plans and control to counter any of these.

Competition:

Another threat to AirAsia is from the local competitors in the various countries they are having affiliates or subsidiaries. AirAsia needs to be in accurate pace with the market demands and policies for these local territories, because economic slowdown could reduce demand.

Segmentation:

Owning to the facts that most organization are struggling for survival, major players may enter targeted market segment. Alternatively, market segment's growth could attract major competition.

COMPETITORS ANALYSIS
Aligned with its mission statement, Air Asias business strategy is centred on cost leadership. However, its business strategy targets specific markets; price sensitive customers (including first-time fliers) needing short-haul flights.

1) Ryan Air

Ryanair is an Irish low-cost airline. Its head office is at Dublin Airport and its primary operational bases at Dublin Airport and London Stansted Airport. Ryanair operates 300 Boeing 737-800 aircraft on over 1,100 routes across Europe and Morocco from 46 bases. The airline has been characterised by rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model.

2) Easy Jet Airways

EasyJet Airline Company Limited (styled as Easy Jet) is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports. The parent company, EasyJetplc, is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. As at 30 September 2009, it employed 8,000 people, based throughout Europe but mainly in the UK.

3) Virgin Blue Airways

Virgin Australia Airlines, formerly Virgin Blue Airlines, is Australia's second-largest airline as well as the largest by fleet size to utilise the Virgin brand. Now based in Bowen Hills, Brisbane, Queensland, Australia, the airline was co-founded by British businessman Sir

Richard Branson and former Virgin Blue CEO, Brett Godfrey. It was established in 2000 with two aircraft operating on a single route, and suddenly found itself catapulted to the position of Australia's second airline after the collapse of Ansett Australia in September 2001. The airline has grown to directly serve 29 cities in Australia from hubs in Brisbane, Sydney and Melbourne, using a fleet of narrow-body Boeing and Embraer jets and Airbus wide body jets.

4) Jet Blue Airways

JetBlue Airways Corporation is an American low-cost airline. The company is headquartered in the Forest Hills neighbourhood of the New York City borough of Queens. Its main base is John F. Kennedy International Airport, also in Queens. JetBlue maintains a corporate office in Cottonwood Heights, Utah, a satellite office in Darien, Connecticut, and its Information Technology Centre in Garden City, New York. JetBlue is a non-union airline.

5) Southwest Airways

Southwest Airlines Co. is an American airline based in Dallas, Texas. Southwest is the largest airline in the United States, based upon domestic passengers carried, as of June 30, 2010. Southwest operates more than 3,400 flights a day, as of March 2011, utilizing a fleet of 552.

FUTURE SUGGESTIONS
1) Launch and grow premium segment
The company offers Premium Class (business class) on flights to and from Haneda , with a Premium Flat Bed Seat that reclines to the full-flat position and which also has a power socket, and a screen for privacy. These seats should also be offered to other routes as well. Charter flights are only available now from Kuala Lumpur (KUL) hub.Three months notice has to be given to Air Asia Charter Services for chartering a flight to international route. This service should be made available on other routes with a notice period of only a month.

2) New Routes
Air Asia currently operates more than 142 routes to 78 destinations with over 400 daily flights covering Indonesia,Malaysia and Thailand and with domestic and international routes primarily from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, the People's Republic of China, India, Laos, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan,

the United Kingdom, South Korea, Vietnam, Japan, Iran, France and New Zealand. Air Asia should start flying to the United States, Canada, Africa and other European nations as these are good tourist hubs and hence there is an assurance of travellers on these routes.

3) Punctuality
Punctuality should be their main concern especially Air Asia wants to penetrate into the business travel market. Air Asia does not follow the scheduling hours of flights, which implies that customers are delayed for a period before travelling. This shabby offering could damage their image and services as customers may seek for alternatives. If Air Asia should work on this, most unsatisfied customers would return and customer will begin to speak of their satisfaction which will improve their brand image and generate more revenues at the end.

4) Airport Kiosks
The customer usually spends most of the time waiting at the airport for the security and immigration checks. Thus installing kiosks for fast check-in will ensure less time wastage.

5) Promotion
More promotional activities should be engaged to attract more customers and to create awareness of their presence and what services they offer. It should be their task to develop many advertising models to achieve this. This is another way of selling their brand to the world. Example:Manchester United Sponsorship elevating our brand name to the next level.

Air Asia has entered into a sponsorship deal with Manchester United the worlds highest profile football team. Teaming up with Manchester United enables us to leverage our brand worldwide, and strengthens our brand prominence in markets we already serve. This will also help to drive our revenue as we promote our special edition Air Asia-Manchester United merchandise and memorabilia. Such promotional activities should be encouraged and further worked upon.

CONCLUSION
They serve the customers and the institution best and therefore chemistry between country and foreign MNCS has fruitful results .FDI attractiveness, labour competitiveness. Huge market potential of the country. Policies such as FDI, Industrial licensing, taxation, exchange control has helped MNCS to grow .there is a growth of MNCS in India because of huge market and fast growing economies in world has played important role. Due these MNCS competition increase and more employment opportunities are available & there will be reduction in regional disparitiesTo conclude, we would opine that MNCS having a wide ambit is enviable to us, as to the fact that, there exists lots of job opportunity paves a path for the increase in national income. And also to create a better society, with better standard of living, and it increases labour productivity , decrease in unemployment, and also increases the net national income of the country. This will help the government and this will lead to increase in the export and imports in the country. Gives advantages to Domestic Companies through purchasing of raw material & resources. New company having network to expand their business. The present scenario is a highly transformed one. Multinational giants are vying with one other to launch their models. Big names of the vehicle industry like the Korean giant, Hyundai, general motors, Mitsubishi etc. Have already opened their account. In other vehicle segments too, Volvo, Mercedes Benz, and Audi etc. Have carved out their niche. One of the fastest growing sectors in the country, telecommunications has been growing at a feverish pace in the past few years. The speed of growth can be judged by the fact that in 2004, ten years after private telephony was introduced in India, the mobile subscriber base had crossed the number of fixed line connections.