BUSSINESS & MANAGEMENT

MAY SEMESTER / 2022

BBSB4103

CROSS CULTURAL MANAGEMENT

MATRICULATION NO  : 960816106912002

IDENTITY CARD NO. : 960816106912

TELEPHONE NO.       : 0102091809

E-MAIL          : [email protected]

LEARNING CENTRE :        SHAH ALAM

Thank you VISHALINI A/P YOGANATHAN. Your assignment upload for subject
BBSB4103 has been received. Your receipt number 2133877

1
CONTENTS

Contents Page

INTRODUCTION 3-4

TYPES OF CORPORATE CULTURE 5-7

1) Clan
2) Adhocracy
3) Market
4) Hierarchy

AIRASIA MAIN CORPORATE CULTURE 8-9

1) Clan
2) Market

CONCLUSION 10

REFERENCES 11

ONLINE ACTIVITY 12-13

2
INTRODUCTION

AirAsia was founded in 1993 and commenced operations on November 18, 1996. It was
founded by a government-owned consortium, DRB-HICOM. On December 2, 2001, the
heavily indebted airline was acquired by former Time Warner CEO Tony Fernandes' Tune
Air Sdn Bhd for a total of one ringgit (approximately US$0.26 as of at that time) with USD
11 million (MYR 40 million) in value debts under the leadership of Tony Fernandes, the
airline flew high, turned a profit in 2002 and launched new routes from its Kuala Lumpur
hub, undermining former monopoly operator Malaysia Airlines at prices promotional tickets
as low as 1 MYR ($0.27). In 2003, AirAsia opened its second hub at Senai International
Airport in Johor Bahru near Singapore and inaugurated its first international flight to
Bangkok. After that, the only place where AirAsia was headed was laid, as Thai and
Indonesian subsidiaries were established and started flights to Indonesia, Macau, China,
Philippines, Vietnam and Cambodia. in 2005, AirAsia now flies to all ASEAN countries.
Mostly a large portion of Asian countries including India, Iran, Sri Lanka and Bangladesh as
well as to the UK, France, Japan, South Korea and Australia via AirAsia X.

AirAsia's central goal is to permit everybody to fly. Since 2001, they've conveyed elite
assistance at low passages to in excess of 600 million visitors across Asia Pacific,
demonstrating that ease doesn't mean inferior quality and air venture out doesn't need to be
exorbitant.

AirAsia is a main travel and monetary stage organization in Asia Pacific, giving air transport,
travel and way of life administrations, just as monetary administrations. AirAsia began as a
minimal effort transporter with activities in Malaysia, Indonesia, Thailand, the Philippines
and India, and has conveyed in excess of 600 million visitors to more than 160 objections in
its organization across Asia, Australia, the Middle East and the US.

Perceived for its a-list administration, the aircraft has been named Skytrax World's Best Low-
Cost Airline 11 years straight from 2009 to 2019 and World Travel Awards World's Leading
Low-Cost Airline for eight sequential years from 2013 to 2020.

Its main activity is to provide air transportation services around the world. The main activities
of the subsidiary are in-flight meal supply, travel business, aircraft leasing facility supply,
newspaper owners and announcement departments. Her side business is consistent with
budget hotels for their flyers. You can book hotel and tour packages with AirAsia AirAsia Go

3
tickets. They offer sponsorship vessels for various events taking place in the destination
country, but mainly in Malaysia, they hold big events and customers can buy tickets on the
website along with their tickets. The main activities of the subsidiary are in-flight meal
supply, travel services, airport rental facility supply, newspaper owners and publishing
departments.

Vision

Asia's largest low-cost carrier, currently serving 3 billion people who are under-served due to
poor connectivity and high fares (AirAsia Mission, Vision & Values, n.d.).

Mission

i. The best corporate to work for,

ii. treats its employees as part of a large family.
iii. Creation of a globally recognized ASEAN brand
iv. to achieve the lowest cost for everyone to fly AirAsia
v. Maintain top quality products and leverage technology to reduce costs and
improve service levels

4
TYPES OF CORPORATE CULTURE

Clan Culture

Clan culture, additionally called cooperative culture, chiefly focuses on cooperation. during
this form of culture, relationships, engagement, and corporate spirit return initial. Managers
are seen as mentors and guides to employees, as critical associate domineering "boss" provide
directions while not context or help and discipline those that build mistakes. This kind of
corporate culture aims to cut back barriers between management and employees. The terribly
versatile and targeted clan culture thrives with modification and action.

Advantages of Clan Culture

i. Groups wish to work along.

ii. Communication between team members is open and effective.
iii. Employees are the extremely engaged at work.
iv. Nice chance to develop the market.

Disadvantages of Clan Culture

i. Troublesome to take care of as business grows.

ii. Since this can be a flat leadership structure, the career path might not be clear.
iii. Productivity is sacrificed by an excessive amount of collaboration.
iv. Considering the sentiments of alternative employees will cause associate inability
to require charge and build troublesome choices.

Adhocracy Culture

Adhocracy culture is usually regarding innovation and taking risks. Several booming start-
ups are the thought-about to possess this kind of corporate culture. It creates a business
atmosphere within the work during which employees are the inspired to require risks. Ideas
deemed too unconventional for a a lot of conservative work are the actively nurtured and
pursued during a sanctuary culture. These corporations have bold goals and visions. they're

5
continually trying to find the "next massive thing" and that they should be willing to require
risks.

Advantages of Adhocracy Culture

i. High risk, high reward. bigger potential for growth and breakthrough.
ii. Employees are the driven to use their creativeness and develop new ideas.
iii. Employees feel supported after they counsel new ideas.
iv. A lot of doubtless to take a position in career development opportunities.

Disadvantages of Adhocracy Culture

i. Potential instability thanks to the quantity of latest initiatives being enforced.

ii. The chance that new comes can fail and damage the business.
iii. Lower-level employees might feel vulnerable by the necessity to move and
assertive.
iv. This work culture will produce associate atmosphere wherever employees feel
competitive with one another thanks to the pressure to perpetually return up with
new ideas.

Market culture

In a very market culture, all-time low line is that the main priority. Everything is measured
against the gain of the business. A corporate that adopts this kind of corporate culture is
primarily results-driven. Often, the language employed in a market culture is concerning
meeting quotas and touch targets. It attracts people that are competitive and wish to "win". in
a very market culture, leaders demand and expect employees to perform in very hard-hitting
surroundings.

Advantages of Market Culture

Employees are captivated with their work.

The competitive atmosphere encourages all employees to figure exhausting and win
corporate goals.

Organization that prioritizes on profit, it's a goal that employees will accorporate themselves.

Businesses with a market culture are typically undefeated and profitable.

6
Disadvantages of Market Culture

It is tough for employees to arrange to their work as a result of each call is tied to variety.

The constant competition that this surroundings fosters will produce a cyanogenic work
surroundings. employees might feel stressed at work because of constant pressure to perform.

It isn't uncommon for employees to die as a result of they need to perpetually climb the
ladder and deliver results, notwithstanding personal prices.

Hierarchy Culture

A Hierarchy Culture is one that follows a conventional corporate structure and incorporates a
clear chain of command. it's many levels of management segregated between executives and
employees. this kind of business incorporates a specific method of operational, which can
embody ancient rules like dress codes and rigid operating hours. the corporate focuses on
stability and responsibleness.

Advantages of Hierarchy Culture

Since this corporate culture is conservative, the corporate has remained stable.

The corporate's processes are clearly outlined to attain its objectives.

Employees grasp precisely what to expect once they return to figure.

Employees feel safe knowing that expectations and dealing conditions are predictable.

Disadvantages of Hierarchy Culture

It prioritized procedures over people, that created an inflexible work culture.

This culture might discourage innovation as a result of employees are discouraged from
suggesting new ways in which to approach things.

It is tough to react quickly to promote changes.

7
 AIRASIA MAIN CORPORATE CULTURE

1. Airasia is best suited to promote market culture and clan culture, wherever a geographical
point that competes with leaders as powerful drivers and a friendly geographical point
wherever leaders act like fathers, this can be mirrored in their vision and mission. Their goal
is to become Asia's largest inexpensive airline whereas maintaining the very best quality
product by applying technology to cut back prices, being the simplest company to figure for,
wherever workers are as a part of one huge family, making a globally recognized ASEAN
whole and serving three billion underserved individuals with poor property and high taxes.
i. Parts embody tangible, express or verbally recognisable parts inside a corporation. In Airasia,
their dominant colour is red, typically related to spirit and fervour. Their new uniform is
comparable to nether region stop ladies for one athletics team whereas the opposite, an easy
customary flight uniform in red, offers weekend leisure travellers a relaxed feel. AirAsia
additionally contains a special policy for pregnant and child passengers traveling on board.
ii. Values form the culture of the organization. At Airasia, they like to produce an inexpensive
long-haul phase whereas maintaining the service quality of a premium airline and providing a
high-frequency point-to-point network for long-haul operations.
iii. The third considerations the assumed worker values that cannot be measured however create
a distinction within the culture of the organization. At Airasia they supply excellent service
and cooperation. Take easy approaches to services and facilitate customers in would like.

2. Organizational tradition is the middle cost of AirAsia. Is to practice AirAsia tradition can
mirror (or betray) the middle values of AirAsia. Every manner AirAsia do enterprise, control
workflows, engage as a group, and address clients is an revel in that ought to mirror who
AirAsia as a employer and the way the employer ought to operate. Become. In short, AirAsia
tradition is the sum of the ideals of AirAsia. But if AirAsia values do not healthy AirAsia
tradition, it is a problem. It may also imply that AirAsia "middle cost" is a listing of
meaningless buzzwords and AirAsia personnel recognise it. With a robust organizational
tradition, the middle values of the employer are imperative to all factors of everyday
operations and organizational structure. The cost of that is immeasurable.
3. AirAsia tradition can flip a worker right into a supporter (or critic). One of the finest
blessings of a robust company tradition is its capacity to permit personnel to end up
supporters. AirAsia humans need greater than a strong revenue and exact blessings. They

8
 need to experience that what they're doing is essential. And while personnel discover
themselves essential, they're much more likely to be advocates of tradition. In different
words, they're those who now no longer simplest make a contribution to the tradition of the
company, however additionally nurture the company and stay internal and outdoor. How to
reap this? One manner is to understand an excellent job. A tradition of celebrating the
achievements of people and groups and giving them credit score while they're wanted is a
tradition that stimulates a experience of accomplishment. And it really is one manner to show
a worker right into a supporter. On the alternative hand, if the organizational tradition is now
no longer, it could be criticized.
4. A robust organizational tradition helps preserve the high-quality personnel It's no marvel that
personnel who experience they are a part of the community, now no longer the gears of a
machine, are possibly to live on AirAsia. This is precisely what most candidates need from
the employer.

9
CONCLUSION

Organizational culture is increasingly understood as an important factor in creating high-

performance work. A company's dominant values, attitudes, beliefs, deliverables, and actions
all help shape its culture and create a sense of order, continuity, and involvement. The
company as a whole usually contains many subcultures, not just one. In the workplace, it is
important to understand culture at both levels. Culture within the organization is very
important and plays a major role in whether it is a happy and healthy working environment.
Employee awareness and acceptance can influence employee behaviour and attitudes in
communicating and promoting the spirit of the organization. When leadership and employee
interaction are good, the latter further contributes to communication and teamwork, and is
also encouraged to achieve the tasks and goals assigned by the organization, thereby
improving job satisfaction.

AirAsia's success is based on cheap, easy and convenient air transportation. By achieving a
high level of efficiency and simplicity in all business art, the company was able to offer low
rates by keeping costs consistently low. The company points out its competitive advantage in
reducing costs for internal and external factors. This helped AirAsia establish itself in
Southeast Asia and become an LCC market leader. Brand identity is one of AirAsia's largest
assets and requires a great deal of effort. For example, the company partnered with
Manchester United and then with the referees of the British Football Association to initially
build a foothold in the UK market. They are currently working with Oakland Riders, a giant
American football club, to attract the attention of locals and bring the brand to the US market
in the future. people believe and act in a particular way, based on the culture in which they
grew up. For multinational managers, lack of understanding of cultural differences can lead
to inadequate hiring decisions, ineffective marketing, and security issues. SMEs need to tailor
their businesses to the cultures of the countries in which they operate, while striving to unite
all employees around a common mission. Whether it's MNC or SME, labor culture always
has its strengths and weaknesses. It is always important to consider your preferred way of
working, your career goals, and the stages of your life. Finally, your tastes may change at
different stages of your career, so it's always important to find the right organization for those
needs.

(2245 words)

10
 REFERENCES

1. Airasia, A. (n.d.). For everyone: Flights, hotels, Activities & More. airasia. Retrieved
July 17, 2022, from https://www.airasia.com/
2. Clan culture: Meaning, examples, pros and cons. Harappa. (2021, December 14). Retrieved
July 17, 2022, from https://harappa.education/harappa-diaries/clan-culture/
3. Editorial, I. (-1, November 30). Corporate culture - encyclopedia - business terms. Inc.com.
Retrieved July 17, 2022, from https://www.inc.com/encyclopedia/corporate-culture.html
4. Marin, D., Verdier, T., & Rousová, L. F. (2016, September 21). Multinational firms and
corporate culture across countries. VOX, CEPR Policy Portal. Retrieved July 17, 2022, from
https://voxeu.org/article/sharing-business-models-between-multinational-parent-firms-and-
their-affiliates
5. Reiners, B., Marketer, C., & Bailey Reiners is a former Built In content marketer who
covered recruiting. (2019, March 18). Culture kings: 27 company culture examples to get you
inspired. Built In. Retrieved July 17, 2022, from
https://builtin.com/company-culture/company-culture-examples
6. Wells, T. (2021, May 4). 8 companies with Great Company culture examples. Talaera Blog:
Business English Communication. Retrieved July 17, 2022, from https://blog.talaera.com/8-
companies-great-company-culture
7. Hart, G. (n.d.). Hierarchy culture - what are the pros and cons?: HR blog. Hierarchy culture -
what are the pros and cons? | HR blog. Retrieved July 17, 2022, from
https://www.myhrtoolkit.com/blog/hierarchy-culture-pros-and-cons
8. Pratt, M. K., & Wigmore, I. (2020, August 27). What is corporate culture? WhatIs.com.
Retrieved July 17, 2022, from https://www.techtarget.com/whatis/definition/corporate-culture
9. Onifade, A. A. (2020, December 10). Understanding organizational culture. Luxembourg
Slovenian Business Club. Retrieved July 17, 2022, from https://lsbc.lu/understanding-
organizational-culture/
10. Sharkey, M. (2022, May 9). The four types of organizational culture: Which is the best for
your business? Workplace from Meta. Retrieved July 17, 2022, from
https://www.workplace.com/blog/organizational-culture

11
ONLINE ACTIVITY
Question 1

Question 2

Question 3

12
Question 4

Question 5

13