Strategic & Operations Management Case Study Assessments

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QUESTION 1 (Strategic Management)

Air Asia Case Study

AirAsia was launched in 2002 by Tony Fernandes, at the time a pioneer of low-cost flights in Asia. At first, the company operated three Boeing 737s. In 2004, after a very successful public offering, AirAsia was listed on the Malaysian Stock Exchange and from there grew rapidly. As of 2011, the AirAsia Group has 93 aircraft spread across 12 hubs and is flying to more than 60 destinations in 16 countries with 130 domestic and international routes.

AirAsia operates 3,500 flights every week on domestic and international routes from nine regional hubs in Malaysia, Thailand (Thai AirAsia), and Indonesia (Indonesia AirAsia). AirAsia’s head office and its main base is the Low-Cost Carrier Terminal at Kuala Lumpur International Airport. This terminal handle 48. 4% of AirAsia’s traffic. AirAsia is the leading low-cost carrier in the world and won the Skytrax award for World’s Best Low-Cost Airline in 2009 and 2010.

In addition, the company is Asia’s largest low-fare, no-frills airline and has a long-haul arm, AirAsia X, which currently flies to China, India, Iran, Taiwan, the UK, and Australia with plans to launch services to Japan and South Korea.

Base on the Case study, with regards to the PESTEL Analysis for AirAsia describe the Political Opportunities and Economic Opportunities.
Due to the Covid19 situation, AirAsia has seen its operations activity drop in the last 2 years. The pandemic has created a scenario which is out of the norm. Due to that, what would be your strategic plan so that AirAsia could rise again in the coming years. Give your recommendations base on the current scenario.

QUESTION 2 (Strategic Management)

McDonalds Case Study

It’s unlikely that McDonald’s can always be No.1. In an annual consumer satisfaction survey, McDonald’s has been scored dead last among fast-food restaurants since 1992. In the fourth quarter of 2002, McDonald’s disclosed its first-ever quarterly loss, one reason why McDonald’s is struggling is that the consumers began to switch to its competitors, such as Burger King, Wendy’s, and Subway. These companies emphasized on offering fresher, hotter, high-quality foods at lower price with faster service. On the other hand, McDonald’s decided to close 719 poorly performing restaurants around world. All of these simply proved that McDonald’s might no longer be competitive in the fast-food market. And if McDonald’s cannot adapt external environment change, they might be gradually diminished and even replaced by other competitors. In order to keep their market share, increasing sales and profits. McDonald’s has to respond to the threat of competitors. In 2003, McDonald’s offered the McGriddles sandwiches in the US and the Canada feature breakfast. Meanwhile, McChicken Premiere and a zesty chicken have been introduced in the UK, France, Italy and Belgium. McDonald’s was trying to satisfy customer’s desire for premium products at affordable prices. Furthermore, McDonald’s is providing more choice with respond to offer ‘ Happy Meal’ to keep the children. For example, Happy meal now including chicken selects, and no-sugar –add fruit drink (juice and low-fat drink) and also to produce McDonald’s coffee which appeals to adult. Those products have been made to attract existing customer and develop new customers.(www.McDonalds)

Moreover, in addition to the innovative menu, McDonald’s is also rebuilding and even relocating some of their restaurants to make the environment more attractive. At the same time, McDonald’s is differentiating itself by creating more relevant experiences such as allowing the customers to access the Internet with the wireless technology platform. This innovative way not only attracts the teenagers, but also perfectly fitting the modern professionals’ requirements.

1. Base on the case study, it is stated that McDonalds is not able to adapt to the external environment change and due to that McDonalds is currently losing its market share in terms of customers to its competitors such as Burger King and KFC. Identify the external environment changes and elaborate further on it giving your recommendations for improvement base on the external environment change.
2. Discuss on the topic of Blue Ocean strategy and How McDonalds should start looking in winning back the market share with its competitors such as Burger King and KFC. Look into areas that McDonalds is different from the rest.

QUESTION 3 (Operations Management)

Short Case Study

The XYZ company Ltd is developing 3D printing machinery on a daily basis. The number of order (Demand) has been increasing on a monthly basis. This would mean that the operations team are reqiured to fullfill the production rate to meet the customers request. Never the less, the company follows the labour law guidelines where by in a day employee work from 9.00am to 5.00pm.

The work week for the said company is five-days long, and the company operates in a single eight hour shift that includes a lunch hour break that lasts 60 minutes. The company receives orders for 10 machines per week on average.

Mean while the organization, has been looking at the productivity on a stricter mode whereby there were also running thru the Lean Manufacturing principles. This would benefit the organization in many ways.

Calculate the takt time for the XYZ company Ltd for developing the 3D printing machinery.
Explain in your own words the 8 waste of Lean Manufacturing and also describing in detail.
What are the advantages for the XYZ Company Ltd, with the implementation of the Lean Manufacturing Principles

Question 4 (Operations Management)

Short Case Study

JIT in TOYOTA

The Just in Time, JIT is a set of techniques that was first adopted and publicised by Toyota Motor Corporation of Japan as part of its Toyota Production System (TPS).

History of JIT

The technique was first used by the Ford Motor Company during 1920s, but the technique was subsequently adopted and publicised by Toyota Motor Corporation of Japan as part of its Toyota production System (TPS). In 1954 Japanese giant Toyota implemented this concept in order to reduce wasteful overstocking in car production.

JIT Implementation

Back in Japan, Sakichi customised the Ford production system to suit Japanese market. He also devised a system wherein each process in the assembly line of production would produce only the number of parts needed at the next step on the production line, which made logistics management easier as material was procured according to consumption. This system was referred to as Just-in-Time (JIT) within the Toyota Group.

Explain the Just in Time technique. The definition of JIT
How was JIT implemented in Toyota?
What are the benefits that could be seen upon implementation of the JIT?

PART B

CASE STUDY 1 (Strategic Management)

Toyota Case Study

In the contemporary business environment, businesses are continually facing strategic issues that have resulted in either loss of market share and performance, or even liquidation (Freeman, 2010). One of such leading companies is Toyota, which is renowned for being the world’s largest automaker company headquartered in Japan (Hill, Jones and Schilling, 2014).

Even though the company has offered its customers, across the globe, a variety of vehicles, it has surely faced a variety of issues ranging from more car recalls than any of its competitors (Fan, Geddes, and Flory, 2013, p. 101), marketing challenges, pricing strategy, as well as stagnated sales in the home market. Considering all these aspects, the purpose of this study is to evaluate and investigate the overall strategic issues faced by the company, followed by offering a variety of solutions to the business like total quality management, improved marketing activities, competitive advantage based on design and quality, and international expansion.

Toyota, the leading car producer, is amongst the leading automobile companies offering the customers a wide variety of products ranging from mini-sized cars to trucks as well as buses, which are sold in both developing and developed nations (Piotrowski and Guyette Jr, 2010, p. 89).

Considering the overall operations of the business, the company has continually hired hundreds and thousands of employees, even in the financial and economic downturn, where the companies were laying off their permanent and contract-based employees; however, the company overlooked what their competitors were doing and avoided termination of employees based on ethical and cultural values (Connor, 2010).

The company is known for having the strongest car manufacturing facilities, where they have continually believed in offering the customers improved and customised cars that could represent their customers’ lifestyle (Krishnan et al., 2013, p. 417). The multinational company has factories and facilities operating in developing and developed nations and is responsible for assembling and producing vehicles. According to the company’s website, the company has manufacturing facilities located in France, Poland, the United Kingdom, and the Czech Republic (Despeisse, Oates, and Ball, 2013, p. 34). All of these facilities have played an influential role in the success and growth of the business while increasing the overall market share and competitive advantage of the multinational company.

Base on the case study elaborate on the SWOT analysis for Toyota? There should be a minimum of 5 points for each of the analysis. Eg: Strength (5 points), Weakness (5 points), Opportunities(5 points) and Weakness (5 points). Student MUST elaborate the points given.
What would be your recommendation base on the SWOT analysis for Toyota to improve in the near future?

CASE STUDY 2 (Operations Management)

The diagram above shows a vessel berthing at a Port in Malaysia. The vessel requires 3 Cranes to operate on the vessel to unload containers from the vessel. Base on the number of containers that is required to unload, operations team will only be able to complete the said unloading within 24 hours. The operations team are required to work 3 shift which is the morning shift (0800 hrs – 1600 hrs), Afternoon shift (1600 hrs – 2359 hrs) and the night shift (0000 hrs till 0800 hrs). This would mean that there are 3 groups to work on the said vessel.

Below are the requirements given to run operations:

Per crane there are 2 operators operating
Below the crane there are Terminal Tractors and therefore there is about 10 units of terminal Tractors under a crane.
Each crane will have a supervisor monitoring the operations
For each crane there will be 2 technicians involve if there was a breakdown
Per shift there would be an executive and also Operations Manager monitoring the whole operations
Each crane will have 1 stacker equipment under the crane

Base on the case study, answer the following:

What would be the total number of manpower needed to execute operations for one shift only. Upon calculating the number of manpower needed per shift, what is the total manpower needed for the 3 shifts (Morning, afternoon and night).

What would be the total number of equipment’s needed to execute the 3 shifts. You are required to state the total numbers by the terminology given in the case study.

Base on the case study, in your own words, where would you see a bottleneck happening for the said operations activity. Justify your reasoning for the said bottleneck and also give your recommendation so that the bottle neck could be rectified for the Operations manager team.

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