...position of Singapore Airlines Module No : EG3080 Module Title : Business Application in Engineering Submitted by : Chia Kok Kwang Alvin (K1068496) Table of Contents Page 1. Abstract 3 2. Introduction 4 3. Background 5 4. Singapore Airline’s Macro Environment (PESTEL Analysis) 6 5.1 Political Factors 6 5.2 Economic Factors 7 5.3 Socio-cultural Factors 7 5.4 Technological Factors 8 5.5 Environmental Factors 8 5.6 Legal Factors 9 5. Competitive forces and firm strategy (Porter’s 5 Forces Analysis) 10 6.7 Threat of new entrants 10 6.8 Threat of substitutes 10 6.9 Power of buyer 11 6.10 Power of supplier 11 6.11 Competitive rivalry 12 6. Strategic Capabilities (SWOT Analysis) 13 7. Strategic Choices (Porter’s Strategies) 14 8.12.1 Cost leadership 14 8.12.2 Focus 14 8.12.3 Differentiation 14 8.12 Strategic choice of Singapore Airlines 15 8. Challenges ahead of Singapore Airlines 16 9. Conclusion 17 10. References 18 & 19 1. Abstract Singapore Airlines leaves a deeply positive impression in many people’s heart as a leading airline that is dedicated to bring the highest level of products and services. We will look into how Singapore Airlines achieve its...
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...Adonis Nix Candice Mitchell Renesha Randolph Singapore Airlines HISTORY Singapore Airlines’ history can be traced back to 1 May 1947, when a Malayan Airways Limited Airspeed Consul took off from Singapore Kallang Airport on the first of three scheduled flights a week to Kuala Lumpur, Ipoh and Penang. • Over the next five years, larger capacity DC-3 aircraft were introduced. This meant faster and more comfortable flights, and the extension of services to destinations in Indonesia, Vietnam, Burma (now Myanmar), North Borneo (Sabah) and Sarawak. • Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. Known as “female pursers”, these hostesses are the forerunners of today’s Singapore Girl. On 16 September 1963, the Federation of Malaysia was born and the Airline became known as Malaysian Airways Limited. In May 1972, it became Malaysia-Singapore Airlines (MSA). Products and services Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. In September 1998, Singapore Airlines set new standards in air travel by unveiling a new suite of products and services worth S$500 million across all three classes of travel, offering customers enhanced standards of service on the ground and...
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...| 4/12/2015 4/12/2015 Executive Summary The purpose of this report is to analyse and evaluate the business strategy of Singapore Airlines. The report provides an informed review of Singapore Airlines’ executive management or organisational strategic analysis, decision making, implementation and evaluation of performance outcomes. Therefore, the report will cover many aspects such as strategic analysis, strategic directions and strategic objectives key-board business-level and international strategic, strategic implementation, as well as key strategic implementation issues and strategic evaluation. The strategic analysis takes place whereby analysing two general environments of Singapore Airlines. The first environment is the external environment which consists of PESTLE model, Porter’s Five Forces plus the government model, and the competitors of Singapore Airlines. The following is the internal environment which consists of Strategy Resources and Core Competency of Singapore Airlines. According to the results received from these two environmental analysis, Singapore Airlines has adopted an unusual dual-strategy. Vision, Mission, and stakeholder theory will be covered in the strategic direction setting. This part of the report will explain all sort of stakeholders and the importance of them to Singapore Airlines. Singapore Airlines adopted dual-strategy by competency of cost-effective service excellence, enshrined in a unique, self-reinforcing system of organizational...
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...CASES IN MANAGEMENT 115 Singapore Airlines : Gliding with People Excellence Nilanjan Sengupta and Mousumi Sengupta Introduction The aviation industry has been constantly facing several challenges, such as, overcapacity, commoditization of offerings, cut throat rivalry exacerbated by the entry of low cost carriers, and intermittent periods of disastrous under-performance (Costa et al., 2002). Several macro-level socio-economic factors such as rising oil prices, the SARS (Severe acute respiratory syndrome) crisis, frequent concerns about the eruption of bird flu, the Asian tsunami, and rising terrorism concerns have further impacted profitability, adversely. In 2006, the global airlines industry suffered a net loss of $500m, or 0.1% of revenues, accumulating net losses of $42bn between 2001 and 2006 (International Air Transport Association, 2007). In 2007, the airline industry made a modest net profit of $5.6bn on revenues of $490bn, equivalent to less than 2% margin (International Air Transport Association, 2008). The outlook from 2008 onwards remains bleak. Not surprisingly, the industry is regularly rated as one of the worst performing industries in the Fortune Global 500 rankings. In this industry environment, Singapore Airlines (SIA) has consistently outperformed its competitors (Heracleous & Wirtz, 2009). Copyright ‚ 2014 Shri Dharmasthala Manjunatheshwara Research Centre for Management Studies (SDMRCMS), SDMIMD, Mysore The case writer(s) Nilanjan Sengupta, Professor –HRM...
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...how its performs an effective organization management and well training system, as being one of the largest airline company with over 29,000 employees, it extents of well organization make the most effective of resources in human and fiscal resources to achieve its’ organizational goal. How did Singapore Airlines enable employees to understand their role and how it fits into the work organization as a whole (Refer to lecture One: Figure 1.2: Why organization exit) Singapore airline (SIA) has been recognize as a well reputation branding for excellence services quality and financial performance, which are the essential elements integral to SIA’s success. People work together would be more productive and efficient than working along and as result in SIA organization. 1. Increasing specialization and division of Labor, of individuals to concentrate on their expertise, become more specialized and creates value. SIA offers four classes of service – suites, first class, business class and economy class, which specialized the variety tier of customers to deliver its outstanding level of services to their target audiences and leads to customer satisfaction. 2. Using large-scale technology, aircraft investment is one of the biggest investments as a full service airline. The average age of SIA’s fleet is 85 months while others airlines are 148 months (Singapore Airlines 2013), it’s one the youngest among the industry. The newer aircraft support SIA strategy of premium service...
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...attachment Implementing Change in SIA (Singapore Airline) Introducing SIA Ltd Singapore Airline is a global company dedicated to providing air transportation service of the highest quality of services; it has grown from a regional airline into one of the world’s leading passenger and cargo carrier. SIA is engaged in air transportation and other related businesses. It has been consistently one of the most profitable airlines in the world, and it is routinely voted the ‘best airline’, ‘best business class’, ‘best cabin crew service’, ‘best in-flight food’, ‘best for punctuality and safety’, ‘best for business travelers’, ‘best air cargo carrier’, even ‘Asia’s most admired company’. It operates worldwide as the flag carrier of Republic of Singapore, aiming to provide service of the highest quality at reasonable prices for customers and provides them with the best options for travelling. They have a modern and young fleet of aircraft and covers 40 countries and 76 cities. SIA has far-sighted planning, investment and product innovation that propelled its growing reputation and profitability. For its high-level service and operational excellence, SIA has won more than 100 international prizes. With the traditions of the Company - outstanding service, and innovative spirit, SIA will continue to progress, and render the best services to its passengers just as it always has. Accidents from SIA (Needs for change) • 26 March 1991 – Singapore Airlines Flight 117, an Airbus A310-300 was...
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...Singapore Airlines Case Study (student paper) Singapore Airlines was created in 1972 following a separation from Malaysian Airlines. In the wake of reorganization, Singapore Airlines undertook aggressive growth, investing and trading to maximize profitability and expand market share. Through this change, a new company philosophy emerged, “Success or failure is largely dictated by the quality of service it provides” (Wyckoff, 1989). By reinventing the company infrastructure and introducing new initiatives focused on excellence in customer service, Singapore Airlines became a global leader in the service industry, elevating existing standards among competitors. Evaluation of Workforce Management Program The strategy widely utilized by Singapore Airlines to ensure differentiation in an increasingly competitive market was its attention to in-flight service. “Good flight service [was] important in its own right and is a reflection of attention to detail throughout the airline” (Wyckoff, 1989). This statement perpetuated the belief that excellence in service was directly tied to the careful selection and individual performance of in-flight crews charged with the responsibility of fulfilling the needs of individual passengers and exuding the levels of service demanded by the organization. Applicants destined to work as flight stewards were drawn from a very young population, typically spanning the ages of 18-25 years of age with high school equivalency against the English system...
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...Introduction Overview of Malaysian Airline System Berhad (MAS) Malaysia Airlines (MAS), the countries’ national carrier was incorporated on 12th October 1937. First known as Malayan Airways Limited (MAL), it was a joint initiative of Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways which proposed to Colonial Straits Settlement government to run an air service between Singapore and Penang. MAL’s first commercial flight was on 2nd April 1947. By the time of Malaysia formation in 1963, Malayan Airways Limited (MAL) changed its name to Malaysia Airlines Limited. Borneo Airways was incorporated soon after. Singapore’s separation from Malaysia saw the company renamed to Malaysia-Singapore Airlines (MSA) in 1965. In 1972, MSA went separate ways to become Singapore Airlines (SIA) and Malaysia Airline Limited (subsequently renamed to Malaysia Airline System (MAS)) independently. As of 31st December 2013, MAS operates a fleet of total 147 aircrafts (108 MAS + 39 Subsidiary). Other MAS subsidiary providing air services included MASkargo, Firefly and MASwings. MAS has been suffering from losses continuously since year 2011 even though revenue and passenger increased in the year 2013. Coupled with the MH370 and MH17 tragic incidents in year 2014, Malaysia government called for a recovery plan to be executed to turn MAS back to profitability. The recovery plan was put together by Khazanah Nasional (Federal government Investment Arm, which happens...
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...business and financial performance as well as business performance of the Singapore Airlines which is the national airline of Singapore and comparing with its competitor Qantas. It will also include the impact of other major internal and external events on the company’s performance. 1.2 Reason for choosing the topic and the organisation Before choosing the topic for my Research and Analysis Project, I went through all the titles provided by Oxford Brookes University to make sure that the topic chosen would be not only feasible but also within my ability to find the information for the report. In my opinion, analysing the business and financial performance of the organisation would be the most important thing that should be understood by the modern day accounting profession. By choosing this topic, not only applying my knowledge but also it is much more related to what I have been studying so far. Studying Financial Reporting paper (F7) and Business Analysis paper (P3) support and provide basic knowledge in analysing the chosen organisation and undertaking my research project. The reason for choosing the airline industry is due to the fact that it plays significant role in our life. Without these industries, it may take quite long time to travel and we may not be able to travel or go to our destination in a reasonably short period of time. Singapore engaged in four segments: airline, cargo, engineering and others. As of March 31, 2012, group has 133 aircrafts...
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...and escalating fuel cost. The report will highlight the challenges affecting Tiger Airway by assessing Tiger Airways performance and analyzingthe external and internal factors influencing the performance of Tiger Airways. From the analysis, the report willrecommend on developing strategies and alternative strategies for Tiger Airway to adopt to address to the key challenges facedcurrently and to strategized for future growth and maintain sustainability. The report will then discuss on the implementation plans for the strategies recommended and suggest on evaluation parameters to gauge the effectiveness of the strategies and control mechanisms for ensure the efficiencies of the strategies recommended. 2. Introduction Tiger Airways Singapore Pte Ltd, a subsidiary under Tiger Airways Holdings...
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...Contents Objective 2 Introduction 2 The History of Malaysia Airlines 3 Unprofitable Stage 4 The Causes 6 The Recovery Plan 7 Explanations on government intervention 8 Who is Dato’ Sri Idris Jala? 9 Recommendation 10 Conclusions 11 References 12 Objective The objective of this research paper is to explain the meanings of unprofitable stage of Malaysia Airlines. On the other hand, this paper will also explain the causes of the unprofitable stage and the recovery plan that the company need to take in order to keep the plane on the skies. Introduction Malaysia Airlines System Berhads or known as Malaysia Airlines (MAS) is the largest airlines company in Malaysia. The airlines headquarters located at the grounds of Sultan Abdul Aziz Shah Airport in Greater, Kelang, Selangor. However, the home base of MAS is the largest airport in Malaysia, the Kuala Lumpur International Airport (KLIA). Base in KLIA, it enables the airlines to have a secondary hub at Kota Kinabalu, Sabah and Kuching, Sarawak. To meet their local customers need, Malaysia Airlines open two subsidiaries the Firefly and MASwings. Firefly is created in order to control the domestic market. Firefly which is located in Sultan Abdul Aziz Shah Airport will only fly in west Malaysia from its two home bases which are Sultan Abdul Aziz Shah Airport and Penang International Airport. However, it is different story for MASwings. In order to meet domestic customers need in east Malaysia or the Borneo, MAS...
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...Cost-effective service excellence: lessons from Singapore Airlines Singapore Airlines is well known as a paragon of in-flight service. It is also a remarkably efficient and profitable airline and has been for decades. Loizos Heracleous, Jochen Wirtz and Robert Johnston explain how it combines service excellence with cost effectiveness. Singapore Airlines (SIA) has achieved the Holy Grail of strategic success: sustainable competitive advantage. It has consistently outperformed its competitors throughout its 30-year history. In addition, it has always achieved substantial returns in an industry plagued by intermittent periods of disastrous under-performance (see Table 1). Cost-effective service excellence: lessons from Singapore Airlines SIA has done this by managing to navigate skilfully between poles that most companies think of as distinct – delivering service excellence in a costeffective way. SIA’s awards list is long and distinguished. In 2002 alone it won no less than 67 international awards and honours including “best airline” and “most admired airline” in the world in Fortune’s Global Most Admired Companies survey. Spring 2004 q Volume 15 Issue 1 Business Strategy Review 33 Since Michael Porter’s influential suggestion that differentiation and cost leadership are mutually exclusive strategies and that an organisation must ultimately choose where its competitive advantage will lie, there has been fierce debate about whether a combined strategy can be achieved...
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...Company Profile Singapore airline (SIA) was incorporated as a wholly owned subsidiary of the Singapore government on 28 January 1972 as a public company with limited liability. It is one of the most successful airlines today having the most recent and youngest fleets in the world. It has evolved from being a regional airline to one of the top ranked airlines in the world at present. As on March 1999, it carried 525 passenger flights a week out of Singapore. It operates in four segments namely airlines operations (which includes passenger and cargo air transportation), engineering services (airframe maintenance, line maintenance, fleet management programs etc.), training of pilots and tour wholesaling, Cargo operations (includes cargo transportation and related activities). It has a worldwide coverage including 110 cities in over 42 countries. It is dedicated to providing air travel services of the highest quality to its customers and also providing maximum benefits to its employees and shareholders. It has a first mover advantage in providing various additional services which are as follows: - Free headsets, choice of meals and drinks during 1970’s. - Introduction of satellite-based telephones - Involving one of the best panel of chefs for in-flight meals - First to operate world longest flight (Singapore to Los Angeles) - On demand inflight audio and video services In this report, four significant operations aspects of Singapore Airlines will be discussed...
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...UB School of management | Singapore Airlines | Audit of Corporate Social Responsibility | | Team Greatbatch | 12/6/2012 | Maria Kristic Chaitanya Pavuluri Srutakirti Das Anthony Ilaqcua Mark Rutecki Contents Introduction 2 Environment 3 Engine Efficiency and Alternative Fuels 3 Operations and Infrastructure 5 Evaluating Environmental Initiatives 6 Harapan Rainforest Initiative 7 Social Activities: Philanthropic 8 Social Activities: Strategic……………………………………………………………………………………………………………………9 Evaluation…………………………………………………………………………………………………………………………………………..9 Economic Sustainability 10 Conclusion 11 Works Cited 12 Appendix 12 Introduction Over its 100 year history, the airline industry has been one of the most dynamic and fastest growing industries in the world. More people than ever are flying as air travel has become more accessible and is one of the safest ways to travel. Since 2002 there has been a 61% increase in safety with just 1 accident for every 2.7 million flights. In 2011 alone, 2.8 billion people flew 3.1 trillion miles on routes out of 3,800 commercial airports. 48 million tons of cargo, worth 5.3 trillion was shipped by air, accounting for approximately one-third of world trade. The industry supports 57 million jobs and 2.2 trillion in economic activity (SIA Safety, Security & Environment Dept., 2012). However, the industry is also one of the most regulated, with many governments being owner/operators...
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...1.0 Introduction Singapore Airlines (SIA) flew its first flight way back in the year 1947. It was then known as Malaysian Airlines, which became two separate entities – SIA and Malaysian Airline System (MAS) in 1972. In between that period from 1947 till 1972, the airline was named MAS when the Federation of Malaysia was born after gaining independence from the British government in 16 September 1963 and later renamed as Malaysia-Singapore Airlines in May 1966. The airline’s key advertising strategy was the “Singapore Girl”, a personification of charm and friendliness where stewardesses dressed in a designed “sarong kebaya” uniform by Pierre Balmain, a French couturier. Stewardesses also wore a standard make-up and hairdo. With its stringent training and modern facility, the airline had since gained great reputation for its service and became the top 10 biggest international airline in the world and one of the most profitable airlines. 2.0 Situational Analysis SIA established in the year 1972, has grown and consolidated its position to become one of the world’s largest and most successful airlines. It is the national carrier of Singapore, which has an international presence, but a focus on the Asian and Australasian markets. It owns an expansive and relatively young fleet of planes (Singapore Airlines, 2014). It’s published mission statement, "Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality...
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