Assignment on Opportunities and Threats of this company
Added on 2020-05-28
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Running head: COMPANY ANALYSIS INTRODUCTION TO MANAGEMENTName of the StudentName of the UniversityAuthor note
2COMPANY ANALYSIS Introduction Singapore airlines is the national airlines of Singapore. It is mainly owned by thegovernment of Singapore with Temasek holding company, which holds 56 percent of thecompany shares. This airline has international presence and provides services in nine differentcountries. However, the prime focus is being Australia and other Asiatic countries. The servicewas founded in 1972, and after so many years of struggles and success, the organization hasconsolidated its position as one of the most successful and biggest airline services in the world(Singapore Limited, 2018). The vision and mission statement of the organization also focuses onits target of global domination. According to the vision statement of the organization, it not onlywant to become an excellent airline in Singapore or in world but also want to become aresponsible world citizen by touching every lives. They have several other commitments such asarts, education health, and welfare of each country they fly to. On the other hand, their mission tocontinue the high quality service and provide maximum returns to their shareholders and to theirhardworking employees. The company believes in sticking to its core values and follows all ofthem while providing quality service to the world population(Singaporeair, 2018). Pursuit ofexcellence, safety, concern about their staff, customer, integrity and teamwork are few of thosecore values that this organization follow to achieve ultimate success. The prime purpose of this assignment to apply different company analysis tools to findout the degree to which, this company follow its mission, vision, and the core values. Theassignment will be discussing the Opportunities and threats of this company has, with a detailedanalysis of PESTEL and porter’s five forces to analyze the company status and developmental
3COMPANY ANALYSIS goals. Further, the assignment will discuss the four management related recommendations toovercome the weaknesses or threats in near future. PESTLE analysis PESTLE analysis one of the marketing framework that is used to analyze and monitor themacro-environment or the external marketing environment. These factors have major impact onthe organizational market reputation. The result of this analysis is used to identify the threats andweaknesses of the organization. In the term PESTLE, P stands for political, E stands foreconomical, S stands for social, E stands for environmental and L stands for legal factors. Thecombined result of these micro-environmental factors determines the success of anyorganization. As political stability, favorable economic condition, top technological support,favorable weather or environment to work and legal or governmental policies and actions havesignificant effect on the company’s positive image in the market (Srdjevic, Bajcetic & Srdjevic,2012). PESTLE analysis of Singapore airlines in presented below. Political Political support has a major impact in any airline services success or failure as thenational flag carrier airlines has responsibilities more than any other private airline company.The national airline company gets the opportunity to utilize the capital headquarter of thecompany and further is given all the profits and benefits of any national airlines in the country oroutside the country. However, loss of this national status can shatter the organization within fewmonths as it occurred with the Italian airlines company Alitalia in 2000s, when the national
4COMPANY ANALYSIS status was withdrawn from the company (Baum, 2012). The Singapore airlines is currently thenational flag carrier airlines and was given all the benefits of a national airlines. Economic Airlines operates in national and international boundaries and therefore the economicboundaries are decided by the economy of those countries. The Singapore airlines economicstatus is defined by the countries it provides service and the level of resource intensity is theprime factor that affects the economic stability of this organization. Price hike of crude oil,political unrest in Middle East and the concept of ‘Arab- spring’ has increased the price of fueloil for airlines. However, most of the airlines are managing these extra amount by increasing theprices of tickets, the Singapore airlines has not increased the ticket price. This because of theirpremium ticketing service and values (Ancell, 2016). Social The Singapore airlines is serious about its social responsibility and affects a largepopulation worldwide by providing cheap flights to regions where it is difficult to travel. Bydoing so, the airlines has increased the frequency of arrival of tourist and therefore, the economyof those places has improved. Creating different travel consumer preferences has increased theflow of travelers of this airline, as there are maximum amount of middle class travelers, who usesthis airlines to travel to different portions of the world. Hence, this premium airline is bearingminimal profit to provide cheap service to these middle class customers. Technological
5COMPANY ANALYSIS Technological changes has been one of the major strengths of the Singapore airlines asthey are the pioneers in creating young fleets and luxurious cabinets. Therefore, the Research anddevelopment or R & D department of this airline are keen to produce different innovative ideasthat can boost their sales and evoke a sense of security in passengers (Ancell, 2016). Legal There are different aspects of political or legal frameworks as different governmentutilizes the national carrier aviation organization depending on different aspects. Therefore, thebenefits or loss of the aviation company depends on the policy of the government. After theterrorist attack on the Singapore airlines on 11 September 2001, there are different changes inpassenger screening has been made that is beneficial for the entire organization (Nandha, Brooks& Robert, 2013). EnvironmentalThe passengers as well as the organization, both are concerned about the environmentand therefore, being environment friendly is one of the prime mission of this organization. TheSingapore airlines is already started the green issue in the organization to utilize nature friendlyproducts in research and development and other departments. Opportunities and threats of SWOT SWOT analysis is framework that is used to analyze the external as well the internalstrengths, opportunities, threats and opportunities of any organization. These helps by makingthe organization inevitable in the market competition. Depending on the PESTLE analysis of theorganization, the Opportunities and threats are going to be discussed in the following section
6COMPANY ANALYSIS ThreatsThe prime threat of the Singapore airlines is the inability to grow its domestic marketshare in recent years. The company is failed to recruit additional passengers in past tenyears as the percentage of the passenger load factor has been increased by only 1.2percent in august 2017 and the maximum demand was in India 75.8 percent. On the otherhand the home market has increased only by 2 percent as the market is already maturedand the longer route flights have seen no improvement in last two or three years(Singaporeair, 2018). The organization is struggling to keep its reputation alive in its home country as there areseveral other private airlines providing bit improved services and people are diverting tothese airlines for their better service. The organization is focusing on short halt carriersthat has minimized the profitability of the organization. However, the south Asian marketis not responding according to the expectation of the company. The third threat for the organization is the inability to understand the market, which isprofitable for the overall business of the organization. Analysis has been shown that theNorth American market is helpful for the organization and has several opportunities thatcan increase the total business by 20 percent. The company used to serve for hubs such asLos Angeles, Las Vegas, San Francisco, Vancouver, Chicago and New York, howevercurrently it serves in four of these American hubs. This has hampered the organizationsreputation in those regions. There are generation of different Middle Eastern airlines thatare emerging as bigger threats such as Etihad and Emirates and several other airlines thathas adopted similar business models and market positioning strategies as Singaporeairlines (Fickling, 2018).
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