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MGF1010 - Introduction to Management | Singapore Airlines

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Monash University

   

Introduction to management (MGF1010)

   

Added on  2020-03-01

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MGF1010 - Introduction to Management | Singapore Airlines Assignment, A Singapore-based reputed company that has built a great reputation for superiority in consumer service is Singapore Airlines, also known as SIA, which has gained much attention for its detailed and improved standing in designing strategic management. By giving consideration to all available sources of competitive advantage and establishing a well-nurtured management system, the company has been able to survive the airline industry with gaining significance. SIA was commenced on 12 October 1937 with the incorporation of Malayan Airlines by the Ocean Steamship Company of Liverpool, Imperial Airways, and Straits Steamship Company situated in Singapore.

MGF1010 - Introduction to Management | Singapore Airlines

   

Monash University

   

Introduction to management (MGF1010)

   Added on 2020-03-01

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INTRODUCTION TO MANAGEMENTSINGAPORE AIRLINESSTUDENT NAME
MGF1010 - Introduction to Management | Singapore Airlines_1
INTRODUCTION TO MANAGEMENT: SINGAPORE AIRLINESINTRODUCTIONSingapore based reputed company who has built great reputation for superiority in consumer service is Singapore Airlines, also known as SIA, has gained much attention for its detailed and improved stand in designing strategic management. By giving consideration to all available sources of competitive advantage and establishing a well nurtured management system, the company has been able to survive the airline industry with gaining significance. SIA was commenced on 12 October 1937 with the incorporation of Malayan Airlines by the Ocean Steamship Company of Liverpool, Imperial Airways, and Straits Steamship Company situated at Singapore.[ CITATION Sin17 \l 1033 ] The company was successful in expanding its business with technical assistance of British Commonwealth Airlines and IATA. The company started to schedule regular flights from Singapore to Kuala Lumpur and Ipoh to Penang. In 1957 the company became public after the fleet included Douglas DC-3s in large numbers and was named as Malayan Airlines. Again in 1963, with the formation of federation of Singapore, Sabah, Malaya, and Sarawak the company was renamed as Malaysian Airlines. Finally in the year 1966, when Singapore got separated from the federation, it renamed the company under Singapore Airlines and made its company high rise headquarters based in Singapore.[ CITATION Sin17 \l 1033 ]Since its formation, the mission of the company is to provide with high quality transportation service and return utmost revenue to its stakeholders.[ CITATION AHM \l 1033 ]PESTLE ANALYSIS OF SINGEPORE AIRLINESWith the help of PESTLE analysis; factors relating political, technological, legal, economic, social and environmental forces that affects the company externally but is relevant to the firm will be considered.[CITATION Kie17 \l 1033 ] Politically, any airline industry is prone to government instability in the areas where it conducts its operation. For example, incidents of revolution in Arabian countries have led to curtailing of flight takeoffs in this region which had affected the cost operation of SIA. On the other hand opportunity that lies are most of the airlines carries National Flag of the country as its main carrier sign and represents the country itself and thus the government are likely to support them in all ways. Airline industry cannot limit its economic boundaries to its homeland and has to depend on various international economic conditions and are economic threat for the company. Other economic threat to SIA is growth in fuel rates as it composes main element in aircrafts and is used on regular basis in large quantity. Any rise in it can bring instability in the company operation directly or 2
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INTRODUCTION TO MANAGEMENT: SINGAPORE AIRLINESindirectly as if the overall economies of countries destabilizes it can affect the GDP of countries and hence people may become more concentrated in their expenditure for extensive travelling.[ CITATIONOvi131 \l 1033 ] Although SIA utilises best pricing strategy, it is possible that to some extent strategy also might not prove fair. Socially, the company has to face many challenges as operations of SIA are not limited in few countries only. For example, tourists travelling to far country with altogether different culture and language, it might become difficult for them to understand and take assistance from flight attendants during their long journey. Thus SIA requires appointing attendants who are well conversant in different language and culture which requires a huge expenditure to spend significant amount in staffing and for the management who are able to take initiatives.[ CITATION Pes15 \l 1033 ]Climatic threat has also been prominent in airline industry as any weather disruption like earthquakes, flood, or any other uncertainty in climate can lead to cancellations in flights relating those countries. On the other hand increased concern for environmental friendly services among passengers is increasing in a significant way which makes it a priority concern topic for the management part.[ CITATION Tog11 \l 1033 ] Global warming issues have affected and have been taken into consideration by many industries due to which airline industries have also started undertaking carbon reduction processes to assimilate their part of corporate social responsibility (CSR). SIA lacks some reputation here as it has been slow in responding in this case and hence is been demanded to rise in global prospective from customers.[ CITATION Sin171 \l 1033 ] In gigantic market of airline industry where people prefers air travelling, mainly in top marketplace, the main arena in which competition is played relates to technological innovations. For this, airline industries spends considerable amount in research and programming division not only to provide technological assistance and comfort to passengers but also to evoke a sense of security among them. Technological factors is far superior in case of SIA as it holds youngest fleets of aircrafts and is a self-righteous holder in adopting new and innovated recliningseats, entertainment systems, headsets, etc. and is still improving on this ground by adopting new and advanced ways. For booking tickets online, the technological factor has great influence and SIA holds good position as it provides great support to its customers by providing easy and correct way of choosing their preference regarding price and class.[ CITATION Sin172 \l 1033 ] Although countries with poor internet connectivity might not be able to utilise this service and can get astray from SIA which might led in losing customers for the company in those areas. Changes in governmental rules and regulations can impact the business politically. The organisation has to take permissions from the 3
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