Operations Management: A study of Singapore Airlines (SIA)

Table of Contents
1. Resource utilization at Singapore airlines...................................................3
2. Reasons behind the growth of sustainable production at SIA..............................4
3. Link amid SIA’s operational strategies, processes and policies.........................5
4. SIA’s major strategies...........................................................................6
5. STRATEGIC ISSUES FACED BY SIA....................................................7
6. Operational issues faced by SIA..............................................................8
7. Recommendations........................................................................... ....9
8. Conclusion.......................................................................................10
9. References.......................................................................................11
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Introduction
The efficient use of resources plays a vital role in firm’s profitability as well as its long-
term survival. The firm considered in this study is the Singapore airlines. The following
study will analyze strategies and tactics Singapore Airlines has implemented in order to
effectively utilize its resources and accordingly identify the gaps in those strategies.
Operations management is a multidisciplinary approach that lacks a good theoretical
base. As per Westbrook in 1994, Operation Management is a subject having very poor
base of concept, and building of theory via empirical methods of research. This lays
down the base for studying operational management. Previous study by Barry Render and
Jay Heizer in 2006 refers Operation Management as set of actions that creates value for a
firm, thereby laying base for analyzing the value SIA’s operational management has
added to Singapore airline’s value. The main aim of the study will be to analyze SIA’s
operational management strategies and find the gap if any.
Resource utilization at Singapore airlines
Singapore Airlines has achieved its strategic success by maintaining a sustainable
competitive advantage in the airline industry. The airlines has faced several issues in the
challenging airline industry, but Singapore Airlines has outperformed its competitors
since then. At SIA, the approach towards management of resources is all about analyzing
firm’s performance and finding of future scopes for improvement. Not many
organizations utilize its human resources and duplicate high-performance human assets
than any other resource. A firm assesses certain performances by analyzing its past
performance with the current performance (Zentner, 2016).
The most important and diverse strategy of marking undertaken by SIA is on the basis of
firm’s quality of image. It’s fascinating that the firm has mixed the evidently mismatched
strategies of differentiation—which it undertakes via excellence in its services and
constant innovation—plus cost leadership (Stauss, 2006).
SIA has executed dual strategy profitability. Management professionals like Michael
Porter argue that it’s just impossible to apply such strategy for long run since dual
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strategies entail contradictory investments as well as organizational procedures. Yet
following dual tactics has become vital in the industry. Demand for the value-for-money
goods and services has raised upwards since current recession, specifically within
developed nations, thus, even the producers of finest offerings need to find out the way to
clutch chances in middle as well as the lower end of market. Furthermore, being a
multinational corporation, SIA faces intense competition from its rivals and several of
them belong to emerging firms—which involves novel technologies as well as business
dummies to supply offerings that are good with appealing costs as well as attracting
services. SIA fights with them by lowering costs and at times even differentiating goods
and services. Being market leader Singapore airlines has been affected by price wars.
Therefore opting a dual strategy helps the firm attain better position within the market
and maintenance of the same (Heracleous, Wirtz & Johnston, 2004).
Reasons behind the growth of sustainable production at SIA
Singapore airlines have always ignored the crowd. At the time of recession, when its
rivals emphasized upon cost cutting, the firm extraordinarily slashed down its number of
flights. As per Datamonitor (2011), SIA serves varied geographical locations. The firm
delivers services like transportation of people, movement of logistics as well as
maintenance and repair services. SIA actually functions all across several locations like
Europe, East Asia, West Asia, South west pacific, Africa, and even America.
Additionally, the firm company carries a young aircraft fleet. Operations of this airline
involve transportation of both people as well as cargo. There have been several reasons
for the firm’s sustainable growth. They are:
Its clear strategy
SIA from very beginning has been very clear with its strategies and functions. It has laid
down dual strategy with an aim to attain better success and achieve fame in the long run.
The firm clearly aims to attain profit and capture maximum market. This was the reason
SIA always served customers at lower cost.
Management committee approved sustainability strategy
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