Pestle and Porter's Five Force Analysis of Singapore Airlines

Running head: Singapore Airlines
Introduction to Management

Singapore Airlines
Table of Contents
Introduction...............................................................................................................1
Pestle analysis of Singapore Airlines........................................................................1
Porter Five Force Analysis........................................................................................3
Strategic recommendations.......................................................................................5
Conclusion.................................................................................................................6
References.................................................................................................................8

Singapore Airlines
Introduction
Singapore Airlines was established in January 1947 and it is known as a wholly owned
subsidiary of the government. The services offered by the company are related to air
transportation, in-flight services and also ground services. In 1947, the company started with the
twin-engine Airspeed consul under the Malaysia Airways. In 1972, the organization created two
entities like Malaysian airline system and Singapore Airlines. The hub is Singapore change
airlines. The slogan of the company is "A great way to fly".
The company is managed or controlled by the key people who are Peter Seah Lim Huat
and Goh Choon Phong. There are more than 25,194 employees who are conducting their routine
activities in the organization. It has been seen that company has achieved goodwill in the market
just because of the effective services provided in the country. The motive of the company is to
offer effective services so that satisfaction level of the customers can be enhanced. It has been
seen that company has a link with the holding company named as Temasek Holdings which have
56% of the voting stock (Singapore airline, 2018). It has been seen that company is considered as
a five-star standard carrier in Singapore it is a subsidiary of the Singapore government.
Pestle analysis of Singapore Airlines
Political Factor
It has been evaluated that political factor has an influence on the external business
environment of the Singapore Airlines. This refers to various policies of the government that
focuses on the intervention of the particular economy (Olson, Slater, Hult & Olson, 2018). For
instance: The Singapore Airlines has taken into consideration the Air India by managing the
severe blow to privatization blow of the Indian Government. This has also become a barrier in
the political context for the overall activities of the organization (Chernev, 2018). The changes
also affect the activities of the company of the Singapore airlines and also in context to China
aviation. It also boosts the private airlines which are conducting their activities in the airline

Singapore Airlines
industry. There are many several limitations to investment as per the government body. Also, it
has been seen that company consider the fair trading law, consumer law and also five freedoms
of air (Karatepe, 2016).
Economic factor
The economic factors of the company are related to the overall rate of interest, taxation
policies and also with the foreign exchange rates. The economic factor that gives impact on the
business environment for the Singapore Airlines takes into consideration the emerging markets
of Asia and also it helps in strengthening the overall Singapore dollar of comparison is made
with the foreign currencies (Armstrong, Kotler, Harker & Brennan, 2015). It has been evaluated
that company offered to consider a stake in the China Eastern Airlines against the 7.3 billion
Hong Kong that has given many challenges as the shareholder. Also, the global demand is
reducing the concerned of the business environment. Stabilization of the fuel cost is also given
impact on the business environment of the company. The price rates of the fuel also influence the
economic condition of the aviation industry and it has given influence on the overall activities of
the company (Wirtz & Heracleous, 2016). The department of engineering of Singapore Airlines
has focused on the repairs and also on maintenance so that large market share can be covered by
the company. The company is also known as the first carrier that has focused on the products so
that interests of the passengers who are conducting on board without the requirement of offering
power to the laptops can be served. The organization has considered the sun as a specific
microsystem that helps in the power of the productivity that suite in the flight (Fan & Lingblad,
2016).
Social factor
The social factors that affect the social environment of the company are related to altering
the preferences of the customers. The organization has required to focus on the changing factors
related to taste and preferences of the customers so that it can be easy to make the company
products and services more customer-centric. There is also increase in the disposable income of