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Strategic Management Assignment | Introduction to Management

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Added on  2020-04-07

Strategic Management Assignment | Introduction to Management

   Added on 2020-04-07

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SINGAPORE AIRLINESINTRODUCTION TOMANAGEMENTSINGAPORE AIRLINESSTUDENT NAME
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SINGAPORE AIRLINESINTRODUCTION TO MANAGEMENT2INTRODUCTIONOne of the most reputed companies situated in Singapore is Singapore Airlines (SIA) who has gained significance for superior quality customer service and well built strategic management. By incorporating Malayan Airlines with Imperial Airways, Ocean SteamshipCompany in Liverpool and Straits Steamship Company, SIA was formed in the year 1937[CITATION Sin172 \l 1033 ]. Since then SIA had been able to consider its available resources and gained competitive advantage over its competitors. With technical support of IATA and British Commonwealth Airlines, SIA was able to expand its business. Douglas DC-3s was introduced in company’s fleet in the year 1957 after which the company became public and was given the name Malayan Airlines in year 1957. Singapore, Malaya, Sarawak and Sabah formed a federation in the year 1963 after that the company was renamed as Malaysian Airlines. Then in the year 1966, the company was finally given the name of Singapore Airlines after Singapore got detached from the federation[ CITATION Sus16 \l 1033 ]. Then after, SIA made its headquarters in Singapore. PESTLE ANALYSIS
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SINGAPORE AIRLINESINTRODUCTION TO MANAGEMENT3Figure: PESTLE analysisSource: [ CITATION Mik16 \l 1033 ]The PESTLE analysis made of SIA will help in getting detailed information regarding company’s external factors which are indirectly related to the firm. The threats and opportunities relating external factors will be analysed while evaluating opportunities behind it[ CITATION Kie17 \l 1033 ]. Political: Politics factor has always been in favour of the company as the carrier of the company carries nations logo, governmental support is always with SIA. The threat here isinstability in countries government may affect SIA’s business as the flight takeoffs may have to undergo several legal verifications and suspiciousness of securities. The cost of operations has chances of increment with reduced number of passengers in politically affected areas[ CITATION Pes15 \l 1033 ]. Economic: Economically Airline industries have to face barriers as their operations are related to many countries economies. The most important factor that affects the company is fuel prices i.e. if the economic conditions of countries leverages fuel prices, company’s
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SINGAPORE AIRLINESINTRODUCTION TO MANAGEMENT4overall pricing strategy will be hampered. Also if economies goes down, it may directly hit the sales of the company as people then prefer not to make longer journeys for tourism purposes. Although SIA uses best pricing strategy, any steep change made in countries GDP are always a threat for the company. Social: Travel and tourism companies have to face many challenges socially as their operations are not limited to one country only. While travelling in countries, different language as well as different cultures has to be faced by company’s employees. SIA here faces threats as most of the company’s staff is not known to many languages and to face people from different countries becomes quite challenging. The flight attendants are required to understand the demands and problems of passengers and if it is not met, they might face trouble in flight.Technological: Technological factors are immensely substantial in industries where top marketers are involved. People who travel in high class section of flights demand for superior interiors and more comfortable journeys. Thus, in order to provide with high classjourney with comfortable environment, airline industries are bound to spend huge amount for technological innovations and make their in flight support more securable. While considering about SIA, it holds youngest form of fleets i.e. latest and newer technologically enabled aircrafts can be found in its collection. The company is still working on its improvements by introducing recliners, headsets, entertaining gadgets and cosy beds which get easily attracted by customers. SIA official websites provides customers with an insight to what they demand and in different budgets[ CITATION Ovi131 \l 1033 ]. Legal: Legally, the government regulations and country laws have always affected airline industries operation. In order to make travelling to other countries, especially while making travel to newer country, SIA has to undergo many paper works and abide by
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