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1、Singapore Airline Case Study1. Examine the External environment that could affect SIA? (PESTLE analysis)PESTLEANALYSISPoliticalGovernments in developing countries realized the benefits oftourism to their national economies and invest in thedevelopment of airport and airlines and travel infrastructur
2、es.EconomicAsias large population, rapid economic growth, and growingmid class had fuelled the airline industry. In the past decade, airtravel has grown by 7% per year. Travel for both business andleisure purposes grew strongly worldwide. Scheduled airlinescarried 1.5 billion passengers last year. I
3、n the leisure market, theavailability of large aircraft such as the Boeing 747 made itconvenient and affordable for people to travel further to newand exotic destinations.SocialSingapore Airlines has maintained its position as one of thebest-known and best-performing brands in Asia, and remainsone o
4、f the few consistent performers in an industry whereestablished brands are struggling to stay alive.SIA also choose its strategic partner from companies withrobust brand images.TechnologicalOn the technology side, Singapore Airlines maintains theyoungest fleet of aircraft among all major air carrier
5、s, and keepsto the stringent policy of replacing older aircrafts for newer,better models. It has always been first in line to take delivery ofnew aircraft types like Boeing 747 jumbo jets, Boeing 777, andit will become the first airline to fly the Airbus super jumboA-380 in 2006.LegalDeregulation in
6、 Airline industry in Asia.EnvironmentDeregulation is also stimulating competition, such as that fromsmall, low-cost carriers.2. Examine the alignment internal elements for organizational performance. (Mckinsey s 7SStrategy: Singapore Airlinesbrand strategycOst-effective strategy as well asservice ex
7、cellence, which includes rigorous service design and development.Tight control of costs was put though ownership of the most cost-efficient aircrafts, hedgingagainst fuel price increases, and agile management of the entire company. Also SIA hascarefully built a financial and fixed cost infrastructur
8、e, which allows it to continue investingto support the brand while challenging the competition on costs.SkillInnovation ability, introducing many firsts in the airline industry, and sustaining this overthe decades in the face of intense cost pressures. Rotation programs and cross-functionalprojects
9、enable participants from local and international offices to practice skills learned.And the HR department regularly seeks inputs/feedback from staff to make training moreapplicable to their work.Stylethe style of leadership adopted.SystemInternet check-in, building on customer acceptance and high ut
10、ilisation of telephone andSMS check-in.The “Book the Cook service for passengers who like to order specific dishes in advance.This distributed innovation capability also guards against the company blindly followingtechnological fads.StaffSIA believes in grooming and promoting from within. Typically,
11、 graduates start off in thejunior management ranks, and with exposure, training and stellar performance, there areopportunities to eventually rise to senior management positions such as vice-presidents andabove.Share ValueSIAs culture encourages a stream of new ideas from its various functions, such
12、 as in-flightservices, ground services and loyalty marketing.StructureA service development was set to hone and test any changes before they were implemented.3. RecommendationOutsourcing some of its businesses helps reduce cost on money, time, labors and createstrategic advantages on specific areas.Form effective strategic alliances U se scientific method to choose alliances.Strategic alliances sharing risks and expenses, pool the complementary technologies andpatents, take advantages of economies of scale and production rationali
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