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Foundation Course Of Managment

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Discuss about the Foundation Course of Managment ?

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The government primarily owns the Singapore airline and partly by Temasek Holdings with 56% voting power. The government has less involvement in the management of the company but takes part in crisis management. The headquarters, Airline House, of the enterprise is located in Changi Airport. The branding is done through the flight crew Singapore Girls which has largely been successful.  Unlike other airlines, the company does not emphasize on quality of aircraft or the services it provides rather the use of flight crew has become the primary branding element the company uses. The Singapore girls have featured in almost the entire airline’s advertisements or promotions. Although this has been successful, controversies surrounding the utilization of all female flight crew is thought to portray women as being subservient to males.

The company’s Logo has a bird inspired by Silver Kris derived from Southeast Asian Folklore and superstitions. This is the central element is company branding and some changes made to the logo has enlarged the some of the features such as the bird and the stripes(Johnson &Whittington 2007).

The airline's destinations are on five continents with 62 destinations which are connected to Singapore. Its presence is strong in Southeast Asia which connects in with international destinations around the globe. Regulations in Singapore airlines are more flexible creating stage fro formation of agreements between Singapore Airlines and other countries such as Thailand and UAE. The company currently has an operational fleet of four aircraft types; Boeing 777, Airbus A350, A380, AND A330.

The in-flight services have four categories which include the first class, business class, premium class and the suites. The introduction of Boeing and Airbus has increased the rates of flights across international destinations. The airline is popular across the Asian market and has been operational since 1972.

Apart from the achievements the company has experienced it has faced some unpredictable events that have shaken the airline industry. The 2008 financial crisis across the Asian market affected the Singapore revenue. Consequently, the company introduced a self-evaluating to increase competitive advantage in maintaining its market position.

PESTEL analysis

The PESTEL analysis is used to determine the external factors affecting the company. Analysis of the factors ensures that the corporation strategies are in line with the objectives and sustainability goals set. For Singapore airlines to cope with the changing environment requires analysis of the external factors that affect the company. These reviews enable the company to strategize on how long term goals could be achieved.


Political-Legal factors

For growth of the company in both local and international stage, it needs to understand the political environment within Singapore and other destination countries across the world.   To successfully expand its reach to a global market require in-depth decision-making process and strategies. Within Singapore, the Singapore Airlines provide full support to the company as it has shareholdings in the enterprises explained by Johnson&Whittington (2007). Taxation on the airlines in Singapore is more favorable compared to other countries where taxation is over 30% in their respective countries such as the Japan Airlines pay 30% tax in Japan while Singapore Airlines pay 20% tax in Singapore.

Aviation regulations within the airline industry standardize the services and aircraft used therefore the Singapore Airlines should take this control into considerations as they expand to different markets across the globe. The airline has faced challenges in approval to operate in the various countries for example; in 2005 it took the air time to be approved to work in Australia

Operations in airspace have restrictions as countries across the globe have rules concerning the use of their airspaces. For the company to use air, it requires it to sign agreements with individual countries. Some of the air regulations include landing and flying over and are mostly agreed on by the different countries. Most of these policies are loosening which is a positive impact on the company as it can explore options on different routes it takes to the various destinations(Aviation Week 2009).

Economic factors

The economic factors directly affect the industry as they depend on them for operations. These factors include the price of fuel, interest rates, taxes, inflation and economic development (Singapore Airlines 2011). Economic growth in Singapore has had a positive impact on the Singapore Airlines by increasing investments resulting in the increase in customer base

The financial crisis and the recession in Asian market reduced the number of clients using the Singapore Airlines. Such economic factors affect the ability of the company to project the market demand and future costs of air travel (Aviation Week 2009). It is the fuel prices keep fluctuating which directly impacts air travel expenses increasing flight costs reduces the competitive advantage of the company. Although the company has faced these setbacks, it has expanded its market in the Asian region as countries in this region have continued to open their markets to international airlines.

Social factors

Air travel has impacted by a change in lifestyles and social status of individuals. The air provides a range of flight options and services they prefer such as food options. The company aims at providing excellent services to its customers for example food serve from different cultures to cater for customer preferences. The company is expected to maintain its image by using the Singapore Girls as it operates across the globe.

Some of the other concerns of customers before they choose the company for air travel to include fear terrorism activities, and the possibility of air accidents. The 2002 Taipei air crash which claimed 82 lives and left others wounded negatively impacted the company. Accidence has a major impact on the attitudes of the potential airline users which requires the company to strategize on how to retain their markets after such accidents. Flu epidemics have affected international travels such as the 2009 flu outbreak reduced company’s stock by 4%.

The company provides a safe working environment in which its employees get full benefits from the industry. The treatment that the employees receive is according to the social customs in which their opinions are taken into consideration. The airline strives to incorporate the social norms and values of its stakeholders.


Technological factors

Technological advancements have positively impacted Singapore Airlines and the whole industry. Technologies in air industry should be secured and standardized to protect the databases from unauthorized parties. Airline industry requires companies to adapt fast to changing technologies, or they risk losing their competition advantage. The company has incorporated various technologies such as the micro power system that ensures that clients continue working while onboard as they could charge their gadgets(Scott2008). The first and economic classes have more improved facilities compared to other airlines as the seats are technologically advanced; this enables the company to customer loyalty. The company was ranked top by in 2008 for its improved services including online purchase of tickets.

Environmental factors

Environmental issues have increased over the past decade due to change in the climate and companies are being urged to take up responsibility for the environment. The airline industry is known for contributing to environmental pollution through air & noise pollution and global warming (Aviation Week 2009). Singapore Airlines have mitigated these challenges by following the air pollution regulation and providing customers with a long lasting experience.

Despite the Asian financial crisis, the airline continues to expand by purchasing new aircraft which are cleaner and environmentally friendly as noted by Ray (2008).  These aircraft have reduced emissions by using efficient fuel, for example, the A380 was obtained to reduce carbon emission. The airline has prioritized customer satisfaction to enable win over new customers to check out their services and is committed to protecting the environment.

Porter’s five forces analysis

The airline industry is most intense and competitive industry; several airline companies are competing for global markets. The Porters forces analysis uses five forces to determine the competitive nature of business. The factors identified by Porter determine success rates of the company in the market. These effects include;

Threat of new entrants

This element refers to the ability of the company compete favorably in the market. Singapore airline dominates the Singapore market as it has been operational for decades. The airline faces the least competition from new entrants as government control dominates the passenger airline industry.  The lack of new airline entries to the industry has increased congestion in international and regional hubs. Some international brands that have entered Singapore market include Air Asia and Jet Star but their operations are short term and have a global presence.

Intensity of rivalry

From porter’s theory, competition exists in different concentrations that can be termed as low or high hence the business is expected to continually study the market to ensure that customer demands are met. The intensity of competition within the airline industry is high within routes that are commonly used by passengers, for example, the London-New York-Paris route has a high number of clients who ply through these routes. Cook et al. (2012) noted that on such routes where competition is intense, punctuality by observing as it is the major factor contributing to what clients’ checks before using an airline. The airline is known for its excellent performance in the ‘Kangaroo Route’ tat connected Southeast Asia, New Zealand and Australia as the route has few airlines operating in it.

Threat of substitute services

This aspect gives the extent to which airline services by replacing it other services that provide the same services. The short-term impact of these threats is minimal as air services have a unique nature as noted by Morrison (2013). Globalization has increased investment in alternative transportation facilities such as the speed rail connections between routes served by the Singapore airline. There is a possibility of speed trains taking over transportation in the future between Europe and Asia. The advancement in communication technology has reduced business travels as people could communicate real time using these technologies.

Bargaining power of customers

This aspect requires the airline to understand the client demands for it to survive in the industry. This issue is moderate, and the carrier is expected to project this element to ensure that it maintains and continues to develop its operations(Yun2009). Some of the factors that contribute to this aspect of airline competitiveness include travel costs, waiting for time, and attitudes towards the safety of the air. The Internet has changed how customers select airlines to use as they multiple airlines have websites and customers can compare them and make switching decisions any time before booking a flight.


Bargaining power of the suppliers

This aspect refers to the ability of the company to negotiate for the purchase of equipment and other supplies.  In the airline industry suppliers have a high bargaining power as they determine prices of the equipment and materials. The suppliers have a monopoly over the market as there are few aircraft manufacturers (Singapore Airlines2011). The Boeing and Airbus are major suppliers of fleets while the engines are supplied by few companies that include General Electric and Rolls Royce.

Business professional development

For the airline to maintain and grow its market share, it has to stay committed to providing quality services. This involves analyzing and understanding market trends and being able to identify customer needs. The company should carry out research on the target market at which will provide a constant supply of information on how the company could improve its production. For the airline to maintain is brand and position in the market it has to put customer considerations in the service provision.

Provision of high-quality services

The airline is famous in Singapore because of its excellent services it gives to its clients. The company has to strategize on how to maintain this aspect to maintain and grow its market share

Customer value

 Singapore airline provides high-quality products and has received positive reviews from both local and international clients. The company has existed for decades as it has continuously provided value to the lives its customers (Scott2008).

Business flexibility

Singapore Airlines Company should ensure that it pays attention to customer needs rather than what they think is right. This creates customer satisfaction and in turn increases sales. The company needs to strategize on how they could incorporate views and opinions of customers on the business model. In a case of mistakes, the company should not be quick to put the blame on customers rather should establish a consensus on problem-solving.



This paper is an analysis of the environment in which the company operates how best it could utilize them. From the analysis, the company is in a favorable environment to fully function and expand its activities globally. Singapore Airlines has a good grip on the local market which forms a good base for expansion to a global market. Globalization, on the other hand, is a factor that the company needs to exploit as it provides a wider market for its operations. The Airline is expected to grow in the coming few years with more presence in the global market.



ACCC, (2008), ACCC institutes proceeding against Singapore Airlines Cargo Pte Ltd for alleged price-fixing. ACCC news release. Available at

Airbus, (2007), Airbus delivers the first A380 to Singapore Airlines: a new chapter in aviation history. Airbus statement. Available at

Andwick, JL (2015), Singapore Airlines, Ltd. SWOT Analysis. Business Source Complete. Datamonitor Plc. Available at

Aviation Week, (2009), Aviation Week Top Performing Company - 2008 Airline Rankings. Aviation Week. Available at

Daisy, M (2009), Watchdog serves another airline in the global price-fixing cartel. E-Travel Blackboard.

 Eyefortransport, (2009), Court dismisses SIA's appeal challenging ACCC investigation. Eyefortransport. Available at

Johnson, G &Whittington, R (2007), Exploring Corporate Strategy. Prentice Hall

Miller, FP Vandome, AF & Mcbrewster, J (2009), Singapore Airlines. [Place of publication not identified], Alphascript Pub.

Morrison, M (2013), PESTLE Analysis. Chartered Institute of Personnel and Development (CIPD available at pestle-analysis.htm

Morrison, M (2013), SWOT Analysis. Chartered Institute of Personnel and Development (CIPD). Available at

Scott, B (2008), Singapore Airlines' Winning Strategy. Harvard Business Publishing

Simon, S  (2008), Travellers the winner in airline price war. ABC News. Available at

Singapore Airlines, (2013). Report - Singapore Airlines.

Singapore Airlines,(2011), Singapore Airlines. Singapore Airlines.

St. James Press, (2014), International Directory of Company Histories, Vol. 27 - Singapore Airline Ltd. ISBN 13: 978 1 558 623866.

Roll, M (2015),Singapore Airlines - An Excellent Asian Brand. Venture Republic.

Ray, M (2008), Price plunge 25 percent in airline price war. Worldnews.

Yun, J (2009), MOM to mediate SIA, Alpa-S dispute. Procurement Asia.Available at

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