Professional Documents
Culture Documents
Family name
Given name
Email
Module Code
Module Name
Programme
Word Count
Date of Submission
Full-time / Part-time
Marker
CONTENTS
Contents........................................................................................................................1
1.
2.
3.
4.
2.1.
Definition of success................................................................................................3
2.2.
2.3.
2.4.
2.5.
3.2.
Organisational Culture............................................................................................10
3.3.
3.4.
3.5.
3.6.
4.2.
VRIN Framework....................................................................................................12
5.
6.
7.
Factors that might affect the sustainability of Singapore Airlines success and
References..........................................................................................................16
USER
Singapore has built its name on being one of the world top transportation hubs base on the
advantageous of her geographical location and to mention that Singapore Airlines (SIA) is a
critical contributor to that success cannot be further from the truth. Singapore Airlines origin
could be traced to October 1937 as Malayan Airways and later rename to Malaysia Singapore Airlines (MSA) in 1966 after the separation from Malaysia Federation. Due to the
differences in the corporate direction of MSA by Singapore and Malaysia government, in
April 1971 it was decided that assets of MSA will be divided and resulted in Singapore
flagship carrier Singapore Airlines.
Since then Singapore Airlines have expanded its global route network to 60 destinations
and established three subsidiaries airlines to cater for the ever-changing airline industry.
With an annual operating profit at SGD$410 million and an increase of 2.5% group net profit
y-o-y (Singapore Airlines, 2015), this report will use theoretical framework examine the
success factors of Singapore Airlines.
USER
DEFINITION OF SUCCESS
2.2.
Kaplan and Norton (1992) suggested that balance scorecard provides management with a
comprehensive framework that evaluates an organisation stratergic framework against a
set of performance metrics. SIA can make use of the Balanced Scorecard as a holistic
model used to evaluate comprehensive performance parameters. The mission statement of
Singapore Airlines is to provide air transportation services of the highest quality and to
maximize returns for the benefit of its shareholders and employees. There are various
objectives that can be determined from the balance score card of SIA of which profitability
and customer satisfaction are two main focus areas as are also emphasized in the mission
statement.
USER
The method takes four perspectives into account to measure the successfulness of SIA in
fulfilling its mission and achieving strategic objectives. The financial perspective takes into
consideration shareholders lookout of return on investments; the customer perspective
discusses the companys vision while taking into consideration the customers; the internal
business process perspective talks about operational processes to satisfy various
stakeholders interests and the learning and growth perspective entails capacity of
employees to learn and grow.
The below mention strategy map shows a logical and step-by-step association between
strategic objectives for improving performance of SIA based on the four balance score card
perspectives.
The subsequent balance score card of SIA is also demonstrated by identifying and setting
targets for those performance measures along with describing SIAs initiatives.
USER
2.3.
Though SIA is not much concerned about market share and revenue, their prime focus is
on recording continuous profitability and delivering superior ROI. SIA has a distinct record
of delivering net profit since its establishment in the 1972. The last 8 years net profit
analysis has been demonstrated below which clearly depicts its strong earnings in spite of
recent tough economic conditions in the worlds aviation market.
USER
If operational effectiveness is analysed, the SIA has delivered excellent results in operating
profit margins. Below mention diagrams portrays the 3-year highlights till FY 2014/15 and
quarterly performance up to the recent 3rd quarter of FY 2015/16.
USER
2.4.
As quoted by Mr. Thomas of Singapore Airlines The airline has always listened to its
customers and it shows again and again Customer loves the Singapore Airlines
experience, and it is also marked in the rare and interesting customer satisfaction metrics
that Singapore Airlines uses internally the ratio of compliments to complaints. It has been
recently recorded that 34 compliments were received against only 1 complaint per 10,000
passengers in 2010 (Singapore Airlines, 2010). Moreover, in a latest customer satisfaction
survey coordinated by Australian Business Traveller SIA stands first with a 90%
satisfaction rating for the year 2015.
The in-flight entertainment system of SIA along with enticing and exclusive special meals
designed by several internationally renowned chefs and the world's most discerning wine
consultants. SIA has been successful in creating its own standard for premier airlines
market. Singapore Airlines has received abundant praise and has won numerous awards
for its customer service. Some of them are worth mentioning such as Worlds Best Airline,
Cleanest Aircraft Cabins, Best Airport Services, Best Airlines in Business Class, Best
Airlines in First Class, Best Airlines in Economy Class, Best In-flight Entertainment
(Skytrax World Airline Awards, 2015). SIA stands second for the customer satisfaction in the
world in a recent ranking published by Skytrax World Airline Awards of 2015.
USER
2.5.
With about 24,000 employees, Singapore Airlines is one of the largest employer in Airline
industry. Employee empowerment is very significant to deliver quality customer satisfaction
especially in a service industry such as airlines. Empowerment leads to employees job
satisfaction which improves trusts, attitude and behaviour for the organization and helps to
increase productivity and reduce turnover. Singapore Airline understands the importance of
giving sovereignty to employees, moreover, the organizational structure of SIA also ensures
job satisfaction and to obtain maximum output from employees. SIA is committed to create
job satisfaction by using job enrichment, engagement initiatives and enlargement in order to
understand their duties and to create harmony at the workplace. Weiss, H., M. (2002)
Deconstructing job satisfaction: separating evaluations, beliefs and affective experiences. Human
Resource Management Review.
SIA has won numerous accolades like the 2015 Worlds Best Cabin Staff award (Skytrax
World Airline Awards, 2015) and the Best International Airlines for Business Travel (Fortune,
2015). Besides, independent online recruitment reviewer Glassdoor and Indeed provided
4-star ratings in their employee survey for Singapore Airways. These honours were
conferred because of greater employee productivity as can be evident from the following
figures on productivity.
Staff Productivity Ratios
Seat capacity per employee (seat-km)
Passenger load carried per employee
(tonne-km)
Revenue per employee ($)
Value added per employee ($)
USER
625,995
876,383
242,184
619,969
875,035
159,593
USER
The concept of relationship marketing theory embraces on the brand as an important tool
for a rm's consumer relationship management. It refers to direct all marketing activities
towards establishing, developing, and maintaining a successful brand. The theory further
suggests that consumers behaviour especially the intent to purchase is strongly influenced
by the marketing campaign focused on increasing brand positioning and brand awareness.
Shih-Ping Jeng, 2016, The inuences of airline brand credibility on consumer purchase
intentions Singapore Airlines remained competitive with strong profitability despite of
numerous challenges, and it has been due to its excellent branding and marketing
campaign. The campaign of Singapore Girls holds utmost importance in branding effort of
Singapore Airlines. The marketing campaign is effective in personifying the commitment of
the airline to deliver a superior flying experience. The iconic and unique Singapore Girls
(flight stewardess) wears sarong kebaya uniform which was designed by French couturier.
The Singapore Girl was an effective idea which portrays the four fundamental pillars of a
great customer service care, sensitivity, empathy and efficiency.
Singapore Airlines has been consistent in utilizing communication vehicles for the branding
strategy. The primary message A Great Way to Fly has been consistently communicated
in selective print media and TV-commercials to highlight the quality ambitions of the brand.
Moreover, the message is effectively presented by the iconic Singapore Girl in different
themes and settings. In this way, it can be said that the Singapore Girl has significantly
contributed to the success of Singapore Airlines marketing and branding strategy for
positioning the brand around customer service excellence.
3.2.
ORGANISATIONAL CULTURE
The organizational culture is built when a group of people engaged over a period of time to
develop certain knowledge in order to survive and to deal with external issues.
Organizational culture can be define as values, beliefs, languages and ideas that differ and
complex, those also create diversity in the organization (Barney, 1986). Barney, J., B.
USER
10
3.3.
As part of its international strategy, SIA joined the Star Alliance in the year 2000 and
expanded their network by investments in China and India through strategic alliances with
local organizations. They have forged new deals in 2014 with Air New Zealand, Asiana,
EVA Air and Turkish Airlines as part of the ongoing initiative to expand partnership for
providing a more comprehensive network. SIA has codeshares for over 1,500 weekly flight
routes operated by several European carriers, most of which covers the Western and
Central Europe. These alliances allow the airline to get the benefits of a larger networks
such as the economies of scale as well as network benefits of a larger route network while
remaining an independent company. Besides, the expansion of route network, code sharing
also helps in improving frequent flyer program of SIA by earning miles across the alliance
and redeems the benefits across the network.
3.4.
In order to achieve cost-effective service excellence, SIA has two main assets - planes and
people. SIA always ensures that the plane is young because the mechanical failures are
rare, fewer take-offs are delayed, more arrivals are on time and fewer flights are cancelled
USER
11
for better efficiency of planes. New planes are more fuel efficient and less repair and
maintenance. However, SIA understood that service is mostly about people, so service
employees are the key motivation delivery excellent service and increasing productivity. SIA
invested many training programs. The employees learn how to take care customers and
learn how to communicate by eye levels to them rather than just talking down. The
emphasis in service is not only desired customers but also reduced the cost by minimizing
customer turnover.
3.5.
Describe the importance that SIA emphasize on the fleet safety and reliability
3.6.
USER
12
4.1.
A detailed analysis of the companys strategic capabilities starting with the Value Chain and
followed by a VRIN evaluation. Your interpretation of the analysis must clearly show how
the company has been able to build competitive advantage.
PRIMARY ACTIVITIES
Write on the primary activities of SIA, please refer to sample
SECONDARY ACTIVITIES
Write on the secondary activities of SIA, please refer to sample
4.2.
VRIN FRAMEWORK
USER
13
Management theories
Organisational culture
Decision-making
USER
14
A detailed analysis and interpretation based on either one further topic area from the
following list:
o
USER
15
An explanation of any external and/or internal factors that might make it difficult for the
company to be successful in the future (cite sources) and suggestions as to how the
company can best deal with these.
USER
16
7. REFERENCES
USER
17