Singapore Airlines (SIA) sees itself as an acknowledged company with high-quality services that strives for equality and rivalry through the open access to the transatlantic directions and exercises competitive advantages via technology, innovation, and efficiency enhancement of its human resources.
Competitive strategies
The application of an approach based on organizational paradoxes enables the SIAs excellent performance in the rivalry. Heracleous and Wirtz focus on four puzzlements which have brought advantage to SIA. Among them are: cost-effective service excellence, simultaneous decentralized and centralized innovation, being simultaneously a follower and a leader in service development, and accomplishment standardization as well as personalization in customer interactions (150). To go farther than their rivals, SIA emphasizes on the inconsistencies that should not be fought, but accepted and explored as a powerful tool. For example, the cost-effectiveness and service excellence are two opposite poles, and struggle for the balance between them is the primary concern of the peer companies. SIA have decided not to choose between two devils but accept both as inevitable and necessary for the enterprises competitive advantage. To solve the problem SIAs leaderships have established the acquisition of new fleet, investment in human resources and their training, high accountability on all levels, the straight correlation between performance and reward, and visible enhance the customer services (Johnson 4).
Employment of Competitive Advantages to Satisfying SIAs clients
Lee and Worthington in their analysis of the effectiveness of low-cost carriers (LLC) and mainstream airlines conclude that the presence of LCCs in the market increases the rivalry among all players (19). Since the customers are sensitive to the prices and services, SIA has executed the dual strategy to solve the issue. As a client-oriented business, the company assesses the value of loyalty and has implemented steps to increase it through investment in the service superiority. Therefore, SIAs view on the issue can be expressed in the interrelations between the customer and perfection in adjusting their needs (Heracleous & Wirtz 159). SIA is well known for its innovations in the industry. For example, the company was one of the firsts that introduced personalization in clients services providing customers with access to different entertainment facilities and broad food and beverages options. Moreover, SIA employed feedback policy which gives the insight on satisfaction ratings with a product or class induce examining how to improve ratings again (160)
Management of Human Resources
SIAs management of human resources is based on the focus on the excellence in training and performance. According to Heracleous and Wirtz (2010), the employees should prioritize the good performance along with the reduction of costs. The company has built its culture in close relation to SIAs history which marked by struggling for the prominent position through concentration on innovation and personal involvement (149). Moreover, SIA has extensive training programs in different areas. For the management, the company provides educational anti-corruption sessions in the various countries where SIA operates. Preparation and professional development of the flight operators, pilots, and crews are the primary concern for the company because these specialists directly deliver the services to the customers.
Social Responsibilities and Ethical Activities
According to Strengthening a Position of Leadership (2016), several branches of SIA, such as SIA Cargo and SilkAir have the efforts in the community services that cover different aspects of the local and international arena of the companys operation. For example, Cargo supports Jurong Bird Park and Singapore Zoo which gives the recognition to the airlines and, thus, as a benefactor SIA Cargo transports animals around the globe. However, another chapter of charity which is sponsoring and volunteer assistance for Childs Dream Foundation by SilkAir and Singapore Childrens Society is implemented in the local field it gives the company international acknowledgment as well. Backing up sports teams in their transportation and funding needs puts SIA among other air services providers such as Delta Airlines, Emirates, and Etihad Airways.
Moreover, the company intensely invests into new technologies to control the fuel emission which is the sign of environmental accountability. This strategy works in two directions: first, SIA provides the evidence of lower fuel diffusion and states its responsibility position; second, the company binds its effort in environmental area with its competitive technical advantages of the modern fleet. Although the majority of the airlines have to demonstrate sustainable improvements in the reduction of harmful emissions, SIA emphasizing its uniqueness by the following statement, As we have always had a modern fleet, it is more difficult for us that it is for many other airlines to show significant reductions in our emissions on a year-on-year basis (Sustainability Report 1). Social responsibilities and ethical activities symbolize that the company is accountable and customers can rely on it because it shows the care about people, wildlife, and the environment. The responsible activities allow the airlines being always on consumers sight and propelling itself from the pool of the rest.
To sum up, SIAs activities in the implementation of new technologies, customer service innovation and excellence policies, and human resources development secure the company in the highly competitive industry. The efficiency of SIAs strategy that highlights it among its peers is in a wise approach to the problems that every air service carrier faces and in resolving the paradoxes through accepting their nature and employing necessary steps.
References
Heracleous, Loizos, and Jochen Wirtz. Singapore Airlines balancing act. Harvard Business Review 88.7/8 (2010): 145-149. Print.
Singapore Airlines: Achieving Sustainable Advantage Through Mastering Paradox . The Journal of Applied Behavioral Science 50.2 (2014): 150-170. Print.
Johnson, B. Reflections: A Perspective On Paradox And Its Application To Modern Management . The Journal of Applied Behavioral Science 50.2 (2014): 206-212. Print.
Lee, Boon L. and Andrew C. Worthington. Technical Efficiency Of Mainstream Airlines And Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression . Journal of Air Transport Management 38 (2014): 15-20. Print.
Singapore Airlines (SIA) sees itself as an acknowledged company with high-quality services that strives for equality and rivalry through the open access to the transatlantic directions and exercises competitive advantages via technology, innovation, and efficiency enhancement of its human resources.
Competitive strategies
The application of an approach based on organizational paradoxes enables the SIAs excellent performance in the rivalry. Heracleous and Wirtz focus on four puzzlements which have brought advantage to SIA. Among them are: cost-effective service excellence, simultaneous decentralized and centralized innovation, being simultaneously a follower and a leader in service development, and accomplishment standardization as well as personalization in customer interactions (150). To go farther than their rivals, SIA emphasizes on the inconsistencies that should not be fought, but accepted and explored as a powerful tool. For example, the cost-effectiveness and service excellence are two opposite poles, and struggle for the balance between them is the primary concern of the peer companies. SIA have decided not to choose between two devils but accept both as inevitable and necessary for the enterprises competitive advantage. To solve the problem SIAs leaderships have established the acquisition of new fleet, investment in human resources and their training, high accountability on all levels, the straight correlation between performance and reward, and visible enhance the customer services (Johnson 4).
Employment of Competitive Advantages to Satisfying SIAs clients
Lee and Worthington in their analysis of the effectiveness of low-cost carriers (LLC) and mainstream airlines conclude that the presence of LCCs in the market increases the rivalry among all players (19). Since the customers are sensitive to the prices and services, SIA has executed the dual strategy to solve the issue. As a client-oriented business, the company assesses the value of loyalty and has implemented steps to increase it through investment in the service superiority. Therefore, SIAs view on the issue can be expressed in the interrelations between the customer and perfection in adjusting their needs (Heracleous & Wirtz 159). SIA is well known for its innovations in the industry. For example, the company was one of the firsts that introduced personalization in clients services providing customers with access to different entertainment facilities and broad food and beverages options. Moreover, SIA employed feedback policy which gives the insight on satisfaction ratings with a product or class induce examining how to improve ratings again (160)
Management of Human Resources
SIAs management of human resources is based on the focus on the excellence in training and performance. According to Heracleous and Wirtz (2010), the employees should prioritize the good performance along with the reduction of costs. The company has built its culture in close relation to SIAs history which marked by struggling for the prominent position through concentration on innovation and personal involvement (149). Moreover, SIA has extensive training programs in different areas. For the management, the company provides educational anti-corruption sessions in the various countries where SIA operates. Preparation and professional development of the flight operators, pilots, and crews are the primary concern for the company because these specialists directly deliver the services to the customers.
Social Responsibilities and Ethical Activities
According to Strengthening a Position of Leadership (2016), several branches of SIA, such as SIA Cargo and SilkAir have the efforts in the community services that cover different aspects of the local and international arena of the companys operation. For example, Cargo supports Jurong Bird Park and Singapore Zoo which gives the recognition to the airlines and, thus, as a benefactor SIA Cargo transports animals around the globe. However, another chapter of charity which is sponsoring and volunteer assistance for Childs Dream Foundation by SilkAir and Singapore Childrens Society is implemented in the local field it gives the company international acknowledgment as well. Backing up sports teams in their transportation and funding needs puts SIA among other air services providers such as Delta Airlines, Emirates, and Etihad Airways.
Moreover, the company intensely invests into new technologies to control the fuel emission which is the sign of environmental accountability. This strategy works in two directions: first, SIA provides the evidence of lower fuel diffusion and states its responsibility position; second, the company binds its effort in environmental area with its competitive technical advantages of the modern fleet. Although the majority of the airlines have to demonstrate sustainable improvements in the reduction of harmful emissions, SIA emphasizing its uniqueness by the following statement, As we have always had a modern fleet, it is more difficult for us that it is for many other airlines to show significant reductions in our emissions on a year-on-year basis (Sustainability Report 1). Social responsibilities and ethical activities symbolize that the company is accountable and customers can rely on it because it shows the care about people, wildlife, and the environment. The responsible activities allow the airlines being always on consumers sight and propelling itself from the pool of the rest.
To sum up, SIAs activities in the implementation of new technologies, customer service innovation and excellence policies, and human resources development secure the company in the highly competitive industry. The efficiency of SIAs strategy that highlights it among its peers is in a wise approach to the problems that every air service carrier faces and in resolving the paradoxes through accepting their nature and employing necessary steps.
References
Heracleous, Loizos, and Jochen Wirtz. Singapore Airlines balancing act. Harvard Business Review 88.7/8 (2010): 145-149. Print.
Singapore Airlines: Achieving Sustainable Advantage Through Mastering Paradox . The Journal of Applied Behavioral Science 50.2 (2014): 150-170. Print.
Johnson, B. Reflections: A Perspective On Paradox And Its Application To Modern Management . The Journal of Applied Behavioral Science 50.2 (2014): 206-212. Print.
Lee, Boon L. and Andrew C. Worthington. Technical Efficiency Of Mainstream Airlines And Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression . Journal of Air Transport Management 38 (2014): 15-20. Print.
The air travel industry in which Singapore Airlines operates is prone to volatilities and disruptions that dont augur well for business. The effects of the global financial crisis, high fuel prices, and security issues such as terrorism and epidemic outbreaks have resulted in a decline in profits in the industry (Yosef, 2006). Singapore Airlines has however maintained a strong recovery path registering improved earnings in the 2010/2011 year.
In this report, the income statement of Singapore airlines will be the subject of analysis. The companys performance will be measured through a comparison of its inflow and outflow of assets as reported in the financial statement.
Analysis
According to the financial statement of the company, Singapore Airlines group achieved a net profit of $1092 million in the 2010/2011 financial year. Asset outflows of the company for the year ending April 2011 equaled $13, 253.5 million compared to 12, 644.1 million for the same period in the previous year, representing a positive growth of + 4.8%. Asset inflows for the financial year ending April 2011 were $14, 524.8 million compared with $12, 707.3 million for the same period the previous year. This marked a positive increase of +14.3%. The income statement also details the revenue achieved by the company section of the group. The overall asset inflow of the company was $11, 739.1 million while the overall asset outflow was at $10, 887.8 million. The profit after taxation for the company was $1,011.2 million. The value addition at both group and company level was positive with that of the company level being +37.8%. The revenue figures posted by Singapore Airlines show both the top-line and bottom-line growth of the company is on course. It is important to note that all figures are in Singapore Dollars.
Revenue drivers
If a business experiences a return on capital that is more than the asset outflows, then a positive value is created. The creation of value in business is directly linked to the revenue management of a company. However, value alone cannot help in the revenue growth of a company. There is a need to enhance the development of the areas of revenue generation in a company to help in diversifying sources of revenue (Alexander, 2007). Singapore Airlines has as result embarked on a fleet modernization and leasing program, upgrading customer services and increasing its partnership with various airlines, all aimed at achieving better revenue management.
According to the 2010/2011 annual report, the company saw the delivery of new Airbus A330-300 aircraft that are on operating leases to various cities in the world. Additionally, six more Boeing 777-200ERs were leased to Royal Brunei Airlines. Furthermore, the company reported the completion of cabin refreshment in another ten Boeing 777-200s. There were also several additions to the airlines fleet of Boeing and Airbus aircraft. The fleet expansion according to the company is meant to cater for increasing passenger volumes that will in the long run translate to increased revenue.
The company also embarked on a program of upgrading services including redeeming of points for selected flights besides other local offers and privileges. The main aim of the above strategy is to maintain high-quality service delivery as one of the key revenue drivers of the airline.
Partnership with other airlines also emerged as a leading driver of revenue for the company. For instance, the airline in the last financial year increased its list of partner airlines to 29. This has in turn helped the airlines customers to earn more miles that are redeemed for extra services without pay. The projected benefit, in the long run, will be a rise in revenue.
Reference List
Alexander, J., 2007. Performance dashboards and analysis for value creation. NY: John Willey & Sons.
Singapore Airlines (SIA) by its precise nature provides airline services in a free market and aims at delivering quality services (Harvard Business School, 1989). Achievement of quality and reliable services is guided by key, salient points that include a democratic organization, creation of smallest units possible, training and retraining of the group, equality in al departments, delegation of authority, and an environment where delegation of tasks is exercised effectively. Following the six airline stagey, this industry has registered tremendous growth and profit following the differentiation of the airline industry. Pillay the SIA manager underscored that the sector fly the most advanced and best aircraft while the maintenance operations are among the best in the world (Harvard Business School, 1989). In respect to organization democracy, hiring of cabin crew and engineers is done from within and western countries. Therefore, all candidates who meet SIA selection criteria are hired and offered the necessary training skills without biases. SIA being a multiracial society, levels of democracies are acerbated through the high standards of performance and selection upheld by the industry. Cabin crews are hired from Chinese, Indian, Malay, and Eurasian communities; thus, embracing cultural traditions of service and hospitality.
Creating an environment where delegated responsibility can be used effectively is a critical pillar in SIA policy framework. However, an article published in the Sunday times in 1981 indicated that a climate of hostility pervaded SIA. Passengers as policy of rating customers is free to interact with stewardess incase the stewardess turn down the request for dates with passengers she often receives negative compliments. Such negative feedbacks affect the stewardess’s reputation and are associated to a failed appraisal system. In an effort to address the issues, the management (senior or chief) embarked on a training check stewards allowing stewardess to appeal for questionable assessments. Delegation of responsibility was a point of concern to most cabin crews who were interviewed randomly. Since the crew cabin undergoes rigorous training that involve eight weeks of groundwork training and close supervision during flights, they should be free to interact with passengers.
In an interview conducted in 1981 by an independent consultant with 20 flight stewardess and stewards, the findings indicated that cabin crews did not interact with passengers accordingly (Harvard Business School, 1989). Some crews acknowledged of having hard times and being anxious while dealing with passengers. This is a reflection of inadequate and effective training on communication aspects of the cabin crews. Some stewardess responded that they were afraid messing up their English as they engaged the passengers. It is the responsibility of the SIA personnel to establish smaller units that would equip cabin crews with knowledge on how to handle issues, in the course of their service. In a democratic organization such as SIA, the stewards have the rights to air their views and have their concerns addressed by appropriate departments. Some issues that were yet to be addressed include limitation of working as a team during flights and lack of information relating to visited places. Some changes I would incorporate would be on training and retraining objective and on establishing an environment where delegated responsibilities are executed effectively. New changes, in training, would focus on equipping stewardess with basic communication tips in foreign languages to enhance their interactions with passengers. Delegation of responsibilities would be structured in a manner that cabin crews have the rights to question managerial appraisal systems they deemed in appropriate and unfair.
References
Harvard Business School. (1989). Singapore Airline (B). Web.
Harvard Business School. (1989). Singapore Airlines (A). Web.
Singapore Airlines (SIA) is one of the most thriving and influential companies in the global aviation industry with tremendous potential for further growth. Although the company has a substantial international presence, it can expand its service to new geographic regions. This primarily concerns North America, where demand for traveling is steadily rising. To achieve this aim, like Thai airlines, the company should implement efficient ultra-long-haul services to avert the hassle of connecting flights (Qin, 2020). Such a service will entail extra expenditure on installing advanced equipment and even purchasing new aircraft. The additional problem is related to the exchange rate fluctuation, which can cause issues while converting currencies. The company should also aim at catering to domestic traveling within Singapore by introducing a carrier that provides internal flights at premium pricing.
In this regard, the airline can use promotional strategies, including digital and traditional media, to target the customers. For instance, Singapore Airlines should deliver its service by allowing customers to book tickets through social media platforms such as Facebook, Instagram, Twitter (Pramitha et al., 2018). This method should also be applied in all other countries. It is worth noting that the main challenge is that before visiting the new foreign market, SIA should understand the need and values of regional culture. This also requires hiring and training the appropriate staff that is aware of the cultural aspects of customer behavior profoundly.
SIA offers comparatively expensive full-service carriers for the population insensitive to pricing, especially from the upper and middle-class. Nevertheless, the middle eastern competitors have started to consider price sensitivity and provide the economy product (Qin, 2020). Thus, the company should segregate the full-service carriers into two categories, namely, carriers delivering luxurious premium products and lower-cost carriers containing compulsory business amenities (Qin, 2020). The primary risk associated with this plan is that customers may not appreciate such options adequately, which resulted in an insignificant increase in revenue.
References
Pramitha, D. A., Wasito, T., & Ozali, I. (2018). Strategy formulation to increase the passengers of Singapore Airlines. Journal Management Transportation & Logistics, 5(2), 141-152. Web.
Singapore Airlines (SIA) sees itself as an acknowledged company with high-quality services that strives for equality and rivalry through the open access to the transatlantic directions and exercises competitive advantages via technology, innovation, and efficiency enhancement of its human resources.
Competitive strategies
The application of an approach based on “organizational paradoxes” enables the SIA’s excellent performance in the rivalry. Heracleous and Wirtz focus on four puzzlements which have brought advantage to SIA. Among them are: “cost-effective service excellence, simultaneous decentralized and centralized innovation, being simultaneously a follower and a leader in service development, and accomplishment standardization as well as personalization in customer interactions” (150). To go farther than their rivals, SIA emphasizes on the inconsistencies that should not be fought, but accepted and explored as a powerful tool. For example, the cost-effectiveness and service excellence are two opposite poles, and struggle for the balance between them is the primary concern of the peer companies. SIA have decided not to choose between two devils but accept both as inevitable and necessary for the enterprise’s competitive advantage. To solve the problem SIA’s leaderships have established the acquisition of new fleet, investment in human resources and their training, high accountability on all levels, the straight correlation between performance and reward, and visible enhance the customer services (Johnson 4).
Employment of Competitive Advantages to Satisfying SIA’s clients
Lee and Worthington in their analysis of the effectiveness of low-cost carriers (LLC) and mainstream airlines conclude that the presence of LCCs in the market increases the rivalry among all players (19). Since the customers are sensitive to the prices and services, SIA has executed the dual strategy to solve the issue. As a client-oriented business, the company assesses the value of loyalty and has implemented steps to increase it through investment in the service superiority. Therefore, SIA’s view on the issue can be expressed in the interrelations between the customer and perfection in adjusting their needs (Heracleous & Wirtz 159). SIA is well known for its innovations in the industry. For example, the company was one of the firsts that introduced personalization in clients’ services providing customers with access to different entertainment facilities and broad food and beverages options. Moreover, SIA employed feedback policy which gives the insight on “satisfaction ratings with a product or class induce examining how to improve ratings again” (160)
Management of Human Resources
SIA’s management of human resources is based on the focus on the excellence in training and performance. According to Heracleous and Wirtz (2010), the employees should prioritize the good performance along with the reduction of costs. The company has built its culture in close relation to SIA’s history which marked by struggling for the prominent position through concentration on innovation and personal involvement (149). Moreover, SIA has extensive training programs in different areas. For the management, the company provides educational anti-corruption sessions in the various countries where SIA operates. Preparation and professional development of the flight operators, pilots, and crews are the primary concern for the company because these specialists directly deliver the services to the customers.
Social Responsibilities and Ethical Activities
According to Strengthening a Position of Leadership (2016), several branches of SIA, such as SIA Cargo and SilkAir have the efforts in the community services that cover different aspects of the local and international arena of the company’s operation. For example, Cargo supports Jurong Bird Park and Singapore Zoo which gives the recognition to the airlines and, thus, as a benefactor SIA Cargo transports animals around the globe. However, another chapter of charity which is sponsoring and volunteer assistance for Child’s Dream Foundation by SilkAir and Singapore Children’s Society is implemented in the local field it gives the company international acknowledgment as well. Backing up sports teams in their transportation and funding needs puts SIA among other air services providers such as Delta Airlines, Emirates, and Etihad Airways.
Moreover, the company intensely invests into new technologies to control the fuel emission which is the sign of environmental accountability. This strategy works in two directions: first, SIA provides the evidence of lower fuel diffusion and states its responsibility position; second, the company binds its effort in environmental area with its competitive technical advantages of the modern fleet. Although the majority of the airlines have to demonstrate sustainable improvements in the reduction of harmful emissions, SIA emphasizing its uniqueness by the following statement, “As we have always had a modern fleet, it is more difficult for us that it is for many other airlines to show significant reductions in our emissions on a year-on-year basis” (Sustainability Report 1). Social responsibilities and ethical activities symbolize that the company is accountable and customers can rely on it because it shows the care about people, wildlife, and the environment. The responsible activities allow the airlines being always on consumer’s sight and propelling itself from the pool of the rest.
To sum up, SIA’s activities in the implementation of new technologies, customer service innovation and excellence policies, and human resources development secure the company in the highly competitive industry. The efficiency of SIA’s strategy that highlights it among its peers is in a wise approach to the problems that every air service carrier faces and in resolving the paradoxes through accepting their nature and employing necessary steps.
References
Heracleous, Loizos, and Jochen Wirtz. “Singapore Airlines’ balancing act.” Harvard Business Review 88.7/8 (2010): 145-149. Print.
“Singapore Airlines: Achieving Sustainable Advantage Through Mastering Paradox”. The Journal of Applied Behavioral Science 50.2 (2014): 150-170. Print.
Johnson, B. “Reflections: A Perspective On Paradox And Its Application To Modern Management”. The Journal of Applied Behavioral Science 50.2 (2014): 206-212. Print.
Lee, Boon L. and Andrew C. Worthington. “Technical Efficiency Of Mainstream Airlines And Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression”. Journal of Air Transport Management 38 (2014): 15-20. Print.
Explain the concept of corporate social responsibility
Defining the concept
The term CSR was first coined in 1953 following the publication of the article, ‘Social Responsibility of Businessmen’ by Bowen (1953). The article sought to establish the responsibility of businesspeople to the society.
This definition was later expanded by authors on the subject in the 1960s suggesting that organizations were responsible to the society in other ways, other than through legal obligations only (Carrol 2000). Academic discussions on the concept registered tremendous growth in the 1970s and 80s, but the first publications of a social report occurred in 1989. Shell was the first company to publish a CSR report (Marlin & Marlin 2003).
The European Commission defines Corporate Social Responsibility as “ …a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” (European Commission Green Paper 2000). CSR entails the principles upheld by companies in an attempt to leave a positive impact to the society.
As such, CSR involves the management of the ‘triple bottom line’, that is the environmental, economic and social impacts of an organization. It is the company’s attempt to remain responsive to the needs of its shareholders and to behave in accordance with certain values that may not necessarily be codified in law (World Business Council on Sustainable Development 2000).
In practical terms, CSR involves various actions taken by organisations, such as a reduction of carbon emission, or donating to charity. CSR impacts on the actions of an organisation with regard to the society living near its location, employee relations at the workplace, customer relations, supply chain management, sustainable development, and environmental concerns.
Some of the activities undertaken by organisations in the name of corporate social responsibility include codes of conduct, corporate philanthropy, community investment, and social and environmental reporting, among others.
What expert commentators are saying about the importance of corporate social responsibility?
Business leaders and entrepreneurs alike are now committed to ensuring that their organisations embrace the concept of corporate social responsibility in their business operations. At Co-op Adriatica, the largest retailer in Italy, Walter Dondi, the director of the company argues that their consumers are quite sensitive to environmental and social issues (InterPraxis 2004, para. 3). For this reason, the company has for the last 10 years deemed it appropriate to involve them in these issues.
As a result, consumers are now very aware of these issues. Mr. Dondi further adds that consumers especially ask request for information on workers’ rights, environmental policies, and product safety. Niall Fitzerald, whose is Unilever’s former CEO, argues that companies embrace CSR not because they have been forced to, but because it is the right thing to do for the success of business.
Jeroen van der Veer is a committee member of the managing directors at Shell and according to him if a company wishes to remain successful in the future then it has to integrate employees’ personal values and business (InterPraxis 2004, para. 5). This is because people are more inclined to do their best when they work at a company that values their contributions, contributes to the society, values opinions, and where their actions count.
Similar sentiments have also been echoed by the Chairman of Centrica PLC, Sir Michael Perry, who argues that brands that may hope to attain global recognition in the days to come are those embrace social change. Courtney Pratt is Toronto Hydro’s former CEO and according to him, businesses should not just be responsible to their main shareholders (InterPraxis 2004, para. 6). These are their employees, customers, government, and NGOs. They should also bear responsibility to the communities around their area of operation.
Why more companies are taking this responsibility more seriously
Companies are increasingly embracing the concept of CSR because they would want retain consumer and staff loyalty, their reputation, and at the same time maintain public goodwill. Companies are now taking CSR more seriously in order to manage their reputation. An increasingly large number of companies are now trading on their brand value, reputation, and intellectual property, as opposed to products and services (Carroll 1999, p. 269).
Companies that wish to retain their reputations often see CSR as an essential strategy. CSR also enables companies to manage their risks. Investing in an organization is usually a gambling affair and for this reason, investors desire to see an organisation as more of a safe bet. By embracing the CSR concept, organisations are likely to become more aware of some of the issues that may cause them to be put on the spotlight by campaigners.
Employees would also want to be associated with a company that appears to value their input (European Commission Green Paper 2000). A social responsible company in the eyes of employees may lead to employee satisfaction, with high retention incidences. Investing in CSR enables a company to remain competitive in the market. Thus, companies embrace CSR as a strategy to position themselves competitively in the market.
Companies want to be associated with ethics and for this reason some companies have for example embraced green technology in their operations because it is the ethical thing to do. Such companies are morel likely to remain popular with their customer, compared to their competitors. CSR enables companies to save money and as such, it enables organisations to increase their operational efficiency.
Such environmental measures as saving of energy or minimising of waste could also result in reduced operational costs (World Business Council on Sustainable Development 2000). Companies tend to prioritise such measures (Marlin & Marlin 2003). However, they still have to be careful because in as much as it is important to protect the environment, companies need to make profits too.
There is widespread mistrust among corporations, even after they have been granted power by the society. Cases of stress at the workplace are on the increase, employees are working harder than ever, and there is greater job insecurity. For fear of losing their operational licenses, companies have now sought to embrace CSR in an attempt to convince members of the society that indeed, they can still impact positively on the society.
Corporate responsibility at Singapore Airlines
At most organisations, the issue of corporate social responsibility entails mainly giving back to the community within the physical location of the company. However, at Singapore Airlines, this is not the case. The airline acts as a global citizen to the local community as much as it does to the international community. For example, following the unprecedented several flooding that affected residents of Queensland, Australia, Singapore Airlines set aside A $ 100,000 to assist in rebuilding and recovery efforts.
In the same way, the airline also set aside $ 415, 300 for the victims of the Mach 11th tsunami and earthquake victims in Japan (Singapore Airlines 2011). This money was meant to assist in recovery and relief efforts for the victims. Since 2003, Singapore Airlines has been supporting Bantay Bata 163, a child welfare programme in the Philippines.
This is a rescue centre that provides care, shelter and rehabilitative efforts to abused and sick children. The airline caters for the elementary education of thee rescued children. Singapore Airlines has also partnered with a number of hospitals in Japan whereby during Christmas, the children at these hospitals gets presents form the airline staff.
At Singapore Airline, corporate social responsibility is a tool to leverage the company’s expertise in air transportation services. Other than just contributing to organizations and charities within Singapore, the airline ahs also recognized the importance of establishing strong relationships with the various communities and countries it serves. This is a true mark of global corporate citizen. By supporting the community both locally and abroad, Singapore Airlines hopes to become a good corporate citizen (Singapore Airlines 2011).
One of the corporate initiatives that the airline has made is in the area of community welfare. The airline supports various local and overseas charity organisations and community groups through sponsorship and corporate donations. Singapore Airlines also supports a number of community projects. A case in point is the Australian social workers whom the airline provided with air travel to Dhaka, Bangladesh.
The social workers were on a project that targeted textile workers with the aim of preventing hearing loss among these workers. Singapore Airlines has for a long time now supported the arts community in Singapore. In this case, the airline contributes to the Singapore Dance Theatre, Singapore Chinese Orchestra, Singapore Lyric Opera, and Singapore Symphony Orchestra (Singapore Airlines 2011).
In terms of education, Singapore Airlines contributes to various events and programmes. Through these programs, many disadvantaged students get a rare chance to realize their full potential, academically. Still in the education sector, Singapore Airlines has offered air ticket rebates to Singapore Sports Scholl, a newly established institution that nurtures upcoming sporting talents (Singapore Airlines 2011).
The airline also supports scholarship programmes in the community, such as Thailand’s Smiling Together project, and the Philippines-based Bantay Edkasyon project.
In terms of the environment, Singapore Airlines is committed to supporting projects that impact positively on the environment. As such, the airline has so far implemented various initiatives to reduce carbon emission and fuel consumption.
They include the engineering performance and maintenance, enhancement of flight operations, and weight saving measures. The airline set aside US $ 3 million in August 2010, to go towards a groundbreaking exercise for building a 100,000 hectares conservancy. The Harapan Rainforest Initiative is aimed at protecting one of the most diverse rainforests globally.
In addition, it will also aid in curbing deforestation and in the process, help to combat climate change (Singapore Airlines, 2011). The airline is also committed to the maintenance of modern and young fleets. By adopting novel technologies, the airlines hopes to harness the benefits of improved fuel productivity, reduced greenhouse gas emissions, efficient utilization of resources, and reduced noise levels (Singapore Airlines, 2011).
Reference List
Bowen, H. R., 1953, Social Responsibilities of the Businessman. New York: Harper & Row.
Carroll, A., 1999. Corporate Social Responsibility, Evolution of a Definitional Construct. Business & Society, Vol. 38 No. 3, pp. 268-295.
European Commission Green Paper., 2000. Promoting a European Framework for Corporate Social Responsibility. Web.
InterPraxis., 2004. Quotations from Business and Thought Leaders on Ethics and CSR. Web.
Marlin, A., & Marlin, J. T.. 2003. A brief history of social reporting. Business Respect No 51 – Web.
Cargo entails everything other than the persons or personal belongings on transit (Intermodal Freight Transport and Logistics Best Practices 2010). Compared with other freight transportation means, such as ship, rail, and surface automobiles, air cargo is probably the newest addition to the freight sector. Since its inception barely after the First World War, the air cargo industry has become an indispensable part of the world’s global economy, holding an important market niche in the transport of lightweight and high-value commodities (Singapore Airlines Cargo: General conditions of Carriage for Cargo 2014, p. 32). Using the infrastructure largely put in place by public agencies for air passenger travel, such as airports and air traffic control-systems, Singapore Airlines Cargo services connect to almost every destination of the world today (Intermodal Freight Terminals: In search of efficiency to support inter-modality growth 2006). According to Bektas and Teodor (2007), the rapid rise of Singapore Airlines Cargo has always been driven and, so often, challenged by four domineering factors.
The first factor is evaluating, understanding, and reacting to the roles of intermodals in the dynamic customer requirements of the competitive supply chains. Other than that, there has been the necessity to respond flexibly and reliably to the ever-changing customer demands with unified and conjoined coordinated cargo freight through different modes. Moreover, Singapore Airlines Cargo has to contend with the knowledge of existing and impending intermodal freight, as well as the global operational alternatives and options, including the prospective for enriched information and communications technology and the challenges connected to their application (Singapore Airlines Cargo: General conditions of Carriage for Cargo 2014, p. 33). Finally, the limitations on the coordination of the infrastructural capacity, comprising of regulatory and policy factors, as well as improved management of the available infrastructure and a broader consideration on future investment plans are key growth impetus for the company.
Singapore Airlines Cargo comes into the global freight market with the managerial options of assimilating multiple modes that offer readily flexible responses to the dynamic supply chain required in the distribution systems and global management (IATA Annual Review 2013, p. 35). Markedly, Singapore Airlines Cargo’s integration of modes necessitates the systems approach or a process of execution and a given degree of knowledge and skill on the transportation and supply chain, equipment, information, and infrastructure (Organisation for Economic Co-operation and Development [OECD): Benchmarking Intermodal Freight Transport 2002). Singapore Airlines Cargo’s mission, as it evolves from a central infrastructural component to a universal focus on the processes or systems, aims to have a relatively more sustainability factor and applicability as far as global supply chain management is concerned (Intermodal Freight Transport and Logistics Best Practices 2010). Today, Singapore Airlines global network spills to over 65 cities, and is active in more than 30 countries across the globe. With nearly 1000 flights scheduled weekly, Singapore Airlines Cargo believes that their comprehensive network and unswerving services make them ideal airfreight cargo participants.
Overall, the management of Singapore Airlines Cargo points that employee motivation is vital in its robust performance in both Singapore and elsewhere (Bektas and Teodor 2007). The management approach of Singapore Airlines Cargo points that recommendations might soon be placed in an orderly manner for various intermodals to align themselves with Singapore Airlines Cargo admirable practices. The robust international business focus of Singapore Airlines Cargo include employee empowerment, adequate remuneration, employee job security, company work design, rewards based business approach. The system design of Singapore Airlines Cargo means that opportunities for growth and advancement have never been a problem to the company, as well as its stakeholders.
Assessment using Kirton and Greene typology (exhibit 8.3, p. 205)
In their book, the authors acknowledge that whenever different groups bring their different backgrounds and experiences together, then diversity exists in that organisation or workplace. Managing diversity, according to Kirton and Greene (2010, p. 205), entails capitalising on the various resources available as well as the diverse experiences for the betterment of the organisation. The authors note that knowing how best to do this demands the optimum understanding of one’s own background. However, the most important factor is how this background influences the manager’s perspective in terms of decision-making, individual behaviour, and personal prejudices. A successful manager who has the ability to handle diverse groupings, the authors observe, is one with the innate ability to cultivate and nurture a culture of tolerance (Kirton and Greene 2010, p. 206). In addition, these virtues are amicably achievable through education, attending numerous training sessions and conflict management workshops. The authors maintain that workplace diversity can offer great benefits given its likelihood to inspire morale, critical thinking, enhanced teamwork, and an environment of respect and mutual understanding for all.
With the increased globalisation of commerce, as well as the ever extending need to work effectively with a culturally diverse workforce, organisations are facing new, yet common challenges in meeting the demands of workplace management. The challenges, according to Brislin (2008, p. 156), include but not limited to communication problems, dealing with negative ethnicity, decision making, criticisms and disagreements, as well as the problem of interpreting the ever-changing workplace environment. In this compelling assessment, Kirton and Greene (2010, p. 205) tackle the benefits of earmarking knowledge reservedly for stepping up the necessary strategies for routine intellectual cultural interaction that guide intercultural communication and organisational behaviour.
The authors use concrete examples, which they fondly refer to as critical incidences to illuminate the fundamental psychological paradigms that play an integral part in effective intercultural interactions within and across workplaces. The authors further observe that the differences that diverse teams face consists of individual and collective differences, the institutional emphasis on the status and individual importance, behaviour relative to cultural background, and gender expectations in the workplace. Kirton and Greene’s assessment gives insightful accounts from which ordinary readers and managers can learn and grow, rather than continually be challenged by intercultural differences that characterise diverse teams.
Freight industry is in fact a cause as well as a consequence for economic development, and being aware of this fact, Singapore Airlines Cargo management is doing all within its capacity to increase the efficacy of human capital (Organisation for Economic Co-operation and Development [OECD): Benchmarking Intermodal Freight Transport 2002). Consequently, Singapore Airlines Cargo has tapped the unique human capital in Singapore; it has had the potential of stimulating other sectors in the global economy owing to its crosscutting benefits and its expansive linkages. While acknowledging that the untapped human endeavours in this industry are enormous, the Singapore Airlines Cargo contends that by amicably addressing the managerial concerns in the industry, the catch could be great, especially with the company’s integrative administrative approach.
Being the fastest-growing industry and a leading economic booster in many countries, cargo is presumed to have generated around 10% of the current world GDP and approximately 9% of the total employment in the period between 2013 and 2014. The contribution of the freight to the global economy has maintained a high rating despite a 4% decline during the periods 2012 and 2013 (Singapore Airlines Annual Report 2012/13 2013, p. 22). For the better part of the previous year, travel and tourism investment declined by a bigger margin, but this drift is expected to scale up by mid next year. During last year’s evaluation, international freight arrivals rose exponentially, leading to the upsurge in current world GDP (Organisation for Economic Co-operation and Development [OECD): Benchmarking Intermodal Freight Transport 2002). Globally, travel and freight experienced a slump in 2010 due to the economic and financial meltdown experienced all over the world.
The industry was affected by low business turnover and poor consumer confidence, owing to the uncertainty related to factors such as availability of credit facilities, fluctuating exchange rates, employment trends, the epidemic of terrorism, and the H1N1 pandemic among other factors. Consequently, this has led to the current fall in tourist arrivals worldwide. Next year, the industry is expected to improve, as most of the leading economies are exiting the recession since the fall of 2009 (Singapore Airlines Annual Report 2012/13 2013, p. 25). However, this growth is expected to be gradual as corporations, households and governments slowly recover from the just concluded economic depression. Given the improvement in global economic conditions, the UNWTO predictions show that 3-4% increase in international tourist arrivals is expected this year (Organisation for Economic Co-operation and Development [OECD): Benchmarking Intermodal Freight Transport 2002). As Asia is currently showing the strongest signs of a rebound, Europe and America are expected to recover rapidly and Singapore Airlines Cargo will make an impressive debut.
Gender Participation
The participation of women in the freight sector has been nurtured through policy assimilation, capacity building, and institutional support among other things (Singapore Airlines Cargo: General conditions of Carriage for Cargo 2014, p. 36). Singapore Airlines Cargo recognises that gender equality at work is second to no other ideal in their managerial framework. It is undeniably that in most societies, poverty often has been synonymous with women. Women and girls, according to United Nations, constitute three-fifths of the poor population globally; their poverty rating is worse than that of men because of clear gender disparities in various areas, including remuneration (Kirton and Greene 2010, p. 205). On gender equality, Singapore Airlines Cargo seeks to foster active participation of women in income generating activities, with a robust focus on entrepreneurship.
This effort further aims to deliver women to greater employability and a sustained income with equitable salary to their male counterparts within the industry (Kirton and Greene 2010, p. 206). Accordingly, this can be achieved amicably through enterprise development programmes that address the inequalities faced by women at work. Enhancing women’s access to credit facilities, business financing, as well as the capacity to be accorded equitable salary can adequately unlock the untapped human capital in women (Singapore Airlines Cargo 2014, p. 56). Research indicates that global progress in achieving gender equality is lagging behind because most women are technically locked out on free enterprise, and Singapore Airlines Cargo is doing all within its capacity to cash in on this rare advantage.
Diversity and Equality Measures in Company and Their Implementation
Workplace diversity, according to Engler (1964, p. 35), is a broad faculty that covers not only the differences between colleagues and co-workers, but also the understanding, accepting, and celebrating those differences. Thus, diversity in an organisation provides a variety of perspectives, especially when it comes to making decisions, accessing wider client base and broader audiences. Establishing and managing diverse environments, according to Kirton and Greene (2010, p. 207), comes with preventable and immitigable challenges that can be damaging to an organisation. In fact, the challenges that affect most diverse organisations are in most cases concerned with communication problems. For example, Kirton and Greene warn that poor communication between employees has the capacity of weighing down an organisation in ways that could be unredeemable. In diverse environments, misunderstanding is regular, and this normally leads to communication breakdown.
The authors further suggest that to beat equality challenges, the management might be required to undertake thorough office retreats, occasional diversity workshops, and meetings to iron out some of the emergent issues at the workplace. To deliver on equality, the authors further suggest that people in managerial positions have no choice, but to adopt a structured approach to leadership that respect such diversity. Managers, according to Kirton and Greene (2010, p. 208), must plan their work and implement their strategies in a critically thought out procedure. Notably, the authors suggest that these objectives could be achieved through brainstorming with managers and different executives categorically tasking them on how to implement workplace diversity effectively. In ordinary cases, the authors propose bringing a diversity consultant on board to assist in making up a diversity plan. The relevance of this assessment is that it gives Singapore Airlines Cargo various instances on how to deal with diversity challenges, and how these challenges could be mitigated to have minimal impacts on its capacity as an organisation.
Positive Action
Several components are open to any firm as far as outlining the overall people management strategy in a company is concerned (Singapore Airlines Annual Report 2012/13 2013, p. 75). Alongside the emergent functions such as information technology, operations and finance, as well as sales and marketing, involving people to be key players in the management function has delivered Singapore Airlines Cargo to its current celebrated status. The approach to this concern, according to the Singapore Airlines Cargo management, aims to answer what the organisations itself expect from its employees as well as how such employees in turn help the organisation attain its objectives. In most cases, Singapore Airlines Cargo management usually poses in its line of duty to question whether every individual within the company’s mainstream is meeting their expectations (Hall 2007).
More than that, for Singapore Airlines Cargo, it is equally significant for the management to stem its people in the right positions as an endeavour that aims to impact on its very forward mobility. Usually, Singapore Airlines Cargo achieves this stature by ensuring that every individual employee makes the optimum significance to Singapore Airlines Cargo developmental paradigms. A company, as Zaccaro and Klimoski (2002, p. 35) observe, must incorporate people as part of its diversity strategy of reaching out to the optimum in its business endeavours. Strikingly, this is what Singapore Airlines Cargo has always yearned for especially in outlining its workforce preferences. People management strategy is a great business enablement that is crucial to Singapore Airlines Cargo’s growth, and this incorporates some of the essential objectives in its management (Hall 2007). Among these includes employee recruitment and selection, training and development, performance management, employee engagement, as well as rewards and recognition.
Training: Employee Recruitment and Selection
The success of the Singapore Airlines Cargo as both a regional and global business venture begins by hiring the right people for the job (Miller, Vandome, and McBrewster 2009, p. 45). Essentially, for a company’s ideals to be successful, it is critical to recognise the type of positions the company will require in its future endeavours. Singapore Airlines Cargo incorporates its future needs into the current budget to streamline its strategies with the succession plans. While it may be difficult to predict with precision all that a business requires, a staffing forecast, which the Singapore Airlines Cargo amicably utilises, has the ability to assist in proper planning for its growth.
The moment the management outlines positions the company needs to fill, this usually guarantees the need to establish a result-oriented recruitment plan. This move, according to Hall (2007), is Singapore Airlines Cargo’s greatest strength. This strategy, as Muduli and Kaura (2011, p. 116) note, include identifying responsibilities, core competencies, skills, and knowledge identifiable with the business, as well as the cultural fit for the company’s ideal employees. Moreover, the Singapore Airlines Cargo management usually finds it imperative to apply creative recruitment sources that target individuals with the best talent that the company targets to absorb (Miller et al. 2009, p. 51). Perhaps an interview procedure that allows the company and the prospective candidates to learn much better about one another is another success factor that Singapore Airlines Cargo rolls out in its budget.
Training and Development
Good organisations recognise the fact that their employees are their greatest assets in possession. The Singapore Airlines Cargo Company usually finds it important to use diversity driven management strategy in identifying high potential employees. The essence of this strategy, according to Hall (2007), helps the management to identify individuals who capitalise on the training opportunities. The identification in turn enhances the company’s performance and productivity. The Singapore Airlines Cargo usually incorporates within its strategy, an annual compliance training, and tuition reimbursement to inspire the relevant skills the company requires in individuals. At its behest, Muduli and Kaura (2011, p. 115) opine that this endeavour passes out as a most opportune moment for the company to determine its employee growth structure. A thoroughly executed employee training strategy within Singapore Airlines Cargo eventually contributes to the complete success of the company without necessarily having to distort its traditional organisational culture (Wells 2003).
Equality Audit
Since its debut in the airline industry, Singapore Airlines Cargo has been dramatically changing to conform to the prevailing diversity factors that continue to shape the course of business of the airline industry after 2001 (Intermodal Freight Terminals: In search of efficiency to support inter-modality growth 2006). From the benefits and the risks that technology brings forth, over to the terrorist attack in 2001, the many challenges that the airline faced over time provoked many corporations to fasten their grips to beat these challenges. From 1970s over to 2001, air transportation grew exponentially, making the industry to be among the fastest growing business ventures within that period. In 1970, for example, the airlines were transporting close to 172 million passengers, and by the turn of the new millennium, this number grew to 615 million passengers (Bektas and Teodor 2007). Regrettably, for the financially tight corporations, the recession, coupled with the September 11 terrorist attack, the passenger level reduced drastically, affecting all types of costs in the airline industry.
Out of these diversity glitches, some companies have managed to explore their market strategies to remain effective in the market. An understanding of Singapore Airlines Cargo’s internal resources as well as its external market opportunities has been extremely important in countering these diversity factors. In the case of Singapore Airlines Cargo, the corporation had to re-evaluate its market strategies to moderate the prevailing threats (IATA Annual Review 2013, p. 37). For instance, Singapore Airlines Cargo saw what their competitors were reluctant to offer and created a strategy that supplied those unmet needs to the consumers (Aguinis 2013, p. 45). Notably, the company first rolled out a competitive policy that made it a low cost waiver in the industry. These successes further enhanced the company’s competitiveness, as it became a low-cost frontrunner in the airline industry.
Apart from that, the company was also becoming increasingly more customer focused as it embarked on providing consistent customer delivery with unique customer experience services. Singapore Airlines Cargo accomplished this by making sessions with their customers jocular, playing games in the airports, and giving freebies such as alcoholic drinks. Moreover, the company put its employees at the top of its priority in the business, making them feel very valuable assets for the corporation. In turn, the employees were able to undertake their assignments with a lot of dedication, treating their clients with respect and making flying with Singapore Airlines Cargo a unique and memorable experience.
Performance Management
Within the Singapore Airlines Cargo Company ideals, the measurement for each individual’s performance is necessary, especially in ensuring that an employee meets his/her expectations as required by the firm (Hall 2007). These strategies employed by Singapore Airlines Cargo usually give rise to feedback mechanisms. The management is usually in control. This ensures that employees have enough opportunities for improvement while addressing performance matters whenever employees are not meeting their expectations (Muduli and Kaura 2011, p. 117). Whereas some organisations prefer to leverage on performance management, an ideal strategy for the Singapore Airlines Cargo Company tend to seek out a time bound performance management approach. This approach does not only extend reward to high performers, but also binds compensation increment, as well as bonuses to employees, which are the overall turnouts of the company.
Performance management outlines the developmental factors in an organisation’s people management strategy (Mayer and Caruso 2002, p. 56). Singapore Airlines Cargo usually capitalises on these ideals. As the company maps out its trajectory of the succeeding years, the management finds it imperative to consider the individual employee performance evaluation, and this usually include frequent check in employee progress. In the event that the organisation experience problems, it do employ an individual employee development plan. This usually makes it possible for the management to monitor individual employee easily, closely, and frequently. However, Singapore Airlines Cargo may have to contend with poor perpetual performance problem (Muduli and Kaura 2011, p. 118). Usually the management finds it necessary not to let the problem drain the rest of the team, and weigh down the business in the process.
Strategic Management
Strategic management requires teams to solve various problems so that they position such themselves to develop strategy alternatives to encounter the challenges of leading diverse teams (Zhang and Zhang 2002, p. 275). This case situation particularly holds when dealing with virtual teams in making decisions. In retrospect, seeking consensus with qualification suffice as the best held approach. In situations where consensus is untenable, the most relevant yet senior personality in management capacity often makes the decision. Naturally, this decision reached upon by the top management must stem from other like-minded personalities. A much considerate team will utilise consensus as a process in the analysis and evaluation of a situation while developing policy recommendations within an organisation’s framework. Consensus with qualification model utilises systems approach in tackling strategic problems emanating from team management.
Inputs to consensus with qualification involve the manager, team members, as well as other resources pursued to achieve a decision. In essence, the quality of the process of decision-making and the decision achieved in turn traces their strengths from the quality of the inputs (Zhang and Zhang 2002, p. 276). This normally holds true with regard to the contribution of a team leader. When making distribution decisions, the Singapore Airlines Cargo inventory management coordinates with their suppliers and customers for consensus. Distribution only occurs after the suppliers provide all requisite load measurements of the freight. In addition, the customer who receives the cargo often acknowledges receipt after confirming that Singapore Airlines Cargo should transport the products. When this happens, the Singapore Airlines Cargo agencies at its headquarters communicate with the outlet in the country of receipt. Distribution decisions often follow due inventory processes because the records arrived at during consensus assist in managing the firm decision-making criterion.
Employee Engagement
Perhaps the best way for a management to have its fingers on the spur of individual people it employs is to have the capacity to measure and gauge their satisfaction (Hall 2007). Employee engagement though essential, could sometimes pose grave challenges that a company has to withstand (Miller et al. 2009, p. 54). As part of the Singapore Airlines Cargo Company’s venture to conduct employee satisfaction, all that the management seeks out is to ensure that the strategy outlines critical areas of concern in strategic planning. The moment the Singapore Airlines Cargo management designs an employee engagement stratagem, structures accompany such plans to ensure that employees channel their aspirations as well in order to protect varied interests. These do happen in an anonymous feedback mechanism so that individuals feel protected in their honest opinions (Muduli and Kaura, 2011, p. 118).
Engaging individuals, according to Mayer and Caruso (2002, p. 354), will definitely open up several individuals to volunteer insightful observations that may be instrumental in the overall organisational decision-making. The moment the Singapore Airlines Cargo management obtains such feedbacks from individual employees, the company finds it imperative to put such forms of communication into consideration so that the management can embark on synthesising data, and act appropriately on various dissenting views (Hall 2007). For the Singapore Airlines Cargo Company, incorporating the various opinions from different employees is of great necessity. These endowments usually keep employees’ morale high in the knowledge that they feel part of the management strategy.
Rewards and Recognition
Diversity management within the Singapore Airlines Cargo takes into consideration the ability to recognise and reward deserving individuals based on various outstanding performances (Muduli and Kaura 2011, p. 115). For the Singapore Airlines Cargo Company, it is the sole prerogative of the management to demonstrate value for employees (Goleman 2000, p. 79). Those individuals who do better in their assignments usually receive appreciation for the various contributions they make to the company. This in turn ensures morale boosting while nurturing a cheerful spirit at workplace (Miller et al. 2009, p. 74). Studies, according to Clark (2005, p. 16), continue to show that cheerful employees are cumulatively more productive, and more engaged with the ability to provide greater level of service to the customers. In addition, organisations that aim at ensuring employee satisfaction has the ability to improve corporate morale augment turnover and revamp customer satisfaction with the ability to inspire repurchase. The Singapore Airlines Cargo Company’s reward and recognition programme is archetypical of training and development; this usually is not necessarily costly to effect. Therefore, it is imperative for the management to work out a plan of action to roll out things that the company needs rewarded as frequently as possible (Singapore Airlines Annual Report 2012/13 2013, p. 53).
Discussion
Generally, these tactics made it possible for many people to enjoy the light atmosphere that Singapore Airlines Cargo marketing was already volunteering. If anything, Singapore Airlines Cargo offered the lowest cost strategy that made it possible to penetrate the market as their air costs become more pocket friendly. With this, they were able to capture new market niches that were earlier less receptive to their marketing strategies. In the process, Singapore Airlines Cargo was among the first in the carrier industry to use online booking services. With online ventures, customers have been able to increase their trust in the services offered by the company, thus receiving millions of new clients every day. Coupled with so many innovative ideologies forged by the company, the general marketing approach brought about in countenance of these diversity factors made the company to outshine all other competitors in the industry.
Conclusion
Today, numerous business organisations are shifting to achieve employee wellness programmes to achieve optimum performance. Studies within the Singapore Airlines Cargo Company reveal that such endeavours like employee engagement and motivation show a strong link between promoting workplace job satisfaction and increased productivity. Markedly, people management strategy within the Singapore Airlines Cargo Company takes into consideration, employee management wellness as part of its focus. Besides, diversity management programmes have the commitment to improve satisfaction, reduce stress load among the workforce, and inspire concentration. Undoubtedly, each factor leads to an increased productivity. Diversity management programmes equally increase employee fidelity given its ability to guarantee individual loyalty. These endeavours also have the ability to keep employees robust by ensuring that they work as per the stipulated timeline. This reduces chances of absenteeism among the workforce. While diversity management programmes require considerable and consistent commitment as well as time to realise positive results, an organisation making this a priority stands a chance to enjoy abundant benefits including competitive advantage and an expansive market niche, which is the case at the Singapore Airlines Cargo Company.
References
Aguinis, H 2013, Performance management, Pearson Ltd, New York.
Zaccaro, S. and Klimoski, R 2002, The nature of organisational leadership: understanding the performance imperatives confronting today’s leaders, John Wiley and Sons, New York.
Zhang, A. and Zhang, Y 2002, ‘Issues on Liberalisation of Air Cargo Services in International Aviation’, Journal of Air Transport Management, vol. 8, no. 5, pp. 275–287.
Singapore Airlines (SAL) is one of the largest airlines in the world with a fleet of 103 aircraft that service both the domestic market within Singapore as well as several international locations (Company profile Singapore Airlines Limited SWOT Analysis, 2013).
Starting from 2008 to the present, SAL has attempted to gain greater access into various markets within Asia, the U.S., South America and Europe due to perceived gains from establishing international routes between the U.S., South America, Europe and certain Asian cities (Company profile Singapore Airlines Limited SWOT Analysis, 2013).
This paper will examine the reason behind the subsequent risks associated with such an expansion and the strategies the company may need to put in place in order to “ease into” the market segments that it is currently attempting to pursue.
Current Problems within Traditional Markets
Economic Recession
The current problem with the airline passenger market within the Singapore economy is the fact that consumer spending is at an all-time low due to the present-day economic downturn (Francis, 2012).
Unfortunately, the inherent problem with the current situation is that it creates a vicious cycle wherein low consumer spending results in companies reducing various aspects of their operational capacity (i.e. manufacturing of products, low-level employees, etc.) in order to remain in business which results in even lower consumer spending since people do not have jobs to support themselves anymore (Francis, 2012).
Current Cycle of Economic Decline
Another global factor that should be taken into consideration when conducting business operations is the current debt crisis in Europe that was brought about through not only the reckless actions of various banks within the region (as seen in the case of Ireland) but also through government mismanagement of finances (seen in the case of Greece) and exposure to a reckless housing market (the case of Spain) which has also adversely affected demand for products and services from Singapore.
Such factors have taken a steep toll on the airline passenger market with up to 50% of profits effectively wiped out in the period immediately during the aftermath of the 2008 recession with only a marginal improvement on domestic flights in 2013.
While it is expected that domestic and international demand should return to normal in time, the fact remains that SAL needs to be able to expand its services into other locations in order to survive the current downturn.
Operational Strategy of Airlines
Managing Risks in the Current Airline Industry
Shifting to New Consumer Markets
With low consumer spending and an atmosphere of economic uncertainty which pervades the domestic market, this has resulted in wasteful operational costs for SAL such as storage, utilities, taxes, worker salaries and employee benefits.
The current consumer market situation within Singapore and other parts of Asia is not conducive towards sales and, as such, Singapore Airlines has suffered as a direct result. One possible avenue of approach is to shift resources towards foreign markets which have not been as adversely affected by the current economic downturn and focus efforts there instead of in cathartic local markets.
Asian markets such as those within China and Japan as well as international markets within South America and the Middle East seem to be viable consumer markets due to the fact that despite the slowdown of various western economies, these economies have actually grown on average by five to eight percent annually.
This is due to the fact that as the expense of doing business within western nations rises. Companies have started to shift their manufacturing operations to other countries with far lower operational expenses (Heracleous, Wirtz & Johnston, 2004).
Guidelines of Changes to Singapore Airlines
In response to this, legacy carriers such as Singapore Airlines have focused more on business and first-class passengers who take international flights to various destinations within Asia (particularly China and Japan) due to the higher fees derived from such customers (Chong, 2007).
The problem though with the current operational approach of Singapore Airlines is that passengers these days have been focusing more on affordability rather than luxury when it comes to their choice of airline. This is in part due the current problems with the global economy, which makes passengers more hesitant to spend on higher-priced tickets when more affordable alternatives are available.
Customer Decision Matrix Diagram
Examining the Market
One of the more interesting pieces of information as of late has been numerous studies indicating that China will lead growth in air travel within the upcoming years. This is actually quite true to a certain extent given the growth of the Chinese economy as of late and the subsequent increase in wealthy Chinese tourists that have taken an interest in air travel.
What must be understood though is that upon further investigation into the current state of the airline industry it was seen that it was not just China that will be a market leader in air travel; rather, such studies indicate that Japan, South America, and Africa will become booming markets as well.
As the Singaporean economy has been estimated to barely reach a 1 to 3 percent growth rate by the end of 2013 with an uncertain growth rate in 2014, this signifies a concurrent decline in consumer spending making the future of localized air travel uncertain in light of the possibility that consumer spending within Singapore may continue to be in decline for the next 3 or 4 years.
Taking this into consideration, it becomes immediately apparent that it is necessary for Singapore Airlines to change gears and adopt a new operational strategy given the lack of sufficient passenger growth within its traditional markets.
Market Examination
Strategic Options – Risk Analysis
When entering the airline passenger market within new markets with a focus on addressing new customer buying orientations (i.e. affordability over luxury), what must be understood is that this necessitates the need to change aspects related to what type of planes to use since airports and the new market that SAL is pursuing would, of course, require different means of operations.
The previous decade of operations for Singapore Airlines in Asia was dominated by wide-body long-range aircraft, however, as of late the rise of low-cost carriers and regional air services, especially in Japan and China, utilizing twin-engine aircraft with small frames calls into question strategic options that focus on large-bodied aircraft that focus on passenger capacity rather than efficiency (Heracleous, Wirtz & Johnston, 2005).
Stakeholder Analysis – Airlines and Future Passengers
Within the past five years it was seen that Asian carriers had been shedding their 747 – 400 series aircraft in favor of wide-body twin-engine aircraft such as the B-787 due to their overall improved efficiency and greater range (Heracleous & Wirtz, 2010). In fact, when examining the prevalence of high capacity aircraft such as A-380s within Asian fleets, it was noted that Airbus received only a few orders.
On the other hand, population estimates examining the growth of airline passengers within the next 40 years shows an increase of at least 16 billion. Based on this data, the relevance of utilizing higher capacity aircraft such as the A-380 becomes much more important due to the necessity of meeting consumer demand (Heracleous & Wirtz, 2010).
Plan Viability Diagram
When examining whether Singapore Airlines should cover its potential new routes with Boeing 787s or Airbus 380s beginning in January 2014, it thus becomes a question of whether the company should focus on conforming with present-day trends or future need.
Analysis Method Diagram
When examining the particulars of this case you have to take into consideration present-day market studies that indicate that business travelers will pay a 15-25% premium to fly to their initial destinations non-stop or direct, rather than change carriers on the way to their intended destination (Park, 2013).
Since Singapore Airlines considers business travelers as one of its more profitable target segments due to its current market orientation as a 5 star airline, maximizing the amount of business travelers per flight through the use of the A-380 would seem to be the most logical choice especially when taking into consideration estimates on the increase in the number of passengers in the near future (Cendrowski, 2010).
On the other hand, shifting towards the primary use of A-380s does present several problems such as the plane’s size requiring special modifications necessary to existing airports in Asia which are more used to B-787 airplane sizes.
When examining whether SAL should proceed with B-787s or A- 380s, it is important to examine the current market features of the market that SAL will need to penetrate in order to determine which particular type of aircraft would be the most effective.
Various studies have shown that there is a current predilection within the Asian region for utilizing wide-bodied twin-engine aircraft such as the B-787. In fact, such studies indicate that this is a trend that began at least five years ago wherein there was a dramatic shift in the region towards planes with small frames.
The reason behind this can actually be connected to the rise of several Asian budget airlines within the region whose business models emphasized affordability rather than luxury.
Not only that, due to the effects of globalization within the Asian region, various regional hubs have been created to service a variety of far-flung destinations resulting in budget carriers being the plane of choice for travel to such areas (Airline of the year: Singapore Airlines, 2008).
As a result of such events, budget airlines within the Asian region have outstripped the growth of network carriers resulting in more airports having structural frames designed for receiving planes like the B-787 rather than the A-380.
On the other hand, other examinations of the A-380 and its place in the future of aviation indicates that as the number of airline passengers per year in the world reaches an estimated 16 billion within the next 40 years, this is indicative of massive growth potential (Airlines Industry Profile: Singapore, 2012).
This means that utilizing the B-787, while affordable, will set Singapore Airlines back in terms of being able to handle increased passenger capacity and, as such, would cause the company to lag behind its rivals. This is due to models such as A-380 having the necessary increased capacity to deal with the passenger increase as compared to the B-787 models.
Ethicality Statement
During the process of conducting this study, an appropriate ethical framework was utilized during the data gathering procedure, which consists of the following steps:
Data that was utilized in this study was acquired through relevant academic sources that specifically pertained to the study.
Practices related to data falsification were not utilized.
There was no inherent bias introduced during the data collection and analysis
This study made sure not to malign or criticize any of the corporations that were part of the examination
Through these specific procedures, this report was able to follow proper research ethics in examining and presenting the results of the study.
Client Report
Potential Risk Mitigation Strategies to be Pursued
Singapore Airlines can proceed under two potential strategies when examining what particular type of plane to purchase:
SAL could focus on maximizing present-day passenger capacity by utilizing the A-380. Not only would this enable the company to meet the present need of business class passengers who are willing to pay 15 to 20 percent more for non-stop flights but it enables the company to meet potential increases in the amount of passengers within the coming years.
By utilizing B-787 SAL will be able to easily enter into most airports in Japan, Asia, South America and the Middle East that are used to the planes of the B-787’s capacity thus allowing the company to add more potential destinations for its clientele. Not only that, it will be able to charge far less for its tickets which will entice more passengers to choose SAL.
When examining the current Asian. Latin American, Middle Eastern and U.S. markets, it can be seen that wide-body two engine planes dominate a large percentage of the airplanes currently being utilized. This is due to the rise of various low budget airlines that have grown within the past five years and, as such, the entry of the much larger A380 into this current market sparks several questions regarding compatibility with several regional airports.
On the other hand, what must be taken into consideration is the fact that in terms of long-range capability and overall passenger accommodation the A380 far outstrips the B-787 but in terms of fuel efficiency and compatibility with regional airport infrastructures, the B-787 would be a better contender.
Taking this into consideration, it can be seen that the A380 with its ability to accommodate more passengers for nonstop flights to particular airports would make it an attractive option for catering to business class clientele. The interior of the B-787, while large, is still quite small when compared to the interior of the A380 and, as such, can have only limited amenities in comparison.
On the other hand, interior modifications can be made on the B-787 however; this comes with a lot of drawbacks. A B-787 can be fitted with the desired amenities requested by the company, but it would result in reducing the number of passengers that can be seated on the aircraft.
It must be noted though that the current global economic downturn has negatively affected carriers in such a way that many are reluctant to shift into the A380 model. Issues such as cost reductions, maintaining current fleet status as well as the practicality of using such aircraft were taken into consideration and, as such, delays in their construction were actually welcomed.
While it may be true that sales for the A380 have increased within the Middle East and Europe, the fact remains that the markets which Singapore Airlines is trying to expand into call for another approach rather than the A380 at the present.
The end result, when taking risk mitigation practices into consideration, is that in order to both effectively assimilate itself into its markets as well as reduce costs related to gas and the overall price of the planes while at the same time maximizing the amount of business class customers it can handle, the recommended strategy for Singapore Airlines is to opt to have a diversified fleet of 787s and A380s with the 787s serving regional hubs within its new target markets while only a few A380s would fly directly towards airports that could handle its rather specialized needs due to their size.
Overall, opting for such a strategy is not surprising given the fact that SAL still needs to take into account both the subsequent increase in airline passengers within the next few years as well as the fact that passengers these days want more affordable options.
Project Log
Anticipating the Problems
During this week, it has yet to be determined whether the expansion of Singapore Airlines into other markets will prove to be successful. The reason behind this is that while SAL has been shifting its resources towards accommodating business and 1st class passengers, the fact remains that this strategy has resulted in considerable financial losses given lackluster demand.
It is based on this that in the next project log I will elaborate on the possible results and effectiveness of the recommended SAL risk mitigation strategy by examining relevant data and trends that will enable the creation of a plausible timeline and strategy outline between now and when the SAL expansion strategy reaches its zenith.
Potential for the Success of the Recommendations
During this week of examining the data for the study, I noted that the number of passengers that use airlines will increase by several billion within the next 50 years with a large percentage of this growth primarily being centered in the growing economies of Asia, Latin America and South East Asia.
China, Brazil, the Philippines, Japan, and a variety of other countries have all shown increased rates of international travel as a direct result of their booming economies.
With the implementation of the potential market risk mitigation strategy that I developed for the client report involving the use of 787s within regional hubs and the A380 for cross-pacific flights, it can be assumed that the company will be well poised in taking advantage of the increased passenger growth.
Overall Summary
Overall, I can say that my experience in making this report has been a positive and fruitful one. It has to lead me to be more aware of the different processes that can be implemented in order to resolve a problem that a company is currently facing using my knowledge and imagination. Through this report, I can say I have become a much more capable individual and look forward to the various challenges that will head my way.
Reference List
‘Airlines Industry Profile: Singapore’ 2012, Airlines Industry Profile: Singapore, pp. 1-31
‘Airline of the year: Singapore Airlines’ 2008, Air Transport World, vol. 45, no. 2, pp. 28-29
Cendrowski, S 2010, ‘SINGAPORE AIRLINES’, Fortune, vol. 161, no. 8, p. 22
Chong, M 2007, ‘The Role of Internal Communication and Training in Infusing Corporate Values and Delivering Brand Promise: Singapore Airlines’ Experience’, Corporate Reputation Review, vol. 10, no. 3, pp. 201-212
‘Company profile Singapore Airlines Limited SWOT Analysis’ 2013, Singapore Airlines, Ltd. SWOT Analysis, pp. 1-9 Business Source Premier, EBSCOhost.
Francis, L 2012, ‘Maxed Out’, Aviation Week & Space Technology, vol. 174, no. 34, p. 40
Heracleous, L, Wirtz, J, & Johnston, R 2004, ‘Cost-Effective Service Excellence: Lessons from Singapore Airlines’, Business Strategy Review, vol. 15, no. 1, pp. 33-38.
Heracleous, L, Wirtz, J, & Johnston, R 2005, ‘Kung-Fu Service Development at Singapore Airlines’, Business Strategy Review, vol. 16, no. 4, pp. 26-31
Heracleous, L, & Wirtz, J 2010, ‘Singapore Airlines’ Balancing Act’, Harvard Business Review, vol. 88, no. 7/8, pp. 145-149
Park, K 2013, ‘Why the Longest Flights Are Saying So Long’, Bloomberg Businessweek, vol. 4353, pp. 30-31,
It is a great strategy for the Singapore Airlines company to concentrate on strengthening the brand of the subsidiaries, SilkAir, Scoot and Tiger airways in order to ensure that all the different market segments are covered. The company is also cost-effective which is able to make it have a competitive edge over its competitors (Heracleous & Wirtz, 2010). The company’s strategy of purchasing a stake in Virgin Australia and entering in to a joint strategy with SAS is a great strategy. The company is increasing its penetration into the market and through these companies they will increase their sales. Through the new relationships it has reduced the competition and increased the market share. It is also wise to ensure there is no cannibalization between the related companies where some serve the same market segment and eat into each other market share. When this occurs it does not increase the overall market share of the group. Thirdly, there is a lot of co-operation between the subsidiaries in production that will assist to cut costs and boost sales.
Social Responsibility Components
There is the danger of the group becoming a strong supplier in the market with its subsidiaries and joint ventures. It may gain monopolistic attributes which the management may use to take advantage of the consumers. Monopolies are price setters. The company however has a social responsible role to ensure that they are efficient to control costs in order to offer fair prices. It will push the company to gain a sustainable competitive advantage by being innovative and inventing technologies and processes that are efficient in cost cutting. Secondly, the business should engage in healthy competition and not use unscrupulous methods to gain market share from its competitors. There is cut-throat competition and high costs of production which can make the managers use desperate measures which may be unethical. This should be avoided and the managers should use the pressure positively to be innovative and creative to increase their sales.
Four Lens Model of Worldview Development
Ethical Dilemma
Culture
Experience
Academic
Scriptural
Business Profit
Anything for a buck
Monetary Rewards
Bottom line driven
Doing what is right, not just what is legal
Off Shoring
Process
Micro managed
Must show the need
Equality of Outcomes
Taxes
Disruptive
Limited
Business Discipline
Accountability
Affirmative Action
Varies by Individual
Discrimination
Minority Focus
Created in the image of God
Social Responsibility
Image over substance
Recognition
Stewardship
Servant
Ethical dilemmas
There are ethical dilemmas that arise from viewing each item through the different lenses. In the area of business profit, businessmen are interested in making money. They are interested in monetary rewards however it is important for the business to do not only what is legal but what is right. Business practices should be ethical (Ferrell, Fraedrich & Ferrell, 2008). In the area of social responsibility, managers are concerned about the public image of the company and not really the contribution they make to the society. They may want to be recognized and applauded whenever they do charitable acts. However, it is good for the business to be great stewards of the resources that they have. They should serve the stakeholders well.
In the area of affirmative action, individuals fight for their rights. The culture in business circles may be to treat people differently. The staff feel discriminated against from getting promotions, higher pay or more responsibilities due to their physical or religious features. However, the right thing to do is to enrich the jobs of all people especially the minorities, in order to empower them.
Certain businessmen may view taxes as disruptive and aim to minimize or limit what they pay through unscrupulous means. However it is a business discipline that should be conducted well. They need to be accountable to the regulatory bodies.
Off-shoring is viewed by business as just a process yet there may be ethical dilemmas where the staffs in other countries do not have good working conditions. Global companies want the offshore offices to be wholly micro-managed and may neglect supervising operations to ensure that ethical practices are being observed. It is important for the parent company to ensure that there is a need for off-shore businesses and that all subsidiaries and that wherever they are, the staffs are treated equally.
References
Ferrell, O., Fraedrich, J., & Ferrell, L. (2008). Business Ethics: Ethical Decision
Making and Cases. Boston, MA: Houghton Mifflin Company.
