5.Environmental and Organization Audit5
6. Strategic positioning for SIA8
7. An ability to think strategically for SIA10
BCG’s growth / share matrix11
8.Strategic plan for SIA12
This report will outline Singapore Airlines (SIA) business’ environment to aid in its future strategy formulation and planning. Firstly, this report will analyze the business environment of the organization, which is to be considered in its strategy formulation. Next this report will explain the process of strategic planning that is to be implemented in SIA. 2.Company background
The Company (SIA) was incorporated as a wholly-owned subsidiary of the Singapore government through Temasek Hldgs (Pte) Ltd on 28 January 1972 as a public company with limited liability.
Its history began in 1947 when a twin-engined Airspeed Consul under the Malayan Airways Ltd's insignia started scheduled services between Singapore, Kuala Lumpur, Ipoh and Penang. Malayan Airways Ltd grew steadily and by 1955, international services were added to its operations.
With the formation of the Federation of Malaysia in 1963, the airline was renamed Malaysian Airways Ltd. In 1966 the governments of Malaysia and Singapore acquired joint control of the airline, which was then renamed Malaysia-Singapore Airlines Ltd. In 1971, MSA was restructured into 2 entities; Malaysia Airline System Bhd and SIA.
SIA is one of the world's most successful airlines, with the distinction of having one of the youngest and fastest growing fleets in the world. As at end March 1999, SIA was operating 572 passenger flights a week out of Singapore. Its route network, including Silkair's and codeshare services, covered 110 cities in 42 countries. In 2000, the Company bought 49 percent of Virgin Atlantic airline for US$950 million. 3.Business Strategy
The definition of business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives.Strategy is management's game plan for strengthening the performance of the enterprise. It states how business should be conduct to achieve the desired goals. Without a strategy management has no roadmap to guide them.
Creating a business strategy is a core management function.It must be said that having a good strategy and executing the strategy well, does not guarantee success. Organisations can face unforeseen circumstances and adverse conditions through no fault of their own. The strategy needs to be frequently reviewed against prevailing external and internal environment.This is where business intelligence comes in where you need to constantly monitor how the strategy and the objectives are being executed. Some experts claim that a strategy should be designed to provide competitive advantage for the organisation.
Context of SIA business strategy :
*Mission: Every business has its own mission, SIA also have no exception. The priority mission of SIA is to serve great servies, bringing the joy of flying to everyone.
* Vision: The vision is always beside the mission, it’s what the company wants to become, the future aspect of this business (BPP, 2009). Vision of SIA also has established since its opening stage : “We are the best flying brand, The most endearing brand , SIA is truly a GLOBAL BRAND “ and “We will lead in flying industry at all times”.(SIA, 2009)
* Goal: Their goal is also made clear at this time: providing the best flying quality and services to customer and expanding to global market. * Objectives: Maintain its best position for airlines company at next 5 years from 2011-2015, to make sure the service quality at a high level. And provide a safety travel for passenger. Building a good relationship with suppliers and change aircraft every 5 years. *Strategic intent : Strategic intent is the process of inspiring SIA...