Singapore Airlines Organisational Design and Structure
Organisational Structure and Design
Content Page
S/N Subject Page
1.0 Introduction 3-4
2.0 Competitive Advantages 4-5
3.0 Organisational Changes 6-7
4.0 Organisational Design 7-9
5.0 SIA’s Organisational Structure 10-11
6.0 Recommendations 12
7.0 Conclusion 13
8.0 References 14
1.0 Introduction
SIA started off with a humble beginning as part of Malayan Airways. In 1947, Malayan Airways operated services between Singapore, Kuala Lumpur, Ipoh and Penang. During 1972, where Malaysia -Singapore Airline (MSA) split in two entities, name Malaysian Airline System and Singapore Airlines. Since then, SIA has emerged as one of the top international airlines in the industry (SingaporeAirlines, 2012). SIA was ranked 17th in Fortune magazine’s list of most admired companies in 2007, the only airline to make it in the top 50. The company also consistently receives prestigious industry awards. SIA has never posted a loss on an annual basis, and has achieved substantial and superior returns in an industry plagued by intermittent periods of disastrous under-performance. From the very first days of SIA, several things were clear in the mind of the brand owner: the airline was determined to be a highly profitable brand, and the best airline brand in the aviation industry. SIA has managed to integrate elements of differentiation and cost leadership strategies. It is positioned as a premium carrier with high levels of innovation and excellent levels of service, and has made a clear strategic choice of giving priority to profitability over size. For ‘full service’ airlines and service organizations in general, delivering excellent service always come at a cost. SIA on the other hand has managed to deliver premium service to some of the most demanding airline customers, who have sky-high expectations, at cost that are within the range of those of budget carriers.
With such an outstanding performance
Content Page
S/N Subject Page
1.0 Introduction 3-4
2.0 Competitive Advantages 4-5
3.0 Organisational Changes 6-7
4.0 Organisational Design 7-9
5.0 SIA’s Organisational Structure 10-11
6.0 Recommendations 12
7.0 Conclusion 13
8.0 References 14
1.0 Introduction
SIA started off with a humble beginning as part of Malayan Airways. In 1947, Malayan Airways operated services between Singapore, Kuala Lumpur, Ipoh and Penang. During 1972, where Malaysia -Singapore Airline (MSA) split in two entities, name Malaysian Airline System and Singapore Airlines. Since then, SIA has emerged as one of the top international airlines in the industry (SingaporeAirlines, 2012). SIA was ranked 17th in Fortune magazine’s list of most admired companies in 2007, the only airline to make it in the top 50. The company also consistently receives prestigious industry awards. SIA has never posted a loss on an annual basis, and has achieved substantial and superior returns in an industry plagued by intermittent periods of disastrous under-performance. From the very first days of SIA, several things were clear in the mind of the brand owner: the airline was determined to be a highly profitable brand, and the best airline brand in the aviation industry. SIA has managed to integrate elements of differentiation and cost leadership strategies. It is positioned as a premium carrier with high levels of innovation and excellent levels of service, and has made a clear strategic choice of giving priority to profitability over size. For ‘full service’ airlines and service organizations in general, delivering excellent service always come at a cost. SIA on the other hand has managed to deliver premium service to some of the most demanding airline customers, who have sky-high expectations, at cost that are within the range of those of budget carriers.
With such an outstanding performance
References: BrandScape. (2009). Singapore Airlines – An Excellence Asian Brand. Accessed 19 January 2012 http://brandscapeafrica.org/index.php/articles/corporate-branding/215-singapore-airlines-an-excellent-asian-brand.html Heracleous. L. and Wirtz.J. (2009). Journal of Air Transport Management: Strategy and organisation at Singapore Airlines: Achieving sustainable advantage through dual strategy. Accessed 20 January 2012 <http://bschool.nus.edu/departments/Marketing/Jochen%20papers/jatmstrategyorganizationsia-2009.pdf> Jones.G. (2010). Organisational Theory, Design & Change 6th ed. Prentice Hall International SingaporeAirlines.(2012). Singapore Airlines – About us. Accessed 31th January 2012 <http://www.singaporeair.com/en_UK/about-us/sia-history/> Xinmsn.(2012). SIA checks Airbus A380 aircraft after fresh cracks reported. Accessed 28 January 2012 <http://news.xin.msn.com/en/business/article.aspx?cp-documentid=5788871>