Singapore Airlines

1. What are the KSF (key success factors) for the full service airlines industry and how well did Singapore Airlines implement them?
y y y y y y y y y y y y y y y y y Strong brand image and awareness Prevention of price wars ± reason for segmentation. High product quality - Service Patent protection ± Not applicable Low product cost - Service Large marketing resource budget Marketing research quality Information system power Analytic support capability Develop human resources ± Intensive training 4 month plus 110 hour yearly training.(soft) Attract the best personnel Managerial ability and experience Quick decision and action capability Organizational effectiveness ± Service Minded Culture Learning systematically from past strategies- Innovation -----Cost Leader at 4.58Cents ASK ± From Less than 1/3 or over ½ of European Carriers, and almost ½ a cent to 3 cents cheaper than Asian. Even cheaper than US and European bidget carriers. Customer Tech high, back office low. y Not sustainable to be cheap and excellent according to western experts. Eastern Managers believe that these philosophies are two pieces of the same puzzle. y Saves where it doesn¶t hurt image. Depreciates over 15 rather than 25 years and uses older software. y y y y y y Well Trained Staff and more Labor than average ± trained multicult. Eye leve not down´. Dscounted big purchases. Efficient equipment. Bonus System entices energetic and hardworking workers. Healthy returns for almost 40 yrarsithout a loss, retains earnings and pays out dividends. Better returns due to 13 hours in the air vs 11.3 as average. Rare mech. Failure, few delays due to great condition, Premium in this case

What are the factors that affect air travel? Cost of Operation. Develop human resources and Attract the best personnel. Low Service cost.The purpose of service standards are to clarify for employees exactly what actions and behaviors are expected of them in driving excellence everyday. and creating customer loyalty.Marketing research quality. and business objectives to life. quantifiable organizational goals and objectives that every employee is aware of. Principle 2 . 3. Oil. simple. and some form of quality improvement. Reputation. their vision statements clarify what they aspire to be in the future. What were the success ingredients of the Singapore Airlines marketing? Strong brand image and awareness. Human Resources. Managerial ability and experience. owned. Premium in this case. 2.Business Objectives . Along with objectives that focus on growth and profitability.Service Standards . mission.Vision & Mission . but also understand how the work they do contributes to the successful achievement of them. while their mission statements articulate their purpose. Quick decision and action capability. Weather. Organizational effectiveness. what they stand for. They do not leave this to chance.World-class organizations that are able to create and sustain a culture of service excellence have a sound vision and mission that is known. World-class organizations that are able to create and sustain a culture of service excellence create and regularly communicate the standards of excellence (key touch points) that are necessary in bringing their vision. Prevention of price wars. Airfare. Seasons. 4. What are the principles of excellent service from this case? Principle 1 . In such cases. world -class organizations also have service-oriented objectives that focus on customer loyalty. employee engagement. Substitutes. (customer retention)CRM.y y Shift from transportation to service industry. but select 3-4 that employees not only know. High Service quality. Related Positions Baggage Handlers and Fluglotze. Thorough Product Innovation Department. . Political Climate. They don't confuse employees with a multitude of objectives. and energized by every employee. Principle 3 .World-class organizations that are able to create and sustain a culture of service excellence have clear. Learning systematically from past strategies.

senior executives are also accountable for discussing the relevance of the service philosophy every opportunity they get to interact with employees.World-class organizations that are able to create and sustain a culture of service excellence use every communication resource within their sphere of influence to constantly reinforce their service philosophy. and email taglines. Is this fare increase reasonable?)16. They hold leaders accountable for regularly discussing the organizational vision. Year 0-6 . and wallet cards that display the service philosophy. You may make some assumptions along the way. business objectives. Principle 5 .7% Before upgrade 58 seats.Principle 4 . training and development. Measurement is what helps establish credibility in the process. not optional). What are the factors to consider in a fleet decision? 6. after 50.Organizational Alignment . by helping senior leaders determine strengths and weaknesses in the system. Also. business objectives. and service standards during daily pre-shift meeting. (Hint: How much more should Singapore Airlines charge for their business class in order to recover their investment in the new seats? Assume that the seats are amortized over 5 years. they communicate and reinforce this information through employee newsletters.Number of flights 300. Most importantly.the service philosophy is integrated each step of the way. and so on . mission. world-class organizations have systems and processes in place to ensure their service philosophy (vision. Other communication resources used to align staff include posters. mission. monthly or quarterly departmental meetings (which are required. what gets measured gets done. When it comes to employee recruitment and selection. bulletin boards. performance management.Intervention & Learning Strategy . and service standards) is interwoven into every aspect of the organizational culture. reward and recognition. and more effectively hold mid-management accountable for driving excellence everyda 5.In the final analysis. Fare for C class is 3.Just as they have a sound strategy in place to ensure financial success. World-class organizations that are able to drive excellence use simple scorecards to help employees keep track of the organization's success or failure in driving excellence.000 Increase rate by 45 Airplanes to be upgraded. as well as. tent cards. Should Singapore Airlines spend $100 MM for new seat beds? Conduct an economic analysis. new employee orientation. Principle 6 .Measurement & Leadership Accountability . incentive programs.

.8626 . .9151.971 d/f 1/ .000.638.8885. . .363.000 Fare times # of planes (1+Inreasein Fare) * Number of Seats * Number of Planes Cash in Annually2.9709.9426.Cash Out ± 100.

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