BUSINESS ENVIRONEMNT

Business Environment

Business Environment

Introduction about the Company

The organization that is chosen for this assignment is Singapore Airlines Limited. Whenever, people wants to travel far they have to travel by means of air transportation and for that their first choice is always Singapore Airlines. The horizons of the operation of the Singapore Airlines can be described by stating the fact that its carrier flies around 65 cities in more than 300 countries. These carriers mainly fly in the region of Asia Pacific but it also flies less frequently to European region and to the North America (Chan 2000, 456). Singapore Airlines has a fleet of around 100 aircrafts. With the help of Temasek Holdings the government of Singapore holds around fifty five percent shares of the Singapore Airlines. If we look at the core competencies of the business of the Singapore Airlines then it would be revealed to us that the competencies of the top management in planning the marketing strategies and the communication skills of the flight attendants are the two factors that provide Singapore Airline an edge over the competitors. The weakness of the Singapore Airlines is related to the strategic formulation. For example, the company does not have its formulated or written mission statement which is the core of any business (Chan 2000, 459).

Four Environmental Factors Affecting the Business

The PEST analysis is a tool for designing and devising the strategy. This method is used to analyze the macro-external environment in which a company operates. PEST factors play an important role in the opportunities for value creation strategy. The PEST analysis for the Singapore Airlines is as follows:

Political Factors

Singapore is an island country that is located in the Southeast region of Asian continent. The whole of the population of Singapore is urban (Lim, Goh and Sriramesh 2005, 315). The country has stable political changes. The government is a parliamentary republic. The largest, influenced and dominant political party is People's Action Party. The country has very strict laws, rules and regulations. For example, an individual is supposed to pay fines for chewing a gum or for not to flush the public toilets (Mattar 2003, 283).

Economical Factors

It is the GDP of the Singapore that classifies the country as the fourth wealthiest nation of the world. The government of the country supports trade and is open for it. There are a number of countries with whom Singapore maintains good and strong relationship of trade. There are also a number of multinational organizations that make the Singapore as their base so that they can operate in different regions of Asia (Lim 2009, 261). The government of Singapore is paying immense emphasis on the development of the tourism industry of the country. For that government is undertaking a lot of actions and working on various projects. To attract tourist from all over the world government is launching projects of casino, malls and museums. Sentosa is one such example of the tourists' attraction in Singapore (Chong 2010, ...