Singapore Airlines Organisational Design and Structure

Organizational change is a very critical and yet very inevitable process ofan organization’s structure. It can create a lot of pressure from the workers as well as management as a result of fear of the unknown.

Businesses continually adapt to a changing environment to maintain their market position (Appelbaum, Habashy, Malo, & Shafiq, 2012; Biedenbacha & Soumlderholma, 2008). Change is inevitable considering the current rate of technological advancement and the growth in global competition (Appelbaum et al., 2012; Armenakis & Harris, 2009; By, 2007). Increasing competition and the need for strategic flexibility and globalization is affecting almost every organization today, regardless of size, market, focus, and so on (Jaros, 2010).

Organizational change has many concepts from wide changes to small changes that can affect a company. Introducing a new person into the company, changing mission statement, restructuring, and even adding stock options are examples of organizational changes. According to Spector it is important to understand, analyze the dynamic of change, and requirements of effective change implementation. Successful changes requires management to explore many drivers of change. Strategic responsiveness occurs when external factors affects the company for example, government regulation, new competition, and economic changes. In response to these events an organizational change is necessary to create and

Singapore Airlines was established in 1972. Singapore Airlines’ major strength is the brand image, its size and also the positioning strategy. According to Heracleous and Wirtz, in 2010, SIA was acknowledged as the second largest in terms of market value. SIA has reported profit every year, which is an achievement that has been unmatched by other competitors. According to a report, SIA generated an annual profit of 378.9 million Singapore dollars in 2013. Most importantly, SIA was best-known for its brand in the airline industry. SIA managed to positioned itself as the leading brand through the utilization of a business model known as “First Mover”. SIA uses this model to stay one step ahead of its competitors. For instance, SIA was the first airline to take delivery of the new A380 passenger plane in the 2000s.

The factors of organizational change are those who, for various reasons, an organization can identify the need for change, these are: technological, structural, personnel and cultural factor. In today's world of organizations, characterized by globalization, the power of customers and the avalanche of information, these have to be in a permanent process of change for continuous improvement. Are structural, technological and cultural factors staff of those organizations has to act on them and thus achieve adaptation and / or probation they need.

Managing organizational change is the process of planning and implementing change in organizations with maximum effectiveness and minimum circumstances and resistance. Today 's business environment requires companies to undergo changes almost constantly if they are to remain competitive. In this project paper I am going to discuss organizational change in PepsiCo. I will take a closer look on management approach and forces for change. I will introduce the change, make diagnosis and discuss how the change can be implemented.

Change has become necessary for every organisation there is. World is moving rapidly towards better technologies, efficient systems, new techniques, compact profits, different friendlier environments and organisations are always in the race to reach new heights by thriving effectively in this competitive environment (Kotter, 1996).

Internal changes may be triggered by organisational strategies: centralisation/ merger due to pressures of “economies of scale” for market-place competitiveness, which may lead to closures, redundancies, change in Job descriptions, re-training / re-skilling.

Change is a common thread that runs through all businesses regardless of size, industry and age. Our world is changing fast and, as such, organizations must change quickly too. Organizations that handle change well thrive, whilst those that do not may struggle to survive.

The strong competitive advantages which low – cost airline such as Air Asia is equally causing Mas to restructure their operations, there resource such as airplane and the quality of their cabin crew tends to be looked at deeply. Mas has the oldest airline in Malaysia they have to use the advantages to continue to stay at the frontline in the aviation industry by them using available resources effectively with the help of the government and come up with a strong strategy so as to compete and stabilize its product in the aviation industry.

The competitive environment : competition from the industry can impact a company’s strategy and operation. For example if a competitor release a new or similar product that threaten to steal market share, an organization must be ready to change in order to retain its

Singapore Airlines (SIA) was established in 1972, growing from a regional airline, it is renowned for being one of the leading travel brand in the highly competitive airline industry. SIA is well known for its personalised service, world class comfort, reliability and timeliness, and development of its products and services innovatively and above the industry standards.

Singapore Airlines (SIA), founded in 1972, have come a long way, budding from a regional airline to one of the most trusted travel brands internationally. They fly one of the youngest aircraft fleets in the world to destinations covering a network spread over 6 continents, with the Singapore Girl as their globally-recognisable icon providing the high standards of care and service that customers have come to expect of them.

As public biggest airline company in Singapore, Singapore Airline has several key business activities ranging from engineering, flight services until cargo services, but their main activity is more on flight services. Singapore Airline is relying heavily on Singapore financial system to operate their business. One of the evidence is that SIA benefiting from the financial market as the company’s share has been listed in SGX. As stated on Singapore Airline Annual Report, SIA has a cash surplus for the past 10 years on average………. Singapore financial system has help this company to grow and develop rapidly by their financial market, institutions and instrument, which will be discussed further later.

Malaysia Airlines (abbreviated MAS), is the government-owned flag carrier of Malaysia. Due to fuel price hiking, inefficient management, global economic crisis, government intervention and low load factor, MAS suffers substantial loss which