CIM MEMBERSHIP NUMBER - 10884942

Internal Marketing It is important that the staff of SIA have a clear idea of the companys objectives and changes required. This may divide the staff into 3 main categories namely, Opposes Neutrals Supporters SIA management should focus on converting the Neutrals into supporters to help better implement the proposed changes within the organization. For this exercise proper orientations and information pertaining to the change should be distributed amongst the staff to gather a better understanding of the companys broader objectives. Physical evidence to help in the transition is mandatory items such as posters, notice boards, themed days, motivational speakers & dress down Fridays help in the transition. Appointing Change Champions would also help ease the organizations transition as these individuals could act as guidance counselors to the employees. The Balance Scorecard. Customer Perspective The customer is the most important element for any business to be successful. Hence it is important to measure the customer/segment performances as in graph 1.3 & 2.0. We identify that the bulk of customers served by SIA are corporate customers this is a healthy % & SIA should look to grow this further since the revenue from such clientele is much higher as compared to leisure traffic. Leisure market would mean the average consumer would make a major trip once or maximum twice a year where as a business travel would make between 12-24 trips a year to different destinations. More emphasis on corporate agreements, improvements to business class cabin & lounge would be fitting. Key account managers should also be appointed to help service this clientele (this could be done on station by station basis Sales & Marketing staff may handle these accounts).

CIM MEMBERSHIP NUMBER - 10884942

Inline with correct practice SIA should continue to have feedback research carried out in order to determine the customer satisfaction levels for the major customer touch points such as ticket office, reservations, airport & onboard service. It is recommended that a feedback form is sent on a quarterly basis to the Krisflyer and online consumer database for important feedback on the website as well as Singapore Airlines in general. A more focused questioner with emphasis on the First & Business class cabins could be sent out to the PPS & solitaire club members. It is also important that each station have adequate information on the market share gained/lost by Singapore Airlines. This data could be extracted from software such as Paxis it could also be obtained by the GDSs operating in the specific country. It is vital to identify SQs position in the market & identify its main competitors. Customer trends, needs & wants are very important as well. For example research has shown that most Indian consumers would rather prefer Indian meals such as Chapatti or Dosai as opposed to the traditional noodle or fried rice offered on board. Hence identifying customer culture is also very important. Independent research would be helpful to gain a better understanding of their requirements. Loyalty card registrations also provide valuable insight into customer trends hence the Loyalty card programme (Krisflyer) should be exciting & attractive & induce customers to sign up for it and benefit from its value added services. The more registrations will help SQ have a better track of customer usage & repeat purchases. Financial Perspective As depicted in graph.. the company [profits have grown by % but have yet to met the levels reached in 07/08 financial year. This could be attributed to the sharp increase in fuel prices in recent times of almost 25%. Close monitoring of world fuel prices is important in oil hedging deals as well as global pricing structures. As depicted in graph..it is the highest portion of cost related to the company. Staff costs could be controlled further by encouraging staff members close upon retirement to accept a VRS (Voluntary Retirement scheme) to help reduce the overall cost of maintaining those staff members. Those resources should be re-directed in training & development of staff.

CIM MEMBERSHIP NUMBER - 10884942

Purchase of Aircrafts should be limited to more medium haul aircrafts such as A330 due to initially capital investments and fuel efficiency. Older aircrafts, which have proven to be less cost affective, should be de-commissioned or leased out in order to gain incremental revenue. A variance analysis could be useful to monitor any deviations from the actual budget; this would give SIA adequate time to take the necessary corrective measures required. Internal Business Process Systems such basic reservations, route control, inventory allocation should be monitored & tested on a monthly basis to ensure there are no glitches as well as zero possibility of bugs in the system. All inventory systems should be run on servers that ensure zero downtime. Backup servers must be able to kick in immediately in an emergency and regular maintenance of the servers is vital. In house IT division along with the vendors support staff should be responsible for this activity & ensure information security. All mail databases should be handled with utmost care since privacy of customers is very important. All direct mailers should be sent only upon gaining the consent of the recipient. 3rd parties should have zero access to such privileged information. Staff knowledge should be regularly reviewed to ensure they are up-to-date with the organizations products & services. All new ideas & innovations from staff should be considered & put forward to the R& D department for evaluation. Any idea chosen to be implemented should be done with the participation & guidance of the staff in question. Budgets Apart from the traditional budgets such as advertising, promotions, FAM trips. Each station should also be allocated budgets for activities such as, CSR Agent entertainment Trade felicitation events. The above-mentioned activities usually do not have individual budget allocations but are generally funded by shifting resources from other budgets such as PR, advertising. This is not advisable in the current context since these activities have important & significant impact on the organizations activities locally.

CIM MEMBERSHIP NUMBER - 10884942

Learning & Growth Perspective. All employees of SIA are subject to a training & development course in their career usually within the 1st year of recruitment. These individuals should be made to understand the privilege and honor bestowed upon them to be trained in the skills they require hence it is recommended that all employees who are subject to special training requirements (eg: ticketing, reservations knowledge etc) are required to sign a bond that would ensure SIA their services for at least a year from said date of training. This would help maximize the spending on training staff. With the rising cost of aircrafts SIA should focus more on their Engineering subsidiary to be more aggressive on innovations & product features to be offered on board since the cost of making product improvements in house is proven to be cost effective as opposed to purchase of custom fitted aircrafts. SIA should spend more time & energy towards R&D for New product development and Innovations since it must ensure it maintains its image of being the innovations leader in its respective industry. This would add to the Brand as well as shareholder value. SIA should ensure that any aircraft purchases in the future are done prior to any competition and product launches should be done with maximum media exposure for PR purposes.