2.1.1 Political Element
Political element refers to governmental and legal such as pollution control and business health and safety within which organisation must function (Bartol et al.2008, 44). In 2001,Singapore Airline is dealing a heavy blow to the Indian government’s privatisation programme, which make Singapore Airlines has to introvert its offer for a support in Air India (Singapore Airlines drops Air India bid 2001) .This shows a political obstacle that affect Singapore Airlines.
2.1.2 Economic element
Economic element involves system of consumption, distribution and wealth production (Bartol et al.2008, 44). Singapore Airline bided S$920m stake in China Eastern Airlines in the year of 2008, but it was then rejected. However, Singapore Airlines proceed to try to construct a strategic alliance with China Eastern (China Eastern rebuff to Singapore 2008).
2.1.3 Social-cultural element
Social-cultural element, changes in social trend may have an affect on attitudes, behaviours, norms, beliefs, and typical regional demographic trends. (Bartol et al.2008, 45). Food is one of the example that can reflect social cultural, therefore Singapore Airlines are having nine internationally renowned chefs to design tantalising and exclusive dishes and three wine consultants to select wine (SIA History 2011).
2.1.4 Technology element
Technology element show the present knowledge about products and services(Bartol et al.2008, 43). Singapore Airlines has achieved the competitive advantage as they are making technology advancement by creating Airbus 380, it is the first airline that operates the cleanest, greenest, most fuel efficient and youngest fleets in the skies (The Environment 2011).
2.1.5 International element
International element is the country development outside an organisation’s home country that can impact on the firms (Bartol et al.2008, 45). In the end of June 2010, Singapore Airlines made a first-quarter profit of S$253 million between April and June. This may happen as passenger numbers rose by 5.5% in the quarter.(Singapore Airlines profit boosted by traveller demand 2010). As Singapore currency is strong and when travellers demand is high it might cause a boost in profit as most of the travellers are foreigners.
2.2 Task environment
Task environment is a particular external elements with which the environment interfaces in the way to conduct a business, the major task environment includes customers,clients, competitors, suppliers,employees and government. (Bartol et al.2008, 45)
2.2.1 Customers and clients
Customers and clients are organisations or individual who buy products or services (Bartol et al.2008, 45). Normally customer always consider safety as their
first priority, therefore, Singapore Airlines always assume and preserve practices that encourage the safety of customers by always observing a strict and high international safety standards and also by cooperating with various international safety organisation (Singapore Airlines 2006).
2.2.2 Competitors
Competitors is other organisation that offer opponent product or services (Bartol et al.2008, 46). Cathay Pacific is one of Singapore Airlines competitors, if we look at the profit of both airline in 2001, Singapore Airline made a record S$886 million while Cathay Pacific only made S$641 million. This also show that Singapore Airlines always make an effort to achieve competitors advantages (SIA, Qantas jostle for air space 2001).
2.2.3 Suppliers
Suppliers is a company or individuals who supply resources to the firm to conduct its operations (Bartol et al.2008, 46). In an airline industry fuel is the major supply needed, in the year of 2007, price of jet fuel increases, whereby Singapore Airlines need to make an increase in the ticket price as its fuel rises to around US$115 per barrel (Singapore Airlines To Increase Fuel Surcharge 2009).
2.2.4 Labour supply
Labour supply is an individuals or people who are employable by the organisation (Bartol et al.2008, 46). In this case Singapore Airlines set a requirement on hiring employee such as cabin crew. The minimum height requirement for males is 1.65m and for female is 1.58m, speaking in foreign language is not compulsory, however speaking in foreign language is a beneficial (Cabin Crew 2011).
3.0 Internal environment
Internal environment is the common environment that occur in a organisation. Internal environment include the organisational culture, and organisational culture consist of symbols,stories, rites, rituals and ceremonials.
3.1 Symbols
Symbols is an word, object, act, event used by the organisation to express meaning (Bartol et al.2008, 55). In SIA, “Singapore Girl” symbolised quality customer care and services. Her uniform, sarong kebaya in batik symbolised Singapore Airlines traditions of friendly service and Asian hospitality. (Singapore air n.d.).
3.2 Rite, Ceremonial, Rituals
Rite is a complex, planned, dramatic set of activities to pass on cultural values to contributor and an audience. Ceremonial is a structure of ceremony or rite, performed at one occasion. Rituals are systematise behaviour such as staff, monthly or annual awards meeting (Bartol et al.2008, 56).
3.3 Stories
Stories is a history issue from true phenomenon, which may be elaborated to spot deliberated value (Bartol et al.2008, 55). Singapore Airlines has grown as the most respected airline for over ten year periods. Singapore Airline is the first airline who innovate and put in service the world’s largest aircraft, which is the Airbus 380 (Singapore air n.d.).
4.0 Conclusion
In conclusion, organisational environment is very important, because the external and internal environment may influence every organisation’s success of its product or services.
5.0 Reference List
Cabin Crew. 2011. (accessed January 18, 2011).
China Eastern rebuff to Singapore. 2008. (accessed january 17, 2011).
Kathryn,B., T. Margaret, M. Graham, S. Bishnu, R. Philip, S. L. Brenda 2008. Management Foundations. Sydney: McGraw Hill Australia Pty Limited.
SIA, Qantas jostle for air space. 2001. (accessed January 17, 2011).
Singapore Airlines. n.d. Singapore Air. 2011. (accessed January 17, 2011).
Singapore Airlines. n.d. Singapore Air. 2011. (accessed January 18,2011).
Singapore Airlines drops Air India bid. 2001. 1521547.stm (accessed January 17, 2011).
Singapore Airlines profit boosted by traveller demand. 2010. / news/business-10762533 (accessed January 17, 2011).
Singapore Airlines To Increase Fuel Surcharge. 2009. (accessed January 17, 2011).
Singapore Airlines. 2006. Annual report 2006-07. Singapore Air. (accessed January 17, 2011).
The Environment. 2011. (accessed January 18, 2011).