Stakeholder Theory Essay Example Pdf - Free Essay Example

Sample details Pages: 8 Words: 2373 Downloads: 4 Date added: 2017/06/26 Category Business Essay Type Essay any type Did you like this example? Introduction Since renowned economist Friedman (1970) expressed his strong convictions on the need for social responsibility in business, there has been much development in the theory and practical application of social responsible initiatives (McWilliams, Seigel Wright, 2006). A whole movement has developed to cover a range of ethical practice which is now labelled under the umbrella of Corporate Social Responsibility (CSR). Many executives today face a dilemma between feeling compelled to invest in CSR initiatives whilst maintaining the cost controls so a necessary to maximise shareholder value. Don’t waste time! Our writers will create an original "Stakeholder Theory Essay Example Pdf" essay for you Create order This essay first reviews the ideas of Freidman (1970), then the development of alternative theory is outlined, and the shareholder and stakeholder paradox is defined. The motives and actions of CSR policy at the international oil company British Petroleum (BP) are analysed and then related to the shareholder and stakeholder paradox. The nature and context of Freidmans views Friedman (1970) wrote his infamous article in the New York Times Magazine as an explanation of what is known as the agency theory by scholars of CSR (McWilliams, Siegel Wright, 2006). Agency Theory suggests that its not the role of executives in society to make decisions on social welfare of citizens. Since that time there has been a substantial growth in the definition and practical application of CSR policy and many have developed alternative views to Freidman (Crane and Matten, 2007). Freeman (1984) presented the concept of stakeholder theory that managers should consider the interests of all stakeholders other than the shareholders in a corporation. Importantly, Freemans ideas suggested that considering the needs of stakeholders is essential to a firms long-term success and not a benevolent additional add-on. Stakeholder theory was developed further by Donaldson and Preston (1995) who stressed the ethical nature of CSR as well as the potential for increased financial performan ce that satisfies the interest of shareholders who invest in a business. Since then there has been a proliferation and transformation of CSR focus by scholars and businesspeople alike with an alignment between CSR practice and objectives in many corporations (Crane, 2013). In developed nations, large firms generally conduct CSR agendas or they feel they risk losing competitive advantage. Today in many markets, a strong CSR focus is a consumer expectation especially in cultures where the behaviour and role of corporations is closely monitored by media and pressure groups. Some businesses have even made the CSR theme central to their core mission, for example The Body Shop and Ben and Jerrys. However many still have concerns about CSR initiatives in the corporate world and they would support Freidmans view. Recently, Johnson (2015) suggested that CSR is an indulgence by executives in rich companies who complete to show who is most ethical and caring. Friedman (1970) was dismissive of any attempts by executives to introduce initiatives that could be described as corporate social responsibility. He suggested that not only would CSR be harmful to shareholders who would suffer less returns on their investment, but there would be wider negative connotations for society has a whole as the executive would actually be administering a judgement that should be left to other agencies such as government. Friedman (1970) states in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation or establish the eleemosynary institution, and his primary responsibility is to them (Friedman, 1970, p.32). The only part of the article which we might interpret as a reflection of a stakeholder approach is when Friedman (1970) mentions it might be in the interest of a corporation that is a major employer in a local community to provide resources to that area or help improve local government. By doing so the business might attract more des irable workers, it may reduce the wage bill or have more loyal workers which ultimately would reduce costs and aid financial performance. However generally Friedman (1970) does not provide any notion that consumers may product differentiate on the grounds of the presence of CSR activity in a business which is an essential common tenant underpinning justification by managers today for promoting social responsibility. Friedman (1970) presented one end of the spectrum concerning the balance of focus between shareholder and stakeholder issues. The paradox managers face is the amount of focus they should give to the interests of various stakeholders through CSR initiatives whilst still securing shareholder interest and value. The shareholder and stakeholder paradox Those who promote stakeholder theory suggest that there are a range of benefits for a business adopting a strong CSR agenda that ultimately lead to an increased financial performance (Orlitzky, 2006). A business has the opportunity to increase organisational reputation by exercising CSR Policy which can develop consumer preference and loyalty. Businesses with CSR initiatives may be able to charge higher prices as consumers are prepared to pay extra where they believe they are helping others in need (Auger et al, 2003). For example, clearly labelled ethically sourced Fairtrade products found in British supermarkets such as coffee are available with a premium price. CSR policy can provide advantages when a business needs to raise capital as some investors and institutions are more willing to lend to firms with a strong ethical stance and at lower rates of interest (Spicer, 1978). Another prominent idea is that corporations with a high CSR agenda will benefit from better performing em ployees who increase their commitment and productivity as they respond to being part of an ethical mission (Greening Turban, 2000). By consistent adherence to legislation such as contract, employment and environmental law, a business can avoid negative media coverage to catastrophic loss of reputation or even criminal misconduct charges (Wood Jones, 1995). Corporations today see CSR expenditure as a way of generating revenues which improve financial performance (McWilliams, Siegel Wright, 2006). Direct costs can be attributed to CSR practice which have the potential to reduce profits and therefore the dividends to available to shareholders in the short-term (Frynas, 2009). Improving employee remuneration to provide a living wage has been adopted by many firms as late in the UK as socially responsible action but clearly incurs a direct expense (Living Wage Foundation, 2015). Ethically sourced suppliers tend to be more costly especially for example when eco-friendly production t echniques are introduced. Introducing a more proactive recycling policy or pollution abatement policy above minimum legal requirements needs more resources and capital expenditure. Furthermore, there could be opportunity costs incurred where resources devoted to CSR practice are diverted away from other potentially beneficial projects in a business such as research and development activity, operational expansion or marketing campaigns. Business can only really take advantage of product differentiation if advertising reveals to potential consumers their CSR policy and practice so further expenditure is required for this purpose (McWilliams, Siegel Wright, 2006). Businesses that invest in CSR practices will have higher costs than those firms in the same industry that do not; executives have to make strategic decisions of the level of inputs they will commit to such activities. The vast majority of large corporations such as Multinational Corporations (MNCs) have considerable inves tments in CSR agendas and have whole departments dedicated to such activity (Crane, 2013). MNCs in the international oil industry are particularly renowned for having substantial CSR initiatives. Executives at multinationals(MNCs) such as British Petroleum(BP) constantly have to address the shareholder and stakeholder paradox in terms of balancing the needs of cost control so as to compensate shareholders fully whilst upholding the companys organisational reputation through supporting a range of costly CSR initiatives. Corporate Social Responsibility at BP as a reflection of the paradox in the oil industry. BP is recognised as a corporate leader in its commitment and innovation to CSR initiatives (Frynas, 2009). In BPs annual report, the opening statement stresses its CSR focus We aim to create long-term value for shareholders by helping to meet growing demand for energy in a safe and responsible way. We strive to be a world-class operator, a responsible corporate citizen and a good employer (BP, 2014).The highly visible effects of operations in the oil industry and a series of historical catastrophic events such as oil spills and local community devastation have made the ethical behaviour of companies like BP subject to close scrutiny. The very nature of the oil exploration, refinery and consumption raises ethical concerns due to the significant environmental and social impacts they create within the many countries they operate. Governments have introduced substantial legislation to protect their citizens and the environment; however international oil companies often choose to invest beyond legal minimum requirements which incur extra direct costs (Spence, 2010). Private organisations such as the media and pressure groups like Greenpeace constantly monitor oil companies and can considerably affect consumer purchase decisions. BP has historically allocated substantial resources to CSR initiatives to limit negative impacts on the environment, to address the social impact on local communities they operate within and to manage the difficulties that can be created from a sudden inflow of oil revenues into economies in the developing world (Frynas, 2009). BP is a public listed company on the London and New York Stock Exchanges that attracts investors who expect regular dividends with satisfaction yields and capital gains in shares in the long-term. BPs annual report outlines its current CSR focus into three areas: operational safety, environment and society, and employee welfare (BP 2014). It estimates that its annual environmental expenditure alone for 2014 was $ 2.216 billion for activity such as oil spill and clean-up costs, pollution abatement and environment restoration. BPs annual dividend per share in 2014 was $0.39 and totalled $6.1 billion for all investors. Clearly CSR expenditure is significant in relation to investor returns. However, much CSR expenditure is necessary to meet minimum legal requirements and therefore cannot be considered totally as a strategic planning choice. In April 2010 in the Gulf of Mexico a major oil spill incident took place around a BP ocean drilling operation subsequently called the Deepwater Horizon accident that significantly affected shareholder value and returns (BP, 2014). After an onsite explosion where 11 workers lost their lives, an estimated 200 million gallons of crude oil flowed into the ocean causing widespread onshore and offshore catastrophic environmental and social destruction. The U.S. Federal Government ruling in September 2014 finally held BP accountable for the incident imposing a f ine of $18.5 billion which is still being appealed by BP. Also the incident caused many US consumers to boycott BP products and services which significantly decreased sales in the short-term. Other private litigations have been settled costing billions of dollars. As at 31 December 2015, BP has set aside $43.5 as a total pre-tax cost for the Deepwater Horizon accident (BP, 2014). The incident caused severe financial implications for BP shareholders; the share price dropped 55% immediately after the incident and still has not recovered to the pre-incidents levels. Dividends were suspended for the first 3 quarters of 2010. Incidents such as Deepwater Horizon damage organisation reputation and incur direct costs which deeply affect shareholder value. Part of the reasoning for substantial investment in CSR initiatives by multinationals is to mitigate such incidents and make sure they are minimalised by appropriate due care (Spence 2011). BP is dependent on the support of international f inancial markets and its international reputation for co-operation with its essential stakeholders and expansion of its operations (Frynas, 2009). Developing a strong corporate image is important for BP if it is to reach its long-term goals. BP executives have the paradoxical challenge of balancing the needs of shareholders with imperative CSR related expenditure. Conclusion Friedman (1970) expressed a view on Corporate Social Responsibility that still divides opinion and facilitates discussion today. However there have been considerable changes in the acceptance of CSR policy in recent years and many executives in corporations have embraced stakeholder theory with the need to understand and respond to the interests of various stakeholders such as consumers, employees and suppliers. The presence of CSR policy can provide benefits such as increasing an organisations reputation to encourage consumer loyalty, avoiding any unwarranted outside interference or improving employee commitment and productivity. Managers today explain their considerable CSR agendas leads to improving shareholder value through the variety of factors from which improve revenues which more than compensate for any costs incurred. Like many a major international oil companies, BP has embraced CSR culture at considerable expense as it understands it is vital to its long-term success. L ike other public limited companies, BP is committed to shareholders through implementing a series of CSR practices to ensure the businesses reputation remains favourable with all its stakeholders and allows the company to generate sustainable returns. Bibliography Auger, P., Burke, P., Devinnet, T.M. Louviere, J.J. (2003) What will Consumers Pay for Social Product Features. Journal of Business Ethics. 43(3). pp. 281-304. BP (2014). Annual Report and Form 20-F 2014. [Online] Available from: https://www.bp.com/annualreport Crane, A. (2013) Corporate social responsibility: in a global context. In: Crane, A. Matten, D. Spence, (eds). Corporate Social Responsibility: Readings and Cases in a Global Context 2nd ED. New York: Routledge. Crane, A. Matten, D. (2007) Corporate Social Responsibility as a Field of Scholarship. London: Sage. Donaldson, T. Preston, L. E. (1995) The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications. Academy of Management Review. 20. pp. 65-91. Freeman, R.E. (1984) Strategic Management: A Stakeholder Perspective. Englewood Cliffs, NJ: Prentice Hall. Friedman, M. (1970) The Social Responsibility of Business is to Increase its Profits. New York Times Magazine. 13th September. Fr ynas, J.G. (2013) Corporate Social Responsibility in the Oil and Gas Sector. Journal of World Energy Law Business. 2(3). pp. 178-195. Greening, D.W. Turban, D.B. (2000) Corporate Social Performance as a Competitive Advantage in Attracting a Quality Workforce. Business and Society. 39. pp. 254-280. Johnson, L. (2015) Want to help society? Just make a profit and you will. The Sunday Times. 13th September. Living Wage Foundation (2015). [Online] Available from: https://www.livingwage.org.uk McWilliams, A., Siegel, D.S. Wright, P.M. (2006) Corporate Social Responsibility: Strategic Implications. Journal of Management Studies. 4 (1). pp. 1-18 Orlitsky, M. (2006) Links between Corporate Social Responsibility and Corporate Financial Performance: Theoretical and Empirical Determinants. In: Allouche, J. (ed). Corporate Social Responsibility Volume 2. Basingstoke, Hants: Palgrave Macmillan. Spence, D.B. (2010) Corporate Social Responsibility: The Importance of Reputationa l Risk. Chicago-Kent Law Review. 86(4). pp. 58-85. Spicer, B.H. (1978) Investors, Corporate Social Performance and Information Disclosure: An Empirical Study. Accounting Review. 53. pp. 94-111. Wood, D.L. Jones, R. (1995) Stakeholder Mismatching: A Theoretical Problem in Empirical Research on Corporate Social Performance. Academy of Management Journal. 22(4). pp. 691-718.

Sexism And Its Implications On Gender Roles - 1900 Words

One of the most debated topics of this century, or arguably history, is the idea of sexism and its implications on gender roles in society. Sexism is defined as a prejudice or wrong mindset, usually under a negative connotation, of a member of the opposite sex. It usually constrains and limits the actions of the individual or group that the prejudice is being inflicted on - in this case women. It has not been a secret in society that females are often on the low end of the stick when it comes to jobs, societal perception, or even capabilities. In the workplace, they are often perceived to be inferior to males in true academic worth, which is one of the reasons that a majority of the jobs that specialize in the arts, such as journalism or photography, often are female prevalent (Sinkele, C. N. and others, 2011). Females who do manage to make it into the high paying STEM (Science, Technology, Engineering, and Math) fields, often make noticeably less than their male counterparts. Women are also thought of to be weaker, more emotional, and less ambitious than males; they are often constrained to traditional gender roles of obedient housewives in countries such as India or Pakistan. Nevertheless, many disagree with the concept of sexism in general and argue that many supposed assumptions imposed on females are legit, and therefore make the argument that sexism is unrealistic. Arguments have been made on if sexism even exists in some circumstances; those opposing the concept ofShow MoreRelatedQuestions On Door Holding Exchanges1056 Words   |  5 Pagesinterested in gender differences and the masculine and feminine positions within such exchange in accordance with social role theory. With the feminism movement there are question regarding gender roles. With sub theories under the branch of feminism such as benevolent sexism it is worth wondering if these custom that have become so apart of societal norms are now questioned. Is there a masculine or feminine way to h andle a door opening exchange? Parker (1998) states, â€Å"The rituals of gender etiquetteRead MoreSexism Is The True Hindrance For Female Careers1407 Words   |  6 Pages Even today’s society, gender inequality remains a very controversial topic. One especially debated area is whether or not sexism exists in the workplace. Some argue that sexism is a major deterrent in the careers of women, and is the main reason women are not as prominent in positions of power and thus in our society. Others believe that women choose not to pursue such positions, because of their roles as mothers. However, it is views like this that prevent women from being taken seriously as workersRead MoreCritique. This Critique Seeks To Provide Contextualisation1355 Words   |  6 Pagesmechanisms that underpin their construction and reproduction. The key aim is to explore possible shifts within gender representation in children’s literature. Hamilton et al. (2006) argue that although there have been changes, over time, to gender representations, improvements have been mitigated by both the underrepresentation of female characters and a continued tendency to cast girls in â€Å"passive roles, boys in active ones† (p. 758). It is important to note that whilst underrepresentation is an importantRead MoreWhy Does Gender Stratification Exist? Essay1049 Words   |  5 Pagesaround the Theory’ Question: Why does gender stratification exist? Introduction: Throughout history, women have been regarded as of lesser value than men particularly in the public sphere. This is the result of gender stratification. Gender stratification refers to the issue of sexism, â€Å"or the belief that one sex is superior to the other† (Carl et al., 2012, p. 78). The theory that men are superior to women is essential to sexism. The negative consequences of sexism has led to the pursuit of successfulRead MoreDistinction Between Sex And Gender1740 Words   |  7 Pagesdistinction between sex and gender be defined? In discussing whether the distinction between sex and gender can be defined I am going to use the early distinction between the two and how this has been socially constructed to identify if there is a distinction. Additionally, I am going to use a variety of feminist influences since the 1960’s, to draw upon the main issues when defining sex and gender. I will investigate the implications of defining sex and gender by looking at sexism. I hope this will enableRead MoreSexism And Its Effects On Women1736 Words   |  7 PagesFrom the beginning of time, sexism has always been the prominent barrier between both sexes. Men always having the upper way while women were treated less equally. According to Dictionary.com, sexism is discrimination or devaluation based on a person s sex or gender, as in restricted job opportunities, especially such discrimination directed against women. People see this in movies, books, and even in school. Young and mature females have never been given the opportunities that men are given becauseRead MoreKilling Us Softly 4, By Jean Kilbourne970 Words   |  4 PagesNewman, sexism refers to â€Å"a system of beliefs that asserts the inferiority of one sex and that justifies discrimination based on gender.† This sexism has a large impact on the daily life of a women through things like social interactions, power differentials, and violence against women. Institutional sexism refers to the â€Å"subordination of â€Å"women that is part of the everyday workings of economics, law, politics, and other social institutions.† The media is one institution that communicates gender normsRead MoreThe Analytical Method Of Marx And Engels1680 Words   |  7 Pagesincludes issues of oppression based on sex. I found her distinction between what Marx and Engels specifically say about women and the family model and her theory of a greater understanding of how gender works dialectically and materially very helpful. I also connecte d with her assertion that issues of gender seem to pervade every part of social life and that â€Å"many women give up in despair†¦Ã¢â‚¬  because of how deep the issues go (Firestone 90). I think this statement is often true because accepting thatRead MoreFeminism : The Patriarchy And Masculinity1273 Words   |  6 Pagessystem. Modern feminist jurisprudence theorists, such as Patricia Smith, have redefined patriarchy to be inclusive of gender identity (masculinity and femininity), yet the original implication of patriarchy relied on gender roles and a fixed gender binary. These theorists have argued that the patriarchy harms both men and women, as feminine men are ostracized for not fulfilling the role of an alpha male—a male who tends to be hyper-masculine. This belief that femininity and masculinity must align toRead MoreSummary : Muller V. Oregon1540 Words   |  7 Pagesjudiciary actions taken only reinforce gender formations- once again attacking the plea for e qual opportunity. Because of this alarming backlash in societal equity, the Supreme Court’s decision should be deemed unjust. Although the case recognizes the significance of employee rights in the workforce, the decision is restricted to the sole protection of female workers and only reiterates the hegemonic and patriarchal ideologies that attack the progression of socio-gender equality through legislative action

Sia Singapore Airline Free Essays

string(65) " is where the two manufacturers can differentiate there product\." Executive Summary The report provides an overview of the company and its environment. The paper identifies various resources and capabilities available to the company. The various strategies that Singapore Airlines utilise and how they affect the airlines performance. We will write a custom essay sample on Sia Singapore Airline or any similar topic only for you Order Now Key issues have been identified that threaten Singapore Airlines current market. The often complicated Government regulations and global laws that affect the airline industry have been defined and explained. Current industry issues and trends that affect Singapore Airlines have been researched, a number of recommendations have been provided, as a possible solution. Overview of Singapore Airlines Singapore Airlines (SIA) first flights began in 1947 partnered with Malaysian Airlines, each funded by there governments. The two airlines mainly serviced South East Asia. Singapore separated from Malaysia in 1965 to become the republic of Singapore. The two governments therefore decided to go there own ways and set up there own airlines. In 1972 Singapore Airlines was launched. The domestic market was basically non existent due to Singapore being a small country geographically. Singapore Airlines had to immediately pursue an international presence and started planning flight routes, airport resources, and government acceptance into foreign destinations etc. SIA also had to establish themselves as a genuine competitor and market the airline internationally to potential customers and future stakeholders. Today, SIA has more than 10,000 employees and 95 aircrafts. The airline now serves 89 destinations around the world including Asia, Europe, North America, Middle East, Australasia, and Africa. ( www. airlines. priceline. om) SIA is situated at Changi Airport along with subsidiaries Silkair and Tiger Airlines. ‘In 2004, Changi Airport received a record 30,400,000 passengers, a year-on-year growth of 23. 1% in passenger traffic. Similarly, a record 1,780,000 tonnes of cargo was moved, representing a year-on-year increase of 10. 2% in airfreight volume’. (http://en. wikipedia. org). Changi Airport is classed as â€Å"the hub of Asia†, Changi provides stopovers, refuelling, and passenger exchange for all the international airlines travelling from one side of the world to the other. Changi Airport is also expanding to accommodate for there cut price airline and new Airbuses arriving in 2006. Analysis of Singapore Airlines Environment In analysing the environment, the important external influences that effect performance and decisions of Singapore airlines have been detailed in this section. The airline industry has been strongly controlled by agreements and policies. Airlines couldn’t just fly to any destination or country without appropriate authorisation. Most countries have there own national airline that are generally government backed and hold a big influence on there operation. The governments also implement policies and regulations to control foreign airline access to there airports. Some countries now have deregulated there national airline industry to reduce the amount of government control, and make access to airports/services more open for negotiation. Countries that have employed this action are the United States, Australia, European Union and Japan. The deregulation of the Airline industry opens doors for more entrants to the market and increased competition. Singapore Airlines is still owned by the Singapore government and is still affected by such controls. The Singapore government has signed an agreement with the United States called â€Å"Open Skies† that gives both countries unrestricted flight access to each others countries. The open skies phenomenon is gathering momentum and more and more countries are signing up. Singapore Airlines is currently in negotiations with Australia, to reach an agreement regarding open skies access down under. Basically the countries that gain open skies agreements are able to expand on existing business. The airline industry is highly competitive industry and the rival airlines are always taking advantage of any opportunity to gain more destinations. Statistics show Asia’s population is steadily increasing every year and this contributes to the increase in flights. Asia is recognised as the hotspot for air travel at present and into the future. Asia-Pacific intercontinental flights are up 7% and there has been growth of 8% intra-regional services (www. oag. com). This interest in the area has seen new cut price airlines emerge to cater for the demand. SIA has established its own low price airline Tiger Airlines to satisfy demand. Other environmental factors influencing SIA and the airline industry are rising fuel prices. The price rise in fuel causes a cost increase in the running of flights, therefore a rise in ticket prices. SIA have just passed a decision to put a US$10 surcharge on ticket prices to accommodate the fuel rise. Terrorism has caused massive economic losses for airline industry and also bankruptcy. Terrorism strikes happen at any time without warning and destinations around the world that are directly affected by terrorism attacks see a dramatic stop in airline flights. The airlines cannot predict these attacks from happening and have to build such occurrences into there risk management policies. Review of the Industry Structure In analysing the industry structure this report uses Porters 5 Forces. The five forces look at the Threat of New Entrants, Power of Suppliers, Power of Buyers, Availability of Substitutes, and Competitive Rivalry. Threat of New Entrants: The international airline industry has high barriers to entry for a number of reasons, firstly there are quite high costs involved in setting up an industry. As mentioned previously, gaining flight access to foreign countries and obtaining airport space is another hurdle that stands in the way of new entrants. The current airlines dominating the industry are constantly working on maximising cost efficiency, and performance to discourage any new entrants and to try force out existing poor operators. The Domestic industry is more attractive to new entrants as it doesn’t have as much complications as the international side and lower barriers to entry. Power of Suppliers: The aircraft suppliers of the airline industry are dominated by two suppliers Boeing and Airbus. The aircrafts engines are standardised so both aircraft manufacturers have similar engines. Boeing and Airbus both outsource there parts for there planes and generally use the same suppliers. The body frames and interiors is where the two manufacturers can differentiate there product. You read "Sia Singapore Airline" in category "Papers" Due to the standardisation of engines the switching costs of suppliers is reduced and airlines. (De Melo, 2000) Power of Buyers: The power of buyers is low in the airline industry as switching costs are high. Most airlines are similar inside; it’s more the service that sets them apart. Most airlines follow each other on prices and cause buyers to pay there price, on the other hand new entrants my cause price competition and therefore a buyers market. (www. fool. com). Availability of Substitutes: The substitutes that could threaten the airline are cars, boats and trains. These substitutes are not that much of a threat to aeroplane travel. Airlines are generally is used to cover large distances in a short period of time, and was establish to fill a demand that the other forms of travel couldn’t accommodate as effectively. Alternate measures of transport are more of a personal choice not a direct parallel substitute. (www. fool. com). Competitive Rivalry: The airline industry is highly competitive and price wars are a common occurrence. There is constant fighting for territory and expansion. Major players in the industry concentrate on lowering there costs and improving service to deter new entrants. What Key resources available to Singapore Airlines? Singapore Airlines is a well establish international airline with strong profitable track record. The company has a government ownership and also private stakeholders. The airline has always been profitable and the funds reinvested back into the company, to build on capital. The table below shows that last 3 years financials and even in the case of the S. A. R. S breakout in 2004 they still posted a profit. [pic] Aside from just financial capital, Singapore Airlines has many other resources listed below: †¢ Changi airport the home of Singapore Airlines is one of the largest freight handling facilities in the world, and is the most popular hub in Asia. †¢ Singapore has a resource of about 95 aircrafts that now are brought internally and not leased; the aircrafts are generally replaced every 4-5 years. †¢ Singapore Airlines has built a mass of 89 international flight destinations. †¢ The airline has built a human resource training facility. †¢ Changi Airport hosts SIA state of art engineering company that services there planes and other international airlines. SIA also has one of the largest flight kitchens in the world situated at Changi. †¢ SIA belongs to the Star Alliance where other airlines join resources together to increase coverage around the world. Star alliance covers 790 airports in 138 countries. †¢ Finally the brand attribute, is probably there most powerful resource. â€Å"Singapore Girl you’re a great way to fly† Has been strongly nurtured over the last 32 years to be the most recognised brand and icon in the airline industry, Singapore Airline has many capabilities that support there resources, these are: †¢ Latest technological and communication products linking there global network. †¢ Huge investment in human resources, this provides highly skilled workers and management. †¢ Expansive destination coverage due to Star Alliance. State of the art freight facilities that link with the port shipping authority What it takes to be successful in the Airline Industry and What strategies are used by Singapore Airlines? Singapore Airlines is basically the trend setter of the airline industry. SIA has employed many innovative strategies since it began. These strategies have been supported and str engthen over the years, and have led to the success, the company enjoys today. To be successful in the airline industry you have to employ superior efficiency, quality, innovation and customer responsiveness. SIA has exercised a quality/service differentiation strategy to become one of the leaders in the passenger airline industry. ‘Singapore Airlines has carefully built a financial and fixed cost infrastructure which allows them to continue investing to support the brand while challenging the competition on costs’. (www. venturerepublic. com) More recently Singapore Airlines became a member with the star alliance, which helps the company maintain economies of scale by code sharing, where SIA can offer services on another airline under its own flight codes and offer more destinations. By building solid capital the airline now enables them to purchase aircrafts and equipment internally without the need for leases and interest. This has enable SIA to have the latest aircrafts and renew them every 5 years. By having a new fleet the company is able to be more efficient with regards to fuel economy, maintenance, and have less downtime. (www. venturerepublic. com). Another benefit of owning aircrafts outright gives flexibility if there is a dramatic decline in the economy, SIA has the freedom of not being locked into long leases and aircrafts can be disposed of, if need be. Therefore they can handle the ups and downs of the economy, more so than competitors. (www. venturerepublic. com). Singapore Airlines have always concentrated on being innovative, as mentioned above they replace there airlines every 4-5 years taking advantage of new technology. The company has always the first to introduce new innovative ideas for example hot meals, free alcoholic and non-alcoholic drinks, Hot towels, personal entertainment systems, and video on demand. SIA will also be the first to own the new Airbus Super jumbo A-380 in 2006. www. allaboutbranding. com) SIA is committed to providing a world class quality and service, the airline allocates a substantial amount of time and money into there staff training and education. The company has 4 training facilities with various programs that exercise classroom, work experience and simulation strategies. (www. trainersdirect. com) SIA has more concentration on staff training than any other airline. Singapore Airlines employees have to complete a 4 month training course before they are even allowed to serve a customer. On average in 1997 Singapore Airlines spent $5600 per staff per year on training. The emphasis on staff training is so they can provide the best quality service. (www. trainersdirect. com) The branding of SIA is based on quality. SIA have the strongest brand name in the airline industry. â€Å"Singapore girl you’re a great way to fly† has been there brand of quality for the last 32 years. ‘The icon has become so strong that Madame Tussaud’s Museum in London started to display the Singapore Girl in 1994 as the first commercial figure ever’. (www. venturerepublic. com). The airline provides the best on flight cuisine including fine wines, and cocktails. Complimentary gifts are received on each level of passenger class. SIA have maintained a policy that once a passenger pays for there ticket there is no more to pay. (www. venturerepublic. com). Some airlines in tough economic times have started to charge for in-flight drinks and entertainment where SIA haven’t. This commitment to quality has won the airline numerous international awards and differentiated themselves from other airlines. Some issues facing Singapore Airlines The Airline has purchased a number of the new Airbus Super jumbo A-380, which could be a bit premature due to the fact they are still in negotiations with the Australian government over open skies. The Australian government holds the key to Singapore gaining open skies agreements, if an agreement is reached Singapore will be able expand and benefit from long haul flights between Australia and United States. On the flip side the introduction of the new airbuses into the industry will cause less demand on Singapore as a stop-over, refuelling hub. Airlines that adopt the new airbuses will be able to bypass previous stopovers and enjoy cost savings. As explained earlier there has been a dramatic increase in demand for inter-Asia flights. Rival players have noticed the increase in demand and have implemented there own low cost airlines. E. g. Australia’s Jet Star. Recommendations and Justifications Singapore Airlines conduct a very professional business they have a strong brand, strong human resources and management, advanced facilities and a proven track record as being one of the top airlines for the last 20 years. I recommend: The airline pursue â€Å"open skies† agreements to expand there destinations. †¢ Establish the long haul routes with the new Airbus technology before rival airlines purchase the aircrafts. †¢ Keep strong emphasis on the brand name and quality of service. †¢ Utilise some of the success factor from SIA on the new low-cost airline to compete with new rival competitors establish ing themselves in the Asian market. †¢ Promote Changi Airports engineering and freight facilities to the new inter-Asian airlines as long haul flights maybe bypassing Singapore’s Changi Airport in the future. Stay with the competitive advantage outlined above, using the differentiation strategy. †¢ Maintain the innovation and complimentary products. †¢ Help support the Star Alliance to improve customer satisfaction. It is very hard to recommend a lot of strategies for Singapore airlines to undertake, as they have been leaders in the industry for so long and have developed award winning strategies that have made them very successful. This report has been constructed from a wide array of research that has complemented Singapore Airlines various approaches to conducting business. How to cite Sia Singapore Airline, Papers

The Great Gatsby and the American Dream Essay Example For Students

The Great Gatsby and the American Dream Essay Introduction F. Scott Fitzgerald’s novel, â€Å"The Great Gatsby†, is one of the few novels he wrote in 1925. The novel takes place during the 1920’s following the 1st World War. It is written about a young man named Nick, from the east he moved to the west to learn about the bond business. He ends up moving next to a mysterious man named Gatsby who ends up giving him the lesion of his life. After love circles with Gatsby and his cousin Daisy, lastly Jordan and gossip resulting with killings end up discussed over his experience resulting going back east. Through reading the book, it shows how the experience of selfness and World War 1 made the high social optimistic over their lives. It showed how they wanted to forget the past and build themselves back into their social class. Also, by the experience of Daisy and Jordan treatment from the men in the stories allows the reader to see how time still hasn’t changed how relationships work with men. This novel is a great novel to give an example on how reality is to people even the high class. Through the discussion of the passage, poem and scholarly article will show how the path towards the American Dream can turn into a negative or positive outcome in a person’s life. Theme When Mr. Fitzgerald wrote â€Å"The Great Gatsby,† he described the actions of the human society. In a certain way, not only did he describe and critic the high class but also the lower class, which ended up critiquing the American Dream. The American Dream was a idea give to believe that a human being should pursue being happy, wealthy, and loved which has cause any human being to go in search for this idea. All that is end up being found is the fact of having the illusion of having more material is to be happy than being happy by valuing what you already have. Gatsby would be a great example of not valuing his materials. He had everything he wanted – except Daisy of course – but he never used or appreciated the materials he was surrounded by. â€Å"You know, old sport, I’ve never used that pool all summer,† said Gatsby. He didn’t value anything but Daisy since the reason for everything he did was for her. It only leaves to question to whether he really loved her or wanted her wealth or maybe just even the accomplishment of having her.