Strategic management
There arises the need of having a leader who can foresee the future with high degree of correctness with the vision for the future. Leadership is of great importance in today’s highly dynamic and volatile world. Today organisations have to be adept at much faster pace so as so continue sailing with the external changes. Same is the case with Singapore airlines. It has grown at a very fast pace to come up as one of the leading airlines in the world, renowned for its service quality. All this would not have been possible without some proper decisions making at the right time when needed. Cheong Choon Kong, deputy chairman and chief executive of SIA (Singapore airlines) has been a major force behind the success of the airlines over the period of time. He has been rightly defined as a company man through and through who made to the current position by working in almost every department during the span of 25 years with SIA. It is because of his vast experience in the operations of the company he knows the company inside out. This enabled him to know the strength and weakness of the company along with critical success factor. His management style too seems to be a development from past experience, which is suitable for the company.
To convert SIA into a group of global airlines and related companies requires sea lots of changes. This is because right now SIA is a company on its own but when it becomes a group of global airlines it needs to take into consideration their viewpoints as well before making any decision. The whole strategic management style of the company will have to be changed to make this happen. As it is known that there are various methods, by which SIA can transform into group of global airlines and related companies, such as strategic alliance, acquisition, joint venture, mergers and consortium. It depends on the method opted, for the expansion, that what strategies will be adopted. However, it is for certain that there will be some major changes in the operations of the company. Strategy selection for any business basically occurs ‘in the doing’ as it is impossible to plan everything up-front. The corporate structure will have to be changed in order to accommodate the methods and beliefs of partners. Right now, it is CEO who takes all the major decisions for the company after consultation with member of boards but later partner’s nominees are all to be accommodated. Powers of Cheong will be diffused a bit along with some decentralisation-taking place. SIA acquired 49 % stake in Virgin Atlantic in 2000 but since it was an equity partnership it did not effect the operations of the company to great extent. However star alliance did change the things a bit, bringing some changes into the corporation. But if things continue on the same path in future there needs to be some more drastic changes in the management style of the company. SIA cannot adopt one strategy, as it seems to adopt various methods for expansion such as alliance, joint venture, etc therefore each operation will be dealt separately. Still, at headquarter of the operations; holding company strategy can be adopted along with some features from matrix structure. Since, the structure of the company will turn out to be very big, it is very important that some big brother approach is adopted where all other business can be taken care of. As far as related companies are concerned, holding company approach can be viable but for group of global airlines that means alliances, it can be better if some consortium is formed with members from all partner airlines to collectively come at the decisions. Cheong's coolness, savvy, and expansive outlook at a time of rude change persuaded Fortune to select him as Asia's Bus
Some topics in this essay:
Choon Kong,
Research Development,
SIA Singapore,
Virgin Atlantic,
CAL Cheong,
Asia's Businessman,
,
Powers Cheong,
Scherer RF,
global airlines,
leadership style,
related companies,
airlines related,
management style,
competitive advantage,
global airlines related,
airlines related companies,
operations company,
Cheong Choon,
cheong choon kong,
information control,
company organisation,
company approach,
sustainable competitive advantage,
management style company,
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Approximate Word count = 1674
Approximate Pages = 7 (250 words per page double spaced)
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