sample student presentation slides - paul friga - 2005

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  • 8/12/2019 Sample Student Presentation Slides - Paul Friga - 2005

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    Sample Student Presentation Slides -

    Strategic Management Case Analysis

    Dr. Paul N. Friga

    2005

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    Dr. Paul N. Friga, 2005 2

    Overview of Document

    This slide deck exemplifies a student presentation

    of the analysis of a case study for a general

    management or strategic management course

    The case used in this study is: SingaporeInternational Airlines: Strategy with a Smile

    (Thunderbird, 2001)

    There are multiple ways to present a case storythis is only one example

    The storyline is presented first, followed by the

    supporting data for the high-level conclusions

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    Dr. Paul N. Friga, 2005 3

    Singapore Airlines is in a tough situation

    but opportunities for global leadership exist

    Singapore International Airlines (SIA) is facing

    dramatic environmental shifts, increasing

    competition, and changing customer demand

    Several strategic options exist related to how SIAcan improve its competitive positioning for the long

    term

    I recommend that SIA pursue a high-enddifferentiation strategy based upon unique

    positioning as the premier long-distance airline

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    Dr. Paul N. Friga, 2005 4

    Singapore Airlines is in a tough situation

    but opportunities for global leadership exist

    Singapore International Airlines (SIA) is facing

    dramatic environmental shifts, increasing

    competition, and changing customer demand

    Several strategic options exist related to how SIAcan improve its competitive positioning for the long

    term

    I recommend that SIA pursue a high-enddifferentiation strategy based upon unique

    positioning as the premier long-distance airline

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    Dr. Paul N. Friga, 2005 5

    The environmental analysis

    suggests some important issues

    What is really

    important?

    External

    Internal

    General Environment:

    Globalization is increasing demand for international air travel (esp. to Asia)

    Political changes include the increase of free trade markets (like Singapore)

    Economic conditions are important as recessions cause price sensitivity

    Industry:

    Consolidation in the airline industry is increasing to enhance scale and scope

    Alliances are the hottest strategy tool as companies seek global connections

    Customers are increasingly price sensitive but business segments are loyalThere are little to no substitutes for international air travel

    Competition:

    Key domestic competitors are Japan Airlines, Thai Airways, and Cathay

    Key international competitors are United, KLM, and British Airways

    SIA has the best cost structure for premium level service but losing ground

    Strengths:

    Reputation and brand image of the Singapore GirlYoung fleet and excellent training facilities and programs

    Extensive regional and international route network

    Weaknesses:

    Increasing difficulty supplying high quality labor at low costs (esp. Singapore)

    Buttoned Down image may not be attractive to younger demographic

    High cost structure needed for high quality service is difficult to change

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    Dr. Paul N. Friga, 2005 6

    SIA is the largest Asia-Pacific

    airline

    0

    5000

    10000

    15000

    20000

    1999

    Capacity (Available Ton Kilometers)

    SIA Cathay Qantas Thai Malaysia

    Source: Singapore International Airlines Case

    pp. 208-209

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    Dr. Paul N. Friga, 2005 7

    Singapore Airlines is in a tough situation

    but opportunities for global leadership exist

    Singapore International Airlines (SIA) is facing

    dramatic environmental shifts, increasing

    competition, and changing customer demand

    Several strategic options exist related to how SIAcan improve its competitive positioning for the long

    term

    I recommend that SIA pursue a high-end

    differentiation strategy based upon unique

    positioning as the premier long-distance airline

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    Dr. Paul N. Friga, 2005 8

    There are three key questions

    that should be addressed

    Question Option /

    Hypothesis

    Decision

    Criteria

    Pros Cons

    Invest in VA? Yes Return on Investment Enables a lower cost

    product offering

    Access to youngerdemographic

    Complimentary routes

    Competes with Star

    Alliance

    Limited resources/opportunity cost

    May affect reputation

    Overall Strategy? Low Cost (rather than

    Differentiation)

    Long Term Profitability Head to head with

    new competitors

    Seems to be the trend

    in the U.S.

    Fuel costs are rising

    Lose reputation as

    high quality provider

    Goes against

    infrastructure

    Differentiation may bethe only way to win

    Stay in Star Alliance? Yes Market Share Growth Cross-selling

    opportunities to new

    customers

    Access to additional

    routes quickly

    Lose control of

    scheduling

    May compromise the

    consistent quality of

    service

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    Dr. Paul N. Friga, 2005 10

    Asia is projected to be a key

    market moving forward

    0

    500

    1000

    1500

    2001

    Projected Passenger Kilometers -

    billions

    Africa Middle East L.A. Asia Europe N.A.

    Source: Singapore International Airlines Case

    p. 210

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    Dr. Paul N. Friga, 2005 11

    Singapore Airlines is in a tough situation

    but opportunities for global leadership exist

    Singapore International Airlines (SIA) is facing

    dramatic environmental shifts, increasing

    competition, and changing customer demand

    Several strategic options exist related to how SIAcan improve its competitive positioning for the long

    term

    I recommend that SIA pursue a high-end

    differentiation strategy based upon unique

    positioning as the premier long-distance airline

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    Dr. Paul N. Friga, 2005 12

    Singapore Airlines should

    strive for unique positioning

    This is a critical time as technology and global reachrequire a high-end international access airline

    SIAs best strengths are high end service and global routes

    Going low-cost will damage long-term profit potential

    SIA should set a strategic

    vision to be the leading global

    premier service airlineRisks

    Implement-

    ation

    Alliances dont deliver

    Costs get too high

    Other airlines act first

    Invest in VA (but go high end)

    Stay in Alliance

    Expand high quality labor pool

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    Dr. Paul N. Friga, 2005 13

    The growth rate through 2007

    is estimated to be high

    6

    6.5

    7

    7.5

    8

    8.5

    Growth

    Regional Route Growth - %

    NE Asia-SW Asia Eur - NE Asia NA - SE Asia

    Source: Singapore International Airlines Case

    p 211