Chartered Portfolio Manager and Investment Management- week 3 Essay

Chartered Portfolio Manager and Investment Management- week 3 responses - Essay Example I agree that it is not suitable to add a hedge fund to such a client’s portfolio who has low capital base, risk averse nature, and willingness for long-term returns. Despite the accessibility of general public to the hedge funds as a result of their inclusion in mutual funds, they are not a viable option because of their cost and subjectivity of information. Participation in returns is not likely to increase considering the current limitations of the hedge funds. You have provided a concise definition of hedge funds. This was a particularly informative post as it introduced some new concepts such as derivatives and the investment technique of leverage. I don’t think it is suitable to add hedge funds that use leverage to a client’s portfolio given the enormity of risk of loss. I agree that institutions’ willingness for diversification drives them toward hedge funds. However, a fair understanding of risk and its comparison to the capital base is fundamental to making informed

Salling & Sales Management Essay Example | Topics and Well Written Essays - 500 words

Salling & Sales Management - Essay Example Thus, having an iPad ensures more than just convenience of having both smartphone and laptop in a one-unit package. It also ensures convenient features that are combined together and are remarkably present in smartphone and laptop. This makes iPad as an amazing technology and a perfect work of technological innovation to meet the demand for comfort, flexibility and satisfaction in a world where business and communication are revolving around and connecting the lives of people. 2. What is the difference of iPad from smartphones and laptops? Features wise, there can be no difference when it comes to what iPad can do and smartphones and laptops individually. However, what is amazing about iPad is its ability to do all the things that smartphones and laptops can possibly do. Section 2. After sales and customer follow up After closing a sale, the relationship between the seller and customer does not end because the job of a salesperson does not end after money has been exchanged and contr acts have been signed. In fact, follow up with the customers is necessary after a sale so as to build the relationship. It is important to regard prospects that a seller has won over as new friends by keeping in touch with them on a regular basis. What is the good thing about in making this is that a sales person is making a wide network of contacts with people who can give their trust and confidence on him.

Relationship Between Family Poverty and Child Development

Relationship Between Family Poverty and Child Development How is family poverty related to childhood development? It is well documented that family poverty has a negative effect on childhood development (Horgan, 2007) but the many variations in how family poverty is related to childhood development via various pathways is of great importance to parents, health and education professionals as they work to improve the outcomes for children; â€Å"maximising the opportunities open to them – improving their life chances and changing the odds in their favour.† Every child matters. When considering how family poverty is related to childhood development, it is firstly important to define poverty. Engle Black note that this is a difficult task and question whether it should be ‘defined in economic terms, or as part of a broader social disadvantage’. In economic terms, the UK government, the European Union and many other countries use 60 per cent of median household income as the poverty ‘threshold’. (Poverty and Social Exclusion poverty.ac.uk) although by their own admission ‘without validation from direct measures of people’s living standards, is essentially arbitrary’. Sen describes poverty as ‘capability deprivation’ and argues that we should take a more ‘activity-oriented view of human beings’. These activities can vary from ‘physical ones as being well nourished, being adequately clothed and sheltered, avoiding preventable morbidity, and so forth, to more complex social achievements such as taking part in the life of the community, being able to appear in public without shame.’ As a result of this, when considering how family poverty is related to childhood development this essay will consider both direct economic effects and also the effects of broader social disadvantage. Similarly it is also difficult to define ‘childhood development’. Indeed Engle et al note that ‘there are no globally accepted indicators for child development’ They do however concede that ‘child development is often measured through individual assessments of developmental changes in multiple domains (eg, cognitive, language and social-emotional)’. One measure of cognition is academic achievement and this is used by various studies as a measure of child outcome (CITE). One of the main reasons for family poverty can be the family unit itself. Fiori (2005) states that â€Å"Economic theory predicts that the two-parent family is among the best-functioning forms of capitalist society because it allows for the provision of household services by one partner and economic resources by the other, and as such it is an efficient system for maximising utility and the human capital of children† Consequently, supporting evidence has found that children from a lone parent family generally have a poorer academic outcome but do not fare poorer psychologically (Mclanahan and Sandefur, 1994). The reason for this is often attributed to the ‘pathology of matriarchy’ hypothesis (Moynihan) which suggests that the absence of a father is destructive to children, particularly boys, because children will lack the economic resources, role models, discipline, structure and guidance that a father provides. The effects of family structure on family poverty and subsequently child outcome is of high importance, with marriage emerging high on the U.S. policy agenda in recent years as a tool for improving child outcomes (Nock) and marriage allowance in the UK allowing a person to reduce their spouses’ tax bill if one partner earns an income below the personal allowance limit (CITE), again alleviating financial stresses which can have a negative effect on child outcome. Hann et al (2003) found that when controlling for income, single-mother families were not significantly different from two-parent families for child outcome. This suggests that it is family poverty itself (that typically results from family disruption) that is the major explanation for children’s lower attainments. Direct effects of family poverty affect childhood development by increasing risk factors, limiting protective factors and reducing opportunities for stimulation and enrichment. Children from low-income families are more likely to receive insufficient nutrition and also be overweight, two factors commonly associated with food insecurity (Cook). The amount of families in the UK struggling to buy basic items such as food is increasing. The Trussel Trust reported that their 445 foodbanks fed 913,138 people nationwide from 2013-2014 and of those helped, 330,205 were children.’ A lack of a balanced diet can affect childrens development both directly and indirectly. Innis has shown that fatty acids such as those found in certain types of fish and nuts assist healthy brain development and reductions in these fatty acids is associated with cognitive and behavioural impairments; the effect of family poverty on childhood development via a poor diet is a very real possibility even in a country such as the United Kingdom. Another direct effect of poverty is the fact that parents in low-income families often have lower levels education and this has a negative impact on their ability to provide a positive, intellectually stimulating environment for their children (Coleman). Hart Todd found that children from professional families that were strongly associated with higher parent education levels and higher family income were spoken to more than children from working class or welfare recipient families and so had a larger cumulative vocabulary. By the age of just three, Hart Todd observed â€Å"the cumulative vocabulary for children in the professional families was about 1,100 words. For children from working class families, the observed cumulative vocabulary was about 750 words and for children from welfare-recipient families it was just above 500 words†. Hart Todd conclude that the most important element of a child’s language development is quantity of conversation and thus it is easy to see how in a ‘traditional’ two-parent family (as previously mentioned) the division of responsibilities allows for increased time to talk to children. Hart Todd also found that children from professional families heard a higher ratio of encouragements to discouragements than their working class and welfare-supported counterparts. Henderlong Lepper found that encouragement is beneficial to the intrinsic motivation of a child (provided it is perceived as sincere) and this will also have a positive effect on child development. Baumrind (1971) defined three parenting types: permissive: parents who are more responsive than demanding; authoritarian: parents who are demanding and directive, but not responsive, and authoritative: parents who are both demanding and responsive. Hoff et al found that in all cultures parents with lower socio-economic-status (SES) are more likely to use ‘authoritarian’ parenting styles than those in higher SES brackets. They are also less likely to be nurturant or to supervise their children adequately, and more likely to use inconsistent, erratic and harsh discipline (Elder et al., 1985); adversely affecting child development. As well as the direct effects of family poverty on child development, as suggested by Engle and Black it is also important to consider moderated effects of poverty and how these can vary across characteristics of families and children. Whilst considering how family poverty affects childhood development, it is important to fully consider the many varying reasons as to why a family may be experiencing poverty. Some of the varying reasons found by Hobcraft for family poverty include: non-traditional structures; lone parents and parents in reconstituted families, households where no adult is in employment or are in poorly paid employment, households headed by a teenage parent, households that include a sick or disabled child, have a child or children under five or have a large number of children. Given this, it is quite understandable that families can find themselves in a state of poverty through no fault of their own. However, their background will affect how they deal with this experience of poverty and more importantly how this poverty will affect the development of any children. Parents of children who are poorly educated or have poor decision making skills could find it more difficult to protect their children from the effects of poverty than families who are better educated, with rational decision making skill and in a similar situation. Cooper Stewart demonstrate using the Family Investment Model that parents who are better educated or have more money are able to financially invest in their children more, either because they have more disposable income or because they choose to forgo other expenses for the sake of purchasing their children educationally enhancing materials such as books. This is supported by the findings of Davis-Kean who found that family income and education had a positive impact on parental educational expectations and resultantly reading (which is strongly correlated to child achievement), with children reading more for pleasure and having more books in the house. Similarly the work of Bradley, Whiteside and Mundfrom that found that children living in poverty who were showing early signs of resilience compared with other children also living in poverty received ‘more responsive, accepting, stimulating and organised care’. Another way that family characteristics moderate the link between family poverty and child development is via social selection. Conger Donnellan consider poverty as â€Å"a constellation of outcomes that are potentially influenced by individual differences in traits such as intelligence and personality† that subsequently affects childhood development. Mayer (1997) proposed that â€Å"parental characteristics that employers value and are willing to pay for, such as skills, diligence, honesty, good health, and reliability, also improve children’s life chances, independent of their effect on parents’ income. Children of parents with these attributes do well even when their parents do not have much income†. These characteristics can be passed on either genetically or through nurture and can act as a ‘buffer’ to the damaging effects of poverty on childhood development. This is supported by the work of Davis-Kean who found a significant correlation between parental warmth (how nurturing parents are towards their children involving desirable traits such as positive feelings, praise, responding) and child achievement (although interestingly, only within African American families as opposed to European American families in this study). Alongside the direct and moderated effects of poverty on childhood development it is also necessary to consider the mediated effects of family poverty on childhood development. As demonstrated by Engle Black, in mediated models it is through disruptions in family function that the effects of poverty are felt and result in negative effects on childhood development. Conger Donnellan reviewed seven papers that have applied the Family Stress Model (FSM) across a widely varying demographics. The FSM overwhelmingly supports the view that poverty leads to family stress and this has a negative impact on parental mental health and increasing the likelihood of parents using harsh authoritarian parenting styles. There is strong evidence for parental mental health impacting on child behaviour. The work of Weissman et al (2006) who found that the children of mothers who remained depressed were far more likely to develop their own symptoms and diagnosis than children of parents who went into remission. This is similarly supported by Galler et al who found that postpartum maternal mental anxiety (PPMHA) was a significant predictor of lower exam scores at eleven to twelve years of age. Importantly, Galler et al found that background variables such as young maternal age at the time of her first pregnancy, more children in the home, less maternal education, and fewer home conveniences (all indicators of family poverty) were closely correlated with PPMHA, but crucially they found that PPMHA was still a significant predictor of lower exam scores even when all these background variables were controlled for. Ram and Hou suggest that lone parents—usually mothers—must spend longer hours outside the home working to offset the economic losses they have suffered from the marital breakup and consequently do not spend enough time with their children. More importantly however, when considering mediated effects of poverty, they also found that depression and lower levels of psychological well-being occur more often amongst these parents and also negatively influences the quality of parenting and children’s behavioral problems, explaining why children in disrupted families experience severe emotional and behavioral problems. Interestingly however, Ram and Hou found that parental depression and low levels of psychological well-being have almost no effect on cognitive development; highlighting the many varying elements of childhood development. Finally as noted by Engle and Black it is important to consider transactional models, where the effects of poverty interact between families and children. As previously noted, families can moderate and mediate the effects of poverty on children, similarly the children’s characteristics can have a similar effect. Whilst typical family structure can positively affect family poverty and childhood development, evidence also suggests that the quality of family relations can also play a large part in childhood development. Children whose parents often argue (independent of divorce) score worse on measures of academic achievement, behavior problems, psychological well-being, and adult relationship quality; they are also more likely to form families early and outside of marriage (Musick Meier). One of these reasons is low levels of parental education. Belsky (2013) has subsequently found a correlation between childhood obesity and intelligence in children as young as three; highlighting the relationship between poverty and child development. Evans et al found that families experiencing poverty are more likely to face chaotic living conditions than are their middle- and upper-income counterparts. Chaos is characterised by â€Å"high levels of ambient stimulation (e.g., noise, crowding), minimal structure and routine,and considerable unpredictability and confusion in daily activities.† Maslow’s hierarchy of needs suggests that the most basic needs: physiological (food, shelter etc) and safety (security of body, employment, family etc) love and belonging (friendship, family intimacy etc) and esteem (self esteem, confidence, respect of others etc) must be met before the individual will strongly desire (or focus motivation upon) the growth need of ‘self actualisation’. Childhood development can be largely grouped into two categories: psychopathology e.g. internalising (emotional problems) and externalising (behavioural problems; and academic achievement). References Horgan, G. (2007). The impact of poverty on young childrens experience of school. Joseph Rowntree Foundation. Engle, P. L., Black, M. M. (2008). The effect of poverty on child development and educational outcomes. Annals of the New York Academy of Sciences,1136(1), 243-256. Sen, A. (1992). The political economy of targeting. Washington, DC: World Bank. Engle, P. L., Black, M. M., Behrman, J. R., De Mello, M. C., Gertler, P. J., Kapiriri, L., International Child Development Steering Group. (2007). Strategies to avoid the loss of developmental potential in more than 200 million children in the developing world. The Lancet, 369(9557), 229-242. Broadhead, P. (2007). A Vision for Universal Pre-School Education-by Edward Zigler, Walter S. Gilliam and Stephanie M. Jones. British Journal of Educational Studies, 55(2), 227-229. Cook, J. T., Frank, D. A., Levenson, S. M., Neault, N. B., Heeren, T. C., Black, M. M., Chilton, M. (2006). Child food insecurity increases risks posed by household food insecurity to young childrens health. The Journal of nutrition, 136(4), 1073-1076. Maslow, A. H. (1943). A theory of human motivation. Psychological review,50(4), 370. Belsky, D. W., Caspi, A., Goldman-Mellor, S., Meier, M. H., Ramrakha, S., Poulton, R., Moffitt, T. E. (2013). Is obesity associated with a decline in intelligence quotient during the first half of the life course?. American journal of epidemiology, 178(9), 1461-1468. Trussell Trust Foodbanks Use Tops One Million. (2015). Retrieved May 24, 2015, from http://www.trusselltrust.org/stats Innis, S. M. (2007). Dietary (n-3) fatty acids and brain development. The Journal of nutrition, 137(4), 855-859. Flouri, E. (2005). Fathering and child outcomes. John Wiley Sons. McLanahan, S., Sandefur, G. (2009). Growing up with a single parent: What hurts, what helps. Harvard University Press. Moynihan, Daniel Patrick. 1965. The Negro Family: The Case for National Action. Washington, D.C.: U.S. Department of Labor Nock, S. L. (2005). Marriage as a public issue. The Future of Children, 15(2), 13-32. Marriage Allowance https://www.gov.uk/marriage-allowance-guide Musick, K., Meier, A. (2010). Are both parents always better than one? Parental conflict and young adult well-being. Social Science Research, 39(5), 814-830. Han, W. J., Huang, C. C., Garfinkel, I. (2003). The Importance of Family Structure and Family Income on Familys Educational Expenditure and Childrens College Attendance Empirical Evidence from Taiwan. Journal of Family Issues, 24(6), 753-786. Henderlong, J., Lepper, M. R. (2002). The effects of praise on childrens intrinsic motivation: a review and synthesis. Psychological bulletin, 128(5), 774. Conger, R. D., Donnellan, M. B. (2007). An interactionist perspective on the socioeconomic context of human development. Annu. Rev. Psychol., 58, 175-199. Bradley, R. H., Whiteside, L., Mundfrom, D. J., Casey, P. H., Kelleher, K. J., Pope, S. K. (1994). Early indications of resilience and their relation to experiences in the home environments of low birthweight, premature children living in poverty. Child development, 65(2), 346-360. Cooper, K., Stewart, K. (2013). Does Money Affect Childrens Outcomes?: A Systematic Review. Joseph Rowntree Foundation. Shipler, D. K. (2008). The working poor: Invisible in America. Vintage. Chicago. Mayer S. 1997. What Money Can’t Buy: Family Income and Children’s Life Chances. Cambridge, MA: Harvard Univ. Press Weissman, M. M., Pilowsky, D. J., Wickramaratne, P. J., Talati, A., Wisniewski, S. R., Fava, M., Rush, A. J. (2006). Remissions in maternal depression and child psychopathology: a STAR* D-child report. Jama, 295(12), 1389-1398. Galler, J. R., Ramsey, F. C., Harrison, R. H., Taylor, J., Cumberbatch, G., Forde, V. (2004). Postpartum maternal moods and infant size predict performance on a national high school entrance examination. Journal of Child Psychology and Psychiatry, 45(6), 1064-1075. Evans, G. W., Gonnella, C., Marcynyszyn, L. A., Gentile, L., Salpekar, N. (2005). The role of chaos in poverty and childrens socioemotional adjustment.Psychological Science, 16(7), 560-565. Ram, B., Hou, F. (2003). Changes in family structure and child outcomes: Roles of economic and familial resources. Policy Studies Journal, 31(3), 309-330. Hyde, J. S., Elseà ¢Ã¢â€š ¬Ã‚ Quest, N. M., Goldsmith, H. H., Biesanz, J. C. (2004). Childrens temperament and behavior problems predict their employed mothers work functioning. Child Development, 75(2), 580-594.

Abusing the Force Essays -- Law Enforcement Social Issues Police Essay

Abusing the Force The fundamental purposes of law enforcement is the serve and protect the individuals of society. Rough treatment is often times afflicted upon unruly citizens as an alternative reform of discipline. Police abuse remains one of the most serious and divisive human rights violations of today. The secrecy, stress, and dangers of police work leads to an insular and close-knit occupational culture that results in a strong distinction between members of the police and society. An in-depth investigation on police brutalization and its causes of corrupting within the 1991 beating of Rodney King is evaluated by means of the credibility within the rights of citizens in Canada and the United States, the effects from prejudice affliction, and the societal disparagement on morals of the cultures in policing. Corruption is both a result and cause of the separation of the police from society. The isolation of the police can lead to a divergence of the values of law enforcement officials from those that the rest of society professes to uphold (McAlary, 1997). The early morning of March 3, 1991 illustrates the horrific crime in Los Angeles, California. Several California Highway Patrol cruisers chase Rodney King, a robbery parolee, speeding over 110 miles per hour down the Los Angeles strip. King, an African American, is eventually forced to stop after running through several red lights at intersections. As the other two passengers of the car complies with police requests to exit the car and are subdued with minor resistance, King refuses to exit the car, thus a beating is administered by three Caucasian officers at the order of their sergeant who is on the scene. He is subsequently stricken over 56 times by wielding PR 24 metal batons, kicked at least 6 times, and shot twice with a Taser el ectronic stun gun, holding over 50,000 volts of electricity per shot (Lepour, 1991). Additionally, twenty-three other officers stand watching on the scene in which none made effort or suggestion to stop the crude combat. Consequently, King suffers extensive injuries including skull fractures, broken bones, and nerve damage to his face and body. Meanwhile, George Holiday, one of the several civilian by-standees awaken by noises of the police helicopter and sirens, videotapes the initial beating from his nearby apartment. Twelve days later, the three police officers ... ...r peers from the rest of society. The division may be further entrenched by a perception on the part of some officers of public animosity towards the police (Will, G. F., 1998). Every instance of corruption is further reinforces the distance between society and the police by increasing public hostility and distrust towards the police. Policing is an extremely emotional occupation and it is difficult for officers not to involve personally in their work. They are not merely human forms of robots, firing their guns arbitrarily with a complete lack of sense or emotion. No matter what type of activities police officers are involved in, they are often required to use force to rectify certain situations, thus this primary discrepancy is difficult to distinguish between what is required and what is excessive force. As long as police officers play by the rules of their peer group and the public continues to negatively label them, any rapprochement between the two is unlikely. Fundamentally, police officers rely primarily on instinct and as long as their basic intention is to promote good and not evil while citizens need to trust that the instincts of an officer are generally correct.

Too Much Pressure

Colleen Went states that cheating has been on the rise due to the fact that many teachers accept it. The teachers knew that these things went on, yet nobody seems to do anything about them. With so many people cheating, teachers have a hard time tracking down who cheated and who didn't. Teachers assign homework every day, and they have over a hundred students. With so much assignments pouring in to be graded, teachers usually have students peer edit the assignment or they Just glance at it.The student could have Just written down something foolish and the teacher wouldn't notice. On account of this, many teachers think cheating is fine. Because many teachers ignore cheating that is occurring right under their noses, so many students get away with It. The lenient consequences that are given to students for cheating, is another factor that is causing an increase in cheating. Penalties for getting caught cheating are mild. If someone was caught cheating, that assignment or test is usual ly confiscated, and you ere given a zero for that assignment.However, your parents were not called, and you were not suspended. Getting a zero on one assignment doesn't hurt that much and the cheater doesn't even learn a lesson. Due to the light consequences, students cheat even more in school. Colleen Went used exposition style of writing. Through exposition, she informs, explains, and clarifies her ideas and thoughts. Exposition goes beyond description to help the reader understand with greater clarity and depth the Ideas and thoughts.

Singapore International Airlines

Contents COVER LETTER4 1PROSPECTS OF ECONOMY5 1. 1Global Financial Crisis5 1. 2Oil Prices5 2PROSPECT OF AIRLINE INDUSTRY5 2. 1General Trend of the Airline Industry5 2. 2Analysis of competitiveness of industry6 3VALUE CHAIN7 3. 1Training of Pilots/ Cabin crew/ Ground handling staff7 3. 2Branding and publicity7 3. 3Reservations and Ticketing7 3. 4Ground Operations7 3. 5In-flight Services8 3. 6Aircraft Operations8 3. 7Fleet Management and maintenance8 3. 8Customers8 4SINGAPORE AIRLINE’S COMPETITIVE ADVANTAGE8 4. 1The 4 components of SIA’s competitive strategy8 5FINANCIAL STATEMENT ANALYSIS9 5. Operating Performance Analysis9 5. 2Liquidity Analysis10 5. 3Solvency Analysis10 5. 4Profitability Analysis10 5. 5Stock Prices Analysis11 5. 6Comparison with Industry Average11 6SINGAPORE AIRLINES’ NON-FINANCIAL PERFORMANCE11 6. 1Learning and Growth11 6. 3 Internal Processes12 7RECOMMENDATIONS12 8APPENDIX13 9REFERENCES32 Cover Letter To: Ms Leo, CEO From: Investment Team Subje ct: Investment Report – Singapore Airlines Ltd This report contains an analysis of Singapore Airlines Ltd (SIA) with response to your query on desirability of making a fairly large medium-to-long term investment in the shares of SIA. Firstly, an analysis of the prospects of the airline industry which SIA operates in would be given to develop a better understanding of the business environment. The current state of economy will also be one of the highlights as it is perhaps one of the biggest concerns amongst investors. Next, the company’s value chain and competitive strategies would also be presented and analyzed to justify if SIA have the ability to sustain its growth despite numerous world-wide challenges such as the financial crisis and high oil prices. On top of that, an analysis of the company’s past financial statements and especially for the year 2007/08 would be presented to analyze the profitability and quality of earnings. For a more holistic approach, analysis of the company and industry using non-financial performance measures would also be used to address issues where financial measures are insufficiently informative. Comparisons with the industry and main competitors will also be made along the way to show how they fare and if the stock price has the potential to grow amongst stiff competition in the airline industry. Lastly, recommendations on the desirability of the investment would be given on our stand based on our analysis. 1Prospects of Economy 1. 1Global Financial Crisis The world’s economy is currently facing one of the worst financial threats ever since the Great Depression in 1929. Demise of US banks such as Lehman Brothers were due to huge corporate debt default which caused them to incur a large impairment loss. This tight credit crunch caused the downfall of the global stock market with fearful investors withdrawing their investments. In response to the gloomy outlook of the worldwide economy, assurance was given by the G7 as they announce to unveil a 5-point plan to counter the crisis and to stabilize the financial market. 1. 2Oil Prices The airline industry was drastically hit by the rocketing of aviation fuel prices for the past one year , forcing many companies to increase air ticket prices to cover the increased expenditure. Expenditure is accelerating at a faster rate than revenue; hence this has caused many airline companies to suffer a loss in operating profit. However, basket average crude oil prices has been on a declining trend. â€Å"Prices fell $18. 1/b or more than 14% in August, declining sharply from the record levels reached in July,† according to OPEC Monthly Oil Market Report September 2008. 2Prospect of Airline Industry 2. 1General Trend of the Airline Industry The current situation in the airline industry remains bleak. It is caused by a mix of weakening passenger demand, particularly i n the First and Business Classes, and the existing uncertain global economic outlook. Cargo demand has also plummeted, with a 6. 5% drop in demand for Asia-Pacific carriers in July 2008. However, SIA has been able to anticipate changes and continue to break new grounds. The procurement of A380 Airbus has helped SIA achieve substantial cost savings. In addition, conversion of five Airbus A340-500 aircraft into an All-Business Class set-up, and constantly ensuring that capacity best matches SIA’s demand , have proved to be profitable for SIA alone despite the overall weakening passenger demand. 2. 2Analysis of competitiveness of industry Since SIA’s overall profitability is largely influenced by the presence of competition, we have used Porter’s Model of Five Forces to analyze the competitiveness of the industry. Threats of substitutes Over the years, the airline industry has become increasingly competitive with entry of new competitors such as budget airlines. As such, some passengers are choosing to fly budget airlines for short travelling distances. Hence, demand from customers are becoming relatively price elastic, forcing some firms to lower their prices in order to stay competitive. Buyer Bargaining Power Buyer bargaining power is increasing due to the price transparency concerns of customers, as they can choose which airline to take. However, on the industry level, bargaining power is low. Supplier Bargaining Power Supplier bargaining power in the airline industry is high as the input required (aircraft, aviation fuel) is unique and there are no similar substitutes available. Rivalry among existing players The intensity of competition among airlines has increased substantially over the years as firms are narrowing the gap of the service quality and on board amenities. This has led to increasing emphasis in effective cost management for firms. Threat of Entry There are substantial barriers to entry for the industry due to the high initial fixed outlay and proprietary know-how. However, the entry of budget airlines poses potential threats to the existing players. Many firms have responded by buying shares in firms of budget airlines. 3Value Chain 3. 1Training of Pilots/ Cabin crew/ Ground handling staff SIA’s places great emphasis in training by continuously sending its employees for comprehensive and rigorous training. To present only the best service, SIA also imposes stringent selection tests of employees at the recruitment stage. 3. 2Branding and publicity SIA’s spending on advertising has been static over the recent years. Recently, TBWA replaced Batey agency which popularised the iconic Singapore Girl . SIA adopts a global approach to advertising in the international media, keeping the Singapore Girl icon as its representation of high quality service. 3. 3Reservations and Ticketing SIA’s website allows flight timetable downloads for gadgets such as pocket PCs and palm tops and synchronizes the data when it is amended. SIA’s ticketing offices are located in over 70 countries and it operates 24 hour telephone reservations and service call centres to help its customers. The use of interline e-ticketing allows ticket information to be stored in SIA’s secured database and shared among airlines on the customer’s itinerary. 3. 4Ground Operations SATS handles all ground operations which includes baggage/ airfreight handling and apron services. Technology such as Internet check-in, biometric checks and downtown check-in services are ingrained to speed up processing time. The application of Fully Automated Seamless Travel (FAST) integrates three processes comprising airline check-in, pre-immigration security checks and immigration clearance. SIA’s loyalty customers also have the privilege of priority check-in and enjoying exclusive facilities at its lounges. 3. 5In-flight Services Its in-flight on-demand entertainment system has over a thousand demand options and office software for passengers. Also, SIA also integrated the full size ‘space-bed’, on-board email and internet services in its First and Business classes. 3. 6Aircraft Operations SIA flies directly to 66 destinations and has recently increased flights to more popular destinations. SIA has transformed its cabins to full business class seating for its SG-NY flights and will be doing the same for its SG-LA Flights. . 7Fleet Management and maintenance SIA maintains young fleets of passenger and cargo planes. These fuel efficient planes are on the average age of 6-7yrs. It leases 34 out of its 126 aircraft on an agreement of range 4. 7-10. 5 years with options to sub-lease. SIAEC has also joined Airbus’ Maintenance Training Network, givin g it access to Airbus’ latest training methodologies. 3. 8Customers SIA’s KrisFlyer customer retention scheme has been effective to date and it now focuses on services for wealthy and business travellers, in conjunction with the PPS club . Singapore Airline’s Competitive Advantage Through the value chain comparison with competitors, SIA has achieved both differentiation and low cost strategies in its operations and stands out as a leader in the industry. 4. 1The 4 components of SIA’s competitive strategy 4. 1. 1Rigorous service design, development and continuous innovation SIA’s service development department constantly researches for and tests out new innovations. It uses the centralized innovation approach which involves three-step processes. The effective feedback channel helps to ensure that any useful suggestions are adopted. Employees are also sent on ‘spy flights’ on competitor’s planes to report their findings . SIA’s continuous innovation supports cost effectiveness and it transfers this margin to its customers. Some examples are improvements in seat and screen size, as well as in-flight services, which compares favourably to its competitors . 4. 1. 2Profit and cost-cutting mentality of employees SIA’s employees are well aware of the implications of high costs and they always strive to achieve customer satisfaction in a cost effective manner. Compared to the industry, SIA maintains a relatively young yet fuel efficient fleet. 4. 1. 3Holistic Staff Development All employees have a training and development plan which includes both functional and interpersonal skills. SIA’s aircrew is organized in teams of 13 and flies together for at least 2 years . Hence, these have helped to develop team bonding for delivering excellent service. 4. 1. 4Strategic synergies through diversification and world-class infrastructure SIA has reaped strategic synergies through diversification of its subsidiaries: SIA Engineering Company, SATS, SATS In-flight catering and Tiger airways. Diversifying has helped to avoid tough competition and to capture a larger market share by offering more types of services. Hence, SIA still gains the general market share through its 49% stake in the low-cost carrier Tiger Airways while focusing on wealthy and business travellers, 5Financial Statement Analysis 5. 1Operating Performance Analysis Revenue from the company’s operating activities increased by 12. 5% and expenditure increased by 7. 7%, causing the operating profit to increase by 60. 1% from 2007. Also, net cash provided by operation activities was has been positive and on an increasing trend. This tremendous improvement in operating profit is due the increased demand for SIA’s flights. 5. 2Liquidity Analysis 5. 2. 1Quick Ratio The ratio dropped from 1. 4 in 2007 to 1. 29 in 2008. This is largely due to the company recognizing more sales in advance of carriage under current liabilities. However, the overall quick ratio trend has been greater than 1. This indicates the relatively stronger liquidity position to meet current debts, especially compared with its competitors . 5. 3Solve ncy Analysis 5. 3. 1Debt-to-Equity Ratio The ratio dropped from 0. 12 in 2007 to 0. 11 in 2008. The result projects an optimistic outlook because the company was able to complete their purchase of new A380 planes without relying on outside funds and the value of the ratio is lower than its competitors. This indicates SIA’s strong ability to generate cash from operating activities for future growth. 5. 4Profitability Analysis 5. 4. 1Return on Average Equity Holders’ Funds The return on average equity holders’ funds dropped from 14. 9% in 2007 to 13. 56% in 2008. The major reason behind the decrease was due to sale of SIA building and investment in Singapore Aircraft Leasing Enterprise Pte Ltd in 2007. The extraordinary events led to a significantly large amount of profit in 2007. Hence, the drop in return on average equity holders’ funds is not a big concern. Compared to the 2006 figure of 9. 61% and 2005 figure of 11. 01%, the company has been more successful in generating returns for its equity holders. 5. 4. 2Earnings after Tax per Share (diluted) This is a conservative measure that takes into account of the employees exercising their share options. The diluted earnings after tax per share dropped from $1. 71 in 2007 to $1. 66 in 2008, largely due to the one time sale of assets in 2007 mentioned above. The drop is not a concern because it still shows an increasing trend. 5. 4. 3Dividends per Share The overall trend of the dividend payout is positive and investors are expected to receive a fair share of dividends annually . 5. 5Stock Prices Analysis The general price trend of SIA stocks shows an upwards inclination. It reached a peak at around November 07 and prices have been decreasing since. One of the reasons why stock prices started to decrease is due to rising fuel prices. In view of the recent financial turmoil, the unstable economy is expected to have a significant impact on stock price. As compared to its major competitors, the stock price decrease was fortunately not as drastic. Also, we should note that this is a temporary mark to market loss suffered and not a permanent impairment loss incurred by SIA. 5. 6Comparison with Industry Average Overall, SIA’s financial performance is above industry average in comparison. 6Singapore Airlines’ Non-Financial Performance Non-financial performances are an integral part of a company which is bound to affect a company’s financial position in the long run and will determine its sustainability amidst stiff competition. A comparison with their closer competitors is also being considered . 6. 1Learning and Growth SIA places large emphasis on its employees. One of its strategies to train its employees includes company-wide Core Developmental Competency Framework, which seeks to help staff identify their strengths and opportunities for improvements. SIA Group also has seven training schools to deliver training in each core functional areas. This includes the Transforming Customer Service (TCS) initiative and general management training. Furthermore, SIA has in place share-based remuneration programmes which aim to more directly align the interests of senior management with the interests of shareholders. . 2Customer perspective One of SIA’s strengths lies in its superior customer service and excellent facilities on board. On top of that, SIA also places large emphasis on the safety of its customers on air and have introduced various new methods and equipment on board with the customers’ welfare and convenience in mind. SIA’s efforts in providing excellent customer service ar e evident by the many awards and accolades they garnered over the past years. These awards have enhanced their reputation and enabled them to dominate in the Airline industry. 6. 3 Internal Processes SIA’s Value Chain was analyzed to gain better understanding of its internal process. 7Recommendations From the above analysis, we understand that the airline industry that SIA operates in is extremely volatile and competitive. Coupled with the problem of rising fuel prices, the future do poses many challenges for SIA. However, having analyzed SIA’s strategies and operation style, we can see that SIA has been effective in managing the challenges faced to date, despite it being a relatively small and young airline compared to the other players in the industry. This is evident from the good financial performance of SIA. Thus, our team is optimistic about SIA’s growth prospects for the next 5 to 10 years and we predict that an attractive return can be guaranteed if the shares were bought. However, in view of the financial turmoil, we suggest putting the investment plan on hold first and wait for share prices to plummet to a sufficiently low point before buying the shares. Ultimately, this will help our company to take advantage of the low share price and maximize returns in the future. 8Appendix Appendix 1 Article 1 From The Times October 9, 2008 Interest rate cuts overshadowed by spectre of recession IMF says world is heading for major downturn Patrick Hosking, Banking and Finance Editor Interest rates across the world were slashed yesterday as central banks took unprecedented emergency action in an effort to contain the worst economic threat since the Great Depression. Hours after the Government unveiled a ? 500 billion rescue package for the British banking system, the Bank of England joined forces with its counterparts across the Western world to cut rates by half a percentage point. The extraordinary level of coordination was designed to demonstrate resolve in the face of financial panic but failed to restore confidence in the stock market. Share prices rallied briefly in London but the FTSE 100 index closed down 239 points at 4,367, its lowest point for four years. In its bleakest forecast for years, the International Monetary Fund said that the world was entering a major downturn in the face of â€Å"the most dangerous shock . . . since the 1930s†. The US and Europe were either on the brink of or already in recession. Appendix 2 Article 2 Home > Breaking News > Money > Story Oct 11, 2008 G7 vows to fight crisis WASHINGTON – GROUP of Seven finance chiefs on Friday unveiled a five-point plan to fight the global economic firestorm and restore confidence in the financial system by shoring up struggling banks. ‘The G7 agrees today that the current situation calls for urgent and exceptional action,' the US Treasury said in a statement on behalf of the G7 nations. We commit to continue working together to stabilise financial markets and restore the flow of credit, to support global economic growth,' it added after the finance ministers and central bank chiefs from the G7 nations – the United States, Germany, Japan, France, Britain, Italy and Canada – met in Washington. Appendix 3 Graph 1 Appendix 4 Newspaper Extract 1 The Straits Times, October 19 2008 Money Section Appendix 5 Exhibit 1 Airline Industry†™s Value Chain and competitive advantage The diagram below describes the Primary activities that is included in SIA’s Value Chain Appendix 6 Article 3 SIA stays the course with its branding strategy American advertising agency TBWA took over the coveted account from Singapore- based agency Batey – the name behind SIA's ad campaigns for the past 35 years.. †¦ Many marketing experts, who were looking for a significant change in SIA's branding strategy, were surprised by the lack of it, while others felt the ads weren't much of a head turner†¦ SIA spokesman Stephen Forshaw says critics have got it all wrong. Branding is not only about advertising. More importantly, it is about the substance behind the brand. ‘It perplexes me that people think the key to branding is advertising. It's not,' he says. ‘The key to branding is getting the fundamentals of the business right first. ‘Advertising is merely a way of communicating between the organisation and its customer base. ‘ †¦ †¦ But there remains a key constant – the Singapore Girl icon. ‘The representation of the Singapore Girl is what the brand delivers to customers – that is very high quality service,' Mr Forshaw says†¦. †¦ A significant application of biometric technologies currently being developed at SIA’s hub at Changi Airport in Singapore is the FAST (Fully Automated Seamless Travel) process. In November 2004, a six-month pilot test of FAST has been initiated based on a biometrics technology that integrates three processes: airline check-in, pre-immigration security checks, and immigration clearance†¦ †¦ This initiative at Changi Airport is a world’s first of integrating these processes with the clear objective of driving service excellence at airport operations and SIA’s ground services, while at the same time driving efficiency and improving security.. Appendix 7 Table 1 Kris Flyer Programs The table below describes the KrisFlyer programs of SIA. Level Benefits Young Explorer Club†¢Earn and redeem miles for free travel just like other KrisFlyer members †¢Miles earned go towards qualification for higher tiers of membership Kris Flyer Elite Silver†¢25% bonus on actual miles flown whenever you fly Singapore Airlines, SilkAir or Virgin Atlantic. †¢Priority Reservation Waitlist and Priority Airport Standby Kris Flyer Elite Gold†¢25% tier bonus on actual miles flown each time you credit the miles you earn on Singapore Airlines, SilkAir and Virgin Atlantic. †¢Increased Check-in Baggage Allowance (20kg, or one extra piece of baggage). Priority Airport Check-in and boarding and baggage handling †¢ Access to Star Alliance Gold Lounges. PPS Club†¢Exclusive Gift Vouchers to purchase items from our inflight shopping service, KrisShop. †¢Enjoy reduced or waived fees for various KrisFlyer services. †¢Travel Assistance and Insurance. †¢25% tier bonus on actual miles flown each time you credit the miles you earn on Singapore Airlines, SilkAir and Virgin Atlantic. †¢If your reservation for a seat in First or Raffles/Business Class cannot be confirmed immediately, you will be offered the option of a guaranteed seat in Economy Class on the same flight. 100% increased check-in baggage allowance on all Singapore Airlines and SilkAir flights †¢ Extended Use of Silver Kris Lounges. †¢Access to Virgin Atlantic Clubhouses. Solitaire PPS Club †¢25% tier bonus on actual miles flown each time you credit the miles you earn on Singapore Airlines, SilkAir and Virgin Atlantic to your KrisFlyer account. †¢Supplementary Card for your spouse, who will be accorded the same level of service as you whenever they travel. Appendix 9 Article 5 Cost-effective service excellence: lessons from Singapore Airlines An additional source of intelligence is SIA’s â€Å"spy flights†, where advisors travel with competitors and report on their offerings†¦ †¦ SIA builds team spirit within its 6,600 crew members through its â€Å"team concept†, where small teams of 13 crew members are formed and then fly together as far as possible for at least two years. This leads to the development of team spirit and social bonds within the team that reinforces the culture of cost-effective service excellence and the peer pressure to deliver SIA’s promise to customers†¦. Appendix 10 Table 2 The tables below show the comparison between the in-flight facilities provided by SIA and their competitors. Airline comparison in terms of screen size AirlineEconomy ClassBusiness ClassFirst ClassOthers Singapore Airlines10. 6’15. 4’ LCD23’ LCD (1280Ãâ€"768 Pixels)100 movies, 180 TV shows, 20 radio stations, 65games, 700music CDs, office software, noise cancelling headsets Cathay9’ widescreen15’ widescreen17’ widescreen100 movies, 350 TV shows, 22 radio stations, 888 CDs, 70 interactive games, noise cancelling headsets Qantas6. 3’10. 2’8. 3’60 movies, 200 TV shows, 20 radio stations, 10 games, 150 music CDs, noise cancelling headsets Airlines comparison in terms of in-flight services AirlineSingapore AirlinesQantasCathay 1st Class- 88. 9cm wide, fine grain leather seats – Flat bed – Adjustable table height – Dressing table with mirror – Plush duvet, fluffy pillows – Ferragamo Toiletries – Givenchy Sleeper Suite and suede slippers – Power outlet – Noise cancelling headsets- 198cm long flat bed – Light meals/ snacks available anytime – Built in massage capability in each chair – Payot paris toiletries – Akira Isogawa pyjamas, eyeshades – Power outlet – Noise cancelling headsets- 205. 7cm long, 63. 5cm wide flat bed – Personal Closet for clothes, hoes, mattress, pillows – Extra large tray table – Mood Lighting – Adjustable reading light – Built in massage capability in each chair – Acca Kappa Amenities set – Power outlet – Noise cancelling headsets Business Class- 1-2-1 layout with 76cm width seats – Flat bed – Light duvet, large pillows – Computer usage with USB ports and keyboard – Business lounge – Snack corner – Eau de toiletries – Power Outlet – Noise cancelling headsets- 2-2-2 layout – Shoe compartment – Coat Hook – Built in massage capability in each chair – Meal and cocktail table – Adjustable reading light – Inflight bar – Marc Newson amenities kit with Korner skincare product – Power Outlet – Noise cancelling headsets- 2-3-2 layout with 198cm long, 52 cm wide seats – Flat bed – Built in massage capability in each chair – Extra large tray table – Mood Lighting – Adjustable reading light – Extra large tray table – Agnes B Amenities kit with Murad/Dermalogica skincare products – Power Outlet – Noise cancelling headsets Appendix 11 Table 3 Average Age of Aircraft Average Age of Aircraft, 31March 20082007-20082006-20072005 – 20062004 – 2005 SIA Passenger Fleet (Months)77757664 SIA Freighters (Months)88766865 Industry Wide (Months)162160159157 Appendix 12 Table 4 Operating Performance of Company The CompanyCathay Qantas in S$ million 200820072006200520082008 Revenue12,759. 6011,343. 9010,302. 809,260. 109753. 27715051. 7 Expenditure-11,115. 60-10,316. 90-9,651. 80-8,562. 20-8751. 65-13774. 2 Operating Profit1,644. 001,027. 00651697. 91001. 6271277. 527 Percentage Change60. 10%57. 80%-6. 70% 33. 40% (compared to previous year) Cash Flow from Operating Activities4269. 43163. 52309. 62786. 62,540. 032,101. 91 Appendix 13 Table 5 Quick Ratio Calculation Quick Ratio = Quick Assets/ Current Liabilities (Quick Assets exclude inventories & prepaid assets) The GroupCathayQantas n S$ million 200820072006200820082008 Current Assets8,313. 308,248. 805,938. 304,943. 90339075616. 2 Inventories507. 7534. 1517. 5442. 5882215. 7 Section 44 tax prepayments-46. 7166. 2221. 4– Prepayments104. 986. 1—- Quick Assets7,700. 707,581. 905,254. 604,280. 00330255400. 5 Current Liabilities5,957. 705,258. 404,842. 503,901. 60273947603. 9 Quick Ratio1. 291. 4 41. 091. 101. 210. 71 Appendix 14 Table 6 Debt-to-Equity Ratio Calculation Debt-to-Equity ratio shows the composition of debt and equity in the capital structure and measures the degree to which the company relies on outsider for funds. Debt-to-Equity Ratio = Total long-term liabilities/ Total stockholders' equity The GroupCathayQantas in S$ million 200820072006200520082008 Long-term Liabilities1,599. 201,805. 801,824. 402,333. 304860. 20913. 5022 StockholderEquity15,125. 2015,100. 0013,470. 6012,342. 3016759. 325753. 29 Debt-to-Equity Ratio0. 110. 120. 140. 190. 290. 16 Appendix 15 Table 7 Return on Equity Holder's Fund Calculation Return on equity holders’ funds = Profit attributable to equity holders of the Company / Average equity holders’ funds (Percentage) The GroupCathayQantas 200820072006200520082008 in S$ million Profit attributable to equity holders2049. 2128. 81,240. 701,309. 507023969 Equity Holder's funds15,125. 2015,100. 0013,470. 6012,342. 30505495731. 2 Average equity holders' funds15112. 614285. 312906. 4511898. 747967. 55683. 05 Return on equity holders' funds13. 56%14. 90%9. 61%11. 01%14. 64%17. 05% Appendix 16 Table 8 Earnings after Tax per Share (diluted) Calculations Earnings afte r tax per share (diluted) is computed by dividing profit attributable to equity holders of the Company by the weighted average of ordinary shares in issue excluding treasury shares, adjusted for the dilutive effect on the exercise of all outstanding share options. The Group 2008200720062005 Profit attributable to equity holders of the Company(S$ millions)2,049. 402,128. 801,240. 701,352. 40 Adjustment for dilutive potential ordinary shares (S$ millions) (5. 10) (4. 80) (3. 60)- Adjusted net profit attributable to equity holders of the Company (S$ millions)2,044. 302,124. 001,237. 10- Weighted average number of ordinary shares in issue (million)1,216. 001,233. 601,219. 501,218. 20 Adjustment for dilutive potential ordinary shares (million)14. 910. 02. 1- Adjusted weighted average number of ordinary shares (million)1,230. 901,243. 601,221. 601,218. 0 Diluted earnings per share (cents)166. 1170. 8101. 3111. 0 Appendix 17 Table 9 Dividend Schedule The Group 2008200720062005 Interim dividend (cents per share)20. 015. 010. 010. 0 Proposed final dividend (cents per share)80. 035. 035. 030. 0 Dividend cover (times)1. 71. 72. 32. 8 Appendix 18 Exhibit 3 SIACathay PacificQantas Airways SIACathay PacificQantas Airways 52 Weeks Range Volatility47%63%59% H ighest Price in 52 Weeks$19. 90$24. 00$6. 06 Lowest Price in 52 Weeks$10. 52$8. 77$2. 50 Appendix 19 Table 10 Figures for Industry Averages are taken from Reuters (www. reuters. com) Industry AverageGroup's Average Quick Ratio0. 921. 29 Interest Coverage0. 0426. 42 Return on Assets0. 19%8. 10% Return on Equity-0. 04%13. 60% Appendix 20 Table 11 Non Financial Evaluation in the form of a BSC Learning and Growth Aspects of MeasurementMeasuresEvaluation Employee DevelopmentEmployee training programmes implemented †¢Implementation of a company-wide Core Developmental Competency Framework. Consisting of eight core competencies, it allows staff to identify strengths and opportunities for improvement. †¢Three areas have been prioritised for follow-up action: Pay and Benefits, Career Development, and Working Relationships. This shows that they are concerned about its employees’ welfare, not just giving them financial satisfaction. †¢Introduced a web-based self-learning security program for cabin and technical aircrew. †¢Seven training schools Employee satisfactionEmployee benefits schemes †¢Short-Term Incentives Short-term incentives generally take the form of an annual profit-sharing bonus. Payment of the variable bonus is based on employees achieving the target levels in the following: (i) SIA Group’s Return on Shareholders’ Fund; (ii) SIA Company’s Operating Profit Margin; and iii) SIA Company’s Passenger Load Factor †¢Long-Term Incentives The Company has put in place share-based remuneration programmes allowing employees to share in its growth and success. These plans comprise the Performance Share Plan (PSP), Restricted Share Plan (RSP) and Employee Share Option Plan (ESOP). InnovationNew technology and innovations†¢KrisWorld, Singapore A irlines' award-winning and ever-expanding inflight entertainment system, offers customers a wide range of entertainment options. Customers can choose from a variety of movies, TV programmes, music CDs and channels. There is also an extensive selection of video games and interactive applications including Berlitz Word Traveler, a fully interactive learning programme. These techonology implemented allowed them to be one of the best airlines in the industry to offer such entertainment system. †¢Uses Three-step centralized innovation process. Examples are the recently launched design of the Airbus A380 cabin. Customer Overseas presenceNetwork Development†¢As of 31 March 2008, Singapore Airlines operated 726 weekly flights to 66 destinations in 36 countries. Including codeshare services with Star Alliance and partner airlines, the Airline’s global route network grew to 149 destinations in 46 countries. †¢In August 2007, SIAEC acquired 100% of Aircraft Maintenance Services Australia to offer line maintenance services at international airports in Australia. The acquisition is part of the Company's continuing effort to capture a larger slice of the global maintenance, repair and overhaul (MRO) market by extending its reach o new growth markets and to broaden the span of its services to offer total maintenance solutions to airlines. SafetySafety measures introduced†¢Introduced a web-based self-learning security program for cabin and technical aircrew. It also successfully completed its second renewal of the IATA Operational Safety Audit. The audit covered key operational areas across the Airline, including flight safety, emergency management, engineering maintenance and ground handling. The Airline is also working closely with other safety organisations, such as IATA and AAPA, to promote and enhance flight safety. Service rangeNew services improvements to current flights†¢KrisShop launches new online sales portal krisshop. om, featuring an online catalogue and selections exclusive to Singapore †¢ECONOMY CLASS Improved design and use of light, thinner materials which provide more personal space and legroom. Other features include a non-intrusive reading light installed underneath the seatback screen, personal storage space for spectacles and smaller items, and adjustable footrest. †¢BUSINESS C LASS The A380 is configured with 60 Business Class seats. All seats offer direct access to the aisle, with a 1-2-1 forward-facing configuration. The new Business Class seats onboard the A380 are the widest in its class for any airline. At 85-cm wide, the seat is similar but slightly bigger, than the Business Class seats fitted on the Airline’s Boeing 777-300ER fleet. Business Class on the A380 also features a Passenger Corner, specially created for these customers to pick up snacks and socialise during long flights. †¢AIRLINES KRISWORLD Customers can choose from more than 1000 entertainment options featured on the new KrisWorld, including movies, television programmes, music, learning applications and 3D games. Screens across all classes are bigger: 58cm in Suites, 39cm in Business and 30cm in Economy. Singapore Airlines customers flying on the A380 and B777-300ER, are also able to work. Inflight through a comprehensive suite of office applications which can be accessed via the handset and without a laptop. All seats come with their very own USB port and in-seat power supply. †¢INTERLINE E-TICKETING Singapore Airlines ranks as the first non-US carrier, and third in the airline industry, in implementing interline e-ticketing. As of March 2008, 97% of all tickets issued from the Airline’s sales channels were e-tickets. All Singapore Airlines’ stations in the network are e-ticket enabled. According to IATA ranking in March 2008, Singapore Airlines has 120 Interline e-ticketing partners, among the highest in the industry. Corporate Social ResponsibilityRaising money for charities †¢Over $1. 9 million was raised and distributed to charities in Sydney, Singapore and the global humanitarian organisation, Medecins Sans Frontieres. Singapore Airlines announces it will auction seats in the world’s first A380 flight on the global online marketplace, eBay. All money raised from the auction is to be donated to four charities. The auction starts on 27 August 2007 and runs for two weeks. Environment†¢The A380 is a cleaner, greener, new generation aircraft – fuel burn, compared to a Boeing 747, on a per-seat basis is 20% less, and its noise footprint at take-off and landing is about 95% lower than any aircraft introduced 40 years ago. It is the cleanest, most environmentally friendly large passenger plane to take to the skies. Importantly, it will also help to deal with congestion at busy airports by offering more seats without the need for more frequencies. And it is delivering a substantially lower fuel burn per seat mile than the older generation large passenger jets. Image and reputationAwards and Accolades September 2008 Business Traveller Asia-Pacific â€Å"Best Airline† for the 17th consecutive time in its 2008 Readers' Poll. †¢Best Asia-Pacific Airline, Best First Class Best Business Class and Best Economy Class. With ten editions worldwide, Business Traveller is the world's leading publication geared towards frequent business traveller s. †¢World's Best Awards 2008 survey â€Å"Best International Airline† for the 13th consecutive time in its. The magazine has a readership of almost five million. February 2008 †¢Air Transport World (Global) Airline of the Year March 2008 †¢Frost & Sullivan Asia Pacific Aerospace & Defence Awards (Asia) Airline of the Year Business Process Process efficiency Solutions to improve business efficiency †¢Introduction of A380 to cater to high demand from customers and also attempted to cut costs that was passed on from high oil prices since the use of bigger airplanes will be more cost efficient as opposed to flying smaller airplanes with more frequency. In addition, five new Boeing 777-300ER aircraft were delivered. These raised the number of Boeing 777 aircraft in the operating fleet to 72, reaffirming Singapore Airlines’ position as the world’s largest operator of the Boeing 777 family. The four-time weekly service via Moscow started in March 2008, boosting the number of weekly passenger flights between Singapore and the USA to more than 50. Frequency was increased between Singapore and cities in Asia and Europe to meet growing demand for air travel. This shows that they continually increase their frequency to meet demands and improve services towards customers. Employee EfficiencyValu e added per employee†¢There is an improvement from $497,662 to $530,859 which is an increment of 6. 7% over the last financial year. Appendix 21 Table 12 Comparison with Close Competitors SIACathay PacificQantas Learning & GrowthAir Crew training -4 month long training for stewardesses which includes both functional and interpersonal skills -Promote team dynamics by organizing aircrews in teams of 13 and flies together for at least 2 years Self Learning – Web-based self-learning security program for its cabin and technical crew to increase efficiency in learning Air Crew training – Staff alignment survey to ensure better employees’ expectations. – Leading-edge training and development programmes to enhance the skills of our workforce. -Business-driven learning Confidential counselling through our Employee Assistance Programme. Air Crew training – Comprehensive training program that covers topics including customer service, medical aviation, aircraft and personal safety, emergency procedures. – QGFT provides high level practical and theoretical training in dedicated facilities. Internal Business Processes-Cost cutting solutions to improve business efficiency through introduction of Airbus 380 which offers the state of the art aircraft and that it also cuts back on fuel costs. – Diversity of businesses by tapping into budget airline Tiger Airways. Average fleet age of 6. 41 years-Cost cutting solutions to improve business efficiency by publicly announcing plans to replace a few older aircraft with new fuel-efficient plans and retrenching employees. -Average fleet age of 11 years. -Cost cutting solutions to improve business efficiency through introduction of Airbus 380 which offers the state of the art aircraft and that it cuts back on fuel costs. -Overly focused on cost cutting such that safety is being compromised, and they are currently under supervision by CASA -Average flight age of 9. 3 years Diversity of businesses by tapping into budget airline and currently holds stakes in Jetstar. Customer Perspective- Close relationship and builds loyalty through branding. – Excellent in flight ente rtainment on board that is crucial for longer flights. – Low safety concern: Introduced a web-based self-learning security program for cabin and technical aircrew and has completed its second renewal of the IATA Operational Safety Audit. The Airline is also working closely with other safety organisations, such as IATA and AAPA, to promote and enhance flight safety. Build and maintain a good social image and reputation- Excellent in flight services on board with brand new state-of-the-art in-flight entertainment system with audio and video on demand for the business class. – Low safety concerns and they emphasized that safety is of utmost importance: established the Board Safety Review Committee and Airline Safety Review Committee – Safety problems have been an issue recently with numerous cases of technical problems and causing flight delays. The Civil Aviation Safety Authority (CASA) told Qantas to improve the maintenance of its planes, after several flights ha d been cancelled or delayed due to engine problems. † – Social image declining due to adverse news reports about concerns over safety levels. Appendix 22 Article 6 Singapore world's best airline STUART INNES 20 September 2008 SINGAPORE Airlines, the first to have daily international flights through Adelaide Airport, has been named best airline by Business Traveller Asia-Pacific magazine The readers' votes also gave the airline wins in categories for best first class, best business class and best economy class. The gongs come on top of other awards to Singapore Airlines such as the annual Skytrax survey, which voted it airline of the year. US-based magazine Travel + Leisure readers voted Singapore Airlines as best international airline in its 2008 World's Best Awards. 9References Books Loizos Heracleous, Jochen Wirtz & Nitin Pangarkar (2006) Flying High in a competitive industry: Cost-effective service excellence at Singapore Airlines McGraw-Hill Educatiion (Asia) Databases Factiva http://global. factiva. com. ezlibproxy1. ntu. edu. sg/sb/default. aspx? NAPC=S&fcpil=en Journal Articles Shank, K. J. and Govindarajan, V. (1992). Strategic Cost Management and the Value Chain. Journal of Cost Management, Winter 1992, 5(4):5-21 Chivaka, R. (2007). Strategic Cost Management: Value Chain Analysis Approach. Accounting SA, August 2007, 25-27. Porter, M. E. (1985). Competitive Advantage. The Free Press, New York, Ch. 1, pp 11-15. Newspaper Reports The Straits Times, October 19 2008, Money Section, SIA sees 1. 6% drop in flier numbers Other Reports Singapore Airlines Ltd Financial Report 2007-08 Singapore Airlines Ltd Financial Report 2006-07 Singapore Airlines Ltd Financial Report 2005-06 Singapore Airlines Ltd Financial Report 2004-05 Cathay Pacific Financial Report 2007-2008 Qantas Airways Financial Report 2007-2008 Websites www. cathaypacific. com www. qantas. com. au www. reuters. com www. singaporeair. com http://business. timesonline. co. uk/tol/business/industry_sectors/banking_and_finance/article4909976. ece http://www. straitstimes. com/Breaking%2BNews/Money/Story/STIStory_288507. html www. venturerepublic. com/resources/Singapore_Airlines_ ¬_An_Excellent_Asian_Brand. asp www. singaporeairfreight. com/ttd_bizenterprise/Singlenews. aspx? DirID=64&re