General Environmental Analysis

General environmental analysis The aviation industry is very stable and the possibility of change in the near future is low. This problem is caused by many reasons. As long as the economy continues to rise, air travel will continue to grow and will continue in this way. According to the Air Transport Association, domestic air traffic volume increased by 3% in 1998 and 5% in the first half of 1999. The percentage of flyers increased by an average of 2% per year, and the proportion of people who were flying increased from 73% in 1993 to 81% in 1997.

First, external factors include all elements of microenvironment and microenvironment. In general environmental analysis, the PESTEL model is used to help SIA predict which elements in the future and the impact they will have on the business (Aaker, 2005). For example, due to technical changes, SIA needs to adapt to maintain its standards from a safety and service standpoint. In addition, by understanding macroeconomic factors, Singapore Airlines can plan and coordinate strategies to reduce risk. For example, under the economic downturn and inflation, the SIA has signed a contract to maintain as competitive prices as possible with fuel suppliers. In micro environmental analysis, Porter's five powers directly influence the SIA and are used to analyze the power of the aviation industry (Porter, 1998).

In the analysis stage, we first need to analyze general external environmental problems that affect our company. Secondly, your environmental analysis should focus on the specific industry (or multilateral company industry) the company is doing. Finally, we need to check the focus company's competitive environment. By studying the three levels of external environment, you will be able to identify opportunities and threats for your company. After the external environment analysis is the analysis of the company

External environment analysis is shown in Figure 5. A general starting point for completing a situation analysis is the external environment. The external environment consists of external (external) conditions that affect the company's performance. When analyzing the environment, we need to consider the impact of the general environment on business focus. After the evaluation, it is necessary to analyze the environmental trend of the industry and competitors. These trends and situations in the external environment determine the company's strategic intent and mission. External environmental analysis basically indicates that the company may choose to do. Analysis of the external environment, often referred to as environmental scanning, often allows companies to identify critical conditions that can not be managed directly. The purpose of studying the external environment is to identify opportunities and threats to the company.