Strategy for Businesses after Covid-19 Pandemic
Chulalongkorn final exam spring 2020
Yksilöessee: Kerttu Kanerva
Strategy for businesses after Covid-19 Pandemic.
Strategy is all about figuring out what your company’s future business is going to be and preparing for it. The big Pandemic which is hit hard for the many businesses around the world 2020. Of course its hard that many people die, because of the virus and people have to live fear especially risk group people or people which family or friends are risk group, but its almost even harder thing for the world economy and businesses. My final exam at course Business concepts and Ethics at Chulalongkorn University was building a short-term business strategy for the Airline company: Singapore Airlines during the Covid-19 pandemic, How the company will survive and start again at ”new normal” after pandemic? The World is now undergoing a severe shock from Coronavirus, and all businesses are closed. But sooner or later this will end, so good companies must prepare for their re-opening.
Major Global Airlines have been badly hit and have had to suspend almost all operations. One of this companies which been hit hard, because of the pandemic is famous Singapore Airlines.
Diagnosis = Company lose millions, because of boarder closing and lock-downs, which means no flights.
Guilding Policy = Getting help from the government, banks, investors and creating a new strategy and business plan for the company.
Singapore Airlines must get funding to easier their costs at the moment. Singapore Airlines must create short-term and long-term strategy plan for their company. Singapore Airlines is dedicated to providing air transportation services of the highest quality, and to maximising returns for the benefit of our shareholders and employees.
First thing they should get the funding around 13 – 19 million dollars and and take care of mandatory running costs, as well as layoff costs for its employees.
Company have to make different plans for the flight arrangements when flights resume flying. They need to reform their marketing plan and increase the importance of hygiene. Likely to change the seating order on flights, leaving gaps between passengers. Planes are unlikely to be overbooked or crowded with passengers.
Company have to grow their prices and offer more expensive flights, but still not too expensive. Company have to target their customer services very carefully and good, because after the pandemic the competition between flight companies is going to be very big. Company have to target their marketing plan and put some invest for the marketing.
Company should use their cards for the high quality, safety and hygienic and excellent customer services. These are the things which customers will be
respect after pandemic.
Strategy during the pandemic step by step:
- Desing for the new ”normal”
- Start with optimizing or restructuring the network and fleet.
- M&A joint ventures and partnerships.
- Level and type of financial support by governments, banks and investors.
- Level of trust and safety concerns.
- Singapore Airlines should decide which routes they are going to fly first, when lock downs will be over.
- Which fleet types recommission first.
- Determining the optimal size and dimensions of their networks and fleet
- Prepare for ramping up, once airports and countries reopen.
- Finance teams will need to be closely involved to protect cash levels, capture revenues as soon as possible, and delay cash-outs as much as possible.
- Establish a project management office to manage cash until the environment stabilizes and regular financial processes and routines can be implemented once again.
- Because strategy is always long-term plan, Singapore Airlines have to make a whole new concept for their company, because after Covid-19 crisis the flying industry will be change forever.
Response to Covid-19 Customers
Modified in-flight service, procedures Enhanced cleaning, disinfection of aircraft and lounges and distancing in line with regulations are very important things when company want to build a trust for the customers.
Some other very important keys to response after pandemic is:
- Inform on advisories and other operational matters
- Share SIA’s role in supporting efforts to fight COVID-19
- Activities designed to engage pax
- Update progress of resumption of ops
Sources: Raja Thuraisingham. Chulalongkorn University Spring 2020 – Business Concept`s and Ethics.