Scoot Tigerair Pte Corporation has been in service for the last four years. The airline is a low-cost affiliate of Singapore Airlines and its main destinations are China and India. Passenger prefers Scoot over other Singapore airlines because of its affordability, protection and comfort. In 2015, Tigerair merged with Scoot, which was the birth of Scoot Tigerair Pte, and the number of destinations for the organization has since risen to 60 with a fleet capacity of 38. Factors such as aggressive marketing and advertisement, good leadership and its ability to meet the tastes and preferences of the consumers have been the reason behind the firms increased revenues in the past Both Big Apple LLC and Jennifer are liable to the injured pedestrian Tilly Tourismo. The other two owners Martin and Edsel are not personally liable. This is because they are protected by the LLC shield from being personally liable. The LLC on the other hand is liable because Jennifer is a member of the LLC and caused the accident under the scope of the LLC. Tilly therefore should sue Jennifer and LLC but Martin and Edsel are not liable for her injuries (Cheeseman, 2013).
In the case of Billy who died while on his job, the shareholders are not personally liable for his death as this was just an accident. The USM is a legal entity and therefore its shareholders are not personally liable for the responsibility of the company. When it comes to shareholders, limited liability means that they are only liable to the extent of their capital contributions and do not have any personal liability towards the company’s responsibilities and debts. In the event that the death of Billy was not accident rather an intentional act, then the shareholders could have been personally liable for his death, in this case, according to the rule of limited liability of shareholders, the death of Billy is the responsibility of the company and shareholders cannot be held liable (Cheeseman, 2013).
McDonald Investment Company does not qualify for the intrastate offering exemption from registration. Though most of the requirements for the intrastate exemption were met, (the company was a resident of Minnesota, its principal place of business was in Minnesota and more than 80% of its assets and revenues were derived in Minnesota) it still did not meet one of the key principals that states that at least 80% of the proceeds from the offering must be invested in the state in order to qualify for an exemption. In the case of McDonald Investment Company, their proceeds from securities issues were invested in real estate loans and other assets but outside of the state of Minnesota and due to this fact, it makes the company unqualified for an exemption from registration for an intrastate offering (Sosin, 1964). References
Cheeseman, H. R. (2013). Contemporary Business Law (8th ed.). Upper Saddle River: New Jersey: Pearson Prentice Hall.
Gregory, W. A., & Hurst, T. R. (2002). Unincorporated Business Associations, Including Agency, Partnership, and Limited Liability Companies: Cases and Materials.
Sosin, S. (1964). The Intrastate Exemption: Public Offerings and the Issue Concept. W. Res. L. Rev., 16, 110.Scoot Tigerair Pte Corporation has been in operation for the past four years. The airline is a low-cost subsidiary of the Singapore Airlines, and its primary destinations are in China and India. Passenger prefers Scoot to other airlines in Singapore because of its affordability, safety, and conveniences. In 2015, Tigerair merged with Scoot, and this was the birth of Scoot Tigerair Pte, and the number of destinations for the organization has since increased to 60 with a fleet size of 38. Factors such as aggressive marketing and advertisement, good leadership and its ability to meet the tastes and preferences of the consumers have been the reason behind the firms increased revenues in the past few years. The support that Scoot receives from Budget Aviation Holdings (parent company) has also given it sustainability in the market. The company has its headquarters in Singapore Changi Airport. This paper provides an assessment of the internal and external analysis of the Scoot Airways. Strategic options and recommended strategies for the airline will also be addressed. BodyExternal analysisScoot has been in the airline market for the only four years, but its success rate remains impressive. The firm’s stability has been attributed to factors such as its aggressive marketing, favorable political and legal environment in Singapore and its low-cost strategy. In this section, PESTLE analysis will be essential in the external analysis of the rapid growth of the Scoot Airways.Political factors Political factors have a direct impact on the performance of an organization (Tracy 2015, p.53). The airline industry operates under strict regulations and failure by an organization to abide by the legislations set by a country may lead to the withdrawal of their licenses of operations. Additionally, political class may advocate for strict visa policies and tight border controls with the aim of combating terrorists’ activities, and this may have an adverse impact on the airline industry. Political instability and high tariffs and discriminatory taxes may also affect the performance of the industry. Singapore enjoys low political risks in the region, and this has provided Scoot an opportunity to establish, increase its consumer base and build on its brand. This implies that political factors are vital towards the sustainability of the firm.Economic factorsThe success of the airline industry is depended on the economic environment. Scoot Airways has in the past five years been a major beneficiary of the economic environment in Asia. The emerging Asian markets, for instance, have expanded the company’s consumer base, and this has in return increased its revenues. The economic instability experienced in the region led to an increase in the demand for Low-Cost Carriers by 5.7%. Scoot, thus, took advantage of the situations, increased its fleet size and the number of destinations in the Asian markets (Houston 2017, Web). Singapore lies in a strategic economic position, and this has made it easier for the airline to expand into its markets. The country has also, in the past five years, enjoyed economic stability due to increased Foreign Direct Investment and revenue generation. Apparently, this has significantly contributed to the sustainability enjoyed by the Scoot Airways. Social factors Social factors come in the form of buyers will in purchasing tickets, the lifestyle of the consumers and cultures and this tend to affect the productivity of an airline industry. The popularity of traveling by air has increased tremendously across the globe thus an increase in the sales of companies such as Scoot. The population of Singapore has been on the rise over the years, 6.8% of who prefer low-cost airlines. An increase in population, coupled with the strengthened popularity of the LCC is expected to continue leading to enhanced performance and productivity of the Scoot Airways in the future. Technological factors Aggressive competition exists in the airline industry, and this calls for organizations to come up with innovative strategies to remain afloat in the market (Narayana, Appannaiah, and Sathyaprasad 2010, p.76). Companies such as Scoot have been on the frontline in integrating technology into their systems with the aim of boosting their performance. Scoot’s Consumers can now boom their tickets via the online platform, a move that has helped in bolstering the company’s services. Internet booking in Asia rose to 36% in the year ending 2016 while that in Europe improved to 67% in the same year. The company also has a web page that also serves as its advertisement platform. Consumers can now access Scoot’s online platform for information on the services as well as offers available. Technological advancement has been a key factor in the enhancement of the productivity of the Scoot Company. Environmental concernsEnvironmental factors are instrumental in the determination of the success of companies operating in the airline industry. Tourism, around the world, is affected by weather and seasons, among many other factors. Scoot Airways takes advantage of these seasons to attract tourists to and from Singapore to try their low-cost brand. In so doing, the firm has enjoyed an increase in its sales, especially from destinations in Asia and parts of Europe. The airline also adheres to the set carbon emission policies and at no time has it found itself on the wrong side of the law. Environmental factor, however, is a weak contributor to the airline’s growth and stability. Legal factors Aviation is one of the most regulated sectors with the primary aim being provision of safety of the passengers. Law targeting the airline industry varies from one country to the other. Some of those rules and regulations include thus curbing carbon emission, ban on the entrance in the planes with specified gadgets and airspace usage. In Singapore, government legislations barring unfair competition from the new entrants in the market has been pivotal in the strengthening of Scoot’s performance. China Aviation Regulator, one of the company’s destinations has also, in the recent past laws that strengthen low-cost carriers and private airlines and this is good news to Scoot Airways. The legal factors are attractive to the operational efficiency of the company. Porters’ Five ForcesThreats to new entrantsThe airline industry has a low level entry of new companies. A start-up business requires a huge capital investment to enter into the industry, which may be difficult. Additionally, government legislators in countries such as Singapore have imposed strict aviation regulations that discourage new entrants into the industry. Apparently, this has significantly lowered competition levels in the market which is beneficial to Scoot Company. Supplier’s bargaining powerSuppliers have a major impact on the low-cost aviation sector due to their input in the form of provision of fuel, procurements and delivery of spare parts. Their threat level is high and companies such as Scoot have to ensure that they maintain a good relationship with their suppliers. The bargaining power of the buyers The threat posed by the consumers in the airline industry is high. There are various airline companies in the market and this means that a consumer can make a choice on the firm that meets his travel needs. Scoot, in such a case, need to come up with high quality services that are satisfactory to the passengers. Threats of substitutes in the marketThe existing threats of substitute to the company are low. Airline industry is the fastest and most convenient mode of transport compared to the use of roads or railway. This implies that Scoot may not have to worry much about other transportation modes but mainly focus on its performance. Competitive rivalryThreat of competition is very high in the airline sector due to the various companies in operation. Organizations such as AirAsia and Jetstar are some of the main competitors of Scoot Airways. In the quest for dealing with aggressive competition, Scoot need to implement workable business strategies such as cheap fares and reduced costs of production. Internal analysis of the Scoot AirwaysThe company has enjoyed tremendous growth in the past five years, and this is expected to improve in the future. There are various internal factors that have been instrumental towards the company’s enhanced productivity. Intangible (strong)Good leadership and a collaborative organizational structure is categorized as one of these aspects. The firm is headed by a visionary leader Lee Lik who has been a pivotal factor in ensuring that Scoot aligns to its set goals and objectives and that it enjoys a competitive advantage in the market. Under his leadership, workplace relationship has improved significantly, thus bolstering the productivity of the employees. The Human Resource department hires skilled and experienced employees that in return bring a new level of professionalism within the company. An open suggestion policy system within the company provides an opportunity to all the employees to contribute innovative ideas on measures that the firm can embrace in enhancing its productivity. By embracing such a platform, Scoot has managed to penetrate the airline market that most start-up companies find challenging (Huang, Dyerson, Wu and Harindranath 2015, pp.45-47). Tangible (strong)When the company was launched, it only had six airplanes, but the fleet size has since grown to 38 with more than 60 destinations. This rapid growth has been attributed to measures such as merging and partnership with organizations such as Tigerair Pte as well as the support received from the parent company Budget Aviation Holdings. All the workers of Scoot are urged to ensure that they maintain a good relationship with the customers, and this has been vital in enhancing the firm’s demand and building on its brand and reputation. Finally, incorporation of advanced technological systems as a part of the organizational operations has played a huge role in bolstering the company’s quest in the delivery of services that meet consumer tastes and preferences (Singapore Business Review 2017, Web). In conclusion, based on this information, it is clear that both the tangible and intangible resources are strong and have also been critical in the growth experienced by the Scoot Airways in the past five years.SWOT Analysis (Scoot 2017, Web).A SWOT analysis is instrumental in the strategic process of an organization. It provides an overview of the strengths, threats, weaknesses and opportunities of a firm. The analysis is also vital in showcasing the position of an organization in the market. In the case of Scoot, for instance, the firm has experienced an increase in its financial performance in the past five years. Its low cost carriers have contributed an increase in the consumer demand that has in return led to enhanced revenue generations. Nevertheless, aggressive competition and fluctuating in oil prices serve as the company’s main challenges. StrengthA strong connection with its parent company in SingaporeCollaborations with Tigerair, thus leading to its expansionAggressive marketing and advertisement-reliance on advanced technologyWeaknesses Low fleet size thus affecting its competitivenessThere are restrictions on access to some of its routesChallenges of a less established brandOpportunities Increased consumer demand on low cost carriersConstruction of a fourth terminal at Changi AirportExpansion in the Asian marketPartnerships Threats Fluctuation in fuel pricesIncreasing operational costs and location drawbacksStrategic optionsDiversification and differentiationOne of the strategic options of the firm entails diversification of its production process with the aim of increasing its sales and profit maximization (Sharp and Dawes 2001, pp.738-739). The airline, for instance, seeks to grow ultra-long-haul routes into new and existing targeted destinations. Consumers will also enjoy value added services such as online booking and enhanced security towards heir checked-in luggage. According to the firm’s CEO, this strategy aims at attracting more consumers to the enterprise, thus bolstering its sales. Pilots and carbine crew will also have to be trained for safety flight operations in those long routes (Skift 2017, Web). The move is also focused on ensuring that Scoot expands to the international markets, thus gaining a competitive edge over the rivals in the market while at the same time improve its returns. As a push to ensuring that this strategy is a success, the company has placed an order for 67 A350-900s that will ply the long routes. Cost leadershipCost leadership is vital in yielding an organization’s competitiveness over its rivals in the market. Some of the measures that the company needs to put in place include maintenance of low cost airline fares compared to its rivals at all the times (Johnson, Whittington and Scholes 2011, p.47). This will be instrumental in attracting more consumers to the brand. Low-Cost Carriers are dependent on cheap fairs and by Scoot ensuring that airline fares are affordable and that it embraces seasonal pricing strategy, it will capture a large market share and have its profits improve significantly (Gudmundsson 2015, pp.34-36). Another aspect of cost leadership that the firm can embrace is the outsourcing of its operations such as repairs and maintenance as well as logistics. In so doing, this will help in addressing issues related to an increase in the airline’s costs of production. Recommended strategyThe most appropriate business strategy for the Scoot Airways will be cost leadership. Aggressive competition is one of the key issues that the company faces in its daily operations. The firm is, therefore, focused on curbing the issue while cutting down on its costs. The company can attain this goal by embracing cost leadership as one of its primary strategies. Setting low ticket prices for all the company’s flights as compared to those of its rivals in the market, for instance, will attract more consumers aboard. Additionally, seasonal pricing strategy will bolster the firm’s customer-base. Having maintained a reputation of passenger safety plus its affordable prices, the company will witness a significant enhancement in the revenues generations as well as its profitability levels. Other than an implementation of low airline fares, it will also be vital for the company to outsource most of its operations such as repairs and procurements with the aim of cutting down on its costs of production. Apparently, delivery of airplanes and parts required for the maintenance of these planes will be improved. The company will also reduce expenses incurred in hiring employees to carry out repairs and supplies. A combination of cheap fares and outsourcing will contribute to an enhancement in Scoot’s market share and a boost in its profitability. ConclusionScoot Airways has enjoyed growth and sustainability in the past five years, and this has been attributed to both external and internal factors. Political and economic stability enjoyed in Singapore has played a significant role in the firm’s market sustainability. Additionally, Scoot has embraced advanced technology in most of its operations including online booking and internet marketing. Merging with Tigerair Pte has also helped in boosting its financial growth and performance. It, should, however, be noted that the company also faces threats of fluctuation in fuel prices and restrictions to some of its access routes. Strategies such as cost leadership and differentiation can help increase the firm’s success rate. The low cost aviation sector is an attractive industry for companies such as Scoot Airways. It should, therefore, take advantage of the economic, regulatory and technological factors to bolsters its financial performance and productivity in the future. BibliographyGudmundsson, S. (2015). Limits to the Low-Cost Niche? Finding Sustainable Strategies for Low-Cost Long-Haul Airlines. SSRN Electronic Journal.Houston, S. (2017). Scoot: The Success of Asia's Newest Low-Cost Airline. [online] The Balance. Available at: https://www.thebalance.com/scoot-asia-s-newest-low-cost-airline-282684 [Accessed 28 Sep. 2017].Huang, K., Dyerson, R., Wu, L. and Harindranath, G. (2015). From Temporary Competitive Advantage to Sustainable Competitive Advantage. British Journal of Management, 26(4), pp.617-636.Johnson, G., Whittington, R. and Scholes, K. (2011). Exploring corporate strategy. Harlow: Financial Times Prentice Hall.Narayana Reddy, P., Appannaiah, H. and Sathyaprasad, B. (2010). Business management. Mumbai [India]: Himalaya Pub. House.Scoot. (2017). scoot. [online] Available at: http://thescootaway.wixsite.com/scoot/swot-analysis [Accessed 28 Sep. 2017].Sharp, B. and Dawes, J. (2001). What is Differentiation and How Does it Work ?. Journal of Marketing Management, 17(7-8), pp.739-759.Singapore Business Review. (2017). Why is Scoot abandoning its long-haul only strategy?. [online] Available at: http://sbr.com.sg/aviation/exclusive/why-scoot-abandoning-its-long-haul-only-strategy [Accessed 28 Sep. 2017].Skift. (2017). Singapore Airlines CEO on Its Multi-Brand Strategy for Winning in Asia. [online] Available at: https://skift.com/2016/03/14/singapore-airlines-ceo-on-its-multi-brand-strategy-for-winning-in-asia/ [Accessed 28 Sep. 2017].Tracy, B. (2015). Business strategy. New York: AMACOM.
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