Scoot Airlines Case Study

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Q2(a) Scoot is a budget airline that provides regular medium to long haul flight at half cost as compared to existing full service carrier. There are limited budget air carriers compeititors for long haul market die to high operating cost and this makes Scoot uniqiue. Scoot airline, a subsidiary of Singapore Airlines, meets the needs of Middle Class travellers flying regularly on medium to long haul journey. The passenger customises their travel needs, paying only the required amenities (e.g. seat preference, meals, and checked in baggage etc.) (Scoot, 2015.) Scoot is helmed by CEO Campbell Willson who uses online lmarketing tools and operations such as quirky marketing videos, informal uniforms and website. (Houston, n.d.) However,…show more content…
It is not possible to change one ‘leg’ without changing another. Benefits of this change must exceed costs (direct and indirect). As decision making process are decentralize, the management may not act in the interest of the shareholder and therefore the owners of Scoot Airlines will has to bear the wealth effect of decisions made by managers or employees. Behavioural issues may occur as well, For Example scoots airline fuel procurement working with a tight budget may decide to purchase low quality jet fuel resulting in reduced efficiency thus affecting the Scoot’s performance. As Managers depend on accounting information to facilitate or influence decision making, too much information will result information overload and they are unable to pick up the most important details and makes poor decision affecting the company performance. Likewise the same with too little information. Worker Morale may suffer if they fail to meet the performance standards. In addition, strong internal competition for limited job position and corrective actions taken on below performing staffs will lead them to focus more on their standing than their job related duties. This may result in deviant behaviour and reduced productivity for example Absentee and will affect Scoot’s…show more content…
For example, having customer satisfaction survey done to find out the effectiveness of new lighter luggage policy. 3) Regular monitoring and appraisal of employee performance instead of annual appraisal helps ensure individual actions are aligned with goals of the organization. For example, Cabin crew are given unannounced on the job appraisal regularly to ensure cabin crew act according to Scoot service standards and quality constantly to meet the passenger expectation and therefore achieve the goals of Scoot airline. 4) Accounting information given should be kept concise and appropriate to highlight the important details to managers and facilitate or influence their decision making positively so as to satisfy shareholder’s value. 5) Positive encouragement to low performing employees by focusing on their strength and giving guidance on action plan to improve on their

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