Introduction
Satair was established in the year 1957 with an aim to provide the aviation industry with spare parts and components. The organization focuses highly on becoming global leader in the aerospace industry by providing the customers and suppliers with spare parts and components beyond their expectations. Satair aims to provide its customers and suppliers with innovative supply chain solutions through its ability to meet the exact needs (Satair, 2010).
The objective of this assignment would be to evaluate the concept of change management that Satair has undergone over the past five years along with the change that the organization is currently undergoing. In addition, this assignment would also focus on the analysis of the current nature of the external environment. To do so, PEST analysis would be used. Each of the factors identified under PEST analysis would be ranked to identify the present opportunities as well as the threats along with the ability of the factor to impact the organization. Lastly, the indicator of effectiveness would be evaluated to assess whether or not the organization and the departments within the organization is effective.
Change Management at Satair Singapore
Change management could be defined as a systematic approach used by organizations to deal with the change from the perspective of organization as well as from individual (Rouse, 2010). For an organization to enhance its performance along with its capabilities, organizations must undergo change. Similarly, change management could be defined as art and science to enable the individuals and groups within the organization to move from their current state to future state so that the organization can achieve its desired objectives.
At Satair, change is a prominent concept. As indicated by John Staer; CEO of Satair, an organization that does not change with the passage of time is regarded as an organization standing still eventually allowing everyone to pass by. It has been indicated that the organization in 2010 implemented the concept of SAP as ERP tool. With this tool, the organization aims to enhance its valuable links in the supply chain. With the use of such ERP tool, the organization aims to enhance its trading routes through effective utilization of internet. In addition, this adaptation of SAP has provided the organization with an opportunity to make the market more professional in which Satair responds directly, precisely and quickly to meet the needs of its customers and suppliers.
Moreover, the company has undergone changes throughout its lifetime. But considering the only last 5 years of Satair, it is indicated that the organization with respect to change management have implemented the concept of SAP as ERP tool to increase its customer service and discipline to promote efficiency and effectiveness in operations.
Organization’s External Environment – PEST Analysis
Satair’s external environment would be evaluated with the help of PEST analysis i.e. Political, Economical, Social and Technological. Each of the factors mentioned earlier would be discussed separately below;
- Political Factor
In earlier years, it has been indicated that the government imposed higher regulations due to the rising number of crashes in the aviation industry. Due to such events, the organization had to change its strategy and had to focus highly on the distribution of brand new parts and components with 100 percent of traceability and certification. Similarly, the 2 serious events in earlier years with Boeing 787 Drealiner have once again led to the tightening of rules and regulations. In addition, it has also been indicated that Federal Aviation Administration (FAA) has become highly active after the Boeing events. Such strictness in the aviation industry would once again lead to changes in the organization’s strategy as being a 100 percent owned subsidiary of Airbus; the closest competitor of Boeing, the organization would have to follow the rules and regulations imposed in the aerospace industry along with the aviation industry.
The political factors could be a potential threat for the organization as with such high level of regulations, the organization would have to suffer loss in order to supply its customers with high quality products and spare parts.
- Economical Factor
The credit crunch; the financial crisis in 2007 and beyond, have negatively impacted the performance of many industries. But on the other hand, it has been indicated that Singapore contributes US$4.6 billion to the Asian aerospace industry which eventually is 21 percent (EDB, 2012). In addition, it has also been indicated that Singapore outranks the world in terms of investment destination making it MRO hub in Asia (Thales, 2009). The Singapore Aerospace industry is dominated by MRO with around 90 percent whereas; only 10 percent contribution is made from the manufacturing side.
- Social Factor
Satair being the world’s largest independent distributor of aircrafts part in the aviation and aerospace industry, it has been indicated that the organization is provided with high level of confidence from customers and suppliers within the industry. The company was acquired by Airbus and since then, it has been providing the customers with high quality spare parts and components under the leadership of Airbus. In addition, the drastic events that were faced by Boeing due to its poor strategic decisions in terms of outsourcing have led to decline in customer’s confidence level due to which, customers are constantly looking for aviation and aerospace companies that could provide them with higher quality of experience.
The social factor would be an opportunity as customers and suppliers are constantly seeking high quality supplier of spare parts and components, Satair would be approached leading to higher level of profits and sales.
- Technological Factor
The biggest and the foremost technological advancement that was observed in recent years was the lithium-ion batteries to enhance the efficiency of airplanes which consistently failed to meet the desired objectives of Boeing 787 Dreamliner. The technological advancements in the distribution of spare parts and components would help the companies to use its resources effectively and efficiently.
Technological factor would positively impact the organization as with technological advancement, Satair would be able to effectively manage change. In addition, such technological advancement would provide the organization with an opportunity to enhance its performance in the market as well.
Indicators of Effectiveness – Organization and Departments/Units
The indicator of effectiveness of Satair in terms of organization and departments are as follows;
- Organization
Satair aims to lead the aerospace distribution industry with its high quality and superior products that could satisfy the customers beyond their expectations. To consistently improve the quality of the products offered to the customers and suppliers, the organization has acquired approval to variety of different standards. In addition, it has also been indicated that to enhance the effectiveness of the entire organization, the company focuses highly on the concept of Total Quality Management (TQM) along with continuous improvement and innovation which eventually helps the organization to keep updated in terms of quality management (Satair, a).
- Departments/Units
Satair is known for its extensive support to its customers i.e. more than 2500, in more than 100 countries. The major customers of Satair include airlines, commuter operators, maintenance facilities and defense organizations. In order to provide support to such an extensive customer base, the organization has departmentalized its operations. The three most prominent departments include Supply chain, Sales and Marketing (Satair, b). SAP was adapted as an ERP tool to enhance the efficiency and effectiveness of the department due to which supply chain department could be regarded as quite effective. In addition, it has been indicated that to promote sales the organization focuses highly on customer services along with product and quality assurance services. Logistics and support services also play an effective role in enhancing the customer service (Satair, c). As a result, the company enjoys higher level of sales as compared to earlier years. Lastly, marketing department would also be regarded as highly effective as sales are created through effective marketing and as the company enjoys higher level of sales, this means that the company’s marketing department is highly active and effective.
Conclusion
The PEST analysis indicates quite significant opportunities for the organization in aerospace industry which can help the organization extensively to enhance its performance along with the quality of products and services offered by the company to the customers and suppliers. With an aim to become the global leader in aerospace distribution services, the organization has acquired variety of different standards in terms of quality to provide customers with products and services beyond their expectation.
List of References
EDB. (2012). Future ready Singapore. Available from http://www.edb.gov.sg/content/edb/en/why-singapore/about-singapore/facts-and-rankings/rankings.html [Accessed 22 May 2013]
Rouse, M. (2010). Change management. Available from http://searchcio-midmarket.techtarget.com/definition/change-management [Accessed 23 May 2013]
Satair. (2010). Satair greets a new decade with a dedication to change. Available from http://www.satair.com/webcm/satair_resource.nsf/0/MBAN-82ADN5/$FILE/36.pdf [Accessed 23 May 2013]
Satair. (a). Quality. Available from http://www.satair.com/webcm/satair_webcm.nsf/0/CSCT7XJK26?OpenDocument&m0=MBAN83WHLG [Accessed 22 May 2013]
Satair. (b). Customer services. Available from http://www.satair.com/webcm/satair_webcm.nsf/0/CSCT666JJK?OpenDocument [Accessed 22 May 2013]
Satair. (c). Services. Available from http://www.satair.com/webcm/satair_webcm.nsf/0/CSCT76GD3U?OpenDocument [Accessed 22 May 2013]
Thales. (2009). Overview of the Aerospace industry in Singapore. Available from http://www.filasinternational.eu/sidereus-project/pdf/10.pdf [Accessed 22 May 2013]
