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South Africa Airways: A Strategic Analysis Of The South African Airways

905 Words4 Pages

1. Executive Summary

The main objective of the case study is a strategic analysis of the South African Airways. The existing SAA strategy focusing underlining factors that form part of the current struggles for economic growth like future direction, stakeholders, development and formulation. South African Airways is one of the leading airlines in South Africa and also a legatee in the global airline industry. Examples of SAA's biggest challenges were to staff alignment, ambition, and Skill and knowledge management to achieve its strategic objectives. SAA embarked on numerous programs to enhance staff development and training. To comply with legislative requirements SAA needs to develop a formulation of a Workplace Skills Plan. The long …show more content…

The general market growth can be related to good economic growth, advertisement and the rise of the middle class. With the growth in the market SAA is facing various critical factors such as financial risks, competitors strategic changes, low-cost airlines (domestically and international), exchange rates fluctuation, interest rates and fuel increases. SAA’s Long Term Turnaround Strategy aims to secure financial stability, customer services, excellent performance, consistent and effective operations with the main objective to support South Africa’s national developmental …show more content…

The SAA Stakeholders Management team is implementing a 90 day Action Plan to return the SAA Airline back to Strategy implementation and get business back on track.
Action should be taken by the SAA Stakeholders addressing the airline’s liquidity position by focusing on the following:
a) Immediate review of the SAA network and current losses.
b) Ensuring working capital is being used in an efficient way
c) Effectively and efficiently managing costs
d) Substantial focus on Legal and High Level Governance defects and remedies.
Noncompliance of the Public Finance Management Act is one of SAA’s main difficulties. Fruitless and wasteful expenditure of SAA came to question during the past financial year as this was not included in any annual report or financial statement submitted by SAA.
Up to date no progress has been made to better SAA in the long term. The long term turnaround strategy is not in place yet and basic tasks of revenue and cash collection are currently a major concern.
Lack of contract management, risk management and recruitment development is some of the major factors that added to the airline’s current financial situation.

1.3 Development and formulation
• Youth

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