Analysis of Flight Centre Case Study

This report provides an analysis of the case study on Flight Centre, including evaluation of the issues faced, the need for change, the impact on organizational culture, effectiveness of leadership styles, and initiatives to improve the strategy.

Running head: ANALYSIS OF FLIGHT CENTRE CASE STUDY
ANALYSIS OF FLIGHT CENTRE CASE STUDY
Name of the Student
Name of the University
Author Note

1ANALYSIS OF FLIGHT CENTRE CASE STUDY
Table of Contents
Introduction......................................................................................................................................2
Evaluation and analysis of the issue................................................................................................2
Needs for the change.......................................................................................................................4
Effect on organizational culture.......................................................................................................5
Effectiveness of leadership styles and techniques styles that is used by leaders.............................5
Two initiatives implemented to improve the strategy.....................................................................7
Use of the different leadership styles for various situations............................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

2ANALYSIS OF FLIGHT CENTRE CASE STUDY
Introduction
The concept based on leadership is mainly defined with respect to the capacity that has
been gained by the management of the firm for development of goals and objectives. The actions
that are implemented by the organizations based on a specific situation can be fast and decisive
with inspiration that is leaders are able to offer. The ability that has been gained by the
individuals is helpful for the ways by which vision is changed to reality. The major responsibility
that is fulfilled by the leaders is based on the proper formation of the vision that is effectively
followed by employees to achieve the objectives (Ardichvili et al. 2016).
The place that is developed by Flight Centre in the travel agency industry is based on
more than 30 brands of the organization and the wholesale or the corporate businesses as well.
The revenue that had been gained by the company in 2015 was around 256.5 Million Australian
Dollars. The firm also developed a fixed growth on an annual basis after Flight Centre had
started its operations (Babalola 2016). The analysis in the report will be related to the situation
that is faced by Flight Centre and the issues that are a part of that situation as well. Different
initiatives that are developed by the organization for proper application of the strategy will also
be analyzed in the report.
Evaluation and analysis of the issue
Graham Skroo Turner has been able to form a major part of the operations of a travel
agency like Flight Centre. Turner had been able to understand the nature of humans that is
considered to be a positive quality for the CEO who has a leadership position in the firm. The
conceptual and the philosophical underpinnings have been able to impact the strategies that have

3ANALYSIS OF FLIGHT CENTRE CASE STUDY
been formed by the CEO or leader of the company. The innovation capabilities developed by
Turner are helpful for the ways by which Flight Centre has been successful in the industry (Dong
et al. 2017). The decisions based on expansion of the operations of Flight Centre in new markets
have been developed by Turner. The approach that is undertaken by Turner is always based on
the significance that is offered to the employees or people. The CEO believed that satisfied
employees have the ability to provide best levels of services to customers or clients. Opinions
that are provided by employees are also implemented by the management of Flight Centre. The
operations of Flight Centre are also improved by the innovations (Hall and Rowland 2016).
Staff ownership has been a major aspect of the business model that is formed by Flight
Centre. The flight rates that are offered to customers are discounted in nature and this is
considered to be the most important aspect related to operations that have been developed by the
firm. “Lowest Airfare Guarantee” is the major slogan that is provided and implemented by the
organization as well. The growth of Flight Centre in the highly competitive industry is organic
which has an impact on the revenues of the organization. Flight Centre has also expanded its
services to the corporate travel and student travel based industry (Iqbal, Anwar and Haider
2015).
Challenges that are faced by the firm are related to financial crisis on a global basis and
various natural disasters as well. The liquidation and collapse of the operations of Anset Airlines
has an impact on levels of profitability of the firm. The firm has also faced major levels of issues
that are mainly related to the costs related to maintenance of services which are offered to
consumers. Flight Centre has also faced major legal problems that had an impact on the
reputation that is formed by the firm in the industry (Khoreva 2016). The market of airlines has
proved to be quite competitive and this is an important aspect based on lack of revenues of Flight

4ANALYSIS OF FLIGHT CENTRE CASE STUDY
Centre in the current environment. Share prices of the firm have also fallen due to which the
revenues of Flight Centre have reduced (Komives 2016).
Needs for the change
The increase that is experienced in the competition levels has led to the requirement for
proper implementation of changes in the operations of Flight Centre. Flight Centre also needs to
make changes in the business model for the purpose of maintaining the profits that are gained by
the organization (Mendenhall et al. 2017). Customer loyalty levels in the organization have also
reduced due to competition that is offered by the other firms. The firm has also faced many extra
expenses due to the maintenance of the loyalty of the customers as well. The cash reserves that
are maintained by the company are a significant part of the risk management strategy that is
applied by Flight Centre (Leitch and Volery 2017).
The firm has faced major issues in the ways by which competition is provided by the
online booking portals like Airbnb and Booking.com. Levels of leisure travel have also increased
in the last few years and have influenced the business model of Flight Centre in a huge manner.
The customers are making their travel bookings with the help of platforms that are provided by
the online websites (Mulki, Caemmerer and Heggde 2015). The loyal customer base of Flight
Centre has also been reduced due to the use of online platforms for the purpose of travel based
bookings. Flight Centre has been quite successful in the proper development of an international
presence in various countries with the help of its retail stores. However, further diversification of
the online presence of the firm is considered to be necessary for increasing the reach of the
customers (Popli and Rizvi 2016).

5ANALYSIS OF FLIGHT CENTRE CASE STUDY
Effect on organizational culture
The culture of Flight Centre is also based on the high levels of diversity that is an
important aspect related to the development of proper operations of the firm. Flight Centre has
also faced major competitive challenges based on the online services that are provided by various
organizations. The convenience of online bookings is also considered to be an important aspect
that is related to threat that is being faced by the organization. Flight Centre has provided
significance to the employees and has fulfilled their demands as well (Rosenbach 2018). The
culture and environment that is formed within the organization and the collaborative culture is
also an important part of the success that is gained by Flight Centre. The employees have played
a major role in the ways by which physical and the online bookings of the organization are
maintained (Storey 2016). The development of a loyal base of customers is also totally based on
the proper management various online bookings. The contribution that is offered by the
employees has played an important role in enhancing the customer base of the organization.
Innovative culture that is formed in Flight Centre is considered to be a major support that is
offered to the organization (Volz-Peacock, Carson and Marquardt 2016).
Effectiveness of leadership styles and techniques styles that is used by leaders
The development of leadership styles by Turner has led to the immense levels of success
that is gained by Flight Centre in the industry. The proper formation of a strategic response is
also based on the support that is provided by the right decisions taken by the leader. The plans
that are formed by the organization are also related to the long term development of operations
and revenues of Flight Centre. The development of an effective leadership is also considered to
be an important aspect that is related to the ways by which Flight Centre can maintain its future
operations (Storey 2016).

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The proper application of ICT in the various organizational aspects of Flight Centre is
also a major decision that has been made by the leader. Flight Centre has also formed the brand
strategy based on the focus that is provided to the 34 brands operating under the firm. The theme
that is related to the operations of Flight Centre is based on the proper development of effective
strategies. Five major journeys are able to support the evolution of an organization like Flight
Centre due to the competitive nature of the industry (Volz-Peacock, Carson and Marquardt
2016). The major parts of the journey formed by Flight Centre are as follows,
Unique products – The proper formation of the exclusive products have been
named as Flight Centre Travel products.
Brands and specialization – The evolving brands specialize in different areas
related to travel and the value propositions that are offered to customers as well.
Redefining the shops of Flight Centre – The wholesale, retail and corporate
spaces of the firm are able to reflect vision of Flight Centre (Zheng and Muir
2015).
Blended access – Ensuring availability of various brands that are a part of Flight
Centre.
Increasing expertise – The levels of expertise of individuals belonging to the
brands has to be enhanced in order to improve the services. The support offered
by travel gurus can also offer additional expertise (Yahaya and Ebrahim 2016).
Leadership qualities that are formed and applied by Turner have supported the growth of
Flight Centre in the industry. Turner has implemented participative leadership and the opinions
and ideas offered by employees have also been able to play a major role in the proper
improvement of its revenues (Mulki, Caemmerer and Heggde 2015). Innovative leadership style

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that is developed and implemented by the organization is considered to be a major reason behind
the success of Flight Centre. Turner has been successful in the formation of a business model
that is highly dynamic in nature. The appropriate orientation of business model formed by Flight
Centre is considered to be an important aspect that is related to the growth and success of the
company (Hall and Rowland 2016).
Two initiatives implemented to improve the strategy
The profitability and operations of Flight Centre in airlines industry can be ensured with
the help of two major initiatives that are as follows,
Flight Centre needs to provide training to the employees for maintaining the
online customer base and the customers who visit the physical stores. The travel
management programs that can be offered to the customers online by the
employees can help in enhancement of the revenues of Flight Centre.
The improvement of productivity levels of the employees is also possible with the
help of incentives that are offered to them. Performance management systems in
the organization can also support improvement of Flight Centre (Ardichvili et al.
2016).
Use of the different leadership styles for various situations
Leadership style that is implemented in different situations is not similar and is based on
the needs of individuals. Dynamic leadership has proved to be a major aspect related to the ways
by which Turner has ensured the rapid growth of Flight Centre. The ideas offered by employees
are also provided with maximum importance by the participative leadership style of Turner

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(Iqbal, Anwar and Haider 2015). The growth of Flight Centre is also based on the ways by which
Turner has managed the relationships between the employees and the customers of the
organization as well. However, the leadership qualities that are to be developed in a different
situation will not be similar to the ways by which Turner is able to maintain the operations of
Flight Centre in the competitive environment (Babalola 2016).
Conclusion
The report can be concluded by stating that an organization like Flight Centre has been
managed effectively by Turner who has proved to be a successful leader. The trends that have
occurred in external environment can play a key par in operations of major firms. The dynamic
nature of the operations of Flight Centre and the leadership qualities of Turner are able to play
the most significant role in the development and growth of Flight Centre even in the changing
environment. Flight Centre will be able to maintain its growth with the support that is offered by
the online operations.

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References
Ardichvili, A., Natt och Dag, K. and Manderscheid, S., 2016. Leadership development: Current
and emerging models and practices. Advances in Developing Human Resources, 18(3), pp.275-
285.
Babalola, S.S., 2016. The effect of leadership style, job satisfaction and employee-supervisor
relationship on job performance and organizational commitment. Journal of Applied Business
Research (JABR), 32(3), pp.935-946.
Dong, Y., Bartol, K.M., Zhang, Z.X. and Li, C., 2017. Enhancing employee creativity via
individual skill development and team knowledge sharing: Influences of dual‐focused
transformational leadership. Journal of Organizational Behavior, 38(3), pp.439-458.
Hall, R.D. and Rowland, C.A., 2016. Leadership development for managers in turbulent
times. Journal of Management Development, 35(8), pp.942-955.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review, 5(5), pp.1-6.
Khoreva, V., 2016. Leadership development practices as drivers of employee attitudes. Journal
of Managerial Psychology, 31(2), pp.537-551.
Komives, S.R., 2016. Leadership for a better world: Understanding the social change model of
leadership development. John Wiley & Sons.
Leitch, C.M. and Volery, T., 2017. Entrepreneurial leadership: Insights and
directions. International Small Business Journal,35(2), pp.147-156.

10ANALYSIS OF FLIGHT CENTRE CASE STUDY
Mendenhall, M.E., Osland, J., Bird, A., Oddou, G.R., Stevens, M.J., Maznevski, M. and Stahl,
G.K. eds., 2017. Global leadership: Research, practice, and development. Routledge.
Mulki, J.P., Caemmerer, B. and Heggde, G.S., 2015. Leadership style, salesperson's work effort
and job performance: the influence of power distance. Journal of Personal Selling & Sales
Management, 35(1), pp.3-22.
Popli, S. and Rizvi, I.A., 2016. Drivers of employee engagement: The role of leadership
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Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
Storey, J., 2016. Changing theories of leadership and leadership development. In Leadership in
Organizations (pp. 17-41). Routledge.
Volz-Peacock, M., Carson, B. and Marquardt, M., 2016. Action learning and leadership
development. Advances in Developing Human Resources, 18(3), pp.318-333.
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
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Zheng, W. and Muir, D., 2015. Embracing leadership: a multi-faceted model of leader identity
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