Strategic Business Management for Flight Centre

Running head: STRATEGIC BUSINESS MANAGEMENT
STRATEGIC BUSINESS MANAGEMENT
Name of the Student
Name of the University
Author Note

1STRATEGIC BUSINESS MANAGEMENT
Table of Content
Introduction................................................................................................................................3
1. Evaluating the external issues that are affecting Flight Centre and driving the business to
employ strategy resulting in moving jobs offshore....................................................................3
2. Analysing the internal issues that make the organization consider jobs offshore as a part of
its strategy..................................................................................................................................4
3. Identifying the stakeholders in this company.........................................................................5
4. Competitive advantages for Flight Centre in moving in either expanding offshore or
moving some job offshore..........................................................................................................6
5. Listing and assessing the issues of the above strategy including risks, cost savings and
revenue increase.........................................................................................................................6
Conclusions................................................................................................................................7
References..................................................................................................................................8

2STRATEGIC BUSINESS MANAGEMENT
Topic- Strategic Management -Flight Centre
Introduction
This report provides an analysis of strategic approaches of Flight Centre which is an
Australian listed public firm provides a large variety of services including flight, holiday and
vacations, hotels, car rental, cruise, rail and insurance. The purpose of this report is to analyse
Flight Centre’ strategy which has resulted in moving some of its organizational activities
offshore with the lay-off of some domestic. It also aims to analyses how this strategy led to
expansion of business into other international market. The report provides a detailed
evaluation of external issues affecting the business and driving it to employ a strategy
resulting in moving job offshore. In addition, the report also provides an in-depth analysis of
company’s internal issues that make it considers the offshore of jobs as the part of the
strategy.
1. Evaluating the external issues that are affecting Flight Centre and
driving the business to employ strategy resulting in moving jobs offshore
It is certain that external business environment has been dynamic in nature both
domestic Australia market as well as in global market as well. Particularly, changing
political environment in Australia often leads to changes in trade regulation which compels
travel agency service providers to shift their focus on other market where labour price is
under the line. MacGregor, Doyle and McEachern (2015) commented that constant
fluctuation in the economy have pushed the firm to cut out operational expense by offshoring
the activities and other services. However, Kanemoto et al. (2014) mentioned that even
though there is steady fluctuation in the economy Australia is world’s second largest
economy with the nominal GDP estimated to be around AUS$1.1 trillion in 2017 and this had
led to highest range of per capita GDP in the world.