Case Study Analysis of Flying Centre: Competing Provide Lowest Airfares
Added on 2021-02-20
8 Pages2689 Words241 Views
Leadership Management
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STRATEGIC MANAGEMENT
Case study analysis of “Flying Centre: competing provide lowest air fares”In the current case study an analysis of the current situation, need for change, impacton culture and effectiveness of leadership styles and techniques adopted by the team leadersof Flying Centre will be done. Flying Centre is one of the largest travel agency of Australia.The firm is operating both in the domestic as well as international markets in around 11nations with more than 30 brands. The firm is been growing rapidly in many parts of theworld such as Hong Kong, India, US, UK, China, South Africa and New Zealand through itslow costs travel services (Flight Centre Limited, 2018). The main reason behind the successof the firm is the creation of community rather than creating a company. In recent years,many changes have been done in the business model of the firm owing to the risingchallenges in the business environment of the company. The case study will evaluate thereason behind the change and will throw light on its impact on the culture of Flying Centre.The company is very successful entrepreneurial venture which became established inthe market after surpassing all industries and governments obstacles. The main vision of thefirm is to become one of the largest travel retailer in the world. The management of the firmsalways make efforts to offer quality services to its valuable patrons. They are of the view thatcustomers should be offered multiple options so that they can select the best to have bettertravel experience (Flight Centre Australia, 2018). They are also willing to give all theseservices at reasonable rates. The leader of the company Graham ‘Skroo’ Turner has beenCEO of the company for all of the firm’s history. He is very soft spoken, innovative,collection of wisdom and trust his followers. Flying Centre too have special concern for itsworkers and they take them as their own accountability. Different motivational techniques isbeing used by the leader to make them happy and contended with the job such as incentives,decision making power, stock options schemes, medical and health benefits, recognition atgala conferences and financial well-being. In addition to this, the company also want to makesure that their workers should feel the success of their firm and therefore, they are alsooffered share in the profits being earned by the firm annually (Forrester and Drexler, 2009).However, in the path of achieving success and growth, there were many challenges beingfaced by the company. The market in which the company operates is becoming highlycompetitive. There is increasing growth in the online means which means that people nowprefers to book their tickets online. Further, the rules and regulations of the government wasalso intensified. Even Flying Centre was accused of allegedly making efforts to collude with1
airlines in fixing price and anti-competitive behaviour by Australia’s Competition Regulator.Other than this, the company also lost some of its market share to internet companies such asAirbnb and Booking.com. Perhaps, one of the biggest competitive challenge being faced bythe company is increasing number of people making online bookings of tickets directly withairlines (Flight Centre Limited, 2018). All these again propelled the leaders of Flying Centre to reorient or change itsbusiness model with a view to recognize and accept the challenges and trends taking place inthe current market. According to Kotter’s, there is eight steps in the process of change whichneeds to be used for adopting change within the firm. Thus, it is vital for the company to firstcreate an urgency by determining the potential threats and consequences that might crop up inthe near future. Next, it is crucial to form powerful coalitions that is the effective changeleaders of the firm and other stakeholders in the process should be identified. The corevalues, vision, mission and strategies for realizing a change in the firm should be determined.Furthermore, the leaders of the firm should also need to communicate the vision powerfullyto the stakeholders and must reward them for approving change process (Kotter’s 8 stepModel of Change, 2018). Additionally, a feel of victory should be given to the employees bycelebrating the short victory. Other than this, at the next step success should be analysedindividually and improvement should be made from such experiences. Finally, the change isbeing anchored in the corporate culture and it becomes an integral part of the company’sculture. The change kaleidoscope is another important concept that helps in offering a viewof forces that helps in preventing or facilitating change within the firm. It includes eightstrategic change programmes such as the timing of the change, scope of change, resourcesand capabilities required for the change, determining diversity within the firm, capability ofmanager and employees for executing change, capacity of the firm to change, readiness of theworkforce and finally, power possessed by leaders to make changeConsidering these change models, the management and leaders of Flying Centrelimited decided to become more customers focussed. They also planned to offer uniqueproducts and services as well as instant access to the customers by a wide variety of modern& traditional communication modalities. The firm has transformed the strategic long termplanning system. A heavy emphasis is being given on leadership development throughtraining and recruitment for identifying the suitable change leader (Levi and Slem, 2005).The products of Flying Centre were also developed and each and every operation of the firm2
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