Strategic Management on Flight Center Limited

Running Head:STRATEGIC MANAGEMENT ON FLIGHT CENTER LIMITED
Strategic Management on Flight Center Limited
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STRATEGIC MANAGEMENT ON FLIGHT CENTER LIMITED
Introduction
The Company Flight Center Limited is one of the largest travel agency company, which
is Australia based. It has been operating with 30 brands along with 2500 corporate, leisure and
wholesale companies. In the year 2015, the company gained a huge revenue A$ 2.4bn. The FLT
Company continues to gain the maximum revenue for three decades. The company earns revenue
before tax, which is about A$256.6m the company has expanded its business almost in every
neighboring countries of Australia (Flight Centre Travel Group 2019). The FCM travel Company
has extended to almost 75 countries because of Strategic planning in licensing. The company has
provided employment to almost 15,000 candidates. The aim of the study is to understand the
various aspects of the chosen company, which is Flight Center limited. The need that triggered in
the leaders of the company to bring the change,the impact that the changes had on the culture and
the effectiveness of the leadership style. A proper analysis will also be provided to understand
the success rate of the amendments that the company has implemented. The study will also
include a brief overview of the two initiatives that could have been implemented by the company
to improve the scenario (Flight Centre 2019).
Analysis and Evaluation of the situation
The situation of the company earlier was very critical as the company underwent many
difficult issues and challenges. However, the company faced certain hurdles in the initial stages,
bus breakdowns, and shortage of capital, unavailability of the drivers. The people who were
employed then had minimal experience and knowledge about the processing of the work and
the technicalities (Flight Centre Travel Group 2019).The biggest challenge that the company
faced when all the clients of the company wanted to avail the online booking facility along with

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STRATEGIC MANAGEMENT ON FLIGHT CENTER LIMITED
the accommodation booking. The main challenge for the company was to see whether they could
carry on their operations related to business in one model for all cultures and regions (Flight
Centre 2019).
Need for Change
The company has instilled many amendments in their processes this started from the year
1973; the company earlier provided services on a double decker bust that provided a tour all
around Europe. The change was needed in the planning of the company, they acknowledged their
drawbacks and introduced in 1981 Flight Centre. The change later proved to be a boon for the
company. The discounts that the company provides on the flight tickets was a new ideology in
the aviation industry. This was approved and acknowledged by the government, they also
engaged in interpersonal relations with the government in order to get their license approved.
The company also faced many challenges such as the financial crunch that was occurring
globally, natural calamities and destructions during wars sudden failure in the liquid cash in the
aviation industry made them alter the strategies. The company provided emergency call number
to the customers for assistance, which helped the company to retain the customer loyalty. The
company has also faced many high competitions in the aviation industry, which was a very harsh
experience for the company (Oliver and Schoff 2017). Yet, the company had developed an
‘Omni-channel’ model, which was an innovation that a company had initiated along with
widespread retail network along with the online offers. This initiative made the company
maintain its market position and customer base. The company has been formulating its
strategies according to the crisis and the harsh situations that the company has experienced
(Centre Flight Centre 2019). The strategies has made the company overcame the challenges in a
proper way.The company with another strategy of combined booking for both flights and

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STRATEGIC MANAGEMENT ON FLIGHT CENTER LIMITED
accommodation for the customers. In this strategy, the company gets the full attention of the
investors. The customers can book through online for both lodging and flight tickets according to
their will and convenience.Price Guarantee was another key element that the company
implemented. Create proper relation with virtual and transactional to ensure that the integrity
and consistency of booking in other global markets (Rothaermel 2013).
Impact on Culture
The changes that the company instilled in its procedures brought a huge change in the
aviation industry and this made the company hold its market position. The changes did bring an
impact on the culture of the company. The company recruited people irrespective of their caste
or culture they hired them based on their qualities they possessed. This helped the company in
diversification in the environment as the employees were from different cultural background,
which brought a homogeneity amongst the employees. The decisions that the company took was
always communicated with the employees (Flight Centre 2019). The changes helped the
company in developing a transparent relation with the employees. The interpersonal skills of the
company and the employees developed and approach towards various cultures became more
positive. The amendments that took place within the company was not only for the employees
buts also for the external stakeholders. The company ensured to its customers that they could
access the ticket booking at any point of time. The company made their retail shops almost in all
neighboring countries Australia for the customers to access them with no difficulty the option of
online ticket booking and was made available to the customers. The company also developed
many retail shops, which included corporate, retail and wholesale spaces this stated that Flight
Centre Company included more retailers than office workers (Chuang 2013).This was more
evident when the company ensured that the individual desks for the workers, which could deal