Organisational Structure, Internal and External Environment Forces, Risks and Functions of Victorian Taxi

This essay highlights the structure that company is following as well as the internal and external environment forces that are impacting the business of the organisation. It also reflects about the risks that are confronting the business of the organisation as well as business decisions they are making for enhancing the performance of the organisation. In the later part of the essay, important functions that will help the company in achieving its strategy have also been highlighted.

MANAGEMENT
AND
BUSINESS CONTEXT

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In the present business there are many challenges that are faced by the organisations.
In order to bring smoothness in the work process company needs to have effective
organisational structure. Apart from this companies also need to understand the environment
they are facing and the impact that the internal and external forces have on the business of the
firm (Wheelen & Hunger, 2011). Due to many reasons, several types of risks are confronting
the business of the organisations in different industries. Victorian Taxi is one of the biggest
car hire company in Australia. Victorian taxi is also taking so many decisions so as to
enhance the organisational performance. There are many functions within the organisation
that is assisting it in achieving the strategies (Robertson, 2013). This essay highlights the
structure that company is following as well as the internal and external environment forces
that are impacting the business of the organisation. It also reflects about the risks that are
confronting the business of the organisation as well as business decisions they are making for
enhancing the performance of the organisation. In the later part of the essay, important
functions that will help the company in achieving its strategy have also been highlighted.
Every organisation has a specific type of organisational structure (Beavis & Moodie, 2014).
They developed it as per the requirement of the firm so as to bring smoothness to the firm. It
helps in making the decision making process faster and helps in transferring of the
information smoothly within the organisation. Organisational structure of Victorian Taxi is
divisional where the structure is defined at different levels. At the top of the association there
are executives comprising chairman, vice chairman and CEO (VTA, 2018). Below them lie
permit holders and taxi licence owners. All the members of the association elect
representatives based on the regions to the council. This council provides discussion of
practices and issues. They also make policies for the VTA. The council members also elect
the executive council that functions as a board and manages the affairs of VTA.
Many internal and external forces that are present around the company and have a higher
impact on the business of the association (Rose & Hensher, 2014). This association needs to
evaluate all the forces that are influencing their business so as to make sure that they have do
pose any negative effect on the operations of the firm. Increasing employee demands have
been one of the biggest issues for the association. As the decisions are made by the council
members hence the interest of workers are given higher priority. In the competitive market it
becomes difficult for the company to fulfil all these demands so as to maintain higher
employee satisfaction. Apart from this Victorian association has been slow in terms of

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decision making especially when it’s about the changing business context. This company has
not been investing in the innovation on a large amount. This has pulled the company in
innovation race.
There are many external forces that are impacting the business of the association. One of the
most significant impacts on the association is of politics. Since the political condition and
policies made by the government regarding the car hire services have changed hence it has
become difficult for the companies to expand its business (Allsop, 2014). The environmental
concern of the Australian government regarding the carbon emission has disrupted the
business of Victorian taxi heavily.
On the other hand the economic concerns of the Australia due to the changing global
economic condition has forced the company to make sure that they make cost planning in a
better way. The rising inflation in Australia has burdened both the Taxi owners as well as the
consumers. This is due to the fact that the Victorian Taxi cannot increase the cost at higher
levels in the rising competition.
Social demographics of the Australia have changed over the years and this has also resulted
in the change of demands (Boyle & Peterson, 2015). Such changes have higher impact on the
operations of the firm as the people within the country are demanding for the highly fast
services as well as the technologically advanced services. In the last few decades the taxi and
car hire industry is highly impacted by the changes in the technology. App based services
have become the trend in the market. Company also needs to upgrade the technology at
regular basis so as to remain in the competition. They have to think about the new generation
vehicles to be running on alternative fuels for their operations as they produce less air
pollution. Environment is another important force that has higher impact on the business of
the Victorian taxi. Australian government has been highly strict aver the issue of carbon
emission. This company needs to look towards the new powered engine that does less carbon
mono-oxide emission.
Along with all these there are many risks that are confronting the business of the organisation
in their future. These risks have to be properly evaluated so as to maintain the smoothness in
their operations in the coming years. First and foremost risk that is posing around the
company is of competition. This has become the threat for the organisation as the competition
has become cut throat. In the longer run it is to be understood that there are larger firms that
are coming into the business of Taxi industry (Lucas and Currie, 2012). This has reduced the

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chances of Victorian Taxi growth as well as has lowered down the profit margins of the cited
firm. Another major risk that is posing to the business is that due to increasing inflation
within the nation people have started to prefer metro over the taxi service. This type of
competition is an alarming situation for the company as their profits margins are narrowing
down (Victorian council of social services, 2011). Third major risk that is associated with
them is of changing technology at a faster rate. There are many innovations that are going on
in the industry. This has forced the association to put heavily on the research so that future
needs of the industry can be understood and they can make changes accordingly. In the
increasing inflation innovation has affected the company in both positive and negative
manner.
In order to ensure that organisational performance increases Victorian Taxi has taken many
decisions (Correy, Bourke-O'Neil, Agosta, Fetherstonhaugh, Hughes & McDonald, 2011).
One of the most important decisions that they have taken for improving the performance of
the firm is that they have made a training program for their workers which will help in
increasing the productivity of their workers. They have also introduced new marketing
strategies so that can enhance their performance in the market. In order to enhance their
performance company has adopted many technologies in their operations especially in the
booking system of the taxi. Company has pumped cash into the innovation which will
empower the organisation in making edge in the industry.
There are several important functions within an organisation. All these functions have to
work in collaboration so as to make sure that they achieve their strategies on time. First is the
marketing department. This department helps to ensure that the image of the services of the
company remains high and hence helps in maintaining the faith of the clients in the company
(Rosier & McDonald, 2011). Second are the administrative departments. This department has
the role of making strategies according to which other department functions. This department
assure that all the stakeholders can get satisfied. Other than this there is research department
which has the role of making research towards the demands of the employees, consumers,
understanding the trends within the industry. All this would help them in making their future
plans which is necessary for achieving the strategies made by them. Human resource
management act as one of the most essential function within the organisation (Rose &
Hensher, 2013). This is due to the fact that it has the role of managing one of the most
valuable resources of the company i.e. their human resource. They provide them with the
training that would help their employees in maintaining their standards as per the industry

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requirements. This will help the firm in achieving the strategies they have made for
themselves as the employee can help the firm in achieving all these strategies in a better
manner. Their finance department have a very crucial role in achieving the task this is due to
the fact that they make all the arrangements of financial resources so that they can achieve the
strategies smoothly. Without the proper utilisation of financial resources no company can
achieve its strategies within their limits. All these departments within the organisation have to
work as a unit so that no conflicts remain within the association and act as a barrier.
In the concluding remark it can be illustrated that for associations like Victorian Taxi it is
essential that their structure remains more clear where everyone understands each other’s
responsibility. They also need to note the pattern in which external and internal forces
impacts the business of the firm. Victorian taxi needs to evaluate the risks that are
confronting their business by taking decisions that helps in improving their performance.
Apart from this they also needs to understand the ways in which their different organisational
functions work so as to achieve their made strategies.
REFERENCES
Allsop, R. (2014). Shock of the new: How government holds back technological change.
Review-Institute of Public Affairs, 66(2), 14.

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Boyle, P., & Peterson, C. (2015). Taxi drivers rally against Uber. Green Left Weekly, (1069),
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Correy, A., Bourke-O'Neil, M., Agosta, Y., Fetherstonhaugh, J., Hughes, T., & McDonald, L.
(2011). Transforming Victoria's taxi industry. Planning News, 37(10), 26.
Robertson, S. (2013). Campus, City, Networks and Nation: Student‐Migrant Activism as
Socio‐spatial Experience in Melbourne, Australia. International Journal of Urban and
Regional Research, 37(3), 972-988.
Lucas, K. and Currie, G., 2012. Developing socially inclusive transportation policy:
transferring the United Kingdom policy approach to the State of
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Rose, J. M., & Hensher, D. A. (2014). Demand for taxi services: new elasticity evidence.
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Rosier, K., & McDonald, M. (2011). The relationship between transport and disadvantage in
Australia. Retrieved from: https://aifs.gov.au/cfca/publications/relationship-between-
transport-and-disadvantage-austr
Victorian council of social services. (2011) Victorian taxi industry inquiry. [Online].
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http://vcoss.org.au/documents/VCOSS%20docs/Submissions/2011/VCOSS_Taxi_Inq
uiry_Submission.pdf
VTA. (2018) VTA structure. Retrieved from: http://www.victaxi.com.au/about-us/vta-
structure.html
Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business
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