Organization Change Management Research Report 2022

RUNNING HEAD: VIRGIN AUSTRALIA
Organization Change Management

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Contents
Introduction......................................................................................................................................2
Company overview..........................................................................................................................2
Future success factors......................................................................................................................2
Evaluation....................................................................................................................................3
Current positioning..........................................................................................................................5
Needed strategies and steps.............................................................................................................9
Current issue..................................................................................................................................12
Conclusion.....................................................................................................................................12
Bibliography..................................................................................................................................13

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Introduction
The research report is prepared on the title ‘Organizational Change Management’. It is a
framework structured around the changing needs and capabilities of an organization. Change
management is an essential tool that assists in understanding and supporting the change and its
effect on the organization and its human resource (Hayes, 2018). It is examined that ‘Virgin
Australia’ is one of the companies that has adopted a major change in the organization structure
and thus provides a fine example of change management’ (CAPA , 2012). The report includes
the key future success factors of Virgin Australia. It provides an insight into the current
positioning of these upcoming success factors. Additionally, it also comprises of the strategies
needed in respect to meeting these success factors. Lastly, it provides detailed information on the
steps needed in respect of fulfilling each strategy. The key purpose of the report is to pour light
on the aspect of organizational change management. Additionally, it provides an opportunity to
enhance the managerial knowledge by practically applying the gained knowledge on a real-life
company.
Company overview
‘Virgin Australia’ is one of the recognized companies founded in the year 2000 (Virgin, 2019). It
is one of the largest airlines based in Australia. It carries around 23 million passengers each year
(Travel Associates , 2019). It provides the traveling service to 40 domestic destinations and to
450 destinations in the global world (Virgin, 2019). It provides low-cost fares as well as high-
class features in the airline service. In the year 2017, it was awarded as best Australian airline
and is ranked 13 in the list of world’s best airlines (Yip , 2017). Its major competitors are Qantas
and United Airlines and Jetstar. It has annual revenue of $3.8B. Thus, it is considered as one of
the growing company in the Australian market (Owler , 2019).
Future success factors
Following are the key elements that will assist Virgin Australia in growth, maintaining market
position and adding value to the organization.
1. Customer satisfaction

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2. Reputation/Brand image
3. Organizational structure
4. Marketing and branding
5. Organizational culture
6. Technology
7. Planning and forecasting
8. Outsourcing (Riwo-Abudho, 2013)
Evaluation
Customer Satisfaction: It is assessed that customer satisfaction forms the basis of future success
for an organization. Virgin Australia is directly dealing with its customers as it provides travel
services in the global world. It will help the company in enhancing the brand image (Hennig-
Thurau, 2013). Receiving satisfied customers would lead to higher profits and it would enable
the company to offer its airline services in other countries as well. Thus, it is considered as a key
for Virgin Australia’s future growth.
Example: ‘US Airways’ has experienced a heavy loss because its high ticket price is not
matching with the customer service leading to unsatisfied customers in the international market
(Nisen , 2013). Thus, it suggests the significance of customer satisfaction in the business process.
Reputation/Brand image: It requires a long time to build a reputation and attractive brand
image among the customers. Developing a positive brand image will have a high impact on the
minds of the people. This is because a major proportion of decision in respect of product and
services is based on the company’s brand image. Virgin Australia should lay prior attention in
protecting the customer’s interest (Severi, 2013). It has several benefits:
 Building a customer’s trust
 Enables price premium
 Easy availability of new customers
Example: According to Yi Zhang, 2015, it is stated that the brand image itself plays a crucial role
in the marketing activities of the company. It is also one of the factors responsible for the
performance of the company in the market. It is stated that a company with a strong brand image

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is able to generate more loyal customers as people conceive it as more trustable. It is directly
responsible for enhancing the revenue of the company (Zhang, 2015).
Organizational Structure: Organizational structure is a system defining the pattern of work, the
flow of information in an organization. It is a hierarchical arrangement of lines of authority
(Weigelt, 2013). Effective distribution of power is mandatory for an organization as it acts as a
means for growth and expansion. This is evident from the below case:
Example: ‘Toyota’ is a recognized Japanese company. In order to gain efficiency and boost
innovation, its organization structure was changed. Thus, the adoption of the right organization
structure had offered the company a high growth (Gopalan , 2018). Hence, it states the
importance of innovation for organizational growth.
Marketing and Branding: it is evaluated that airlines should provide the right product and the
right service ahead of a customer’s request. It will aid in building loyal customers (Davis, 2013).
Additionally, it should lay emphasis on the marketing of its airline's services.
Example: ‘McDonald's’, is a globally recognized fast food outlet. It is highly engaged in the
marketing of its services. It has benefited the company in establishing its business in the foreign
markets. Thus, it suggests that marketing can foster the success and growth of the company
(Bailey , 2017).
Organizational Culture: It is assessed that the Airline industry provides traveling services to a
wide range of customers with diverse culture. Thus, building a common organizational culture
will help in unifying the whole workforce resulting in availing satisfied customers (Hogan,
2014). This can be understood from the literature review mentioned below:
Example: According to Jan Vom Brocke and Theresa Sinnl, 2011, it is stated that organizational
culture is one of the independent factors in the business process that contributes to the success of
the organization. Additionally, as per the review, it is assessed that work culture provides
identity to the business (Vom Brocke, 2011).
Technology: Technology is a significant factor that can boost the airline success rate. By
upgrading the technology, Virgin airlines can provide better convenience and can reduce its cost

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based on labor. Moreover, it will enable the company to be highly competitive for its competitors
in the aviation sector (Virgin, 2011).
Planning and Forecasting: Virgin Australia should communicate its services effectively to the
domestic market as well as global market. It would build a harmonious relationship between the
customer and the traveling service. It is evaluated that planning is a crucial tool in the aviation
industry because it assists in forecasting (Riley, 2019).
Outsourcing: Outsourcing helps the Airline in focusing the core activities to build superiority
and avail cost reduction. Additionally, it would aid Virgin Australia in earning economies of
scale and will result in better utilization of equipment. Additionally, its significance can be
understood from the example described below:
Example: ‘Google’ is a world-recognized company. Despite being, a highly successful company
it has started outsourcing certain services in the year 2011. Additionally, ‘Apple’ and ‘Facebook’
also set the example for the significance of outsourcing in the companies (Gomez , 2018).
Current positioning
Customer satisfaction
It is assessed that Virgin Australia has been successful in attaining customer satisfaction. Figure
one states that Virgin Australia has achieved a top ranking in respect of customer satisfaction in
the Australian domestic market in the year 2018.

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Figure1: Customer satisfaction rate in 2018
Source: (Roy Morgan , 2018)
Reputation/Brand Image
Virgin Australia is marked as one of the safest airlines on the earth (Smith , 2019). Additionally,
from the figure presented below, it is evaluated that Virgin Australia has a fine reputation among
the customers in the market. It also states that its customers are not fully content with the
services offered by the airline. However, it had achieved a higher rank for customer satisfaction
but it develops a duty to upgrade its services to a higher level.

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Figure 2: Virgin Australia customer’s ratings
Source: (Skytrax , 2019)
Organizational structure
It is analyzed that it has adopted a major change in its organizational structure. In order to lay
prior attention to the domestic airlines, Virgin Australia has handed over the ownership of
international airlines to a separate company named as ‘Virgin Australia International Holdings’
(Travel Daily , 2012). However,
Marketing/branding
In order to it prioritizes the use of social media and consider it as a tool for interacting with the
customers. It has assisted the company is adding value to its customer service and promoting
their brand (Virgin, 2011). It has also taken the use of commercial advertisement to promote its
airlines.
Organizational culture
It is examined that ‘inclusive culture’ is followed in Virgin Australia. It favors the successful
integration of diverse individuals into the workplace. It focuses on developing policies that
prioritize mutual respect. It also laid emphasis on the physical and psychological well-being of

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its human resource (Virgin Australia Airlines , 2019). Additionally, figure 3, states that it has a
fine culture is prevalent within Virgin Australia.
Figure 3: Virgin Australia employee ratings
Source: (Indeed, 2019)
Technology
It is examined that Virgin Australia is adopting new technological up-gradations. Globally, it is
the second airline to introduce an in in-flight-entertainment (IFT) for customers that have vision
issue (Newsroom, 2017). It provided the facility to its customers to have access to long hours of
entertainment. It had enabled the company to avail a better travel experience. It had also
provided ‘gate to gate technology’ access to its customers. It would provide the user with
maximum relaxation time during boarding. It has also enabled the facility of mobile booking. It
allows the users to check in with their mobile phone rather than with boarding pass (Virgin,
2011).
Planning Forecasting
It is assessed that Virgin Australia was proved in its forecasting. Previously, it has forecasted that
the company will grow in respect of revenue by 7%. It has been proved right in its forecasting as
similar results were obtained (Hatch , 2019).
Outsourcing

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It is examined that Virgin Blue has outsourced some services to encourage the growth of the
company. It has outsourced services for its back-office functions (King , 2015). Thus, it is
assessed that it has outsourced certain individual for services including port training (Safety
Culture , 2017).
Figure: Virgin Australia Customer review
Source: (Trip Advisor , 2019)
Needed strategies and steps
Strategy: In order to improve customer satisfaction, offering ‘personalized service’ will be best
suitable for Virgin Australia. Personalized service is a powerful tool that can enhance customer
contentment to a higher level. It has a major impact on the mind of the customers as it develops a
message that the organization is cautious to the needs and preferences of its customers
(Herskovitz, 2010).
Steps: Virgin Australia should emphasis on giving personalized services. It could be done by
knowing the regular customers through their names. It will help the company in making the
customers feel valued. The company should not only recognize its loyal passengers but also
reward them. It could be done by allowing discounts on flights tickets. It should encourage
customers to give their valuable feedback on both positive and negative experience. Give them
credit for their feedback on digital channels including social media and company’s website.
Virgin Australia should develop a customer loyalty program. It can also spotlight its customers
by featuring a customer every month on digital channels. Additionally, it will build trust and a
healthy relation between the company and the customers.
Strategies: ‘Brand persona’ and ‘Public Relations’ can benefit Virgin Australia in enhancing
their brand image. It is analyzed that developing brand persona assist the company in defining its

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image. It will help in differentiating the Virgin Australia airlines from other airlines in the
aviation sector. Through its creation, customers will be able to develop an emotional attachment
with the company. Thus, it acts as a powerful strategic tool to strengthen relationships.
Laying influence on developing Public relation will improve the Virgin Australia website
ranking. It will add up value to the credibility of the company and will strengthen the company’s
reputation. Thus, it develops the positive image of Virgin Australia in the global market.
Steps: Virgin Australia should develop a persona that relates to sophistication and desirability. In
order to build public relation, it should lay prior attention in determining its goals, knowing its
target customers, and designing strategies for each objective. Additionally, it should frame
tactics for each strategy and plan activities to fulfill those tactics. However, it should pay a
higher emphasis on setting a nominal budget for developing public relation.
Strategy: As mentioned above, Virgin Australia has transformed its organizational structure.
Thus, it is suggested that it does not require further strategies to build effectiveness in its
organizational hierarchy (Travel Daily , 2012).
Strategies: The effective strategy that can benefit Virgin Australia in branding and marketing are
‘Storytelling’ and ‘Word of mouth advertising’. Storytelling will engage potential customers at
an emotional level. It is analyzed that word of mouth marketing is unpaid and powerful. It will
have a dual effect on the company as it will save the company’s cost in marketing activities and
helps in gaining the attention of customers (Herskovitz, 2010).
Steps: Virgin Australia can successfully perform word of mouth marketing by sharing positive
reviews from its customers and other user-generated content to social media networks. In order
to perform Storytelling marketing, Virgin Australia can share information regarding its approach
towards solves passenger’s problems and sharing memorable experiences of its passengers
onboard on digital channels. It can also perform the above strategies by identifying digital media
influencers.
Strategy: There are not any specific strategies for developing effectiveness in organization
culture. However, it can make its organizational culture satisfactory by focusing on employee

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career development (Beheshti, 2018). Additionally, it will benefit Virgin Australia in gaining
employee retention and engagement.
Steps: It can focus on employee career development by conducting practices that favor
personality development. It can conduct professional training programs and seminars that will
foster their growth. It can provide its employees with e-learning material as it will be economical
for the company. However, these activities will be time-consuming at once but will deliver
returns to both Virgin Australia and its employees in the long-run. Moreover, it can also provide
personal development funds (Fairlie, 2011).
Virgin Australia higher authority must lay attention in providing their employees with
mentoring. It will result in the passing of key managerial skills to the employees. It will prove
much beneficial, as it will provide the employee with practical knowledge. It can also offer
innovative learning. Moreover, an employee should be given the chance to retain learning as per
their job need. Soft skills also play a major role in employee personality development. They
should emphasis on fostering emotional balance and intellectual growth. However, despite
developing soft skills it should also focus on employee well-being and physical health. This can
only be developed b thinking beyond the formal training. Therefore, they should lay prior
attention to developing the same (Forbes , 2017).
Strategy: It is examined the appropriate practice for technology up-gradation in Virgin Australia
airlines is to focus on technology advancements that are ‘User-Centric’. It will assist in providing
passengers with more choices and will be helpful in attracting other customers as well (Cooper &
Vyas , 2019). Moreover, it will enhance competitiveness in the aviation industry. It is examined
that Blockchain is one of the recent technology up-gradation that can be adopted by Virgin
Australia (Future Travel Experience , 2019).
Steps: It is evaluated that before commencing on the technological up-gradations, Virgin
Australia should develop a list of technological advancement that is within the financial budget
of the company. It can choose selection based on customer preference and need in the aviation
sector.
Strategy: Outsourcing is itself a strategy to reduce the company’s cost and retain efficient
services. Formerly, it is evaluated that the company has not received a positive review from its

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customer in respect of outsourced service. Thus, to improve outsourcing, Virgin Australia should
adopt a customer review strategy. It will improve the services and customers will be more
delighted. Moreover, it will help in addressing problems and finding an appropriate solution in
respect to outsourcing customer service.
Steps: In order to advance its outsourcing service by customer review strategy, it should ask its
passengers for their valuable review in person. This is because the individual-to-individual
request will have more effect on a customer than via digital channels (Outsource Workers ,
2019).
Current issue
It is examined that Virgin Australia is facing an issue with the check-in procedure at the airport.
It caused delay to the passenger causing them discomfort. Thus, the company must carefully pre-
check its computer system as discomfort among the passenger can greatly result in loss of
potential customers. Additionally, it will hinder the long-term brand image of the company
(Brown , 2019).
Conclusion
The research report summarizes on the subject ‘Organizational Change Management’. It is
assessed that organization culture, technology, planning, forecasting, reputation, outsourcing are
some of the key elements that can foster the Virgin Australia success in the global market. The
current position of ‘Virgin Australia’ states that the company attains a fine position in respect of
the future success factors. However, to enhance productivity, various strategies are given with
respect to the key success factor. Previously, it is evaluated that Virgin Australia has altered its
organization structure. Thus, no necessity is assessed to provide a strategy for additional
development with respect to organization structure. Moreover, it includes practical steps for the
successful adoption of strategies in Virgin Australia. Lastly, the report also highlights the recent
issue faced by the company. Hence, by focusing on the suggested strategies, Virgin Australia can
enhance its productivity.

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