Change Management Strategies: Virgin Airlines Australia Report

This report provides an in-depth analysis of change management strategies employed by Virgin Airlines Australia. It begins with an executive summary outlining the company's customer-centric approach to maintain market sustenance and expand its reach. The report explores the issues faced by Virgin Airlines, including increased competition from low-cost carriers like Jetstar, and the need for change management to improve market share and cater to executive clients. The report delves into the scope, effects, and impacts of the changes, including expansion of services, route improvements, and motivational activities. Furthermore, the report incorporates Kotter's change management model and discusses the implementation procedures, including customer satisfaction and quality management. The report emphasizes the importance of strategic planning and systematic change management for Virgin Airlines to effectively address market challenges, enhance service quality, and sustain its competitive advantage. The report also covers the change management plan which includes the issues faced during implementation, the implementation procedure, and the time limit for implementing the change in the airline.

Running head: CHANGE MANAGEMENT
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Name of the student
Name of the university
Author note

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Executive summary
The changes that are considered by the organizations are based on the preferences and the needs
of the people availing the products or the services. It is a customer oriented approach of the
organizations while on the other hand it helps in maintaining the sustenance of the organizations
in the markets. The report aims at understanding the changes that are being undertaken by the
company, Virgin Airlines, in order to sustain in the competitive markets and enhance the scopes
of its expansion. Proper planning and the management of the change, which is enumerated as a
part of the report, will be helping in the proper determination of the changes that are being
planned by the organization to improve their market share.

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Table of Contents
1. Introduction to the organization...................................................................................................3
2. Issues faced by the organization..................................................................................................3
3. Need for change management.....................................................................................................5
4. Scope, effects and impacts of the change....................................................................................5
5. Change management plan............................................................................................................8
6. Conclusion.................................................................................................................................15
References......................................................................................................................................17

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1. Introduction to the organization
Change management has been a trend in the companies for maintaining their respective
sustenance in the markets. Proper understandings of the requirements of the clients and the
modifications that are required to be brought in the structure of the organizations have helped the
organizations in making their progression in the markets.
The concerned company for this report, Virgin airlines Australia, has undertaken
considerable changes based on the requirements of the people. It has helped in understanding the
objective of the organization in order to sustain in the markets. The company is aimed at
providing low-cost travelling experience to the people. This strategy of the company has helped
in the quick development in the markets. Market evaluation that are considered by the companies
have helped them in understanding the trends in the market and thereby determine the different
changes that is required to be undertaken by the organizations for perfecting their sustenance in
the markets. On the other hand, the objective of every company is to retain the brand name in the
markets and thereby retain the loyalty of the customers. It helps in improving the situation of the
organization in the markets.
The report aims at discussing the various factors that made change mandatory for the
organization. It also helps in understanding the elements of the change and the extent to which
the change will be helping the organization in maintaining its sustenance in the markets.
2. Issues faced by the organization
The basic need of the change by Virgin Airlines Australia is based on the opportunities
of the company’s growth in the international markets and the necessity of the organization to

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outnumber the competition in the markets (Imran et al. 2016). For the first part, the company is
aimed at undertaking the change based on the services that are being provided by the company to
the executive clients (Cummings and Worley 2014). For the second part, the entry of the Jetstar
by Qantas in the market as a low-cost airline service has affected the market share of Virgin
Airlines. The excess of competition in the market and the better deals that are being provided by
Qantas has affected the situation of the concerned company in the markets. Therefore, the
company is looking forward for bringing in change in the structure and the management of the
organization for maintaining the sustenance (Benn, Dunphy and Griffiths 2014). On the other
hand, the company undertakes the change based on the expansion of the scope of its business to
the executive passengers. It has helped in the proper functioning of the organization and thereby
bring in changes in the situation of the organization in the market.
The probable steps that are considered by the organization have helped in the proper
understanding of the objectives of the organization to sustain in the markets (Bradley 2016). The
services that are being provided by the organization are based on the requirements of the people
to avail quality services at a lower cost. It has helped in enumerating the competitive advantage
of the organization in the market (Hanleybrown, Kania and Kramer 2012). The change that is
being undertaken by the organization will be helping the organization to outnumber the
competition that is posed by the entrance of Qantas and thereby bring in quality in the services
that are provided by the company to the executive clients of the business. Therefore, the
company has aimed at undertaking the change in the situation of the organization in the market
(Al-Haddad and Kotnour 2015).

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3. Need for change management
The company has a need of undertaking the change based on the situation of the
organization (Chang 2016). The requirement of the change is based on the improvements that are
undertaken by the organization for competing in the markets. The changes in the management of
the organization and the facilities that are being provided by the organization to the clients will
be helping the organization in bringing in modifications in the situation of the organization. The
introduction of the Jetstar by Qantas as brought about a fall in the market shares of the virgin
Airlines (Eden and Ackermann 2013). The facilities that are provided by the organization have
helped in bringing forth changes in the structure and the undertakings of Virgin airlines. The
proper management of the change in the organization will be helping the organization in
benefitting from the changes in a systematic manner.

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Figure 1: Change management according to Kotter
(Source: Appelbaum et al. 2012)
According to Kotter, the change that is being undertaken by the organization should be
systematic in order to enhance the effectiveness of the change in the processes. The company
therefore makes use of the processes of the change for the proper development of the
organization in the markets (Kotter 1996). The company undertakes steps for bringing in changes
in the management of the organization for bringing in changes in the situation of the market
share of the organization. The need for managing the change is based on the effectiveness of the
decisions making of the organization for the probable changes (Francis, O’Connor and Curran
2012).

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4. Scope, effects and impacts of the change
4.1 Scope
The scope of undertaking the change is based on the possibilities of the company to excel
in the markets. The resources of the company are sufficient for undertaking the change in the
structure and the undertaking of the business enterprise (Hrebiniak 2013). The proper
understanding of the different aspects of the change is facilitated by Lewis’s model of change. It
helps in the proper understanding of the steps that the organization is required to undertake for
the implementation of the change (Alexander 2013).
The change is based on the competencies faced by the organization in the market. The
issues that are being faced by Virgin in the Australian markets is based on the entry of the Qantas
in the market with their offering of an economic ride (Röglinger, Pöppelbuß and Becker 2012).
It has helped Qantas in winning over the loyalty of the customers and thereby gain a greater part
of the market share (Brown and Osborne 2012). On the other hand, company has also started
facilitating the executive clients with their services, which has helped Qantas in improving the
efficiency of their functions through the increased profitability (Goetsch and Davis 2014). The
management of the change that is being undertaken by the organization is an important
consideration in order to retain the effectiveness of the change. It also helps in facilitating the
proper implementation of the strategies at the right phases of the service promotion cycle
(Nastase, Giuclea and Bold 2012).
The concerned company has a high scope of undertaking the change based on the
resources that are available to the company’s undertakings. The major aspects of the change are
based on the customer satisfaction, which is the major objective of the organization in the

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market. The modifications that are being undertaken by the management of the organization in
the aeroplanes have helped ion enhancing the services that are provided to the clients (Galliers
and Leidner 2014). On the other hand, the alliances that are formed by the organization will be
helping in increasing the efficiency and the resourcefulness. It will be helping the organization in
undertaking the change more efficiently (Galliers and Leidner 2014).
4.2 Effects and impacts
The increase in the number of the flights and increasing the routes will be helping the
organization in expanding the scope of the organization to bring in changes in the enterprise. On
the other hand, the motivational activities that are being undertaken by the organization will be
helping in the smooth functioning of the organization in the markets (Cameron and Green 2015).
The effect of the change that is being planned by the organization has helped in bringing forth
improvements in the situation of the organization. It helps in enhancing the market share of the
organization. The changes that are being undertaken by the organization will be helping in
promoting the efficient brand positioning of the services that are provided by the organization in
the market.
The basic changes that are being undertaken by the concerned company, Virgin Airlines,
is based on the competition that is faced by the organization with the emergence of Qantas,
Jetstar and the Tiger Australia as the providers of the economic rides. It has affected the market
share of the concerned organization, which directly impacted the situation of the company in the
markets. On the other hand, the company has opportunities for expanding the scope of its
enterprise based on the requirements of the business class executives. It will be helping the
company in bringing forth changes in the structure and the functioning of the organization.
Therefore, the company has undertaken a market research in order to understand the extent of the

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change that is required to be undertaken by the organization. On the other hand, the plan that is
formulated by the organization while making note of the required changes is facing issues while
implementing.
The change that the organization is planning to undertake is based on the improvements
that the organization is planning to undertake in the market situation and the share (Langley et al.
2013). The changes in the services and the availability of the same will be helping the
organization in bringing forth modifications in the situation of the organization in the markets. In
order to undertake the change, the company must undertake steps for strategizing for enabling
the efficiency of the processes that are being planned by the organization (Booth 2015). The
company has taken steps to modify the interiors of the vehicles in order to make their services
more viable to the clients. On the other hand, the company aims at providing business class
services to the clients in order to retain the loyalty of the customers in the market. The plan helps
the organization in taking steps for bringing in the changes in the structure and the situation of
the organization in the market.
Figure 2: Quality management

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(Source: Hayes 2014)
The company has taken steps in order to bring in improvements in the quality of the
services that are being provided to the clients for retaining the market. The change that is being
undertaken by the companies is based on the requirements of the clients. Changes also help the
company in making improvements in the structure and the functioning of the organization in the
markets (Raithatha and JVIMS 2015). Proper planning of the change management helps in
undertaking steps in order to bring forth improvements in the structure of the organization.
Quality management is one important objective of the organization in the proper understanding
of the processes that helps in maintaining the position of the organization in the market.
5. Change management plan
Changes Issues faced while
implementation
Implementation
procedure
Time limit for
implementing the
change in the process

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1. Refurbishing
the aircrafts
The issues that are faced
by the organization
while undertaking the
changes are based on
the costs that the
company is required to
undertake for the
change. The issues that
are being faced by the
company are based on
the increased cost of
bringing in the
modifications.
The implementation
procedure is based on
the requirements of the
clients and the service
offerings of the
company. The services
that are offered by the
company based on the
prices are the major
determinant for the
implementation of the
facilities. Comfort is the
main criteria that is
being focused;
therefore, the proper
positioning of the seats
and the interiors will be
helping the organization
in making a comeback
in the markets.
8-9 months
2. Business class
service to the
executive
clients
The business class
service that the
company aims at
undertaking is
facilitated by the
preferences of the
The implementation of
the strategy is based on
the proper assessment
of the requirements of
the business class elite
customers. The
6-9 months