University Case Study: Analysis of Flight Centre's Change Management

This case study analyzes Flight Centre's operations, focusing on change management and leadership strategies. The analysis evaluates the situation, need for change driven by increased competition, and its impact on organizational culture. It assesses the effectiveness of leadership techniques, particularly those employed by CEO Graham Skroo Turner, who emphasized employee contributions and innovation. The study suggests two initiatives to improve strategy implementation, focusing on employee training and performance management. The report also discusses the importance of adapting leadership styles to different situations, highlighting the dynamic business model of Flight Centre. The analysis covers aspects such as brand strategy, employee satisfaction, and the need for online business operations to maintain customer loyalty and competitiveness in the airline industry.

Running head: ANALYSIS OF CHANGE MANAGEMENT CASE STUDY
ANALYSIS OF CHANGE MANAGEMENT CASE STUDY
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Analysis and evaluation of the situation..........................................................................................2
Need for the change.........................................................................................................................4
Impact on the organizational culture...............................................................................................5
Effectiveness of the leadership techniques and styles used by leaders...........................................5
Two initiatives to improve implementation of the strategy.............................................................6
Use of different leadership style for different situations.................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Leadership can be defined as the capacity of the management of an organization of
setting and achieving the challenging goals. The decisive and fast actions that are developed by
the organizations in any particular situation are based on the inspiration that is provided by the
leaders. Leadership is also the capability of an individual to convert the vision into reality or
actions that can be implemented. The leaders of an organization have the responsibility to
develop a vision for the firm and the employees so that they are able to accomplish the set goals
and objectives (Asamani et al. 2016).
Flight Centre Limited has gained the position of largest travel agency based organization
in the world that mainly operates greater than 30 brands and some corporate or wholesale
businesses as well. In the year 2015 the organization had gained record revenue of 256.5 million
Australian Dollars. The company had been able to maintain its annual growth since the start of
operations in the industry. The report will be based on the analysis of the situation that has been
formed in Flight Centre and the issues that are faced by the leader as well. The initiatives can be
implemented by the firm in order to develop the implementation of strategy will also be
discussed in the report (Choi, Kim and Kang 2017).
Analysis and evaluation of the situation
The most significant part of the operations that have been developed by Flight Centre is
the contribution that has been provided by Graham Skroo Turner who had held the position of
CEO throughout the operations of the company. The understanding that Turner had been able to
develop about human nature has been a vital part of the leadership quality of the CEO. The

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strategies that have been applied by the leader are also based on the philosophical and the
conceptual underpinnings that have been gained by him. Turner has been an innovator and has
developed the operations of Flight Centre based on ideas (Fiaz, Su and Saqib 2017).
He had made some wise decisions of exploring new countries and markets and had
implemented experimentations based on various aspects of the organization. The performances
of employees have been monitored in different operations of the company. The strategy that had
been implemented by the organization was based on its people and Flight Centre has always
provided the highest levels of importance to the employees. The suggestions and opinions
provided by the staff have been taken into consideration and an egalitarian culture has been
developed. Innovation has always been the most significant part of the development of
operations of Flight Centre in the industry (Golmoradi and Ardabili 2016).
The business model of Flight Centre was also based on high levels of staff ownership.
The discounted flight rates were a major part of the strategy that had been implemented by Flight
Centre in its operations. The slogan that has been formed by Flight Centre is “Lowest Airfare
Guarantee”. The organic growth of Flight Centre has been able to support the operations of the
firm and its revenues as well. The expansion of Flight Centre in the student and corporate travel
has been a positive part of the operations of the firm. The major challenges that have been faced
by the organization are related to natural disasters and the global financial crisis as well (Holten
and Brenner 2015).
The collapse of Anset airlines in Australia and its liquidation has been able to affect the
profitability of the organization. The levels of customer loyalty in the organization have also
reduced due to crisis that has taken place on a global basis. The company has faced issues

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regarding the maintenance of costs based on the services that are provided to the customers at
low prices. The legal issues that have been faced by the company have influenced the reputation
of the organization (Iqbal, Anwar and Haider 2015). The competitive nature of airlines market is
considered to be a major aspect that is related to the issues that have been faced by Flight Centre
in the industry. The share prices of the organization had also dropped in the last few years due to
lack of revenues of Flight Centre (Islam, Tariq and Usman 2018).
Need for the change
The change was mainly required in Flight Centre due to boost in levels of competition in
the industry in the last few years. The business model of Flight Centre also requires to be
changed in order to maintain the revenue levels and profitability as well. The lack of customer
loyalty in the organization also needs to be increased by the providing better services rather than
reduction of prices. The company is currently facing extra expenses for the purpose of
maintaining the levels of customer loyalty (Liao et al. 2017).
The maintenance of cash reserves is also considered to be a major element of risk
management process in the industry. Flight Centre also faces competition from the major internet
based organizations like Airbnb and Booking.com. The increase in leisure travel also has an
influence on the business model that is currently being followed by the organization (Muthia and
Krishnan 2015). The increase in online travel operations also has been able to play a key part in
reduction of customer base of the organization. The company needs to develop internet based
operations in order to gain a huge customer base. The firm had already developed an
international presence in the airlines industry and the formation of online business operations
will further support the organization to improve the customer base (Nguyen et al. 2017).

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Impact on the organizational culture
Diversity has been an important part of the culture that has been developed by Flight
Centre in the airlines industry. The competitive challenge that has been faced by the firm is
mainly related to the increase in internet booking based activities. The company has provided
maximum levels of importance to the employees and their needs in order to keep them satisfied.
The satisfied employees of Flight Centre have played a key part in the proper development of
services that are offered to the customers (Popli and Rizvi 2016). The organization however has
to manage the physical as well as online bookings in order to maintain the loyal customer base.
The speed of operations has also increased and the employees need to provide highest levels of
contribution in order to satisfy the customers. The innovative culture of Flight Centre will be
able to support the proper implementation of changes in the operations (Popli and Rizvi 2017).
Effectiveness of the leadership techniques and styles used by leaders
The leadership qualities of Turner have been able to play a main role in the development
of strategic response to the different issues that had been faced by the organization. The leader
had developed a long term plan and provided importance to the formation of proper leadership in
the organization as well. The leader decided to focus on the implementation of ICT in its
operations and also to understand its potential (Rodrigues and Ferreira 2015). The brand strategy
of Flight Centre is also quite focused towards the 34 brands that are operating under the
organization. The new strategy is mainly based on the key developments that have been made in
the theme of operations of the organization. Five journeys have been as the major aspects that are
related to the evolution of the brand in the competitive airlines industry. Turner has developed
five parts of the journey that has been made by the firm in order to solve the issues (Shu 2015).

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 Specialization and brand – Evolving brands mainly specialize in the various areas
of travel and also have effective value propositions of the customers.
 Unique product – Development of the exclusive products that are termed as Flight
Centre Travel products.
 Experts not the agents – Ensuring that the people belonging to each of the brands
are specialized in providing effective services to the customers. The experts are
also provided support by the travel gurus who can provide additional expertise.
 Redefining shops of the organization – Ensuring that the wholesale, corporate and
the retail spaces of Flight Centre are able to reflect the vision of the firm.
 Blended access – Ensuring the availability of the brands of Flight Centre to the
customers (Veliu et al. 2017).
The leadership qualities that have been developed and implemented by Turner have been
able to support the operations of Flight Centre. The participative leadership style has thereby
been used by Turner in order to use the ideas and opinions provided by the employees. The
innovative leadership style developed by Turner has been able to play a vital part in formation of
revenues of the organization. Turner has also been able to develop a dynamic business model for
the organization in order to accept various trends in the industry. The orientation of the business
model of Flight Centre has been able to play a major role in ensuring the growth of the firm in
airlines industry (Yahaya and Ebrahim 2016).
Two initiatives to improve implementation of the strategy
Turner has been able to maintain the operations and profitability of Flight Centre in the
competitive airlines industry. However, further improvement of the operations of the firm will

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based on the major initiatives that can be implemented by the leader. The two major initiatives
that can be implemented by the leader are as follows,
 Providing training to the employees in order to maintain the customers online and
in their physical stores as well. Online travel management of the customers will
be able to play a major role in increasing their loyalty levels in an effective
manner. The competition that is being faced by Flight Centre in the industry can
only be managed with the help of effective services that are provided by the
employees (Popli and Rizvi 2016).
 Turner needs to improve the productivity of the employees with the help of
incentives that can be provided to them based on the services that they are able to
provide to the customers. The realistic process of performance management can
be implemented by the leader in order to manage the performance levels of the
employees and analyze services that are provided to customers (Iqbal, Anwar and
Haider 2015).
Use of different leadership style for different situations
The leadership style that can be used in various situations is considered to be quite
different. The style of leadership that has been implemented by Turner is mainly based on the
dynamic nature of the business model of Flight Centre and variations that have taken place in the
industry as well. The participative leadership quality that has been implemented by Turner can
also help in improvement of innovative nature of the organization (Choi, Kim and Kang 2017).
The opinions that are provided by the employees can also play an important part in growth of the
dynamic processes of Flight Centre. On the other hand, a company that does not require frequent

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changes in the business model can be operated in an effective manner by the leaders who follow
a different style other than participative style of leadership (Fiaz, Su and Saqib 2017).
Conclusion
The report can be completed by stating that Turner had been able to manage the
operations of Flight Centre in a profitable manner. The changes that had taken place in the
external environment had a major influence the operations and the services that are offered by
Flight Centre as well. The changes had to be made in the business model of Flight Centre in
order to manage the operations and profitability as well. The innovative nature and participative
leadership style of Turner has proved to be useful for the ways by which Flight Centre is capable
of maintaining the operations and customer demands in the industry as well.

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References
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