MGN409: Flight Centre Environmental Analysis Marketing Report

This report presents an environmental analysis of Flight Centre Travel Group, a major travel agency, using the PESTEL framework. It examines the political factors, including government stability and taxation policies, and the economic factors such as interest rates and exchange rates, which influence the company's operations. Social aspects, including cultural values and consumer behavior, are analyzed to understand market segments and marketing strategies. The technological factors, particularly the impact of social media, and the environmental factors, including sustainability and eco-friendly practices, are also discussed. Lastly, the report considers the legal factors, such as employee and customer protection laws, and intellectual property regulations. The analysis concludes with a summary of the key findings and their implications for Flight Centre's strategic decisions. This report was submitted by a student and is available on Desklib, a platform providing AI-based study tools.

Marketing
Management theory and practices
Student’s name
9/11/2019

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Contents
Introduction......................................................................................................................................2
Environmental analysis....................................................................................................................2
Political Factor.................................................................................................................................2
Economic factor...............................................................................................................................3
Social factor.....................................................................................................................................3
Technological factor........................................................................................................................4
Environmental factor.......................................................................................................................4
Legal factor......................................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Flight centre travel group is an Australian based company which has its extended
networks throughout the various countries such as New Zealand, US, Canada, Singapore and
UAE. It is one of the largest and famous travel agency groups, which mainly operates in the
almost 23 countries. As the company’s main motive is to be a world largest yet profitable travel
retailer by delivering various and amazing experience to their ultimate clienteles (Flight centre
travel group, 2019).
Moreover, flight centre travel group mainly highlights about their people as colleagues to
which they generally helps in providing health and wellbeing and also financial security. Other
than this, they also believes in maintaining egalitarianism and unity within the workplace area
along with it they also thinks of taking their respective responsibilities of customers as well as
business so as to generate the brighter future of the company in long run (Flight centre, 2014).
Environmental analysis
Environmental analysis mainly highlights about the changes seen in the macro
environment factors, which has its direct impact over the companies and over the other
companies or player who are working in the same field. It mainly comprises of political, legal,
environmental, economic, technological and lastly social aspect, which mainly affect the firm
competitive advantage and overall profitability levels at large (Boons, et al, 2013).
Political Factor
Political aspect mainly affects the profitability aspect of the organization at large. It
mainly highlights about the political stability as such positive aspect provides the stable and
friendly business environment and leads to growth of the market in long run. As instability,
aspect increases the tension of the company in long run and due to this, it limits the growth and
opportunities of flight centre travel group. Moreover, government interferences and change in
policies according to country also affects the companies output. Similarly, the company majorly
faces it as every countries governmental issues will be different. Moreover, in terms of political
aspect, company is also affected by taxation and trade restriction in which higher taxation affect

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international trade and exports at large, and lower tax increases the benefits of company.
Moreover, in terms of trade restriction higher makes business more multifaceted and vice versa
(Gregorić, 2014).
Economic factor
Economic aspect mainly highlights about change in the inflation rates, foreign rates
exchanges, the GDP aspect and also tells about the current stage of economic cycle on which the
companies lies. Such aspects mainly affect the aggregate demand, investment and business at
large. In terms of economic system Flight, centre travel group is mainly works in perfect
competition market, which in near future tends to grow. In terms of interest rate, higher interest
rate leads to greater investment, which is a positive sign of growth for company (Gregorić,
2014).
Other than this, the exchange of the country also affects the profitability aspect of the
company and hence, it helps the company to get engage in international trade aspect also.
However, is there is no stability or unstable currency aspect of the particular country this will
further leads or discourages the international investor to invest. Along with this, if a country is
having a higher unemployment there will be a greater supply of jobs also at lower wages, which
helps the flight centre travel group to save its cost at large (Bowden, & Martin, 2013).
Social factor
Social factors directly reflects about the society which mainly includes encompasses
about culture, beliefs, attitude and values which a community holds. Moreover, it also underpins
the knowledge about the customer, their lifestyles, level of education and beliefs in a society.
Therefore this aspect helps the company to design its products and services accordingly which
will further leads to venture become success in long run. Moreover, demographics aspect also
affects the Flight centre travel group in which when company select right market segment,
further they have to set certain marketing strategies in order to influence customers at large
(Hays, 2014).

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Moreover, company should also develop its local teams and local partnerships to
understand the societal attitudes and accordingly they should alter marketing strategies all for
culture aspect. Other than this, social media in form of various applications encouraged the
shopping behavior of the customers so accordingly, flight centre travel group should understand
about the growing use of social media and customers who are using it more so accordingly they
can set or develop the future communication and marketing strategies (Reuters, 2019).
Technological factor
A rapid technological change or advancement helps in increasing the importance of
technological factor and further taken into consideration while forming strategic decision making
for the company’s success. As it is seen that boosting innovative technology in the company
while leads in enhancing the operational efficiency, increase profitability and leads to success of
company in long run. Flight centre travel group should apply various innovate techniques which
helps in bringing major transformation in the industry and reset the success rules for the market
players (Robinson, et al, 2016).
Another factor in this aspect highlights about social media marketing, in which company
applies innovative marketing techniques in order to enhance collaboration with ultimate
customers in long way. As nowadays, company applies social media techniques to improve
connection with customers and attract them at large. Such aspect helps in improve the business
performance at large (Kärcher, 2013).
Environmental factor
Environmental factor mainly highlights about the standards, laws, sustainability aspect
and regulations. For flight centre travel group, protecting of environment is very important. As,
it is noticed that tourism mainly relies on which are fragile and is to be protected. They also
promote environmental awareness, conserve and protect environment, respect wildlife, flora, and
biodiversity and respect cultural diversity every time (Hays, 2014).
The company main goal is to support tourism activities, other than this, their key
priorities is to establish clear and measurable goals in term of environmental aspect. They are

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also working in partnership with green building council of Australia and organization that is
more similar this. Other than this, flight centre is also focusing over marketing which is in
concern of eco-friendly nature of product over customary value propositions. It is also seen that
weather and climate changes also affects business efficiency and customers spending patterns,
which cause organization to revise its products and marketing strategies accordingly because it
will further, helps them in generation of profits and success in long run (Reuters, 2019).
Legal factor
Legal factor mainly highlights about employee protection laws, customers protection
laws and lastly, intellectual property laws. Providing secure working environment to the entire
workforce is one of the ethical and moral obligations, which is adopted by flight centre. Other
than this, customers’ protection can be done when a company set the maximum and reasonable
price to product, ensure certain quality standard and helping and saving customers from
fraudulent acts as such aspects helps the company to improve reputation and generate success
(Hays, 2014). Other than this, property regulations are also design to safeguard organization
value and their ideas, which help the company in lending niche strategy against other market
holders who are dealing in the similar field, win over them, and earn more profit than usual.
Conclusion
From this report, we can conclude that flight centre travel group environmental analysis it
highlights about the political aspect in which it states that political stability and taxation policies
works must. Other than this, government intervention also plays greater role in this aspect. Other
than this, this report also highlights about the environmental, economic, technological and social
aspect in which customers are the key ingredient as satisfying them in appropriate manners not
only leads to success of organization but also generate more profitability aspect and leads to an
increment in reputation.

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References
Boons, F., Montalvo, C., Quist, J., & Wagner, M. (2013). Sustainable innovation, business
models and economic performance: an overview. Journal of Cleaner Production, 45, 1-8.
Bowden, J., & Martin, A. (2013). The Influence of Empowerment on Organizational Success: A
Case Study on Flight Centre. Global Cases on Hospitality Industry, 141.
Flight centre travel group. (2019) about flight centre travel group. Retrieved from:
http://www.fctgl.com/about-us/
Flight centre.(2014). About flight centre. [Retrieved from]
https://www.flightcentre.com.au/about-us
Gregorić, M. (2014). PESTEL analysis of tourism destinations in the perspective of business
tourism (MICE). In 22nd International Congress, Tourism & Hospitality Industry 2014,
Trends in Tourism and Hospitality Management.
Hays, K. (2014). Flight centre travel group. Retrieved from:
https://prezi.com/uonwf_bkocfg/flight-centre-travel-group-ltd/
Kärcher, K. (2013). Reinventing the Package Holiday Business: New information and
communication technologies. Springer-Verlag.
Reuters.(2019). Flight centre travel group ltd. Retrieved from:
https://in.reuters.com/finance/stocks/company-profile/FLT.AX
Robinson, P., Fallon, P., Cameron, H., & Crotts, J. C. (Eds.). (2016). Operations management in
the travel industry. Cabi.