HC3141 International Strategic Management: Flight Centre Report

This report provides a strategic management analysis of Flight Centre Travel Group, a major international travel agency. The analysis includes a SWOT analysis to assess the company's internal strengths and weaknesses, as well as external opportunities and threats. Furthermore, a PESTEL analysis is conducted to evaluate the macro-environmental factors impacting the company's operations, including political, economic, social, technological, environmental, and legal considerations. The report also examines the company's competitive advantages, growth strategies, and market development approaches. Recommendations are provided to enhance the company's services through customized packages and product diversification. The report concludes with a list of references used for the analysis.

International
Strategic
Management
Flight Centre Travel
Group

Introduction
– Strategic Management is the process of following evaluation of
decisions and actions which are carried out in a company.
– The evaluation can be followed with the help of analysis of the
micro and macro environment of the company (Rothaermel 2016).
– Short and long term goals can be set and achieved by employing
strategic management in a company.

Company Overview
– Flight Centre Travel Group is one of the largest travel agency in
Australia which has expanded in various locations across the
globe.
– The company operates through retail stores as well as online sites.
– The services which are offered by the company include hotel
management, tour operations, destination management and so on
(Fctgl.com 2020).

SWOT Analysis
– SWOT Analysis is very effective to evaluate the micro environment
in which a company operates in.
– The Strengths, Weaknesses, Opportunities and Threats can be
analyzed with the help of SWOT Analysis (Gürel and Tat 2017).
– The evaluation can be made use of which is effective to make
changes and develop strategies to be followed in order to be
ahead of the rival forces in the industry.

Strengths and Weaknesses
– The company has intense geographic presence across various
countries which is considered to be a strength.
– Flight Centre Travel Group has diverse portfolio and presence on
social networking sites which helps them maintain enhanced
relationship with customers which is a strong point of the company.
– The weakness of the company can be accredited as the
management of waste and failure to understand the expectations of
customers in some instances.

Opportunity and Threats
– There are opportunities which can be addressed based on
customer segmentation
– Flight Centre Travel Group should aim at understanding social
media trends and potential in the developing countries.
– The threats include inadequacy of skilled labor and instability of
interest rates and inflation in the market.

PESTEL Analysis
– The framework of PESTEL Analysis is effective to understand the
macro environment in the business (Menet 2016).
– Flight Centre Travel Group operates in a dynamic and complex
environment which requires assessment of the environment to be
sustainable .

Political and Economic Factors
– Political stability and introduction of newer policies are to be paid
attention to, in order to avoid risks (Sohel, Rahman and Uddin
2014).
– Corruption and Bureaucracy may influence the operation of the
company negatively.
– GDP and exchange rages are factors which might affect the
profitability of the company in countries.
– If the wage rates of labor is high, the cost of production might rise.

Social and Technological
Factors
– Demographic trends should be paid attention to, in order to
understand the expectations of the company (Sohel, Rahman and
Uddin 2014).
– Power Structure of the society and gender inequality might affect
sales and profitability if there is inequality and unequal
distribution of power.
– Digitalization and disruptive technology might benefit the
company which will bring competitive advantage to the company.

Environmental and Legal
factors
– Waste Management is very necessary to avoid law suits and media
backlash.
– The company should introduce recyclable technology and eco
friendly services which will strengthen trust in the new countries.
– Some countries have strict laws and regulations which might affect
the company and its operations to a great degree.
– Privacy, rights and security of the consumers are to be protected by
the company to maintain standard and quality.

Competitive Advantage
– Flight Centre Travel Group Limited provides services through
online platforms as well as retail stores which adds competitive
advantage (Fctgl.com 2020).
– The major rivals are Travel Perk, Victorianz and Headout in the
industry even though Flight Centre Travel Group Limited have
greater presence in various places across the globe (Menet 2016).
– Flight Centre Travel Group Limited have gained great market
share eventually through its years of operation.

Growth Strategy
– The company follows Market Development according to Ansoff MAtrix and
entering newer market for expansion.
– Flight Centre Travel Group Limited has been able to sustain changing
market conditions and trends with the help of those.
– The company offers existing products in newer markets which has been
proven to be effective in the newer markets (Menet 2016).
– Slower growth can be managed with the help of diversification, which will
help them cater to various groups of people in the society
(Businessnewsaus.com.au 2020).