MGT603 - System Thinking Application on Flight Centre Travel Group

This report employs systems thinking to analyze the challenges faced by Flight Centre Travel Group Limited (FLT), particularly concerning refund issues and operational difficulties arising from the COVID-19 pandemic. It utilizes a rich picture to condense the complexities of the situation and a root definition report based on the CATWOE framework (Customers, Actors, Transformation Process, Weltanschauung/Worldview, Owners, and Environment) to systematically examine the problem. The analysis identifies key stakeholders and environmental factors affecting FLT's operations in Brisbane, Australia. Furthermore, the report proposes two potential solutions: updating refund terms and adopting digitalization strategies to enhance revenue streams and customer experience. The conclusion emphasizes the importance of adapting to changing policies and maintaining a legal structure to ensure the firm's sustainability.

System Thinking

Table of Contents
Introduction......................................................................................................................................3
Rich Picture......................................................................................................................................3
Root definition report.......................................................................................................................3
Two optional solutions.....................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
One of the most important system tools that may assist an individual in viewing systems
from a wide perspective is systems thinking. Instead than focusing on a single occurrence, this
primarily incorporates the whole artefact, cycle, or pattern inside the systems (Booton, 2018).
The current assignment will include a rich image, a root definition report (C.A.T.W.O.E.), and
two main remedies to difficulties encountered when completing assessment-1.
Rich Picture
A rich picture is a soft systems methodology technique that aids in the condensing of a
complicated scenario into a brief form of an overall issue. Flight Centre Travel Group Limited
(FLT), is also one of the world’s largest travel groups along with the largest network of leisure,
corporate sales representatives and business. The provided organisation being working in the
aviation sector had faced several challenges and issues due to COVID-19 in which the respective
workforce faced problems in issuing refunds to the customers due to flight cancellation (Fatemi
and et. al., 2019).
On the other hand, it has been shown that the difficulty that FLT was experiencing was
shared by nearly every firm in the aviation sector since issuing refunds to customers with
advanced booking was a huge task for the corporate body. In this regard, one of the authors of
research stated that in Australia, business people in the provided sector with a modest income are
mostly driven out to the outskirts of cities such as Brisbane, Australia. This might result in a
forfeit issue at the given travel group.
The FLT is confronted with this dilemma because it operates in Brisbane, Australia,
which is one of the world's largest travel group in which both intentional and unintentional
consequences was faced by the firm. On the other hand, it has been discovered that the
Australian government should develop a proper national cancellation policy now, in which local,
state and national authorities must invest in the aviation industry so that travel groups like FLT
can easily perform operational work post-pandemic times obtaining associated legislative
documents (Gopalan and Lin, 2022).
Root definition report
The Root Definition report is a systematic study that may assist a person in analysing the
system in a more effective and efficient manner. In the current situation, CATWOE C-

Customers/clients, A – Actors, T – Transformation Process, W – Weltanschauung / Worldview,
O – Owners, and E – Environment) the study is being carried out in order to comprehend the
whole problem as well as stakeholders and elements related to the firm (Hermanto and et. al.,
2021).
Since FLT is leased, it is necessary for the travel group owner to continuously renew the
agreements in order for the firm to operate in a more effective and efficient manner when
engaged in dealing with stakeholders of the firm. However, because of the high complexities of
operations being performed in the firm when dealing with international customers, there is higher
chances of producing unproductive efforts at the workplace. In the current situation, the
CATWOE tool is being used to create a root definition report, and the following are its
components:
 Customers: It has been discovered that clients are primarily seen as stakeholders, who
play a critical role in the system's survival. FLT, which operates in Brisbane, Australia,
but generates minimal income, may be affected by a variety of factors. FLT is not
performing due to high rent, and this has damaged their performance level, causing them
to give substandard services. This travel group must improve in order to do successfully
since if the quality of their services deteriorates, it will have an adverse effect on their
public image.
 Actors: Employees are discovered to have a critical role in the current setting, and they
may be regarded as the topmost stakeholders in this section of the CATWOE study. FLT
is based in Brisbane, Australia, one of the world's richest cities. As a result, staff may
demand immense compensation if any issues are made by company management in
issuing the refunds to all the cancelled tickets due to COVID-19 regions (Moumivand,
Azar and Toloie Eshlaghy, 2022).
 Transformation process: Transformation entails bringing about changes due to COVID-
19 for variety of operations in the travel group i.e., FLT may have a direct influence on
the entire firm taking into consideration of its stakeholders. Based on the study, it has
been determined that agreement-related regulations and legislation enacted by the
Australian government must be well understood at the time of signing a deed. In March
2020, the ACCC decided to lift the cancellation fee for bookings cancelled due to
pandemic restrictions (ACCC, 2020). This can assist both parties in understanding what

they are agreeing on. The reason for this is to ensure that no fraudulent activity occurs.
FLT has since secured a space to conduct its business. It is necessary for a corporation to
concentrate on various scenarios in order to reap the most rewards (Shi and et. al., 2019).
 World view: This stage, in the current context, comprises situating the process or system
under investigation in its larger context in order to emphasise the impacts or importance
of the process to the broader system.
 Owners: It has been discovered that most entrepreneurs or investors fall under this
category of analysis, since they are the ones who are most likely to make judgments
about changing agreements with lenders and so on.
 Environment: This is typically surrounded by external limitations when a proper system
works, which might suppress or restrict system improvements. Since FLT has been
operating in Brisbane, Australia aviation sector, they have encountered a variety of
dynamic scenarios, including changes in tax and agreement rules. As a result, it is
necessary for this travel group to focus on these adjustments as well, so that the firm's
reputation is not harmed and they may conduct business in Brisbane, Australia
(Trongtortam and et. al., 2018).
Two optional solutions
The provided travel group i.e., FLT is facing challenges in operations since the outbreak
of COVID-19 which is of issuing refunds to customers and cutting the number of employees due
to paused operations during pandemic times. The following are some potential solutions for the
above-stated problem;
 Updating terms of refund: The managers of the travel group can update their respective
terms of refund when dealing in the corporate business environment. The solution will be
in rationale to support productive workings and avoid losses in future operational
markets.
 Digitalisation: The corporate firm can adopt solutions relative to digitalisation that can
help the firm set up additional sources for extracting revenue from business operations.
This will produce effective working of the firm which will also enhance the experience of
customers and deliver better operational workings.

Conclusion
From the analysis of the above report document, it can be concluded that several policies
and relative legislations were being imposed through an outbreak of COVID-19. In the process,
better terms for working for the travel firm were based on coordinating tasks with maintaining a
legal structure of the firm. The provided report was based on the workings of assessment-1 that
highlighted challenges faced by the firm through the use of a root definition report that was
inclusive of the CATWOE tool. Lastly, two optional solutions that can address the issue were
also provided in the above report.

References
Books and Journals
Booton, C. M. (2018). Using rich pictures to verify, contradict, or enhance verbal data. The
Qualitative Report, 23(11), 2835-2849.
Fatemi, S. Z., Azar, A., Moghbel, A., & Khadivar, A. (2019). Exploring the Concept of Strategic
Renewal with Soft System Methodology. Strategic Management Thought, 13(1), 165-
188.
Gopalan, R., & Lin, T. (2022). Tackling gun violence: is systems thinking
necessary?. OPSEARCH, 1-22.
Hermanto, R., Putro, U. S., Novani, S., & Kijima, K. (2021). Overcoming the challenge of those
new with SSM in surfacing relevant worldviews for action to improve. Journal of the
Operational Research Society, 1-16.
Moumivand, A., Azar, A., & Toloie Eshlaghy, A. (2022). Combined soft system methodology
and agent‐based simulation for multi‐methodological modelling. Systems Research
and Behavioral Science, 39(2), 200-217.
Shi, Y., Arthanari, T., Liu, X., & Yang, B. (2019). Sustainable transportation management:
Integrated modeling and support. Journal of Cleaner Production, 212, 1381-1395.
Trongtortam, S., Francis, H., Taylor, M., Sudirman, S., & Symons, A. (2018, September).
Development of a Preliminary Model Guide for Using Mobile Learning Technology
in Resource–Limited Primary Schools in Thailand. In 2018 11th International
Conference on Developments in eSystems Engineering (DeSE) (pp. 83-88). IEEE.