Victorian Taxi Association: Management and Business Context Analysis

This essay provides a comprehensive analysis of the Victorian Taxi Association (VTA), a major taxi service provider in Australia. It begins with an overview of the VTA, its history, and its role in the Victorian economy, highlighting its strengths such as its long-standing presence and quality service. The essay then delves into the internal and external environments affecting the VTA, using SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. Key internal factors include effective management and quality service, while weaknesses involve disputes and external factors include a stable political climate and the rise of competitors like Uber. The essay also explores risks such as environmental damage and competition, and discusses strategies for enhancing organizational performance, such as effective communication and regular performance assessments. The analysis emphasizes the importance of continuous assessment of both internal and external environments for strategic planning and risk mitigation.

Running head: MANAGEMENT AND BUSINESS CONTEXT
Management and Business Context
Name of the Student:
Name of the University:
Author’s Note:

1MANAGEMENT AND BUSINESS CONTEXT
The present day business world has become much more competitive than it was a few
decades ago. This can be attributed to various factors like the advent of globalization, the
advancement of technology, the innovative strategies used by the various companies and
business organizations and others. Therefore, the various companies and business
organizations often undertake an analysis of their internal as well as external environments in
which they operate in a bid to device strategies by means of which they can outrival their
competitors (Hitt, Ireland & Hoskisson, 2012). In addition to that, “the identification of the
various risks and the formulation as well as the effective implementation of these strategies
also forms an important part of the overall business plan” of the companies or the business
organizations concerned. It is to be noted that organizational performance is another factor
which the various companies as well as the business organizations take into consideration.
This essay intends to give an overview of the Australian company “Victorian Taxi
Association” and the factors which affect their business.
The “Victorian Taxi Association” also known by the acronym VTA is one of the
major taxi service providers in the country of Australia (Victaxi.com.au, 2018). This
particular association has been in business in more than 50 years and is known for providing
quality services to the customers of the nation of Australia (Victaxi.com.au, 2018). The
association was started in the year 1972 by the cab driver Andrew Gilmartin who is currently
the head of operations for this particular association (Victaxi.com.au, 2018). It is to be noted
that it is a “member based organization” and is known for advocating the rights of “its
members and promotes the work of the taxi industry” (Victaxi.com.au, 2018). The
association aspires to make its members or participants know their rights as well as
responsibilities related to the Australian government and its legislation. The association is
also known for representing the taxi industry to the general public, “responding to relevant
news and announcements and trying to get the word out there about the great work” of their

2MANAGEMENT AND BUSINESS CONTEXT
members or participants (Victaxi.com.au, 2018). It is to be noted that the association is also
known for its initiative in the genre of identification of new areas of opportunities and also
for collaborating on behalf of its various members with the local governments. Therefore, it
will not be too far-fetched “to say that the interventions of this particular association has
made the taxi service facilities a much reliable mode of transport for the Australian people”
(Mulley et al. 2012). According to an estimate, this particular association “generates $820
million is fare revenue each year” engaging more than 17,000 people from different parts of
the nation, which accounts for over 40% jobs in this particular industry (Victaxi.com.au,
2018). Thus, kit can be said that this particular association forms one of the wheels around
which the machinery of the Victorian economy revolves.
The internal as well as the external environment in which a particular company or
business organization operates in wields a significant influence on the business of the
company or the business organization concerned. It is to be noted that the various companies
as well as the business organizations often take the help of the framework of SWOT analysis
for the purpose of the analysis of the internal environment of their company (Yuan, 2013).
The strength of the Victorian Taxi Association can be said to be the fact that it has been in
business for the past 50 years and holds a name which is trusted in the Australian transport
industry. The association is also known for effectively managing the various individual taxi
drivers in the Victorian region. In addition to that, the quality services provided by the
association also acts as one of its strength. The weakness of the Victorian Taxi Association
can be said to be the fact that in the recent times the association has failed to effectively
manage the various disputes related to the transport industry. A typical example of this is the
$2 extra levy tax imposed by the government of Australia on the taxi drivers (ABC News,
2018). The present economic condition as well as the lifestyle of the Australian people acts

3MANAGEMENT AND BUSINESS CONTEXT
an opportunity to this particular association. The association faces certain treats from the
rise of the various competitors like Uber and others.
The framework of PESTLE analysis is often used to analyze the external
environment in which a company or a business organization operates (Srdjevic, Bajcetic &
Srdjevic, 2012). It is too be noted that the political climate of the Australian nation is a stable
one and congenial for trade and commerce. The government of Australian itself takes several
initiatives for the promotion of trade and commerce. Therefore, this particular political
climate will be very congenial for the business activities of Victorian Taxi Association. The
economic system of the nation of Australian is one of the most stable ones in the world
(Daley, McGannon & Ginnivan, 2012). However, it is to be noted that the Victorian Taxi
Association has to pay around $200 million to the government of Australia in the form of tax
money (Victaxi.com.au, 2018). In addition to this, the association also needs to take into
consideration the various other economic legislations of the Australian nation, the recently
imposed levy on the taxi drivers being one of them. The social climate of the nation of
Australia is a very liberal one and the people generally like to indulge in lavish lifestyle
(Turner, Fiske & Hodge, 2016). Therefore, the taxi services form an important part of their
lifestyle. It is to be noted that this kind of social environment is very congenial for the
functioning of the concerned association. The nation of Australia is a fairly technologically
developed one and the people like to take the help of the recent technology as well as
innovations in their day to day life. Therefore, the online facilities offered by the concerned
association are much appreciated by the citizens of the Australian nation. The legislative
framework of the nation of Australia has been devised keeping in view the current business
environment of the nation (Parliament.vic.gov.au, 2018). Therefore, the nation has devised
several legislations like the policy of free trade, equal salary rights and others. It is to be
noted that these legislations actually act as a threat to the association as if the association goes

4MANAGEMENT AND BUSINESS CONTEXT
on to follow all the legislations then that is likely to hamper the performance of the
association. The Australian government has recently taken several initiatives towards the
cause of the environment for example the control of the pollution, the rate of emission from
the various vehicles and other (Sands & Peel, 2012). These initiatives are likely to hurt the
interests of the associations in the longer run as most of the vehicles are the major source of
pollution.
Risks form an important part of the process of the business management. It is to be
noted that in the present day business world the various business organizations as well as the
companies face a considerable amount of risk on the score of various factors (Ennouri, 2013).
One of the primary risks which the association faces is on the score of the environmental
damage which the various taxis related to the association cause. Another risk which the
association is facing at the moment is the reduction in the prices of the various cars and
vehicles and the reduction in the interest rate of the car and vehicle loans. The association
also faces a considerable amount of risk on the score of the rise of the various competitors in
the same industry. The association is also facing some problems in the management of its
various members or participants.
Organizational performance forms “an important part of any company or business
organization” (Rasula, Vuksic & Stemberger, 2012). Therefore, the various companies and
the business organizations focus on this particular aspect to bring about their overall growth
and development (Rasula, Vuksic & Stemberger, 2012). The association under discussion
here also uses here various strategies for the enhancement of its organizational performance.
The first strategy which the association uses is the effective conveyance of the goal or the
objective which the association is trying to achieve. Another strategy used by the association
is to the use of process of effective communication to maintain an effective relationship

5MANAGEMENT AND BUSINESS CONTEXT
between its various diverse members. The organization also uses the technique of regular
assessment of progress for effective organizational performance.
It is to be noted that the association under discussion here uses various strategies for
the achievement of its desired goals and objectives. The first strategy which the association
uses is the technique of effective communication to have a clear understanding among the
various members related to the association. Another strategy which the association commonly
takes the help of is the use conduct of regular meetings with its various members and also the
assessment of their performance.
Therefore, from the above discussion it becomes clear that an effective assessment of
the internal as well as the external environment is very important for the various companies
and the business organizations. It is to be noted that the various companies as well as
business organizations need to regular assess their environment in a bid to develop strategies
which will help them to overcome competition in the market. Furthermore, an effective
analysis of the various risks related to the business is also important for the development of
mitigation strategies.

6MANAGEMENT AND BUSINESS CONTEXT
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