Flight Centre Company Overview
Competition is increasing at a very rapid rate in the modern day scenario. It is for this reason that all the organizations are trying their level best to outrun their customers. In order to do this they are spending a huge amount of money for developing their R&D department. This is helping them to get all the modern and the new systems that are used for developing their services. This assignment has dealt with the Flight Center Company and how they are dealing with their current and future problems. Flight center is doing a good job in the field of customer satisfaction but at the same time they have to pay huge attention to the competition that is existing in the tourism industry.
The company Flight Centre is one of the well-known aircraft companies that excel in selling the best and the cheapest aircraft services. The FCTG or the flight center travel group started in the year 1980s with a good intention of taking care of the travel needs. The company provides employment to about 19000 people as their employees from all over the world (Van Wee & van Cranenburgh, 2017). Their overall business is located around 2800 branches. This Company was also listed in the Australian Securities Exchange in the year 1995.
The marketers and the customers will be taking their decisions based on the different forces that ate existing in the market. In other words, all the different forces existing in the market will be judging the different decisions that will be taken by the customers. This can be analyzed by using PESTLE Model.
Australia is a more or less politically stable country. The taxation rates are also affordable. As a result if this it will be easier for the company to carry on with their business in this country. They will be able to abide by the rules and regulations of this country in a peaceful manner. In order to give a boost to their services they will have to import a huge amount of modern and upgraded resources. The company will also have to get good workforces that they can use for boosting up the production level.
The political setup of Australia is more or less stable. This will help the company that is Flight Centre to carry on its business in a sound and organized way. Australia is a constitutional monarchy and it is mainly governed by the Monarchy system. As the political system is stable the company will be able to abide by rules and the regulations of the country, Thus they will be able to carry on the business in a very organized manner. However, the company will surely have to deal with some of the drawbacks that are present within the political set up of the company. The deportation laws of the country are often under criticism. Apart from this, there is a lack of protection against human rights, treatment of refugees. Thus if the company is hiring some work from that country they will have to make sure that the employees are being properly taken care of.
PESTLE Model Analysis
Thus, it will be both advantageous for Flight Centre to operate within a stable and peaceful political setup, They will also have to follow an employee-centric approach by making sure that they are taking care of each of the interests of their employees. They have to diversify their workforce. In order to do that, they will have to hire new employees from different parts of the world. Hiring from a Global level will ensure them that they are bringing new and dynamic expertise in their organization.
It can happen that some of the employees that they are recruiting from Australia are the immigrants or refugees. In such cases, it becomes the duty and the responsibility of the organization to provide proper protection to those employees. This will ensure that the company is being able to deal with the adversities of the political set-up of the country.
The current trend says that the economy of Australia will be incasing on gradual and a slow rate. The company will have to be patient while they are trying to set up their business in this place. The current company tax rate in Australia is 30 percent. However, if the company is making an aggregate turnover of less than $25 million, any organization can apply for a lower company tax which is 27.5%.
The company will also have to make sure that they are being able to pay the tax that is needed for importing and exporting the materials that will be needed for the purpose of carrying on the business properly in the country (Dedeo?lu, Ayd?n & Bo?an, 2018). As it is a travel agency they will have to bring many of the materials that they will be requiring. They will have to bear with this tax rate in order to make sure that they are being able to carry on with the business in a proper way.
The social environment is very dynamic as it is filled with people from many different backgrounds. It is for this reason that the population comprises of the indigenous people. Most of the population is from places like Malaysia, India, Nepal and other countries. It is an advantage for the company as they will be getting very good expertise. This will be helping them to diversify their production and attract customers.
The country is very multicultural and multiracial in nature (Akta? & Mutlu, 2015). The population of Australia is generally hard-working. Thus, they will be able to serve as a very good and skilled workforce for the Flight Centre. They will be getting a skilled workforce that will be helping them to give a boost to their production. The company can hire new workers from Australia. They will be able to give in all their potential and boost up the total output of the organization.
Political Stability and its Implications
The country is one of the most technologically advanced places. Thus it will be an added advantage for the organization to carry on with their business in this place (Kandampully, Bilgihan & Zhang, 2016). The country is also open to attracting the most modern and innovative technologies. This was an added advantage for the country as they will be able to get all the best technologies for giving a boost to their overall production. In this modern scenario, organizations need a very well developed and advanced technological base. Thus there is a big threat that the company has to face. There are many other firms that might enter into the competition. Companies like the Express Travel Group and the Travel authority Group.
Australia is a beautifully decorated city with all the gifts of nature. Thus, it will be a good tourist spot to attract the attention of the tourist. They will be able to gain profit while working in this place (Randhawa et al., 2016). This will be a good tourist destination for the tourist. However as the company deals in the air craft’s, railway tickets, cruises and many other such hospitality sectors as core aspects of their business they might face many climatic adversities. Australia is very prone to climatic adversities like regional conflicts over food, water, and land use.
Australia has the fair works trading and this will make sure that the company is being able to carry on the business properly. However in this context it has to be made sure that
They will be able to abide by all the rules and regulations. Flight Central will be able to carry on with their business properly as the legislative policies are well organized in the place. The Fair Work Act 2009 is the primary piece of legislation that governs employment in the country.
SWOT
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STRENGTH · A large number of outlets. · The low price of their products. · They also have a large asset base. · They have invested sufficient money for the proper training and development of their employees. |
WEAKNESS · They have to spend more money and resources over doing in-depth research and analysis. · The company has fewer amounts of assets. Thus it means that they can have liquidity issues and financial issues in their future operations. |
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OPPORTUNITY · E-commerce is one of the major communication and advertising platform in the modern scenario. The company must use this opportunity for working over their promotion. · Automation of the operations is one of the major aspects that the company must focus upon. |
THREAT · Increasing competition is one of the major threats. There are some many new firms entering the market every day. Thus there is a being threat that the customers might switch over to better alternatives. · Technology is advancing rapidly. As a result of this, the organization must follow the strategy of constant improvement and train its workforce properly. |
POLITICAL
The political setup of Australia is more or less stable. This will help the company that is Flight Centre to carry on its business in a sound and organized way. Australia is a constitutional monarchy and it is mainly governed by the Monarchy system. As the political system is stable the company will be able to abide by rules and the regulations of the country, Thus they will be able to carry on the business in a very organized manner. However, the company will surely have to deal with some of the drawbacks that are present within the political set up of the company. The deportation laws of the country are often under criticism. Apart from this, there is a lack of protection against human rights, treatment of refugees. Thus if the company is hiring some work from that country they will have to make sure that the employees are being properly taken care of.
Tax Rates and Business Operations
Thus, it will be both advantageous for Flight Centre to operate within a stable and peaceful political setup, They will also have to follow an employee-centric approach by making sure that they are taking care of each of the interests of their employees. They have to diversify their workforce. In order to do that, they will have to hire new employees from different parts of the world. Hiring from a Global level will ensure them that they are bringing new and dynamic expertise in their organization.
It can happen that some of the employees that they are recruiting from Australia are the immigrants or refugees. In such cases, it becomes the duty and the responsibility of the organization to provide proper protection to those employees. This will ensure that the company is being able to deal with the adversities of the political set-up of the country.
The current trend says that the economy of Australia will be incasing on gradual and a slow rate. The company will have to be patient while they are trying to set up their business in this place. The current company tax rate in Australia is 30 percent. However, if the company is making an aggregate turnover of less than $25 million, any organization can apply for a lower company tax which is 27.5%.
The company will also have to make sure that they are being able to pay the tax that is needed for importing and exporting the materials that will be needed for the purpose of carrying on the business properly in the country (Dedeo?lu, Ayd?n & Bo?an, 2018). As it is a travel agency they will have to bring many of the materials that they will be requiring. They will have to bear with this tax rate in order to make sure that they are being able to carry on with the business in a proper way.
Social environment
The social environment is very dynamic as it is filled with people from many different backgrounds. It is for this reason that the population comprises of the indigenous people. Most of the population is from places like Malaysia, India, Nepal and other countries. It is an advantage for the company as they will be getting very good expertise. This will be helping them to diversify their production and attract customers.
The country is very multicultural and multiracial in nature (Akta? & Mutlu, 2015). The population of Australia is generally hard-working. Thus, they will be able to serve as a very good and skilled workforce for the Flight Centre. They will be getting a skilled workforce that will be helping them to give a boost to their production. The company can hire new workers from Australia. They will be able to give in all their potential and boost up the total output of the organization.
Social Environment and Workforce Diversity
Technological environment
The country is one of the most technologically advanced places. Thus it will be an added advantage for the organization to carry on with their business in this place (Kandampully, Bilgihan & Zhang, 2016). The country is also open to attracting the most modern and innovative technologies. This was an added advantage for the country as they will be able to get all the best technologies for giving a boost to their overall production. In this modern scenario, organizations need a very well developed and advanced technological base.
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Flight Centre |
Express travel group |
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The flight Centre group is a tourism company that came into force in the year 1980. They have been enjoying a good position in the travel group. |
Travel Authority group that is a new company in the travel and tourism sector (Oliver & Schoff, 2017). This company came into force in the year 2004 and since then it has been doing a remarkable job in the field of customer satisfaction |
The express travel company care into existence 1983. It is a very old company and has already gained a proper customer loyalty. |
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Flight Centre has also given sufficient emphasis on the different services like that of family outings, corporate meeting, |
They have given due importance on the services like corporate meetings, family outings, national conferences and other such events. |
They provide services like the e-learning systems and the other electronic materials that help in naming their service more integrated and modernized services. |
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One of the drawbacks is that passengers often face issues in cancelling the tickets. They declare that all the tickets are non refundable. Thus, this is one of the major disadvantages. |
As they are a very new company they are trying their best to attract the attention of their customers. |
They allow some attractive discounts and also refundable cancellations for their customers. This is a major advantage in order to attract the attention of them. |
- Income
This is one of the major factors that enable the consumers to take their buying decisions. The economic situation of the customers play a major role on their being decision. The customers having a high income will naturally be attracted towards the premium classes’ tickets and premium services being offered by the Flight Centre Company. Thus, people belonging to the high income group or the rich business class men will be going for the premium level services.
- Lifestyle
People belonging to the rich business class or the high income groups have a very luxurious and superior kind of lifestyle. Thus, they often have to travel for attending many important business meetings and other such seminars. Thus they will naturally go for the high priced services. On the other hand it has to be noted that people who belong to the colleges or university levels will try to go for the tickets that are available at a much affordable or cheap rates. Thus the companies Flight Centre will have to make sure that are providing tickets for all the customers having different kinds of lifestyles.
- Motivation
The customers often make their buying decisions based on the kinds of motivation that they get from their surroundings. For an instance the customer who is well settled in life and has already fulfilled all the needs and demands of his life will be able to go for the high priced products. On the other hand, the customers who belong to the age group of about 15 to 19 will naturally go for the medium priced or the low priced services. This is because those customers are usually the college goers or the interns. They have not yet got a well settled job. As a result of this, they do not have the motivation for purchasing the premium priced products.
- Beliefs and attitudes
The buying decisions largely depend on the beliefs present within the customers. For an instance if the customers feel that the products that are high priced will give them the best services then it is natural for them to go for that particular product. In other words the customer will know that if they provide more money for purchasing a certain product, then they will be getting better benefits out of it. On the other hand if the customers have a negative feeling about a certain product then they will not go for it even if the price is set at a low or medium level.
- Family
Technological Advancements and Threats
Family plays a major role in influencing the buying decisions of the customers. The company Flight Centre will have to make sure that they are offering family friendly packages. If their family members of the customers feel comfortable in using these products they will surely as the customers to repeat their purchases.
- Reference group
Reference groups make a huge difference in the buying decisions that are taken by customers. Thus, the company has to make sure that they are being able to create a total reference group for their customers. As the company targets the customers belonging to the business classes, they also have to make sure that they are collaborating with many ell known brands so that they can attract the attention of the customers for a long time.
Conclusion
Thus it can be concluded that Flight Centre has been in the tourism department for a good amount of time, they are trying their level best to meet up with the needs and demands of the customers. However as the competition is increasing at a very rapid rate, they have to make sure that they are following the strategy of constant improvement, here can be the threat of many new firms entering in the market. Thus Flight Centre will have to make sure that they are training their employees thoroughly and providing them all the possible support and resources.
References
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Dedeo?lu, B. B., Ayd?n, ?., & Bo?an, E. (2018). The Role of the Employees in the Innovation of the Hotel Enterprises. Anais Brasileiros de Estudos Turísticos-ABET, 85-99.
Kandampully, J., Bilgihan, A., & Zhang, T. C. (2016). Developing a people-technology hybrids model to unleash innovation and creativity: The new hospitality frontier. Journal of Hospitality and Tourism Management, 29, 154-164.
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Randhawa, P., Kim, M., Voorhees, C. M., Cichy, R. F., Koenigsfeld, J. P., & Perdue, J. (2016). Hospitality service innovations in private clubs. Cornell Hospitality Quarterly, 57(1), 93-110.
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