IntroductionFlight Centre Limited is a travel agency which offers a complete travel service including business and leisure. They serve travellers in Australia, New Zealand, Hong Kong, China, Singapore, India, South Africa, UAE, United Kingdom, Canada and the United States. According to InvestSMART (2011) Flight Centre’s business strategy involves super sizing its global market share and aiming to be at the lead in business and trade travel markets. Working at this level is designed to facilitate the international purchasing power of the group and thereby enable them to access better agreements with travel providers.
Flight Centre is developing an online and offline product offering that is complimentary. Their Net Profit After Tax for the year ended 30th June 2011 was $139.81 million. Revenues derived from ordinary activities rose by 4% from the previous year and amounted to $1.86 billion. The diluted Earnings Per Share at 138.9 cents compared favourably with the previous year’s 138.8 cents. The full year dividend for Flight Centre for the year ending 30 June 2011 was 84 cents which amounts to an increase of 14 cents on the previous year.
Flight Centre intends to improve this performance in 2012 using its strong balance sheet and sales force, a wide variety of brands and strategic plans on how to promote future growth. It is hampered in its endeavours by the volatile situation in world economy more specifically in the US and UK. 1- Analysis and discussion of the most important factors in Flight Centre’s external and internal environmentsA review of former and current employee reviews for the company for glassdoor (2012) reveal a mixed bag of emotions. A majority agree that the working environment and their colleagues are a fun team to work with, the environment is friendly and there are opportunities to travel annually to exotic locations which is definitely viewed as a benefit.
The uniforms worn by all staff however, are considered oppressive by some due to their unattractiveness. There were complaints of long working hours, many times without the possibility of a lunch break, and while in some locations, the opportunities for promotion were based on merit, in the home country of Australia, friendship seemed to be the main criteria.
There were complaints of unfair promotion practises being seen to be used. The lack of specificity of work goals was cited as a definite disadvantage of the firm. There was also a feeling of being over supervised in the office environment which was thought to be demoralising. The monetary compensation was also said to be uncompetitive, but the company does offer good incentives packages. There also seems to be a gap between senior management and employees, the relationship being said to be impersonal and distant. The SWOT Analysis will examine the internal and external environment at Southwest airlines. StrengthsA unique marketing network has worked for them in a digital age with oversupply of airlines.
They have the best travel marketing network in Australia and one of the best in the world. The retention of the store network and its commensurate retail system has given them an edge in the travel slump currently experienced in the industry. This is because in an effort to clear their stock, airlines were sourcing for distribution networks to clear their backlog of tickets, due to their own concentration on online sources.
The use of lower prices has lifted the rate of enquiry for Flight Centre, reducing profits but increasing customer base.