The paper “ Flight Centre - Internal and External Environment and Management Style” is a potent example of a case study on management. Flight Centre is a publically listed company on the Australian Stock Exchange as a travel company. The company has more than 2500 stores with more than 13,500 employees that operate through numerous countries (Flight Centre, 2013). The Flight Centred was established in 1981 and has been operating profitably since. The aim of this report is to analyse the internal and external factors affecting Flight Centre with the aim of formulating appropriate strategies that leads the organisation to become more successful. Internal and External EnvironmentIn understanding the environmental factors on the Flight Centre, two frameworks are utilised.
These frameworks are SWOT analysis for the internal environment while for the external environment; the most appropriate is PESTEL Analysis. The following are the analysis of both internal and external environments of Flight Centre using SWOT analysis and PESTEL analysis. SWOT AnalysisSWOT analysis analyses the strengths and opportunities within an organisation with the aim of maximising on these factors while reducing the threats and weaknesses factors.
The following is analyses of Flight Centre based on SWOT Analysis: Strengths Presence in numerous countries Subsequent profits and revenues making it easier for the company to enter into new markets Strong social responsibility framework Appropriate business model e. g. discount flight specialist Weaknesses Dependent on agency based operations that are risky in a dynamic business Opportunities Expansion into other markets such as in Latin America and Africa because of developments within this region Enter strategic and beneficial alliance and collaboration with other agencies and airlines Threats Competition – numerous airlines are forming their own bureaus and agencies Environmental awareness and sustainability legal requirements e. g.
carbon trading Disease outbreak wars and terrorism PESTEL AnalysisPESTEAL analysis allows the preparation of results associated with environmental scanning. PESTEL stands for political, economic, social, technological, environmental and legal factors. The following are PESTEL analysis of Flight Centre: PoliticalThe company is located in Australia, and Australia is a stable and developed country (André , 2007). The government is run based on a developed constitution and the government has a clear and specially maintained foreign policy that champion for high-quality relationship. The country has developed a positive relationship with many countries, creating an avenue for Flights Centre to operate effectively.
This is illustrated through the numerous branches of Flight Centre in the United States, United Kingdom, China, India, New Zealand, Hong Kong and South Africa (Flight Centre, 2013). Therefore, Flight Centre is politically placed to succeed in its operations. EconomicFlight Centre financial and economic records illustrate yearly growth in revenues and profits but in 2005 was the only year wherein annual profit declined (Roth, 2012). The revenues for 2005 were $6.9 billion while the profit was & 67.9 million. In 2006, the Flight Centre proposed for privatisation but the plans tumbled in February 2007 because of misunderstanding with Lazard Investment Bank even though most of the shareholders were comfortable with privatisation plans (Johnson, 2011).
In 2007, Flight Centre reported a profit of $174 million, in 2008, a profit of $201 was reported, and in 2009, a profit of $40.4 million was reported. In addition, in 2011, a profit of 198.5 million was reported while in 2011 a profit of $213 million was reported. These data illustrate the profits that the organisation has been making (Flight Centre, 2013).
Moreover, the economic position of the world after the subprime housing problem in 2008 in the United States has stabilised and business is booming. In addition, there are frequent events held across Australia such as wines and festivals have increased the number of people moving around within the country (Miller, Vandome and McBrewster, 2011).