The paper "Organisation Structure and Effectiveness" is an excellent example of an assignment on management. Virgin Blue has a relatively short history. Established in 2000 in the Australian air travel industry, the company quickly flourished from a small company to a major player in the airline industry. The company launched operations operating on one route only with two aircrafts all managed by a team of 200 people. The entrance of the company in the industry is viewed to have been revolutionary as it introduced low cost flying in a country where the operators then had only served the high-income earners.
Low cost flying as a market entrance strategy of the company targeted existing air travel consumers and also non air travel consumers who had previously could not afford the service. As such, the company expanded the air travel market in general. Currently, the company controls 32% of the Australian domestic air travel market with over 2,400 flights a week to 24 Australian and regional destinations. The company has evolved from a low-cost carrier to an international brand with a number of subsidiaries such as Polynesian Blue Airlines and Pacific Blue Airlines.
In 2004, the company launched its Pacific Blue subsidiary which targets the leisure travelers with flights between Australia New Zealand, the Cook Islands, Fiji, Tonga, and Vanuatu. Therefore, the need to target various market segments has been a very relevant motivation for expansion. For one the company has sought to serve the increasing market and gain a significant share in the industry. Again according to the company’ s CEO, economies of scale are a fundamental factor in the scheduling of flights and even purchasing of airplanes. 2 What or what (reason), How, Why and give an example, a large organization back/ into to a small organization Going by the organization's life cycle, an organization may fail to grow further if the management does not fully appreciate and respond to both internal and external challenges facing it.
Each stage, however, has a unique set of these challenges. For instance, the entrepreneurial stage requires a lot of creativity to survive whereby if lacks, the venture dies. Again at this stage, the organization faces a crisis in need of leadership.
If appropriate leadership skills are not present, the organization fails and does not advance to the next stage of collectivity. A good example is the sinking of AIG into bankruptcy. While many would relate the failure of the group to the recent global financial turmoil, its failure is in my own opinion largely due to its inability to reinvent itself and survive in a changing environment. While the company may be said to global and attained its maturity stage, the need to reinvent itself is necessary as it would happen in real-life situations where a new life is mandatory if death is to be avoided.
In the case of AIG, changes in the market environment demanded that the organization responds failure to which it fell only to be bailed out by the American government.
ReferencesDaft L. Organisation Theory and Design, 9th. Ed., New York, South-Western