Virgin Australia Airline: Management Report
Virgin Australia Airline Report
Report on external environment and management functions
Taffy Ghozali, Hafizhah Chandra
Executive Summary
The purpose of this report is to examine Virgin Blue’s external environment followed by its impacts to the organization as well as how management functions could help overcome the external environment for the organization to compete properly in the domestic airline market.
Virgin Australia is Australia’s second largest domestic airline, commenced in operations back in 2000 as a low-cost carrier (LCC) and has successfully survived in the market. Major shareholders include Air New Zealand, Singapore Airline and Etihad Airways. The airline rebranded in 2011 as a part of their 5-year turnaround plan, and since then target a full-service structure in addition to its LCC. Upon the release as a full-service carrier, Virgin Australia enjoyed a successful performance in 2011, gaining profit of $AUD23M. However, the following period, the airline is expected to face a loss of $AUD110M presumably due to the acquisition, raw materials price, government regulations and new online ticket-booking system.
Sources for this report is retrieved from management textbooks, management journals, company website, online newspapers, official Australian government report database and magazines. Most online newspapers originate in Australia while some global online newspapers are as well included.
Applying Fayol’s management functions, Daft’s environmental domains and Duncan’s environmental uncertainty frameworks, it is noticed that Virgin Australia’s environmental domain may be categorized as being in high uncertainty. Some of the required management functions have not been in place, as required by firms in high uncertainty situation, and it may be the basis of their inability to compete effectively in the current year.
Out of 4 (four) management functions outlined by Fayol, Virgin Australia presents a strong accomplishment in leading, while
Report on external environment and management functions
Taffy Ghozali, Hafizhah Chandra
Executive Summary
The purpose of this report is to examine Virgin Blue’s external environment followed by its impacts to the organization as well as how management functions could help overcome the external environment for the organization to compete properly in the domestic airline market.
Virgin Australia is Australia’s second largest domestic airline, commenced in operations back in 2000 as a low-cost carrier (LCC) and has successfully survived in the market. Major shareholders include Air New Zealand, Singapore Airline and Etihad Airways. The airline rebranded in 2011 as a part of their 5-year turnaround plan, and since then target a full-service structure in addition to its LCC. Upon the release as a full-service carrier, Virgin Australia enjoyed a successful performance in 2011, gaining profit of $AUD23M. However, the following period, the airline is expected to face a loss of $AUD110M presumably due to the acquisition, raw materials price, government regulations and new online ticket-booking system.
Sources for this report is retrieved from management textbooks, management journals, company website, online newspapers, official Australian government report database and magazines. Most online newspapers originate in Australia while some global online newspapers are as well included.
Applying Fayol’s management functions, Daft’s environmental domains and Duncan’s environmental uncertainty frameworks, it is noticed that Virgin Australia’s environmental domain may be categorized as being in high uncertainty. Some of the required management functions have not been in place, as required by firms in high uncertainty situation, and it may be the basis of their inability to compete effectively in the current year.
Out of 4 (four) management functions outlined by Fayol, Virgin Australia presents a strong accomplishment in leading, while
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