Virgin Australia Holdings is an airline based in Virgin Australia. With its profound ideologies on proper customer care and favorable air ticket charge, it has managed to win the trust of many customers. Virgin Australia chief executive, John Borghetti notes that for a business to be successfully run, a mix of priorities as opposed to narrow focus must be employed. In February 28, 2012, Virgin Australia Holdings proposed new structure of its business that was meant to meet the standards of air navigation act. (Virgin Australia announces proposed new structure 2012).
Organizational change in the airline industry, although difficult, is inevitable. Since 2010, to maximize their operational efficiency, Virgin Australia has developed and governed their work routines through accepted rules and systems (Chong and Sun, 2010).This strategy has been necessitated by the need to increase the capacity to profitability, global network strategic airline alliances, climatic disasters, and the motivation to change. In particular, global financial crisis, technology check in systems, occurrence of volcanic ash clouds, QLD floods, natural disasters, Cyclone Yasi, and the unify brand are the major drivers of change.
Equally, to remain strategically positioned in the Australian and global airline industry, the board of directors had to increase Virgin Australia’s destinations by 400. Basically, the company considered expanding its airlines. It accomplished this by allowing foreign investors to become the company’s major shareholders (Black, 2012). This as well boosted its financial base which further helped the company restructure its operations. Equally, the company had to boost its operational efficiency by forming global network strategic airline alliances. This has eventually made the company realize an increase in its velocity points which was pertinent for maximizing their operational efficiency (Chong and Sun, 2010).
Similarly, Virgin Australia has constantly used advanced technology in its operations. This was driven by the need to offer effective customer service delivery to both international and domestic customers (Black, 2012). The company has effectively used technological check in systems. The accommodation of technological change has given Virgin Australia the capacity to change. For instance, the company has gone one step ahead to own a company that makes spares for its airplanes.
The company’s leadership has also played a vital role in ensuring that change is effectively implemented. The board of directors has demonstrated the motive to change. It is this good leadership and motive to change that made the company acquire an established brand in both local and international markets. The company has established a strong brand in overseas and Australian marketing. For instance, the company’s rebranding, sponsorships of AFL sport, and formulating a unique “now you’re flying” advertisement has enhanced its brand in both domestic and global markets. Indigenous programs AIME has been a major factor used to enhance the company’s brand. Also, to effectively manage the change necessitated by global financial crisis, ash clouds, QLD floods, natural disasters, Cyclone Yas, the leadership of the company has specifically focused on remaining strategically technologically positioned so that any instance of such necessities are forecasted (Black, 2012).
Generally, Virgin Australia changes are driven by a firm’s motivation, opportunity, and capability to change, and thereby add to extant literature that focuses primarily on episodic, eventful changes.
References
Anthony, S 2008, Drivers of Change, viewed 07 October 2012, http://blogs.hbr.org/anthony/2008/04/6_drivers_of_change.html
Black, A 2012, Sky's the limit: An interview with John Borghetti,
http://bigpondnews.com/articles/TheExchange/2012/09/05/john_borghetti.html
CANSTAR, 2009, Global Financial Crisis - What caused it and how the world responded, viewed 07 October 2012, http://www.canstar.com.au/global-financial-crisis/
Chong, J and Sun, H 2010, Qantas attacks Virgin Blue's strategy, viewed 07 October 2012, http://www.news.com.au/business/qantas-attacks-virgin-blues-strategy/story-e6frfm1i-1225898259769
Kevin Zheng Zhou, K, Tse, D, K, and Li, J, J 2006, Organizational changes in emerging economies: drivers and consequences, Journal of International Business Studies (2006) 37, 248–263, viewed 07 October 2012, http://www.fbe.hku.hk/staff/kevinzhou/8%20Org%20Change_JIBS.pdf
Brass, D and Burkhardt, M n.d., Changing Patterns or Patterns of Change: The Effects of a Change in Technology On Social Network Structure and Power, viewed 07 October 2012, http://www.jstor.org/discover/10.2307/2393552?uid=2129&uid=2&uid=70&uid=4&sid=21101110247073
Virgin Australia announces proposed new structure, 2012, viewed 07 October 2012, http://www.breakingtravelnews.com/news/article/virgin-australia-announces-proposed-new-structure/
