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Flight Center is an Australian travel company based in Sydney that survived many hardships and stayed afloat in the business world from the year of 1981. With the dynamic changes in the business environment, the Flight Center is not making any strides in the matters pertaining technology. The rigidness may make the company go out of business, as a result of other upcoming firms taking over their customers due to their online presence. As the time passes, the internet, as well as company’s competition continues to rapidly develop, Australian flight center may lose clients to less expensive online providers offering similar services. It is practically impossible these days to restrain from using the technology in the business world (Ayesh, 2002). On the one hand, with time people may forget about the Flight Center, and there is a risk it will only become a memory in the traveling industry if they do not adapt to upcoming technologies. Management, on the other hand, is a key aspect for the success of any business and Flight Center falls in the same category. The company has to be success oriented, so as to achieve its objectives and be able to meet their customers’ expectations. The current report aims to discuss the importance of management team’s performance, embracing technology as the biggest tool for the success of Flight Center Company.
The identified issue is the limited use of technology by Flight Center Company. To maintain an alliance with the 2000 agencies around the world requires networking, as well as embracing technological progress. Technology is moving businesses at an exponential pace, while human capabilities are left with the direct handling of events (Laudon & Traver, 2002). The rate at which technology is revolutionizing the world is overwhelmingly fast, and an enormous threat is facing companies, such as Flight Center, which do not want to embrace change. Flight Center operated in an era when technology had not gotten to the business world the way it has nowadays. For instance, the organizational structure consisting of numerous teams could be replaced by departments with the enhanced mode of communication to do away with such teams. Moreover, Flight Center Company, being in the non-technological side of the world, has reduced their ability to adapt to new technologies in the market. The company is failing to tap into the instant messaging solutions that the current technologies offer to solve simple issues, such as communication with its employees and also issues requiring urgency for the management. Technology offers relevance to businesses in an exchange for more information and better strategies to run businesses. However, many company managers are not willing to take the risks, as they view that the overhead costs are too high (Laudon & Traver, 2002). However, the current levels of technology are beyond what companies in the market can control, with inventions to brighten the future of business, emanating from every part of the world, Flight Center is left with no other options, but to adapt and embrace new technologies or become irrelevant (Walden & Thoms, 2007).
Technology can increase the division of work and personal innovativeness. Henri Fayol suggests in his early management theory that two key principles of success in any business should be the division of labor and innovativeness, which can be significantly increased by the use of computers and other relevant technologies in Flight Center. Fayol emphasizes that management needs to consider the six essential functions of management to assist in enabling the smooth running of the fundamental principles. The primary functions include planning, commanding, coordinating, organizing, forecasting and controlling (Mahajan, 2010). Technology, however, has the capability of wrapping up all of the capabilities to the internet and using all of the functions can be achieved without any worries of proximate distance or when the next meeting of Flight Center staff would take place. By embracing technology, the company can efficiently plan and achieve organizational goals with ease.
According to Mahajan (2010), Fayol argues that in the organization aspect of the management process, managers must ensure that resources that ensure the business success are present at all times; this is necessary for efficient work of the company. The use of technology can significantly influence the business transactions of Flight Center, and acquiring technology as a raw material of production can be a significant boost to the company. Fayol’s theory also argues that management should be in the forefront in acts of coordinating activities in the business for assured goals and achievement of targets (Mahajan, 2010).
Fayol’s theory is criticized for its take on the functions of management. The theory assumes that there will be an ultimate success if planning and forecasting are done, while this is not the real case in the business world. Planning, forecasting and failing are imminent and cannot be controlled by any interventions of individuals or strategies (Lohmann & Lohmann, 2002, p. xx). The theory, however, remains relevant as the key suggestions it applies to the management functions are success determiners in any business. The theory, however, despite some of its shortcomings, is still usable in the business approach, as illustrated by the following recommendations.
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To ensure that Flight Center travels remain relevant in the business world, the company is required to uphold the following recommendations. The company should focus on embracing technology not only on the perspective of use but also on the marketing aspect. Technology is providing the best tools and skills that make day to day business activities easier to carry out and manage (Laudon & Traver, 2002). Flight center should not miss out on the technological advancement opportunity, as the target market is evolving to become more and more technological. Technology marketing is cheaper and can be helpful in lowering of the overheads that are incurred as a result of advertising using print outs. The reach of technology advertisements is also bigger, as compared to any other type of advertising as the audience are all people linked to the internet. The technology may, thus, lead to greater market reach by the Flight center management company and assist in boosting their customer base. The inculcation of technological systems will also significantly improve the company’s output, since systems instead of individuals will process a bigger bulk of work. Technology will also assist the Flight Center in operating in the constantly changing environment, as well as the competitive environment by maintaining high performance and meeting all of the customers’ expectations. By embracing internet services, flight company needs to act swiftly, to not lose their business to cheaper online providers. The company also needs to do away with the previous organization structure and focus more on training their employees, as it is a way of empowering them. The flight company should also retain their focus on revenues as well as profits, so as to maintain their business network worldwide.
Flight Center management is lacking technological aspects in their managerial skills and functions in the company. After review of the above literature, it is visible that technology is an important aspect that the traveling company can use to increase its capital base and also remain relevant in the industry. The use of proper technology will see to it that Flight Center will have more economies of scale, better planning and focusing, in addition to the strategic plan, offered by the systems that will be put in place. All the companies’ niche will be performed at ease by embracing technology, and thus maximizing on generated revenues.
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