The report is based on Virgin Australia which is an Australian-based airline and it is the largest airline by fleet size to use the virgin brand and products to their customers. It has been analyzed that during the lockdown virgin have crippled all the world’s airline but there are some more so the virgin Australia, where a seven-year spiral, in conclusion, bring it undone. In this, some articles are evaluated in this report and these are focus on loss which has been faced by Virgin Australia during the lockdown. The main purpose of this report is to describe the changes and reforms which has been implemented by an organization. Along with this, analyze strategies and tactics which have been proposed for future execution in a better manner within a company.
Outline key changes and reforms that have already been implemented by the Virgin Australia organization
Virgin Australia is the most famous airline company in Australia and they are gain great income or profitability before the lockdown. But in this time, virgin face major losses and a lack of goodwill due to this they could not perform their work and serve to their passengers. According to the Hindu.com article, it has been analyzed that virgin reported an annual loss for 7 consecutive years even before the government began restriction movement to slow down the spread of such virus (Amelia Georgiana Boncea, 2018). This pandemic has created a major impact on different sectors or industries. All over the world, the airline industry has sought to take support from the government to survive after the critical time. Due to the unprecedented plunge in travel demand predictable to cost the sector around $314 billion in income.
In the case study of Virgin Australia, there are some changes and reforms which are executed for the company, and by this, they gain some improvement in a better manner. For this, virgin appoint a voluntary administrator who can lead the sales management and its process after the government discarded a plea for A$1.4 billion to charge airline floating. This action and implementation procedure helps in maintaining business operations and a responsible person can focus on the virgin management system in a proper manner (Financial Review, 2020). An appointed administrator work for attaining the best results or outcomes in which they can sell demanding services by using an appropriate business approach. In the virgin Australia collapse, it makes the largest transporter to clasp under the damage of the coronavirus pandemic and this has ravaged the international airline sector (Thehindu, 2020).
Virgin Australia appoints an administrator which has taken manage and control the firm and will try to perform work to save the company or its business. The company changes their flight rates as this is analyzed that most of the customers do not prefer to choose flights whether the government began the airlines for the common public. The airline needs to lower their prices which helps in gaining the attention of clients and by this company’s goodwill will be enhanced. It has been observed that virgin concentrate on increasing its market share which was reduced during the coronavirus (Gabriela Dana Boca, et. al., 2016). The respective organizations work on form reforms to overcome such issues and problems that were arising due to the COVID 19 crisis. This would directly impact on business activities and upcoming actions for the future time to attain more growth effectively.
Identify the changes and strategies that have been proposed for future implementation
Virgin Australia faces a collapse situation during the lockdown and for this, they are concentrate on developing effective strategies and changes which has been used for future execution correctly. The airline desires to focus on future planning in which they are formulating strategies and tactics to reach with desired goals. Along with this, they are concentrate on developing the new 40737 MAX planes which is a great model that has been grounded over the years after crashes. Virgin Australia makes decisions about securing the future of this airline and also emerges by the COVID 19 crisis (Gilbert, et. al., 2015). Australia requires second more airlines and it is evaluated to keep flying as per the strategy developed by a virgin company. After the lockdown, Virgin Australia makes changes in its business operations and develops plans for improving their services.
For future strategy, virgin Australia develops an effective plan and analyzes the whole marketplace after the lockdown. Besides this, the future of the market is currently fighting with there will be a recovery in countries’ economies so that this will boost the oil demand and alleviates the supply. In addition to this, Virgin Australia needs to reduce costs through which it can attract a large number of customers (Julien Pollack, 2015). Also, the airline focus on implementing new strategies in which they provide different free services and facilities to their passengers after the lockdown. The government restricts the working of airlines in different countries due to COVID 19.
Virgin airline employs around 10,000 people directly who can perform work in achieving potential goals and indirectly appoint 6,000 people (TimesofIndia, 2020). This is competing with their biggest competitors Qantas airways ltd that would have a virtual monopoly in Australia if virgin Australia has stopped to fly. For this, the virgin concentrate on the deal and handle the rivals which may create a negative influence on the business functions effectively. The airline also focuses on appointing an expert who can research the current situation of this sector and provide them a plan which can use by the airline for continuously gaining high revenue (Hagge, M., & Houten, R. (2016). It has been analyzed that virgin needs to develop their actions plans and changes that are helpful for them in smoothly run of their business functions and operations. The virgin airline has taken steps and actions for future success or growth where they are appointed capable employees who can perform work to reach potential objectives. It has been examined that the airline sector needs to evaluate and determine the whole market after the lockdown and how to start work for attracting several customers.
Discuss the key factors driving the need for change
As per the case study of a virgin, driving factors for changes in the company must involve changing economic, social, and political aspects, customers’ requirements, technology improvement, and expansion or growth level. There are certain driving factors which need to be changed in an organization that is described as under:
Market share: It is important for Virgin Australia is to focus on market share and maintain its whole business operation by analyzing market conditions. This is a major driving factor that needs to be managed by the company and face challenges in this situation (Kelley & Gravina, 2018).
Competition strategy: It is another driving aspect that requires changing by Virgin Australia and in this company need to modify their competition tactics (Simion, 2019). As this will old for gaining competition and if an organization requires attaining a high position in the large marketplace so they need to understand the rivals’ strategies for better improvement of business functions.
Future development plans: It is another major driving force where the virgin focuses on improving its plans and strategies that are important for increasing growth. After the lockdown, most of the airline companies work on attracting customers and reduces their price rate to retain potential clients.
The interest of employees: This is the most effective driving factor which needs to alter by virgin company. In this, airline firm requires to understand their staff’s and employers’ demands and fulfill these requirements for smoothly running of their operations or activities. It is essential for company manager is to evaluate their employees’ interests and provide the best facilities so that they can perform great work in reaching desired goals (Killingsworth, et. al., 2016).
Price: It is another factor that also requires changing by a virgin as this will help in attracting more customers towards company services. For gaining the attention of desired clients, the firm needs to lower its flight rates which attract more people towards company facilities.
Identify human resource development strategies that have been implemented
Virgin Australia is the leading airline that faces losses during the lockdown period but after the lockdown, they also face some other issues or challenges. This will reduce their income and revenue levels effectively. Along with this, driving factors may impact on business operations that are described above. For this, the company focus on implementing certain human resource development strategies that could help them overcome the resistance of change in a proper manner (Kuzhda, 2016). Virgin company manager understands their goals or objectives as per this they are work forwards to the next step. With the analysis of company goals, they can better evaluate marketing functions and activities. As per the marketing current situation, they are developing new strategies and processes which can assist them in increasing the growth and development level of an organization.
Another strategy of the HRD which has to be implemented in virgin Australia is evaluating the HR capabilities so that they can easily deal with major competitors. Along with this, human resources abilities and skills assist firm in identify their next action and plan so that they are ready to handle the situation which could develop by rivals’ actions. It is important for every sector company is to analyze their competitor’s pre-actions according to the virgin can develop appropriate decisions and plan. The other strategy is evaluating the tools which are necessary for employees to complete the job and perform an action (News.com.au, 2020). By using effective techniques, virgin’s manager evaluates their staff members’ interests which can help them in enhancing their motivation level. This will be helpful for the company in gaining the required income and profitability.
Assess the case study organization’s change management strategies and provide appropriate recommendations
As per the case study, Virgin Australia uses a change management strategy that helps them in improving their functions and activities. In this, they are change in their process and system where all the passengers need to wear a mask before entering the flight. This can be safe for themselves and other passengers (Romanescu Marcel Laurentiu, 2016). Virgin also make strategies in which they sanitize their passenger’s hand when they are entering in a plane with full safety. Also, the airline focuses on a food distribution system where staff members who serve food also wear a mask and provide a separate packet of food to each passenger that would be safe.
Based on the above described strategies, it can be recommended that Virgin should also concentrate on passenger seats and they need to make a gap between every passenger which reduces the danger of coronavirus (Rønningstad, 2018). They should add some other facilities such as provides sanitizer, glubes, face mask free to such passengers who do not wear these.
From the above-described report, it can be concluded that virgin Australia faces huge losses during the coronavirus pandemic. They are selling their products and services at a lower cost and this will create a negative impact on their business operations. During the lockdown, virgin analyzed that the business is more like an online retailer or an app maker after all for their clients. Virgin Australia faces large losses and challenges that may directly influence on airline functions. For this issue arises, the company also develops some plans and strategies that could help them in gaining more income or profitability. Virgin Australia succumbed to the third party who led to restricting and it could lead to a sale, developing Australia’s second-largest airline Asia pacific area that consider as the leading party of the coronavirus crisis.
Amelia Georgiana Boncea. (2018). MANAGEMENT OF CHANGE IN ORGANIZATIONAL BEHAVIOR. Analele Universităţii “Constantin Brâncuşi” Din Târgu Jiu: Seria Inginerie, 2018(3), 150-157. https://www.utgjiu.ro/rev_ing/pdf/2018-3/26_A.G.BONCEA%20-MANAGEMENT%20OF%20CHANGE%20IN%20ORGANIZATIONAL%20BEHAVIOR.pdf
Financial Review, (2020). Five lessons from Virgin’s collapse. Financial Review. [Online]. Available at: https://www.afr.com/chanticleer/five-lessons-from-virgin-s-collapse-20200420-p54lj6 [Accessed: 2nd October 2020]
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Hagge, M., & Houten, R. (2016). Review of the Application of the Response Deprivation Model to Organizational Behavior Management. Journal of Organizational Behavior Management, 36(1), 5-22. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=bsu&AN=114016354
Julien Pollack. (2015). Understanding the divide between the theory and practice of organisational change. Organisational Project Management, 2(1), 35-52. https://doaj.org/article/270ddc930fc74492bc651f170965b7fc
Kelley, D., & Gravina, N. (2018). A Paradigm Shift in Healthcare: An Open Door for Organizational Behavior Management. Journal of Organizational Behavior Management, 38(1), 73-89. https://login.ezproxy.cqu.edu.au/Shibboleth.sso/SAML2/POST
Killingsworth, K., Miller, S., & Alavosius, M. (2016). A Behavioral Interpretation of Situation Awareness: Prospects for Organizational Behavior Management. Journal of Organizational Behavior Management, 36(4), 301-321. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=bsu&AN=119451287
Kuzhda, T. (2016). Diagnosing resistance to change in the change management process. Economics, Management and Sustainability, 1(1), 49-59. https://jems.sciview.net/index.php/jems/article/view/7
News.com.au, (2020). Virgin Australia collapse: 7-year spiral finally brought VA to their knees. News.com.au. [Online]. Available at: https://www.news.com.au/travel/virgin-australia-collapse-7year-spiral-finally-brought-va-to-their-knees/news-story/3561e0da0c1423dcabe428ffcf8f9704 [Accessed: 2nd October 2020]
Romanescu Marcel Laurentiu. (2016). CHANGE MANAGEMENT AND ITS EFFECTS ON ORGANIZATION. Analele Universităţii Constantin Brâncuşi Din Târgu Jiu : Seria Economie, 1(5), 209-212. https://doaj.org/article/f8a354f6c25740ab9bef357e719cc237
Rønningstad, C. (2018). Us and Them – First-line Management and Change Resistance. Nordic Journal of Working Life Studies, 8(2), 5-22. https://tidsskrift.dk/njwls/article/view/106152
Simion, C. (2019). Analysis of Different Change Types in the Management Process of an Organisation. Advanced Engineering Forum, 34, 326-332. https://www.scientific.net/AEF.34.326
Thehindu, (2020). Coronavirus: Virgin Australia collapses to crisis, appoints administrator to find investor. TheHindu. [Online]. Available at: https://www.thehindu.com/business/Industry/coronavirus-virgin-australia-collapses-to-crisis-appoints-administrator-to-find-investor/article31395753.ece [Accessed: 2nd October 2020]
TimesofIndia, (2020). Historic oil crash a product of futures market under stress. TimesofIndia. [Online]. Available at: https://timesofindia.indiatimes.com/business/international-business/historic-oil-crash-a-product-of-futures-market-under-stress/articleshow/75263101.cms [Accessed: 2nd October 2020]