Case Study Of Virgin Australia

On October 22nd, 2001, the Industrial dispute between QANTAS and its employees was initiated with the offering of a new Enterprise Bargaining Agreement. This proposed an 18-month wage freeze for employees plus a sliding scale profit share scheme. Ten out of twelve unions under QANTAS accepted the terms of the agreement, barring the unions of manufacturing employees (AWU and AMWU). They were holding out for a 4-6% pay rise. On the 8th May 2002, some ten months later, the dispute was resolved when QANTAS agreed to an across the board 6% pay increase. This essay provides an in-depth analysis into the dispute, including causes, the resolution process, the role of stakeholders, and costs and benefits for all concerned.

In this task I will be describing eight different stakeholders which are; customers, employees, suppliers, owners, trade unions, employer associations, local and national communities and the government. I will be stating what they are, who they are, why they useful, how they influence stake holders on organisation and why they are useful to business I have chosen which is Tesco and The British Heart Foundation.

In this assignment I will be discussing the main topic stakeholder theory, what it means to a company and how it relates to the Ginsters Company. I will also be writing about the main stakeholders in the Ginsters Company and carrying out an analysis on the company’s main stakeholders and how the company approaches the corporate social responsibility.

Stakeholders have a significant influence on the aims of an organisation. They are the people who are affected by or interested in the business. In some organisations the shareholders are stakeholders, and at times have some of the decision power. In trade organisations, customers are also considered stakeholders; therefore their needs are part of the organisation’s overall objectives.

Stakeholders are individuals or groups that partake, or assert, possession, privileges, or benefits in a, organization and its accomplishments, previously currently, and in the upcoming (Barrett, 2001). These requested privileges or benefits are the result of communications with, or activities reserved by the organization, and they must be lawful or ethical, separate or combined Stakeholders with comparable benefits, entitlements, or privileges can be categorized as fitting into the similar collection: personnel, investors, and clients (Barrett, 2001). The better the impact these groups have on client’s lives and the extra community assets with which they are assigned, and it becomes vital that they are responsible (Barrett, 2001).

The first stakeholder I am going to evaluate is customers which are external stakeholders. Customers contribute to profit levels and turnover through buying products and services. People are stakeholders in a company for financial reasons, customers do not want to have to spend an excessive amount of money to purchase a product, so if the product is cheaper in one store, such as Tesco, than in another store then customers will buy the cheaper one which then attracts more customers.

Virgin Australia which was formerly called Virgin Blue is the Australia’s second largest airline. The airline was started in 2000 by British business tycoon Sir Richard Branson and former Virgin Blue CEO Brett Godfrey. The airlines started as low-cost carrier, but went on to become a “new-world carrier” (Virgin Blue media release, 2011). This low cost airline went on to become a full-service airline by 2012 with the name of Virgin Australia. Since the year 2000 the airlines grew rapidly and posed threat to Qantas airline and over the years Virgin Blue looking at the marketing trends and characteristics of the aviation industry grew into a Full Service Airline and is considered a four star airline by research consultancy firm Skytrax.

In general ,the stakeholder approach may be more conducive to balancing a wide variety of corporate interests and thereby discouraging impropriety.Executives and boards should take the perceptions of both shareholders and stakeholders into account when formulating strategy and enunciate their stance in all organizational communications. Only within that kind of clearly delineated context, can managers be expected to make appropriate decisions. Indeed, some of the most successful businesses are those which have embraced stakeholder values for example Bodyshop. However, we see that generally, shareholder value

Every stakeholder have their own process and roles, it can affects or can be affects by organization’s action. All stakeholders have own satisfied and unsatisfied (appendix 2).

Velocity Rewards - Virgin Australia's loyalty program that allows points to be used to purchase airline travel, hotel nights, car hire, online shopping and charitable donations.

Several internal and external stakeholders were described in the case study Western National Insurance. They include independent agents, employees, business partners, customers, business customers, regulators, policyholders, Creameries, board members, homeowners, managers, A.M. Best, and reinsurance brokers. Leadership must fully understand the importance between engaging stakeholders and profitability.

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

It is in facts generally believed that corporations rely on critical factors that allow them to face the competitive pressures in the marketplace. The focus of these interviews is therefore dedicated on the stakeholder analysis, on the management of the people that compose working teams, and on the management of information flows within the company.

The primary purpose of this report is to demonstrate the decision-making process for the chosen aviation company Virgin Atlantic Airline owned by Sir Richard Branson, which was established in 1984 and how they influence their customers to purchase their products and use their services. Virgin Atlantic offers many services such as

Anglo American hired Cynthia Carroll as chief executive officer in hopes that she would improve the overall performance of the company. Failing to meet their expectations would almost guarantee her time at the company would be short lived. As CEO she must juggle the interests of her stakeholders and make decisions that benefit the company. It can prove to be a difficult task as certain stakeholders hold more power and have more influence when it comes to making these decisions. In this paper I will be using stakeholder theory to discuss how Anglo American’s stakeholders influence Carroll’s decision. Carroll is well aware of the dangers her employees face, however she must decide whether it is in her best interest to increase safety or not. While increasing safety measures may make the company look better, it will come at great costs. Although Cynthia Carroll is facing some opposition from it’s the South African government and its employees, when taking in the interests of all the company’s stakeholders it is clear that she must keep the mines up and running without taking more safety precautions.