358
C A S E T E A C H I N G N O T E S
Flight Centre Limited
Kenneth Wiltshire
1. Introduction
This is a true case of entrepreneurial endeavour. It is essentially the story of how a larrikin and
his mates got an idea, created a crude experiment in the travel industry, and then extemporised
with a cheeky disdain for the industry culture and the regulatory frameworks, to create an
entirely new model of business operation based on a carefully designed strategy.
2. Position of the case
The focus of interest in this case is the innovative business model and its resilience in the face of
a fast changing industry and rapid take up of technology. The context is clear from the narrative
3. Learning objectives
This case provides students with a very direct introduction to the nature of entrepreneurs and the
dominant role played by founders/leaders in organisational culture. It then explains the shift
4. Teaching scheme
The case is best taught following the narrative of the enterprise which is essentially about a
small group of entrepreneurs who develop an idea, trial it, face considerable entry obstacles
which they overcome by the skin of their teeth, design an innovative organisational structure
5. Questions for discussion
Using the experience and development of Flight Centre throughout, answer the following
questions:
1. What is the importance of entrepreneurialism and innovation in designing and implementing
strategy?
Instructors Manual on the Web
360
6. Case analysis
1. What is the importance of entrepreneurialism and innovation in designing and implementing
strategy?
To answer this question, students will need to revisit the nature of entrepreneurialism as well as
2. How can the pillars of strategy be defined in both organisational structure and human
relations terms?
This question opens up unique aspects of the Flight Centre experience. The material on
organisational design covered in Chapter 13 can serve as a reference point but, students should
be encouraged to reflect deeply on Turners anthropologically inspired design principles which
3. What is the significance of strong client relationships for strategy and what innovative
measures can be utilised to maintain those relationships?
Naturally, this question opens up the general field of marketing, customer service, and personal
4. What strategic measures can be employed to cope with constantly changing competitive
forces and modalities?
Flight Centre faces intense competition from three major sources:
361
Although the fundamental aspects of the competitive forces discussion in Section 2.3.1 and
international strategy in 8.5.2 are still relevant, this complex situation will challenge students to
appreciate the need for more innovative competition strategies. The Flight Centre approach as
outlined in the case involves the lowest price guarantee, the availability of an emergency hot
5. What are the implications of shifting from a survival strategy to one of rapid organic
growth?
This is a typical challenge which faces all start ups who have found a niche and are rapidly
exploiting and exploring it. It is in essence the Flight Centre story. Using the material in
Sections 9.5 and 10.2 which provide a brief insight into the challenges, students could make
or major industrial action or a prolonged weather event.
6. Can a global strategy rely on one business model?
A contemporary issue for all corporations operating in a global environment, this issue is of
great significance to considerations of strategy. Flight Centre operates with one basic business
model throughout the world with only minor tweaking to take account of cultural and