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Explain the effect of this change on two of the following stakeholders of the airline: - the general community - suppliers - customers - VCE - SSCE Business Management - Question 6 - 2023 - Paper 1
Question 6
Explain the effect of this change on two of the following stakeholders of the airline: - the general community - suppliers - customers
Worked Solution & Example Answer:Explain the effect of this change on two of the following stakeholders of the airline: - the general community - suppliers - customers - VCE - SSCE Business Management - Question 6 - 2023 - Paper 1
Step 1
Explain the effect on the general community
Answer
The change in the airline's operations directly impacts the general community by reducing flight options and potentially increasing travel costs. As the airline cuts back on destinations to optimize profitability, local residents who rely on affordable and accessible travel may face challenges in booking flights. This could lead to decreased tourism in the area, affecting local businesses that depend on travelers. Furthermore, the local economy may suffer as reduced airport traffic results in lower spending in surrounding communities.
Step 2
Explain the effect on customers
Answer
For customers, namely the passengers flying with the airline, the change in flight availability is significant. Customers may need to seek alternative airlines to meet their travel needs, leading to potential inconvenience and dissatisfaction. Additionally, with fewer flights to choose from, the price of remaining flights may rise due to decreased competition. Customers could also experience longer travel times as they may have to consider layovers or alternate routes that were previously unnecessary. Generally, the reduction in service quality and options can harm customer loyalty towards the airline.