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Innovation and Business Practices | Assignment on Victoria Taxi

Introduction

Background

Victoria taxi has been one of the renowned taxi services operating in Australia for more than a decade. The services that are provided to the customers are professional yet there is touch of innovation in the service. The taxi owners use their personal cars for providing service to the customers in a professional manner. The taxi service that is provided to them ranges from greater Victoria to the outskirts. Innovation is shown in the services, which has a personal touch to the services. The organization provides numerous services, which helps the customers in differentiated manner.   

Aim

The aim of the study is to evaluate the organizational structure of Victoria Taxi along with the factors that affect the services and the business practices they follow. The evaluation would be done in reference to the innovation technique adopted by them.

Scope

The study would enable to understand the different factors that affect the organization practices and the risks that they might face in the process. It would be effective for the organization, as suitable methods would be recommended so that the organization would be able to improve the Service through effective innovative ideas.

Discussion

Organizational structure: Victoria Taxi has been working as a company where the Chairperson heads the company. The chairperson takes the decisions that are followed by the CEO or the chief executive officer. The Operations manager, the legal and regulatory services, the strategy and the innovation manager, the marketing communication manager, the human resource manager and the manger for the corporate services are responsible to the chief executive officer (Arasti et al., 2014). The next level of leaders and employees are responsible to the respective managers. The organization has b ........

ng service to the customers in a professional manner. The taxi service that is provided to them ranges from greater Victoria to the outskirts. Innovation is shown in the services, which has a personal touch to the services. The organization provides numerous services, which helps the customers in differentiated manner.   

Aim

The aim of the study is to evaluate the organizational structure of Victoria Taxi along with the factors that affect the services and the business practices they follow. The evaluation would be done in reference to the innovation technique adopted by them.

Scope

The study would enable to understand the different factors that affect the organization practices and the risks that they might face in the process. It would be effective for the organization, as suitable methods would be recommended so that the organization would be able to improve the Service through effective innovative ideas.

Discussion

Organizational structure: Victoria Taxi has been working as a company where the Chairperson heads the company. The chairperson takes the decisions that are followed by the CEO or the chief executive officer. The Operations manager, the legal and regulatory services, the strategy and the innovation manager, the marketing communication manager, the human resource manager and the manger for the corporate services are responsible to the chief executive officer (Arasti et al., 2014). The next level of leaders and employees are responsible to the respective managers. The organization has been following the structure right from the very beginning of the establishment. This has helped them to move ahead and use innovation in the services that is provided to the customers.

External environmental factors

There are certain external environmental factors that need to be considered which have a great impact on the organization (Avolio, 2015). There are certain political, environmental, social, technological, economical and legal factors that have an impact on the company of Victoria Taxi.

The political factors have a great impact on the functioning of the organization. The government keeps a check on the licenses and has a minimum pay fixed for the drivers that are working for the Taxi industry. However, on the other hand, with the experience in the field, the organization has a good support from the local government. In addition, they are under the scrutiny of the government whether the taxis follow the traffic rules and operate likewise (Cheng et al., 2014).  On the other hand, the environmental factors support the operation of the Taxis as they help the common people with their daily activities and making travelling easy and simple. Socially, they have received good support from the customers as most of them avail the services in the Victoria region to get the best service from travelling to different places and in sending parcels from one place to another. Since the services are more than the Taxi service, there is a heavy craze of the service. The technological factors have a positive impact on the organization as they are updated with latest software and enabling the customers to book and track easily online (Kerr, 2016). Economically, the people of Australia have enough amounts to avail the service of the VictoriaTaxi service and the fares that are charged are quite adjustable with the customers. Legally, there are certain threats as the rules are strict; however, the Taxi service follows all the regulations and thus fears no issues.

Internal environmental factors

For the internal environmental factors, SWOT analysis would help in identifying the strategies that are supporting or posing a threat for the organization.

Strength

1. Organized brand

2. service of high standard

3. vehicles fleet is huge

4. personal car and responsible drivers

5. Low operational cost

Weakness

1. Incentives for drivers is low

2. maintenance of the vehicles is imposed on the individual

3. innovation at times not acceptable by customers

Opportunities

1. customers demand personalized services

2. more fleet to be increased

3. easy to tap different areas nearby

Threat

1. more car rental services entering the market

2. dissatisfied drivers

3. legal concerns

4. Increasing taxation

 

Impact

The external as well as the internal environment of the company have a great impact on the organization and the operation. From the internal environment, it can be analyzed that the organization has been maintaining dissatisfied drivers, which is a threat for the organization. Moreover, with the increasing taxation, the services become quite expensive for those who would have to be travelling far places (Kim & Lui, 2015). On the other hand, the external environment has also an impact on the organization. Though socially people have been accepting the service cordially, yet with the increased disposable income, hiring of the taxi has decreased than before (Pati et al., 2018). Moreover, with the easy market entry, many competitors have been seen operating in the Australian market. Therefore, this industry is competitive and is under constant threat (Kuratko et al., 2014).

Risks

There are certain risks that the organization needs to consider keeping in the mind the internal and the external factors. One of them is the financial risks that need to be considered by them. They need to improve the number of fleet that they have to improve the profit there are many other services, which are initiated in the city (Schaltegger & Wagner, 2017). In addition, societal risks that the organization can face are the people are buying their own car and availing less of the taxi service. In addition, there are chances that the organization would face risk from the replacement. Though the organization have been operating in the market for a long time, yet there are certain new services that provide service to the customers are quite low price (Prajogo, 2016). Therefore, there are chances that the customers would avail the services from the new organizations. Therefore, the organization would require maintaining the services and using innovation to attract the customers as they have done before.

Business practices

Victoria taxi needs to improve the business practices so that there can be effective improvement in the business operations. At the very first instance, they need to improve the number of taxi available with them so that they can be easily accessible to the customers who need the service. His would be effective to attract more customers. Secondly, there have to ne innovation included within the services that have to be provided to the customers (Singh et al., 2016). They need to make the journey conformable in such manner that the customers remain loyal to the service of the organization. Special discounts have to provide to them in relation to the number of trips that have been made by the customers. If the services are made more [personalized than it was before, it would be effective for the organization to retain the customers and make new customers for the same. Customers would definite like personalized services where they would be recognized as regular customers availing the services (Souto, 2015). This would help the organization in establishing a connection with the organization and help to make new ones. On the other hand, the drivers have to be paid more and the number of drivers has to be improved so that the response can be done effectively to the bookings.

Important functions

At the very first instance, the marketing department needs to be aware of the others providing competition to the organization and plan innovative ideas to attract more customers. This would helpthe organization to sell their business to the customers more and be effective with the organizational performance. In addition, the human resource department needs to think of the management of the drivers and recording the performance of the drivers. This can be done through the feedback collected from the customers and the ratings that are given to the customers. Performance management would be effective for the management of the performance of the drivers (Visnjic et al., 2016). This would provide motivation to the drivers. Also, the finance has to be managed in certain way so that there can be effective incentives for the drivers with better performance and the accounts has to be managed well so that none of the drivers can cheat with the amount collected from the customers.

Conclusion

The study can be concluded with the information that though Victoria Taxi is a well-known brand in Victoria and the nearbyareas and have a customer base, yet there arecertain changes that need to be done to maintain the organization profitability and position. From the internal and the external factors, it can be seen that the business is affected hugely especially from the competition that isexisting in the industry. The organization needs to improve with certain strategies so that they can gain effective outcomes from the existing plans. In addition, they have used innovation in every step so that they can attract more customers to the market and retain their market position.