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D508 Management and Operations: Analysis of the two Travel Agencies

This assignment based onn Two large Travel Agencies are about to merge together. Holiday Seekers Travel Agency and Small World Travel Agency are both public companies (shares listed on the stock exchange).

The Holiday Seekers Travel Agency was established in 1960 and it is a traditional agency with 50 physical branches in the Middle East and 301 employees. Bookings for hotels, air tickets, tours, etc. are all done ‘physically’ by welcoming the customer in the travel agency branch and dealing with his / her holiday needs.

The Small World Travel Agency was established in 2001 and it is an online ‘virtual’ high tech travel agency with no physical location or branches. Their headquarter is based in Downtown Dubai …. 65 employees work for this travel agency.

The CEO’s of both companies are extremely anxious (they know at least one of them has to go).
 
The news of the merger is not public yet. Only members of the Board of Directors know about the merger. No one else knows. It is a fact, however, that restructuring is essential and ‘rightsizing’ is inevitable.

It has been decided that the new company (the result of the merger) will still have physical branches (20 branches), which is much less than the number of branches the Holiday Seekers Travel Agency currently has, giving customers the choice to use a traditional way to book their holidays or to do it fully online.

Here is what you are supposed to do:

You have been approached by a regulatory body (acting in the interest of all shareholders) to be a Consultant to offer advice on how to handle this ‘Change’. You will be paid 200,000 AED for your report. You are, therefore, required to write a report of Maximum 15 pages offering your advice on how they should implement the change.

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