Thirty to fifty of SCHOLARLY journal articles Business Problem in Essay

Thirty to fifty of SCHOLARLY journal articles Business Problem in Rosenbluth international - Essay Example As stated by Clemons and Hann (1999), companies which are successful find it difficult to change their policies in accordance to the changing business environment. This notion identifies and sheds light on the difficulty and complexity that is associated with the implementation of an effective change management strategy and reorganization of business operations. In the case of Rosenbluth International, this required alteration in company operations has been prompted by the prospects of disintermediation that the organization currently faces, which in turn have been triggered by the continuation of a significant period in the industry of travel brokerage that is essentially marked by a major restructuring of the entire industry (Clemons and Hann, 1999). According to Clemons and Hann (1999), the drastic changes that are being experienced by the travel industry can be associated with dynamics of the competitive environment. ... dustry by analysts highlights the alarming situation for travel agents as hotel chains and airlines intend to raise the scope of their revenue generation by launching electronic distribution systems. Furthermore, Carroll and Siguaw (2003) claim that the popularity of internet-based room reservation has allowed hotel owners to gain complete control over various methods of distribution which is threatening to the wellbeing of Rosenbluth International. Another challenge faced by Rosenbluth is not only rooted in external competitive pressures that are posed by other travel agents but is also caused by the commission cuts which have been introduced by hotels and rental companies thereby, prompting the organization to raise its charges by $10 to $15 (McCubbrey, 1999) to soothe the incurrence of unexpected expenditures. An examination of the case suggests that the challenges being faced by Rosenbluth are largely based on an increase in expenses and a decrease in the revenues being generated by the firm due to the introduction of electronic distribution systems by major travel-based businesses and a reduction in commission caps that are being earned by competing organizations. However, once the case is viewed from a varying perspective it can be comprehended that the issues which Rosenbluth is currently experiencing are also a consequence of the widespread availability of substitute services such as bargain prices and the incorporation of effective and pioneering business models such as reverse auction and auction. Discussion Given the present scenario and the challenges posed by the competitive environment in which Rosenbluth International operates, it would seem most appropriate to install an online reservation system to equip the organization with the technological tools