Strategic Management on Qantas Airway

In: Business and Management

Submitted By haoming
Words 3099
Pages 13
Qantas Airway

Strategic Management BUSM 3125
Group Assignment 2

Jonathon Reid
Sindra
Hao Ming Lee – S3301727

Table of Content

Executive Summary 3
Background Information 4
SWOT Analysis 5
PESTEL Framework Analysis 6
Porter’s Five Forces Analysis 9
Qantas’ Strategic Capabilities 12
VRIN Model 14
Qantas’ Value Chain 16
Qantas’ Generic Strategies 17
Conclusion 19
Reference List 20

Executive Summary
This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry…...

Similar Documents

Strategic Management

...title page. If two or three authors, include all authors’ family names when you refer to the text. If writing the authors’ names in the brackets, use ‘&’ between the last and second last names in your in-text reference. If including the authors’ names in the sentence, use ‘and’ between the last and second last names. It has been argued that E-commerce makes the issue of international business law more complex (Zugelder, Flaherty & Johnson 2000). Wright and Noe (1996) explain that organisational structure needs to support the organisation’s strategy in order to maintain competitive advantage.  If four or more authors, use the author’s name that appears first on the title page + ‘et al.’ (and others). For example, the four authors of Management: A Pacific Rim Focus, 2nd edn, are Bartol, Martin, Tein and Matthews, but only the first author’s name + ‘et al.’ is used in the in-text reference: 3 In more diverse organisations, change tends to occur more slowly and allows the various functions to coordinate their activities (Bartol et al. 1998).  If there are several texts with the same first author, all authors should be given in-text to avoid confusion. (Do not use ‘et al.’ in this case.) 1. 5 Multiple works by the same author Multiple works by the same author, but published in different years are listed chronologically, oldest first.  Multiple works by the same author that are published in the same year are distinguished by adding letters (a, b, c, d, etc.)......

Words: 5893 - Pages: 24

Implication of Strategic Change in British Airways

...cause many problems. In the process of implementing these changes, there is support or resistance from shareholders. This report focuses on analyzing BA’s strategic changes and dealing with managing these changes. In tradition, HRM is the organizational function that deals with requirement, training, assessment and rewarding of employees, while also managing people and the workplace culture and environment. Now the new role of HRM refers to overcome the challenge form implementing changes of organizational strategies. The case also indicates that the flexible HRM plays a significant role of dealing with the disputes between employees and management. Key words: strategy management, British Airways, change management, labor dispute Implication of strategic change in British Airways 1. Introduction Generally, a company makes strategies based on the changing environment. But if the strategies changes, there are many barriers to conduct. Human resource is performed as the most valuable asset of organizations. How to manage and more efficiently utilize the asset is so significant for organization to operate and develop. Obviously, there are resistance form employees. Therefore, human resource department is responsible for coordination in the organization. Human resource management (HRM) is always known as the governance of employees in organizations. It is responsible for creating, implementing or overseeing human resource......

Words: 3419 - Pages: 14

Qantas

...INTRODUCTION Qantas is the acronym of the Queensland and Northern Territory Air Services. Qantas is the world's second oldest airline and was founded in the Queensland outback in 1920. It is Australia’s largest domestic and international airline and is recognised as one of the world's leading long distance carriers. It has pioneered services from Australia to North America and Europe. The Qantas Group today employs approximately 32,500 people and offers services across a network spanning 182 destinations in 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa. [16] The Qantas Group’s main business lies in the transportation of passengers via two complementary airline brands – Qantas and Jetstar. The Sub-divisions of the brands are shown in the figure below: In addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has additional equity interests in airline and airline-related businesses. Qantas is also a partner with Australia Post in two jointly controlled entities: Australian air Express and Star Track Express, a national road freight business. [12] The Qantas Group’s long term vision is ‘to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.’ [13] To achieve this, the Group is focused on five key elements: * Safety is our first priority * Right aircraft,......

Words: 4229 - Pages: 17

Strategic Management

...Table of Contents 1.0 Introduction 2.0 Strategic Analysis 2.1 The Strategic Management Process 2.2 Stages of the Strategic Management Process and Contribution to Strategic Management Process 2.3 Definition of Strategic Analysis and Component 2.4 Techniques for Analyzing the External Environment 2.5 Techniques for Analyzing the Internal Environment 2.6 Roles of SWOT Analysis in Strategic Analysis 3.0 Strategy Formulation, Evaluation and Choice 3.1 Strategy Formulation stage and Contribution to Three-stage Strategic Management Process 3.2 Key Differences between Business Strategy and Corporate Strategy 3.3 Implications of Differences for Strategy Formulation 3.4 Key Differences between the Market Positioning and Resource-Based Strategy 3.5 Strengths and Weaknesses of Porter’s Generic Strategies 3.6 Resource-Based Approach Implications for Business strategy 3.7 Industry Lifecycle and Market Turbulence Implications for Business Strategy 3.8 Corporate Level Strategy Decisions 3.9 Relevant Growth Strategies to Qatar Airways 3.10 Advantages and Disadvantages of Related and Unrelated Diversification 3.11 Important Strategies to Qatar Airways 3.12 Portfolio Analysis 3.13 Aspects of International Strategy that are Relevant to Qatar Airways 3.14 International Strategies that are Appropriate 3.15 Market Penetration Strategies that are Appropriate 3.16 Evaluation Technique of Best Strategy to Adopt 4.0......

Words: 5154 - Pages: 21

Strategic Management

...short foundation of the organization and how it got to be so outstanding. At that point the analysis of Virgin's macro-environment and current strategy and circumstance will be given to support with giving the perfect suggestions to the organization. The objective of this report is to furnish Virgin with important proposals that can help or enhance their current circumstance so they can perform above desire.   Introduction Strategic management Strategic management comprises of the examination, choices, and activities an association embraces keeping in mind the end goal to make and support preferences. This definition catches principle component that go to main field of strategic management. The strategic management of an association involves three progressing procedures: analysis, choices, and activities. In order that strategic management is an interest with the analysis of strategic objectives (vision, mission, and goals) alongside the examination of the inside and outside environment of the association. Next, leaders must settle on strategic choices. These choices, comprehensively talking, address two fundamental inquiries: What commercial enterprises would it be advisable for us to challenge in? How would it be advisable for us to face in those businesses? These questions additionally frequently include an association's local and its global operations. At last, these moves must be made. Background of Company Virgin Australia Airlines, also known as Virgin......

Words: 4835 - Pages: 20

Strategic Planning: Jet Blue Airways

...Strategic Planning: Jet Blue Airways Gregory James Professor John Mitchell BUS 599 Strategic Management April 24, 2011 Abstract This report has been produced to determine if the strategic planning in which new of Jet Blue Airways CEO David Barger has created, will help to ensure the company long term success. Addressed in this report will be the following topics: (1) What are the trends in the U.S. airline industry? How might these trends impact a company’s strategy? , (2) What is Jet Blue’s strategic intent? , (3) What are Jet Blue’s financial objectives? Has the company has been successful in achieving their objective? , (4) What are Jet Blue’s strategic elements of cost, organizational culture, and human resource practices? Does each of these elements provide the organization with a competitive advantage? , and (5) What are Jet Blue’s strategies for 2008 and beyond? Will Jet Blue be successful implementing these strategies or not? Strategic Planning: Jet Blue Airways What are the trends in the U.S. airline industry? How might these trends impact a company’s strategy? With the constant changes in the country’s economy, airlines are having more difficulties reaching a competitive advantage. The constant raise in fuel and oil cost to fuel airplanes has caused airlines to come up with a plan to maintain these cost. In addition, the airlines also focus on increasing profit return to shareholders and company executives. To achieve this goals airlines have......

Words: 1343 - Pages: 6

British Airways Human Resource Management Stretagies

...Assessment of British Airways Human Resource Management Strategies In a human body, heart is the most important part form where we can judge whether body working fine or not. In the same way in any organization the most important asset is employees. And to maximize their assets, management should always manage the employees working condition with intelligence and efficiency. If employees of any organization are well managed, the organizations mostly do very well. It is therefore necessary to work on development, building, motivation, enhancement and enrichment of the employees. In general every organization believes that Human Resource (HR) offers them reasonable advantage. These advantages can be Quality work force Quality culture etc. The Strategic Human Resource Management ensures that the employees or human capital of an organization contributes towards its achievements with their performance, knowledge and skills. The Traditional Human Resource is only concerned with the implementation of the policies like: Recruitment, Staffing, Reward, Assessment But when general HRM plug into the organization’s strategy the outcome of HR department more scope to increase the abilities of their workforce and focus on the vision and mission. This connection is made to improve the organization performance and develop organizational culture which in turn facilitates innovation and flexibility. Overall the key principle of Strategic HRM is to achieve......

Words: 2724 - Pages: 11

Qantas Airways Media Strategy Analysis

... QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL ABSTRACT This paper explores the current media advertising strategy of Qantas Airways in the recent past. The research seeks to evaluate these strategies against those used by its main competitors with a view to recommending the most suitable media campaign strategies that can be employed to maintain Qantas Airways dominance in market share in the domestic home market and increase its standing as regards the international flights market. The analysis will take into consideration certain aspects such as the main media objectives, the strategy rationale; the media class selection rationale/evaluation, budget approach, and estimated performance results with regard to the reach anticipated in the television segment. The main target of any media campaign has been identified as the first class sector and so the bulk of the concentration of this analysis is geared towards that end. Keywords: Qantas Airways, media, advertising, television QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL Queensland and Northern Territory Aerial Services (QANTAS) Airways according the online encyclopedia, Wikipedia, dominates the Australian domestic market with a market share of 65%. This figure is corroborated by the latest January 2012 Qantas report on independent......

Words: 1247 - Pages: 5

British Airways Change Management

...Part 1 Research Report- The BA Dispute 1.1: Introduction The issue of managing organisational change is of significant importance within management theory and practice. Therefore the purpose of this report is to analyse the British Airways (BA) change program, which resulted in long-running industrial disputes between its management and crew members in 2009-2011. Additionally this reports objective is to provide accounts on the following areas. 1.2: Internal and external contextual factors, which influenced the introduction of strategic changes at BA It is important to note that change is a significant process with any organisation in order to survive and grow in today’s global economy, without introducing change, organisations such as BA run the risk of becoming stale and unresponsive. Both internal and external contextual factors affected BA leading the organisation to implementing change within the workforce. For a premium, semi-luxurious airline such as BA, low global economic growth otherwise described by the former BA CEO, Willie Walsh as the “harshest environment the airline had ever faced” (Walsh, 2009) resulted in a dampening demand for airline travel. Therefore customers including business travelling customers who were known as BA’s traditional core customer, their loyalty switched towards low-cost airlines such as Ryanair and Flybe, who remained competitors to BA through that time, especially during the volatile conditions of the recession.......

Words: 1535 - Pages: 7

Change Management in British Airways

... Change Management in British Airways Name Class Affiliation Instructor Date Table of Contents Introduction 3 Context of the change 3 Evaluation of the nature of such changes 4 The change management strategy 5 The challenges and difficulties in implementing such changes 6 Change management model 8 Stakeholders 10 Managerial challenges 11 Overcoming resistance to change 12 Managing change 12 Conclusion 14 Reference 16 Introduction UK largest international Airline, British Airways, is among the leading airlines in the world, with one of the most extensive route network, running internationally (British Airways, 2010). The income of the airline has been on the increase with the profits for the period between 2007 and 2008 being a total of £8,753, which translated to 3.1% more than the previous period. Throughout its operating years, British Airways has faced different challenges, as it is for all other companies in the industry. During the year 2007, the American economy experienced a crunch due to the bursting of the housing market. This was the beginning part of the 2008 economic crisis, or recession, which had global effects (Åslund, 2010). Like any other industry, the UK airline industry faced a major setback, British Airways being one of the companies and there was a need to implement changes for long company survival. This paper is an analysis of the changes implemented by the British Airways in the period between 2009 and 2011, and the......

Words: 4044 - Pages: 17

Strategic Management-Qantas and Jetstar Airlines

...Name Professor Corse Date Qantas and Jetstar Airlines Table of Contents 1.0 Introduction………………………………………………………………………………2 2.0 Strategies that Jetstar Airlines want to Execute……………………………………….....2 2.1 Market Conditions………………………………………………………………........2 2.2 Immediate Priorities…………………………………………………………………..4 2.3 Reshaping and Broadening Jetstar Airlines…………………………………………..3 2.4 Earning and Rewarding Loyalty……………………………………………………...3 3.0 How the Strategic Choices by Qantas Affect Human Resource Planning……………….4 4.0 Change to Workplace Laws……………………………………………………………...4 5.0 Impetus for Modification of Employee Relations……………………………………….5 6.0 Human Resource Planning………………………………………………………………6 7.0 Recommendations for Developing Human Resource Strategies………………………..8 8.0 Conclusion……………………………………………………………………………….8 Works Cited…………………………………………………………………………………9 Strategic Management 1.0 Introduction Strategy formation is critical designing, emergent learning, and intuitive visioning. It is concerned with perpetuation as well as transformation and involves social interaction, personal intuition, cooperative, and conflictive. Strategic management has to feature synthesis before negotiating during the process and after programming. All these things must respond to what may appear to be a demanding environment. Decisions relating to employment relations strategies are often likely to be viewed differently from strategic considerations of various organizations. This......

Words: 2203 - Pages: 9

Case Study on Strategic Analysis of Jet Airways

...Abstract India, home to one-sixth of the world’s population, is quickly becoming one of the world’s economic engines. Its bureaucratic and outdated regulatory policies have been reformed resulting in a three-fold increase in the number of scheduled airlines and a five-fold increase in the number of aircraft operated. The largest and most popular airline in Mumbai India is Jet Airways started in 1993. Naresh Goyal (both founder and owner) still owns eighty percent of the company, and oversees all aspects of the business. This paper reviews one of the airlines, jet airways, strategic evaluation process to select the next corrective action for the airlines and also the impact on overall aviation industry. How to do a strategic evaluation? Strategic Evaluation is the final phase of Strategic management. Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in today’s dynamic world with socio-economic, political and technological innovations. The process of Strategy Evaluation consists of following steps- 1. Fixing benchmark of performance - While fixing the benchmark, strategists encounter questions such as - what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special......

Words: 5636 - Pages: 23

British Airways Change Management

...Research report on British Airway’s change program that resulted in long-running industrial disputes between its management and crew members in 2009-2011. CONTENTS LIST 1. Introduction 2. Change management in British Airways 2.1 Organisational context (British Airways: 2009 – 2011) 2.2 The strategic change itself as outlined by its management 2.3 The nature and extent of the strategic changes 2.4 The change management strategy 2.5 The challenges and management difficulties in implementing such change strategy 3. Conclusion 4. Bibliography 1. Introduction This report entails research on British Airway’s (BA) change program that resulted in long-running industrial disputes between its management and crew members between 2009 and 2011. British Airways PLC is one of the world’s leading global premium airlines. The airline is based in London with significant presence at Heathrow, Gatwick and London City. In May and June 2010, the UK trade union Unite carried out a series of industrial actions against British Airways after the airline implemented a series of changes including job losses, a pay freeze and changes to the work practices of cabin crew. However, even though when the dispute started it centred on changes to staffing levels and pay, it was soon bogged down by British Airway’s removal of travel concessions, and in some cases the termination of workers who took part in the industrial action. Unite trade union......

Words: 2297 - Pages: 10

Strategic Management

...Assignment Title: QANTAS, JETSTAR AND VIRGIN AUSTRALIA A TALE OF CHANGING STRATEGIES Topic code and name | BUSN 3055 | Word count | 2020 | 1. Differentiated pricing is among the widely practiced Revenue Management tactics in which a firm offers its products/services at differentiated prices to distinct markets. And this tactic has been noticed by airline industry for more than four decades. Revenue Management also known as Yield Management has been well recognized as an essential practice in many businesses, and it is defined as the set of strategies adopted by a business to improve its profitability (Philips, 2005). It is among the most important applications of management science and operation research (Bell, 1998). Qantas, Australia’s foremost domestic and international carrier, established Jetstar in May 2004 as a budget airline. Its purpose is to cover the low-cost segment of the market, which began in around the year 2000 with the launch of a competitor, Virgin Blue. Until the time Jetstar began operations, Virgin Blue had been successfully eroding Qantas’s air market share, indeed with the collapsing of Ansett Airlines (Easdown, 2002), and capture around one-third of domestic airline market. In response, Jetstar was also designed to be a no-frills carrier, predominantly targeted at the leisure market. (Case Study) Market segmentation is a strategy that involved dividing the target market into subsets of consumers who have common needs and priorities....

Words: 2455 - Pages: 10

Risk Management by Qantas

...1.0 Introduction Airlines industry faces substantial strategic, financial, operational and hazard risks due to the nature of the operating environment. Financial risks create uncertainties about future cash flows due to changes in economic conditions as well as changes in revenues, operating expenditure and financing costs. Firms are urged to minimise these risks to have higher predictability on future cash flows in order to meet various obligations, for instance shareholders’ required rate of return and debt repayment. This report looks into Air New Zealand in particular to study two of the risks that are significant for an airline company, namely foreign currency risk and fuel price risk. Section 2 of this report gives an overview of the relationships between the operation of Air New Zealand with both the risks. Besides, discussions and suggestions on Air New Zealand risk management approaches are presented in Section 3. Finally, a brief summary and conclusion is included in the last section. 2.0 Risks Description 2.1 Fuel Price Risk The Nature of Fuel Price Risk Fuel price risk is the risk of fluctuations in fuel prices which could adversely affect the financial performance of Air New Zealand as jet fuel is a critical input factor for airlines. Fuel prices are affected by the supply and demand, oil price futures and the downside or upside movement in the US dollar against NZ dollar. In particular, the increase in jet fuel prices adds a significant amount to......

Words: 6090 - Pages: 25