...Strategic Management on Qantas Airway 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 (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability)...
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...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...
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...Title: Qantas and Emirates Alliance Strategy Course Name: Strategy Development and Initiatives Course Code: MGMT20112 Course Coordinator: Daniel Abell Lecture Name: Daniel Abell Tutor: Daniel Abell Students: Ruth Calasan s0235265 Tracy Nguyen s222275 Felipe Gutierrez s0234289 Due Date: 19/08/2013 Date Submitted: 26/08/2013 Word Count: 3500 Words Executive Summary Last 06 September 2012, Qantas had entered a 10-year partnership with Emirates that will go beyond the code-sharing and collaboration in terms of coordinated pricing, sales, and scheduling and benefit-sharing model which aims to jointly deploy one or more resource combinations. An in-depth analysis has been done on what are the internal and external factors that influence Qantas to form an alliance with Emirates. These factors are: Deregulation of open skies creating economic environment and open equal opportunities for all air carriers Excessive capacity, fuel cost, foreign currency exposure and threat of new entrants. Changes in customer taste and destinations, power of customers and growth of airlines alliances. Heavy investments in railways and telecommunication tools Consumer protection and passenger rights Growing percentage of global emission Airport slots allocations Similarity of resources and services such as Singapore Airlines and Cathay Pacific Improving services for better price Improving power of negotiation between the alliance and suppliers During the analysis...
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...Assessment 3: A case study of Qantas Airline: The grounded kangaroo EXECUTIVE SUMMARY Qantas is the world’s second oldest airline and it fall into a long-run labour dispute which once stopped the running of the company. The CEO of Qantas, Alan Joyce has taken several actions before and during the dispute. This essay will discuss the reason and the cause of such industrial relations problem. Then, to analysis and judge the industrial action of both Qantas and the labour unions with some of the management concept. In the last, possible solution and recommendation will discuss to show the benefit of management skills. Table of contents INTRODUCTION 1-2 PROBLEM IDENTIFICATION2-3 PROBLEM ANALYSIS AND JUSTIFICATION3-5 ALTERNATIVE SOLUTIONS5-6 CONCLUSION AND RECOMMENDATIONS6-7 INTRODUCTION Qantas is the world's second oldest airline. Founded in the Queensland outback in 1920, it is Australia’s largest domestic and international airline and is recognized as one of the heads of world long distance airline companies, having services from Australia to North America and Europe. Qantas today employs approximately 33,600 people and offers services across a network spanning 182 destinations in 44 countries around the world. On 29 October 2011, Qantas chief executive, Alan Joyce took a big gamble; He claimed to ground all the planes and cancelled all flights in order to get rid of a long-run labour dispute and the conflict with Unions. This bold or perhaps impetuous action...
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...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, right...
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...EXECUTIVE SUMMARY This report aims to determine whether Qantas is suitable to be included in a diversified share portfolio aiming to maximise investor returns over the long term. Analysis began with a broad view of the airline industry, both international and domestic. Porter’s Five Forces framework is utilised to determine the strengths of buyers, sellers, potential entrants, competitors and substitutes. Overall the airline industry is characterised by high barriers to entry however these barriers are reducing and competition is increasing, particularly in the low-cost segment. Qantas was then examined utilising SWOT analysis to highlight the strengths, weaknesses, opportunities and threats particular to the airline. Qantas has a strong competitive position with a recognisable brand and loyal customer base through the use of the Frequent Flyer program. However, expansion into the Japanese domestic market could jeopardise future profitability. Other threats could arise from further technology failures, natural disasters and labour disputes. Accounting analysis of Qantas focused on the treatment of the Frequent Flyer program, hedging accounting and the adjustment of estimates relating to aircraft. It appears that management has applied prudent estimates which accurately reflect the financial position whilst allowing some flexibility. Discounted cash flow analysis was utilised to determine intrinsic equity and firm value. Key assumptions included the cost of equity, market...
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...tourism after the September 2001 terrorist attacks in the United States. Recently, there has been traffic loss which is attributed to the war in Iraq and severs acute respiratory syndrome (SARS) occurrences in parts of Canada and Asia. In addition, to this mayhem the industry has gone through main structural changes since 1990s. There were four airlines on the essential routes but currently they are two. In 2000, the local trunk routes were controlled by Ansett Australia and Qantas Airways with new competitors Impulse Airlines and Virgin Blue rising in niche market. Currently the industry has irregular two airline structures, with Qantas leading since its occupation of Impulse Airlines in 2001 and the Ansett group’s following collapse in September 2001. On the contrary, Virgin Blue is not a member of an association, its service frequencies are reserved in comparison with those of Qantas, and its local network is not as extensive as that of Qantas is dynamic. In reaction to Virgin blue success, Qantas is taking steps to expand its allocation of the budget travel market, while Virgin is now in quest of expansion past its vacation traveller position by developing its business travel market. The government is showing a liking for administrative way outs such as a certain number of local airline slots at climax times, a restriction on the number of hourly travels, and the noise clampdown to ‘economic’ way outs such as crest-load pricing and the transaction of slots by public sale...
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...Introduction QANTAS is operating mainly domestically and internationally in air transportation company for various types of travelling, such as leisure and business, cargo and logistics facilities as well as support operations which includes: information technology, catering, ground handling, engineering and maintenance (Qantas Annual Report, 2013). Qantas Group also has dual brand strategy. It operates under Jetstar Airline, as a subsidiary. Jetstar is operating under a low-cost business model and it competes with local market airlines, such as Virgin Australia and Tiger. As for the Qantas airlines, it is positioned as a premium full-service carrier, providing hi-end experience for business class and corporate customers. They all have a major influence on the business, its strategy and therefore its performance. This business strategy gives Qantas Group its quite unique and competitive advantage situation of having two well known companies in the superior and low fares segments at the Domestic and International markets (Qantas Annual Report, 2013). The demographics of Australia is taking optimistic atmosphere within the business with the increase of Generation Y and retiring Baby boomers. Schedules become more significant over service quality in current constantly changing business environment around the world. Also, with the rise of ecological concern, consumers are searching for eco-friendly transport methods. However,...
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...competitors (Needle 2011). The growth of economical and efficacious arrangement inside the business can lead to the core competences (Needle 2011). The first area of core competence is the connection between both consumers and providers which includes exchange the messages between parties (Needle 2011).Whether buyers are content with the goods and service or not can also create the core competences (Needle 2011).Finally, the innovation of the goods differentiates the goods of competitors’ which makes great core competences (Needle 2011). Secondly, external strategy includes supply chain and porter’s five forces (Soyref 2012).Porter’s five forces model reflects the rival environment which are the threat of potential entrants, threat of substitution, bargaining power of suppliers and buyers, and competitive rivalry (Needle 2011).The model makes managers to check whether five forces performing on the business and how it might be altered over a period of time (Needle 2011). In addition ,SWOT is an important tool in both internal and external strategy analysis which indicates the strengths ,weakness , opportunities and threats (Soyref 2012).This...
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...to country routes; they are general of treaty status and are enforceable in international law. In another move to free up the international side of the industry, the Commonwealth adopted a policy of allowing more than one Australian owned international airline to operate scheduled services to and from Australia. However the September 2001 failure of the Ansett Airlines group brought an end to Ansett International's short-lived operations. Although Qantas is once again the only Australian flag carrier, Virgin Blue has signalled its interest in operating in some international markets in Australia's immediate region, such as the trans-Tasman market. A significant trend that has started felt in Australia is the rapid emergence of low cost international carriers. Irish airline, Ryanair, is a high profile European example; Southwest airline is a long established American example. Levels of competition vary widely within each sector. In the domestic trunk airline sector, the fairly robust competition that previously existed between Qantas,...
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...the hiking in oil prices, large capital requirements (Capital assets) and stiff global competition within the airline industry, such as, the Gulf airline. The effect of the rising dollar has been significantly contributed to the hiking ticket prices of the Australian airline sector. The main Australian airlines have been impacted by the global crisis. This specific article in the Financial Times Review(Clarke & Smith, 2011), discusses that strategically Qantas was facing hard times due to the environment of the global financial crisis and it had embarked on an implementation plan to decrease internal and external flights to counter the effect of hiking oil prices and operational cost. However, in the United Arab Emirates, has been experienced growth and this has a direct concern to the threat of competition to Qantas (Vesperman, Wald & Gleich 2008, pp. 388-394). All these factors above are a contributed force to Qantas to remain competitive. This paper seeks To address the approaches that should be engaged by Qantas that are necessary to ensure ongoing competitive advantages for the future of the airline industry within this hypercompetitive environment. 2. Strategic Management and Strategic Competitiveness Strategic management is a continuous process that involves reviewing and directing the activities of a business and the environment threats and opportunities within which it operates. Strategic management has grown from an initial emphasis on planning to become a...
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...Strategic Management Group Project Virgin Atlantic Airways Limited Instructor: Mr. Audun Fiskerud Presented by: Mikael Tving Therkildsen - Jacob Brodersen – Jonas Ravn Nielsen - Gary Chuyu Fang Executive summary This report strategically analyses the Strategy Business Unit (SBU), passenger transfer service, for Virgin Atlantic Airways Limited. The strategic analysis contains investigation of certain key business areas of Virgin Atlantic, such as: defining whom the Virgin Atlantic customer is; understanding of the external environment issues of the airline industry; competitor analysis, and analysis of the Human Resources within the organization. Through the analysis of Virgin Atlantic Airways Limited, some issues for the company were uncovered. Especially two main issues should be considered as potential problems for Virgin Atlantic’s business unit and so action needs to be taken within these areas: 1. Lacking economy of scale (size of the company). 2. Increasing environmental awareness among customers. 1. Virgin Atlantic lacks economy of scale because of the size of the company and limited routes available. To be able to compete effectively and gain greater profits through economy of scale, Virgin Atlantic has to expand by opening new routes. The implementation of this will require strategic financial planning and adjustment of the company structure. It is likely that this process will take several years; however, this change is necessary to increase Virgin...
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...companies are aware of not only the internal factors that they can control, but also of the uncontrollable external factors. It is also crucial that marketers keep in mind the effects of not only domestic forces, but also international ones as well. Even back in 1977, Halfhill (1977) observed that as more companies start to use a multinational approach in business, the international marketing approach should be used. This means that companies should be aware of external environmental factors, including those external to the country in which they are based. According to Yüksel (2012), an effective method to determine the macro-environmental effects on a company and the company's ability to take these conditions and choose an appropriate direction is the PESTEL analysis (Political, Economic, Sociocultural, Technological, Environmental, Legal). To utilize this tool even further, one can apply PESTEL and the effects of the macro-environment to their business and evaluate the apparent or implicit effects on the marketing mix. Companies such as Qantas, an Australian airline company could greatly benefit from the application of PESTEL analysis. After a huge financial loss in 2011 and a huge decline in market share forcing a major structural change and the cut of 1000 jobs (Gelineau 2011), Qantas needs to observe the effects the macro-environmental effects on its marketing mix. By doing so, it will gain more insight towards making a decision of majority ownership. It must be noted, that while...
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...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....
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...BUSS 1002 Short Notes Date: Wednesday 20 June, 1.50pm Length: Exam is 3 hours + 10 minutes reading time SECTION A (key concepts and application) – worth 20 marks SECTION B (A-CA-R application to a business problem) – worth 30 marks SECTION C (company analysis – same format as Company Report; company will be from the aviation industry) – worth 50 marks All three sections will require you to draw on your knowledge in relation to the main themes taught throughout the semester. SECTION A NOTES 2. CSR & SUSTAINABILITY * Business’s are a key player in society change agents (force for good or evil) * Changing nature of society has brought with it changing attidutes * The role of business in society (GFC) * Responsibility to society and the environment (climate, resources, CSR & S) * Corporate Social Responsibility Continuum * CSR Reluctance * CSR Grasp * CSR Embedment (integrate social objectives w/ bus goals; balance social & eco profits) * Definition of CSR * Notion that corporations have a obligation to society to take into account not just their economic impact, but also their social and environmental impact * Five dimensions of CSR * Environmental, Social, Economic, Stakeholders, Voluntariness (ESESV) * Align with triple bottom line of economic, environmental and social goals. * The Challenge * Energy industry has allowed economic progress, provides power, heat, light...
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