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Jetstar also now gives customers with more expensive tickets priority boarding, although it plans to retain unallocated seating for reasons of efficiency. The airline buys the points from its parent but strategically recovers costs by prompting people to buy more expensive tickets and attracting back customers (Creedy, 2005). The carrier's frequent-flyer scheme has produced a revenue gain that offset its cost, such as big business routes, an immense amount of the business traffic that was lost (Creedy, 2005).
Virgin lue's Strategy
Virgin lue's competitive strategy is similar to Qantas, in that changing people's attitudes toward air travel is the key to growth of budget airlines. Virgin lue has cut their costs by cutting extras on flights, such as paper tickets and free meals. The danger that Jetstar faces in cost-cutting is that the number of airline tickets sold may not outweigh the costs of the domestic carrier. Jetstar needs to…… [Read More]
Threat of New Entrants -- Medium
Supplier Power -- Medium
Buyer Power -- High
Threat of Substitute Products - Low
Competition -- High
Qantas's Strategy for Competitive Advantage
Finding New Innovation
Threat of New Entrants -- Medium
Australia has deemed that it is good for the public if any international airline that is foreign owned is allowed to operate in Australia's domestic markets. hile this may be good for the overall level of competition, it opens the door for some of Qantas's competitors to enter the market. However, each international market has its own rules and these vary from place to place.
There are many layers of bureaucracy that must be traversed in a new competitor is to enter the marketplace. This works to add a buffer to slow firms entering the marketplace quickly. However, firms…… [Read More]
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 world's leading long distance carriers, having pioneered services from Australia to North America and Europe. The Qantas Groups today employs approximately 32,500 people and offers services across a network spanning 182 destination sin 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa (Qantas Airlines, 2011).
In regards to the Qantas Group, their main business consists of transportation of those that are passengers as well as promoting "Qantas and Jestar" (Qantas Airlines, 2011). Three groups are needed for Quantas, these include "commerical, customer and marketing, and operations" (Qantas Airlines, 2011). For what is done commercially, this consists of distrubution, planning and alliances (Qantas Airlines, 2011). For "customer…… [Read More]
Strategic Management of Qantas in the Light of Global Financial Crisis
The Global Economic/Financial Crisis, also known as GFC has influenced the performance of all organizations negatively in the current business environment. Besides increasing the costs of operations, GFC threatens the use of human resources in different organizations. With such a premise, this study analyzes the influence of the crisis on the performance, sustainability, and competitiveness of most of the airline companies. In specific, it analyzes the effects of the crisis on the performance of the Qantas Airlines, an Australian carrier known globally for its high quality services. As such, adopting the stated recommendations in the analysis will help reduce the threats facing the Qantas Airlines significantly because of the Global Financial Crisis.
The worldwide economic crisis has influenced the performance of all sectors of the economy negatively in the current global business environment. Among the highly…… [Read More]
Ultimately, the airline has been able to extract concessions from its other unions and can expect to do the same with the AMU. Qantas should deal with the issue of worker unhappiness through non-financial means, such as fostering an organizational culture change.
The airline industry is facing a difficult operating environment. Qantas must find new ways to cut costs in order to remain competitive. The recent mechanical failures are not likely related to the acrimonious relationship that has developed between Qantas and the union representing its mechanics. Given that the Labor government has taken an anti-union stance, Qantas should move towards outsourcing maintenance. This will upset the union, but it is unlikely that quality will suffer as a result.
Robbins, Liz. (2008). " Qantas Involved in Another Incident" New York Times. Retrieved online December 14, 2008 at http://thelede.blogs.nytimes.com/2008/10/07/qantas-involved-in-another-air-incident/
Qantas financials retrieved from Reuters, online, December 14, 2008 at…… [Read More]
Qantas Current Strategic Potential
I asked Qantas analysis current strategic potential. But I undertake task. I required write a background paper rationale analysis. I require: Identify sort information essential relevant analysis critically discuss tools analysis deliver information fundamental analysis.
ationale for the analysis of strategic potential
posits that to analyze the strategic potential of any company, there are three important considerations that should be made. The first is an analysis of the industry in which the company is operating. The second is an analysis of the business strategy being utilized by the company and the last is the strategic evaluation or a SWOT analysis of the organization to see if it has the necessary internal and external factors for success. It is only after these three considerations are met that the organization can be able to identify the critical issues that it needs to address and make necessary…… [Read More]
The steep reduction in revenue at Virgin Blue resulted in a reduction in their efficiency ratios. Given that the company continued to expand in size with only a minor expansion in revenue, their efficiency suffered. There is evidence of overcapacity, an issue that they have addressed in the interim with service cuts (Associated Press, 2009).
Financial Stability -- Short-Term
Both companies are liquid at present. Qantas, however, has seen the more significant decrease in its liquidity between 2007 and 2008. The company's cash holdings have been reduced significantly, while its "other" liabilities almost tripled. There have been some working capital issues at Qantas, with the firm increasing is turnover in days. Virgin Blue has also seen a reduction in its liquidity and an increase in its receivables turnover in days. For Virgin Blue, cash has declined in the past year, while interest-bearing liabilities increased. This is most likely attributable to…… [Read More]
Managing Diversity Matters
A Study on QANTAS
Women Representation at QANTAS
QANTAS' Focus on Diverse Needs of Customers
QANTAS Ideology Regarding Recruitment of Youth
Challenges Faced y QANTAS
In today's challenging global scenario where competition is rising every day, it is necessary for Multinational organizations to address the basic need of today's business world: diversity. Customers, employees, strategic alliances, competitors, industry norms etc.; they are all subject to changes every day. This is the reason why organizations must need to show adaptability to the change and address the diverse needs of all these stakeholders. Furthermore, while discussing MNCs, it is noticeable that one of the industries (with highest degree of diversity in its operations) is the aviation industry. Australia is one of the most culturally diverse in the world, according to a 2009 study by L. Leveson in the International Journal of Manpower. The study explored current attitudes to diversity…… [Read More]
Strategic Analysis of Qantas Group
Qantas Group Overview
Key Problems and Strategic Issues
Diagnosis: Analysis and Evaluation
Porter 5 Analysis
Power of Suppliers: Low-to-Medium
Industry ivalry: High
Power of Buyer: Medium
Barrier of Entry: High
Availability of Substitutes: Low
The study carries out the strategic analysis of Qantas Group to identify the problems that the company is facing in the contemporary business environments and provide the recommendations that will assist Qantas overcoming its problems and record high profitability. The Porter 5 analysis reveals Qantas is facing the intense competitions at domestic and international routes leading to a decline in the profit margins. Moreover, Qantas has not been able to overcome the problems associated with the high costs of operations from the constant increase in the fuel costs. The paper suggests that Qantas should consider both vertical and horizontal mergers to enjoy economies of scales, which will assist in enjoying a…… [Read More]
Qantas Carbon Footprint
Qantas corporate governance statement mentions that Qantas has an appropriate corporate governance structure to ensure the creation, protection, and enhancement of shareholder value (Qantas, 2012). Based on this statement alone it seems as if Qantas does not promote a triple bottom line or any other measure of sustainability in the summary of their corporate governance strategy. Other firms in the airline industry make a stronger dedication to social and environmental issues in their corporate governance. Continental for example has significantly more mentions of such causes as well as a plethora of various projects to address these causes (Continental Airlines, 2012). Although Qantas does address such business functions later in their document, their corporate governance strategy seems to be more focused on shareholder value than a more balanced scorecard.
In response to pressures to mounting pressures to address ecological concerns about issues…… [Read More]
Emirate Airline Analysis
What follows in this report is a review and summary of the customer services aspect of Emirates Airline. The firm in question has most certainly established a name for themselves and there is the common refrain about how adept they are. Even so, there are opportunities for them to get better and all firms should commit to a culture and mindset of continuous improvement, fettering out what problems what do exist and finding common sense solutions for dealing with the same. Regardless of what problems are found, there need to be evidence-based and realistic solutions put forth, and that shall be the goal of this report. While Emirates Airlines does a lot of things well when it comes to their customer services, they could do even better and strive to do so whenever possible.
Before getting into the minutia of what should change and why,…… [Read More]
Management Service Processes in a Specific Organization
Critical Evaluation of Effective Management Service Processes: Qantas Airlines
Effective and efficient management service processes are highly important when it comes to any organization that has dealings with the public in a service capacity. Addressed here will be the case and critical evaluation of Qantas airlines, which operates airplanes that shuttle individuals to vacation destinations and work-related conferences, among other needs. The paper will focus on three areas: the effective management of service processes, service people, and resource allocation. All three of these areas must be evaluated, in order to better understand the issues that the company faces. Additionally, all three areas generally work together to help an organization reach maximum efficiency and effectiveness. ith that in mind, examining all three issues for Qantas will show how well the company is doing and whether there are things it could do to improve in…… [Read More]
" (Qantas Airways Limited and Controlled Entities - Preliminary Final Report, 2008)
In July, 2008 Qantas reported that it intends to "eliminate 1,500 jobs world-wide and it shed plans to increase flying capacity as it continues to battle high jet-fuel costs." (the Wall Street Journal, 2008) in addition, the plans to hire 1,200 people have been canceled. Qantas will also be retiring 22 aircraft from its fleet and call centers in Arizona and London will be closed as well. (Thurlow and McFarland, 2008)
SUMMARY & CONCLUSION
Quantas Airways, Ltd. is the number one domestic airline industry in Australia and is a leader in the Asia-Pacific region. In fact, Quantas is among the ten largest airlines in the world and connects Australia in approximately 81 destinations and forty countries throughout the world. The company operates several regional airlines in the country of Australia and carries in excess of thirty million passengers…… [Read More]
The author of this report has been asked to answer four major questions when it comes to business, leadership and the skill sets required to excel in both. The first question will center on the role of Chief Executive Office. The role itself will be defined. There will also be a listing of the comptentcies and skills that a typical or desirable CEO should demonstrate and have. The second question will center on what the effective communication skills are. Indeed, it will be defined what skills will be mastered and displayed if a business and its leadership wishes to engage its employees and excel in business overall. Third, there will be an identification and definition of three different leadership styles and how each of those styles is best applied based on the circumstances and what is needed at the time. Finally, there will be a discussion of the role…… [Read More]
Management Issues and Practices
James Strong, the former CEO and managing director of Qantas Airlines, twice sat on the panel convened at the Sydney office of CPA Australia to select those who would be recognized for the annual 40 Young Business Leaders list. Strong believed in the importance of nurturing young talent and threw himself wholeheartedly into leading much of the discussion among prominent leaders from all over the globe. Criteria for entrants included "the ability to land a top job, develop others and get the most from a team, and leading by example was also a must-have attribute" ("CPA Australia," 2014). To provide the scope and depth of the list-building endeavor, it is informative to explore the names of other participants on the panel, and to match them to the criteria they articulated for entrant evaluation. Here is a quick run down: James Strong looked for entrants who had…… [Read More]
airlines operating in and out of the UK. It has 12 sources in Harvard Style.
British Airways (BA) has come a long way by expansion of their services and fleet. Currently the airline is operating from Harmondsworth in the United Kingdom. British Airways is the biggest airline providing airline facilities all over Europe. The airline has strength of more than 365 planes. British Airways offers its clients access to more than 270 destinations all over the globe. These destinations span in more than 97 countries. The major activity zone for the airline is London, more specifically the Heathrow and Gatwick airports [Hoover's, 2003].
Business Environment Evolution
The roots of British Airways can be traced back to around the time of the orld ar I. The formal introduction of the airline took place with the decision of the United Kingdom government to combine two British airlines operating at that…… [Read More]
As they felt that his tactics were designed to reduce their wages and compensation for the benefit of the stockholders. This would change the way the firm is working with their unions and the current labor agreements that were in place. If Joyce had communicated more and listened to the ideas of employees, he would have been able to receive similar concessions from the arbitration. This would have allowed the company to avoid the negative publicity from the strike and address these issues from behind the scenes. (Sperry 2002, pp. 69 -- 90) (the Qantas Crisis 2012) (Harvey 2007, pp. 74 -- 123)
The survival of Qantas may be at stake if the issues aren't resolved in the future. In you view, is a culture change required in Qantas? Justify your answer by critically discussing the current culture of Qantas and evaluating whether a culture change is necessary.
Yes, a…… [Read More]
The points are used to shop in third party organizations such as Woolworths, car hire and banks (Worthington, 2013). Qantas allows customers get seats with incentive to rebook their flight. This with aim too maintains points balance, access lounges, and high treatment. On the other hand, Omni hotels and Resorts have an Omni reward program where members get Wi-Fi shoeshine, beverage delivery as complementary services. Global privileges to over 300 luxurious hotels (Omni, 2013).
Both organizations enjoy a massive customer base 8.6 million for airline and 1 Million for Omni hotels. Both loyalty programs encourage customers to spend more on their services in order to get rewards. In this case, staying twenty night guarantees one a free night. In the airline frequent flyers, points are credited to them and can be redeemed in Woolworths or used for booking seats (Worthington, 2013). The two organizations get to partner with other companies…… [Read More]
The woman has been a victim of bad experience on the plane when a man started touching her when she was sleeping. "This policy should not be billed as having anything to do with the idea that "men sexually assault," but should be associated with the comfort of grown men and young women in terms of the physical proximity that makes everyone comfortable."
Interestingly the policy has attracted lot of comments and attention. People approach the policy from their own experiences and viewpoints and hence what they contribute gives us a deeper insight into the issue. This policy has already been implemented by some other airlines including Air New Zealand. One person comments that it is rather unfair to women to make them sit next to children: "When Air New Zealand started this policy, many locals pointed out that this discriminated against women too. Who wants to sit next to…… [Read More]
It may come back tenfold, as corporations suggest, in overall income from exports, higher salaries in poor countries whose recipients will become consumers of American goods, and higher profits for American corporations in the meanwhile because of lower overhead. Still, as Hira and Hira suggest, it would not hurt to take precautions that American jobs are protected by first of all admitting that a problem exists, by gathering data as to its effect, by taking a good look at U.S. Visa policies and by making sure that corporations are not acting to the detriment of U.S. jobs (Hira 175).
They offer a series of solutions that will benefit workers in the future: adopt more pragmatic approaches to government procurement, overhaul assistance programs for displaced workers, establish better protections for these workers, make sure training for the next generation includes lifelong marketable skills, form institutions that represent the interests of workers,…… [Read More]
Hamilton Island produces a wide array of entertainment that comes in many shapes and forms. The latest addition to the activity list is a nine-pin bowling alley that aims to provide endless family fun. And to top it off, other attractions the island will boast this year will include the Australian Ballet and the Great Barrier Feast event. (2009, p. 37)
Moreover, beyond the innovative use of social media networks to promote their campaign, Tourism Queensland also ensured the international mainstream media would be included in their media mix. For instance, Nolan empirically reports that during his visit to the island preparatory to the announcement of the finalist, international interest in the competition was at a frenzied level: "When I left Hamilton Island the following afternoon, it already was gearing itself up for next Wednesday's announcement. U.S. TV crews, the Aussie networks, the BBC et al. are flying in to…… [Read More]