Developing and Implementing Strategy | Qantas Airways

MANAGING,
DEVELOPING AND
IMPLEMENTING
STRATEGY
STUDENT DETAILS
STUDENT DETAILS

IMPLEMENTATION STRATEGY 1
Executive Summary
This report is based on the assessment 1 file. In assessment, the discussion had been made
regarding the internal and external performance of Qantas Airways in Australia. In the
previous assessment from a legal perspective, it is founded that the Civil Aviation Safety
Authority (CASA) is the national authority of the country which effectively regulates civil
aviation parameters in the country. Moreover, technological advancement is marked as the
fundamental success tool for the company in the previous assessment. From the business
strategy perspective, Qantas Airlines has launched low-cost fleet services to target massive
budgeted category audiences in an effective and efficient way. The company also made
collaboration with IBM to reduce the cost incurred in its IT programs. In this assessment,
there will be discussion about the company’s internal environment from resource based view
model. This model implies that financial resources and dividend policies of the company are
extremely valuable. Apart from this, in this assessment performance gap analysis, strategic
options for the company will be done.

IMPLEMENTATION STRATEGY 2
Table of Contents
Introduction................................................................................................................................3
Internal analysis of the Qantas Airways.....................................................................................4
Internal analysis.....................................................................................................................4
Performance gap analysis...........................................................................................................7
Strategic options for the management........................................................................................8
SWOT analysis.......................................................................................................................8
Strategic option #1: Utilizing AI and ML programs............................................................10
Strategic option #2: When fuel prices goes down then management should make their own
reserves to keep fuel.............................................................................................................11
Strategic option #3: Always eliminate price war.................................................................11
Vision, Mission and value statement.......................................................................................12
Implementation plan.................................................................................................................12
Step 1:...................................................................................................................................13
Step 2: Applications of democratic leadership are required................................................14
Step 3: Suggested time duration...........................................................................................14
Step 4: Measuring and controlling progress.........................................................................14
Step 3: Need to keep away the adverse effects from the external and internal sources.......15
Change management process...................................................................................................15
Conclusion................................................................................................................................17
References................................................................................................................................18

IMPLEMENTATION STRATEGY 3
Introduction
In the assessment 1, there was a discussion about the situational analysis of the Qantas
Airways. Qantas Airways is the largest airlines in terms of the fleet size and the international
flights within Australia. In the previous assessment, from the PESTLE analysis it is obtained
that Australia have liberal democratic system which the positive news for the functioning of
the company in the country. As stable government system always ensures stable policies
which process various external opportunities. From economic perspective, Australian
economy is 14th largest economy in the world and Australia’s nominal GDP is estimated at
US$1.5 trillion which is accountable for around 1.7percent of the global economy
(Investor.qantas.com, 2019).
However social perspective of the Australian region estimates that there is the gap between
rich and poor people that have deteriorated the living conditions (Wsj.com, 2020). From
technological perspective, the country is moving towards next generation technological
norms such as artificial intelligence and machine learning which have a positive impact on
Qantas Airways. From environmental perspective the country has strong environment
sustainable policies. In this report, there will be discussion about the gap finding analysis
based upon their internal and external analysis, current strategy of the company,
implementation plan with change management approach, their mission, vision and value
statement.

IMPLEMENTATION STRATEGY 4
Internal analysis of the Qantas Airways
Internal analysis
The internal analysis in this session will be done on the basis of resource-based view
principles. The resource-based view is an effective way of viewing the firm’s resources,
assets, etc (Bonsu, 2019). According to this model, asset of the company should be based
upon the four attributes as described under VRIN characteristics:
Valuable:
Financial resources and dividend policy of the company are highly valuable because these
two resources help the management to make investment. Moreover, these two valuable
resources also act like a fundamental parameter that helps management in the process of
retain earning. According to the FY19 report of the company, it is analysed that the company
have $1.30billion underlying profit before tax and they have $1.27billion statutory profit
before tax. They have also received 18.4% ROI and they have returned $1billion to their
shareholders (Janda, 2019). They have also encounter 55% statutory earning per share in this
FY. Thus, their financial resources and dividend policies are valuable (Sumoto, 2019).
Rare:
The patents of Qantas Airways are extremely rare because these patent rights are not
available to the general business and these patents are solely process by the company. Even,
their competitors do not have these patent rights, only Qantas Airways processes these
patents (Janda, 2019). They have following patent rights such as Aerosol can discharging
apparatus - Patent number: 3980205, Dual aircraft seat - Patent number: D269652, Seat
module - Patent number: D493294, Aircraft seat unit - Patent number: D409010, Aircraft
ottoman - Patent number: D411689, Aircraft passenger cabin - Patent number: D421593, etc

IMPLEMENTATION STRATEGY 5
(Wsj.com, 2020).
Imitable:
The distribution network of Qantas Airways is perfectly imitable because it is extremely
costly to imitate. Competitors of the company always look for the effective measures through
which they can acquire the part of company’s distribution network by giving extra
compensation to their major distribution parts and suppliers. Generally, many times their
competitors succeed in this particular action and many times they also fail in this process.
Overall the distribution network of Qantas Airways is perfectly imitable (Adewale, 2016).
Non-substitutable:
Training programs of the employees and their employee retention policies are non-
substitutable in the market. As training program for the employees is design to give them
effective training and empower them to cope up with the challenging condition that arises
from the internal as well as from the external forces. Leadership parameters of the company
is also non-substitutable (Berisha Qehaja, Kutllovci and Shiroka Pula, 2017). Moreover, this
program also helps the company to enhance their employees retention ratio but many times it
is noticed that even after following adequate following, aviation industry faces high
employee attrition but still all the aviation companies in general utilizes best parameters to
retain their existing workforce.
RESOURCES VALUABLE RARE IMITABLE NON-
SUBSTITUTE
FINANCIAL
RESOURCES