Internal and External Analysis

Running head: INTERNAL AND EXTERNAL ANALYSIS
INTERNAL AND EXTERNAL ANALYSIS
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INTERNAL AND EXTERNAL ANALYSIS1
Introduction
The external and internal environment of an organization is considered to be an
important factor that is able to affect the proper development of competitive advantage in the
industry. The strengths and weaknesses of the organizations are also able to affect the
position that has been developed in their respective industries. The opportunities and threats
offered by external environment will also be considered in the analysis (Aguinis, Edwards
and Bradley 2017).
Overview of the organization
Qantas Airways is the flag carrier based organization of Australia that has gained a
leadership position in the industry with respect to the fleet size that has been developed in the
industry. The operations of the organization are located in Mascot that is located in the
suburb of Sydney. The share that has been gained by Qantas Airways in the airlines industry
is more than 60%. Many subsidiary based organizations operate under Qantas Airways in
Australia (Qantas.com 2019).
Analysis of external and internal environment of the organization
PEST analysis of Qantas Airways
Political factors – The political environment of Australia is able to affect the
procedures and policies that have been formed by Qantas Airways in order to maintain its
operations in the airlines industry. The deregulation that had taken place in the airline
industry during 1990s had led to increase in levels of competition in the industry (Frynas and
Mellahi 2015).
Economic factors – The economic situation of Australia is directly relevant for the
performance that is depicted by Qantas Airways. The growth and revenue possibilities have

INTERNAL AND EXTERNAL ANALYSIS2
been influenced by GDP rates of Australia. The performance that has been depicted by
Qantas Airways is also based on the national economic systems (Hanson et al. 2016).
Social factors – The trends in the society have an impact on the ways by which
performance levels of Qantas Airways have been depicted. The carbon footprint that has been
developed by Qantas Airways is also based on rising levels of the awareness among the
consumers (Hitt, Ireland and Hoskisson 2016).
Technological factors – The technological factors are able to play a key role in the
operations and the costs based on distribution of the services. The dependence of Qantas
Airways on the technological implementations has affected the innovative services that are
offered to the consumers (Helfat and Martin 2015).
Resources of Qantas Airways
The resources that have been gained by Qantas Airways are able to affect the ways by
which the internal environment can be developed.
Infrastructure – The fleet size of the organization is considered to be a major resource
that has helped in development of the operations in airlines industry.
Complementary brands – Qantas Airways has been able to develop a premium
standard in the organization and has been able to affect the domestic and the international
routes of the organization (Hitt, Ireland and Hoskisson 2016).
Diverse business portfolio – The portfolio of business is able to mitigate the levels of
competition and levels of external risks that exist in the industry.
Investments – Qantas Group has made huge levels of investments in different airline
based operations.