Management - Background of the Qantas Australia

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Management

Contents
Introduction: Background of the Qantas Australia................................................................2
Social responsibility and managerial ethical practices of Qantas..............................................2
Pestle analysis of Qantas Australia................................................................................... 3
Porters five forces of Qantas.......................................................................................... 4
Internal analysis of Qantas Airways.................................................................................5
Capabilities............................................................................................................ 5
Core Competency analysis......................................................................................... 5
Value Chain analysis................................................................................................ 6
Competitive advantage.............................................................................................. 6
Strategic competitiveness........................................................................................... 6
CEO of Qantas: Leadership and core competencies..............................................................7
Conclusion................................................................................................................ 7
References................................................................................................................ 8

Introduction: Background of the Qantas Australia
Qantas has started its operation in 1920. Qantas is now referred as the biggest airline of
Australia by connecting more than 1000 destinations all over the world. After few time,
Qantas is grown to be the leading brand in aviation industry. Qantas also offers significant
employment opportunities to people from different countries irrespective of their culture,
caste, and religion. The vision of Qantas is to provide the low fare and premium services to
the customers (Hoa, Turner and Vu, 2018). In the recent time, government is changing its
policies especially for the airline industry due to increasing environment concern. In this
regard, PESTLE analysis has been done in the report. Furthermore, several elements of
internal environment have been discussed.
Social responsibility and managerial ethical practices of Qantas
Qantas has made the transformational plan for the different group of stakeholders. The first
social responsibility of Qantas lies in its people. Due to this, it has always given its best for
ensuring that its success continues by equipping the people with motivation, skills, as well as
knowledge. At the same time, it always embarks the programs related to talent development,
improving engagement as well as workplace diversity. The second most significant category
is environment. As an airline industry, it always tries its best to reduce the greenhouse
emission. Due to the increasing government concern regarding environment sustainability,
companies are required to give emphasis several environment issues. The third social
responsibility of company’s lies in supplier’s that is fulfilled by maintaining good supplier
relations. At the end, community comes where it improves the lives of people within which it
operates. In this way, its major social responsibility lies in the safeguard of environment that
affects every stakeholder (Pond, 2017).
The managerial ethical practices of Qantas tend to govern the conduct of Qantas employees
who are working in the organisation. The key principle of its code of conduct is laws,
regulation, as well as ethical standards that are applied to the Qantas employees. In Qantas,
effective work culture is developed by the implementation of anti-bribery compliance policy.
Therefore, employees who fail to comply with this policy have to face penalty and criminal
offence. Management of Qantas has also implemented the ethical principles that help in
resolving the issues of HRM. However, it can also implement the value based strategies in

order to handle the issues related to social environment and politics in organisation (White,
2018).
Pestle analysis of Qantas Australia
Political factors: It is true that government support is quite significant for every company to
grow in the competitive pressure. It is found that Qantas was going through the tough time in
year 2014 when it asked for the debt guarantee from government but eventually it was
refused. In spite of this, Qantas got the freedom in amendment form to Qantas Sale Act. This
allowed Qantas to bring the outside shareholders (Baxter, Srisaeng and Wild, 2018). At the
same time, China and Australia has also signed the open skies pact in the year 2016 that
helped in removing the entire capacity restriction between two countries. Furthermore, 2017
has been declared as the Australia and China year of tourism.
Economic factors: It is found that the liberal policy has hurt the growth of domestic aviation
industry. It is because it led to the surge in the outbound travel as compare to the expected
influx of the tourist. Qantas has also stated that the government strategy of allowing the air
capacity has cost the national economy. In addition to this, it is found that Qantas new profit
has decline due to the higher cost of fuel. For Qantas, fuel is the biggest success factor. CEO
of Qantas named Alan Joyce stated that it is heavily impacted due to the higher cost of fuel.
As per the recent report, it is found that Qantas Airways annual net profit fell by 6.5 per cent.
It has gained the lower profit due to weaker Australian dollar and higher prices of oil
(Trischler and Lohmann, 2018).
Social factors: Qantas Airlines operates in more than 40 countries by serving to around 1000
destinations across the world. Qantas accommodate more than 40 million passengers every
year. Its effective and customised customer service is helping it in building the brand loyalty.
Due to its string brand image, it tends to enjoy the wide public support, trust as well as local
customer base.
Technological factors: In the recent time, technological innovation plays a significant role in
every organisation. Huge investment is done in the aviation sector to provide the best and
world class experience to the customers. Qantas airline is also using best technology such as
access to the best and superior lounge, Wi-Fi facility, prior check-in as well as stan steaming
in the flights of Qantas.