Analysis of Qantas: Strategic Issues, Recommendations and Solutions

CASE STUDY ANALYSIS SHEET [Use only bullet points to fill out this template individually either by hand or Ms office ]
CASE NAME: STUDENT’S NAME AND ID: CASE NAME:
Identification of Strategic
issues/problems
(Identify at least three
pertinent issues that
management needs to address.
Give examples from the case)
Analyse the identified strategic issues
(Review the given firm’s financial, marketing, production, managerial competence, and
other factors contributing to the success and failure of the firm. Identify potential
reasons of these success/failure using theories/concepts relevant
theories/concepts/model sourcing from textbook/journal/other relevant sources.)
Develop a set of justified
recommendations
(What needs to be done to the identified problems/issues and
why?)
1) Issues in regards with
employee retention.
 It is due to low
employees
engagement. It has
been discovered by
Australian Licensed
Aircraft engineers
Association
(ALAEA) that
employee
engagement is only
32% which is very
low as compared to
their competitors,
Virgin Atlantic.
 Managers of Qantas
are not able to
satisfy their
employees with their
long-haul processes.
 Qantas collaboration
with Emirates also
led managers to fire
their employees as
they are reducing
their fleet size in a
strategic manner.
 Restructuring strategy
in regards with
establishing Qantas
International into a
1) Issues in respect to employee retention
 This strategic issue can be analysed through Resource-based- view theory
whereby organisation's resources are used for attaining sustainable competitive
advantage. Organisational employees are termed as intangible resources as
their quality of service can be measured in respect to their performance.
 Managers of Qantas are not able to maintain relationships with their
employees which can effect their performance level and customer service.
 They can adopt this theory in practice by assessing their employees
engagement for securing sustainable competitive advantage.
 Workers discontent in regards with corporate restructuring led to increase in
hostility in industrial relations. This issues can be analysed through by
resource-based theory in an effective manner.
2) Lacking in customer satisfaction and losing brand reputation
 In global airline industry, competitiveness is increasing in a significant manner
which led managers of Qantas to provide excellent customer experiences as
well as build their reputation in market.
 Industrial relations with their employees, punctuality issues and enhanced role
of their competitors led Qantas to hamper their reputation in the market.
 This practice have led them to decrease their customers in a significant
manner.
 Disconfirmation paradigm can be used for understanding of customer
satisfaction as it indicates that buyers compare their experience of new service
1) Managing employee engagement and retention
 It is imperative for managers of Qantas to rebuilds their
relationships with their employees. This can be done
through enlightening corporate social responsibilities.
 It is recommended to managers of Qantas to accept
parity wage increases which is closely aligned with
increase employee engagement. For retaining their
employees, managers of Qantas would go for
adopting corporate governance principles.
 They can also engage their employees in decision-
making processes in order to make them felt a sense
of ownership. They should be heard in regards with
their grievances as well as issues so that they can get
satisfaction in performing their tasks in an effective
manner.
2) Managing customer satisfaction as well as brand
reputation
 It is imperative for managers of Qantas are required to
re-engage with their employees through adopting
strategies. They should understand the value of
employees as well as customers in order to enhance
their excellence in a significant manner. For