Report about Corporate Strategy 2022

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Corporate Strategy Report of Qantas
Name
(Affiliation institution)

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Table of Contents
Introduction......................................................................................................................................3
Corporate-level strategies................................................................................................................3
Governance mechanisms.................................................................................................................6
Corporate Social Responsibility and ethics.....................................................................................6
Organization structure.....................................................................................................................8
Corporate culture.............................................................................................................................9
Diversity..........................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The selected organization for the report is Qantas, Australia. The organization is one of
the largest international and domestic Airline Company based in Australia. Qantas was founded
in 1920 and since then the company has experienced a rapid growth expanding to various
markets across the world (Qantas, 2020 p.1). The company has had a good reputation in
Australia with the company being termed as a “safer airliner” (Qantas, 2020 p.1). The core
business of Qantas Company in Australia is the Airline. The main products and services
provided by Qantas Company are travelling services to passengers who are flying from one
region to another either locally or internationally. Qantas operates on two different brands
including Jester and Qantas. Therefore, the paper seeks to prepare a corporate report of Qantas
covering key aspects such as corporate-level strategies, governance mechanisms, Corporate
Social Responsibility, organizational culture, organizational structure as well as diversity and
inclusion.
Corporate-level strategies
Bonn and Fisher (2011 p.1) defined Corporate-level strategy as a plan that an
organization puts in place to hit a particular set of targets which are required for the achievement
of business goals. Although the strategies might be a long –term, they are usually allowed for
dynamic adjustments with consideration of changing marketing conditions as well as an
emergency of uncertainties such as COVID. The four major corporate strategies that companies
adopt around the world include business stability strategy, expansions as well as retrenchment
(Blum, Formánková and Dobrotić, 2014 p.468). The major strategic goals for Qantas Company
include to achieve safety in its operations by focusing on ethical practices, to be highly
committed on environmental conservation, to enhance customer delivery, to remain the best

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Airline in both low fare brands as well as premium in both local and international markets and to
achieve the efficiency in its operations through integrating simplicity in its core business process.
Qantas has adopted expansion as its corporate-level strategy. According to Moen, Bakås,
Bolstad and Pedersen (2010 p.20) in corporate-level strategies context, Expansion strategies
involve an organization broadening the scope of its business operations in terms of markets,
functions, technology as well as functions. Qantas expands its operations to other regions
through various strategies such as acquisitions and merging. For example, in 2015, Quanta
acquired Taylor Fry which was generated a revenue of $12 million in FY1 (Qantas, 2020 p.14)
The strategies has proofed to work in a dynamic changing market with high risks of macro-
environmental factors such as a change in microeconomics and social-cultures. Through the
expansion corporate-level strategy, Qantas has expanded its operations to serve over 85 major
cities in 36 countries across Europe, America, Asia-Pacific as well as South Africa (Qantas, 2020
p.1).
The support from various functional levels of Qantas has enabled the company to execute
its Expansion strategy effective in both domestic and international market. The essential
functional areas that have support Qantas to effectively execute its corporate-level strategy
include Finance and accounting, Human Resource Department, Research and Development
(R&D) as well as IT. Each functional unit plays a unique and essential role in the achievement of
the corporate-level strategy.
Procurement, Accounting and Finance- the Accounting and Finance functions play a
significant role in the execution of expansions Corporate-level strategy in Australia as well as
international markets. With Expansion strategy involving formational of alliances with other
companies within the line of Qantas operations, the Accounting and Finance department has

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been on frontline on obtaining financial resources that the company requires to expand as well as
making various financial strategies. The strategic management uses the data from the financial
statements to budget and assesses its human and financial core competencies. The procurement
department also plays a significant role in the company as it enables the effective distribution of
materials to and from the Company. The Department procures the Aircraft and other key
resources for the company when expanding its operations to other regions.
Human Resource Management: The Human Resource department significantly
supports Qantas Company to expand its operations as well as maintaining business stability by
equipping the company with talented, skilled as well as experienced employees who are
innovative and can contribute significantly to the company’s mission. The expansion of Qantas
demands new skilled and unskilled employees and therefore the Human resource department is
essential for filling the gaps and solving various workforce conflicts as well as employees’
conflicts that occur in the company. Furthermore, the Human resource supports the new and
existing employees to adapt to the changing environment of the Airline industry and be able to
operate on diverse markets where they are deployed.
Sales and Marketing Department- The sales and marketing department of Qantas is very
essential for the company to expand to the other regions effectively. The company’s new routes
require thorough marketing for the company to penetrate new markets with consideration the
industry is getting competitive every day as a result of new entrants from both direct and indirect
competitors. Besides, with the purchasing patterns of consumers have changed over the last
decade, marketing is essential for reminding customers about the existence of the company’s
product in the market as well as capturing new market segmentation.

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Information Technology and Research & Development – When it comes to expansion
strategy, IT and Research and development departments are very essential for making Qantas
executive its expansion strategy effective in the new regions. With Increased in Automation that
Qantas has experienced for the past decades, IT department has been a busy and crucial
department of the company with consideration all processes including bookings, operations
within the company, marketing as well as frying from one region to another are automated.
Research and Development department has also been a critical department for execution of
Expansion. The Research and Development department keeps innovates new products and keep
the trend of new technologies as well as opportunities from various markets and advises the
Qantas Company on the appropriate strategy to execute a particular region.
Governance mechanisms
Qantas Company is governed by ten Board of Directors (BOD) who are mandated by the
policies and procedures to ensure the company has appropriate corporate governance framework
which ensures that there is creation, protection as well as enhancement of shareholder value
(Qantas, 2020 p.1). The 10 members of the Board of Directors includes six men as well as four
women (Qantas, 2020 p.1). The board of director also forms an Audit committee for the
company. The board consist of both Chief Executive Officer (CEO) as well as Independent Non-
Executive Director who must be a citizen from Australia and must not have held any role of
CEO in the Company.
Corporate Social Responsibility and ethics
Tai and Chuang (2014 p.117) defined Corporate Social Responsibility as a management
concept which involves a company integrating environmental and social concerns in their
business operations and interactions with both external and internal stakeholders. Qantas

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Company has been involved in various Corporate Social Responsibility initiatives and programs
over the last five years. The Corporate Social Responsibilities has been categorized into three;
Australian Economy, Community as well as Environmental.
In terms of powering the Australia Economy, Qantas has had an impact of $22 billion
with the company supporting over 60,000 jobs and making $800 contributions annually (Qantas,
2020 p.1) Qantas had also supported businesses significantly in Australia with the company
spending over $7 billion with Australian Suppliers (Qantas, 2020 p.1.). The company also does
business with over 1100 suppliers from Australia and in 2018 Qantas launched an initiative
called “discounted fares for residents” which aimed at supporting residents’ by offering a 30%
discount for all the residents' travellers in various regions (Qantas, 2020 p.1). In term of sports,
Qantas has supported various sports activity in Australia such as the Football Federation as well
as Rugby Australia. The company has also partnered with Best Australian arts and cultural
organizations like Opera Australia as well as the National Gallery of Australia.
In terms of Community, Qantas has raised $36 million for UNICEF for over 30 years
through Change for Good initiative (Qantas, 2020 p.1). Employees of the company also donate
to the community through Qantas Workplace Giving Program. Jester’s community which is also
a part of Qantas has also engaged in community activities like Flying Start offering grants of
more than $30,000 to Star kids (Qantas, 2020 p.1). Since Qantas launched the Jesters activity, the
company has assisted the lives of more than 1.2 million and donated over $11 million (Qantas,
2020 p.1). To support regional Australia, Qantas has engaged in a multi-million dollar grants
program such as a free flight to support regional communities in Australia. Furthermore, the
Qantas regional program offers $5million in grants, $1 million each for five years to charities,
marginalized people in the community as well as not-for-profit groups (Qantas, 2020 p.1).

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In terms of environment, Qantas have significantly minimized impact on the
environment. The company has committed $50 million in the development of sustainable
aviation fuels industry in Australia (Qantas, 2020 p.1). The company also aims at reducing
landfill waste by 75% by the end of 2021 as well as removing a hundred single-use plastics from
its operation (Qantas, 2020 p.1). The company has further developed various environmental
initiatives such as protection against pollution, Carbon offsetting, reduction of emission,
managing climate risks, waste energy and as well as sustainability insight which are aimed at
addressing the global issue of Air Pollution.
Ethics also known as code of conduct is a moral value that an organization exercises
towards its external and internal stakeholders. The company is has adopted a whistleblower
policy which enables stakeholders to report unethical practices in circumstances where they are
worried to air the concern openly. The company also keeps the information about Employees and
Customers secure and confidential.
Organization structure
Organizational structure is defined as a system which outlines how activities in an
organization are conducted and directed for it to achieve the set goals and objectives. The
organizational structure activities include policies, procedures, responsibilities, roles as well as
rules. Organizational structure also provides a mechanism information flow in all management
levels. The organizations' structure of Qantas Company is Matrix structure which includes
aspects of both decentralized and centralized structures. A matrix structure is a combination of
both divisional and functional organizational structure (Burton, Obel and Haakonsson, 2015
p.37). Qantas Company has various subsidiaries with each headed by different managers who
report to the CEO at the organization’s headquarter in Australia. The managers have an authority

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to govern the responsibilities and roles of their team at their locations of operations. Under each
subsidiary, the functional organizational structure applies where each employee reports to a
supervisor who then reports to a regional manager (Hierarchy structure). A job specification is a
key to success in Qantas with employees’ strictly working on departments which suits their
skills, knowledge as well as expertise. Furthermore, the management of Qantas is based on two
distinct businesses including Qantas International as well as Qantas Domestic. Each of the
divisions has its CEO as well as diverse operations and operational functions. The main reason
for Qantas adopting this form of structure is to put more emphasis on the organizational long-
term goals of improving domestic business as well as transforming its international business.
Corporate culture
According to Guiso, Sapienza and Zingales (2015 p.60), corporate culture is a behaviour
or a belief which determines how organization management as well as employees interact and
handle outside business transactions. A research conducted by Eisend, Evanschitzky and
Gilliland (2016 p.260)shows there are four types of corporate culture that organizations adopt
around the world. The types include clan, Adhocracy, hierarchy and market. Qantas Company
adopts a Clan culture in its operations. Tseng (2010 p.1) defined a clan culture as a corporate
culture which is family-like with much focus on nurturing, mentoring and in collaborations
“doing thing together”. Through the clan cultures, leadership in the company is in the form of
mentorship with the transformational leadership approach being the key. The main values which
are rooted in the Qantas culture include consensus, communications as well as teamwork. The
company also focuses on building respectful relations with external and internal stakeholder as
well as a working environment. The culture has enabled Qantas Company to have a high degree

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of employee retention among the skilled, experienced as well as talented staff a move that has
seen the company have a high innovation and productivity in the previous decades.
Diversity
Qantas has an established inclusivity and Diversity culture that the company has been
practising since its foundation. Through the Internal inclusivity and diversity, the company has a
diverse mix of internal and external stakeholders including different experience, education,
gender, cultural backgrounds as well as ages. The diversity has enhanced the way the company
operates and fueled a diversity of thought which is a key reason for the company to make
appropriate decisions. In terms of external inclusivity and diversity, Qantas has employed leaders
from diverse areas in both local and international perspective. Furthermore, the company has set
aside six key focus areas in the context of Gender Balance, Reconciliation Action Plan, LGBTI+
Inclusion, Accessibility and Inclusion, Cultural and linguistic diversity and Life ages and stages.
In terms of Gender Balance, the company challenges stereotypes and ensures the gender balance
is enhanced in the Qantas Group (Qantas, 2020 p.1). The company has created a Nancy Bird
Walton program that has created a long-term commitment to support gender-based diversity in
the Australian Aviation industry (Qantas, 2020 p.1). Through the initiative, the company has
targeted recruitment of 40% intake of female candidates by 2028 (Qantas, 2020 p.1). The
organization has further partnered effectively with various external organizations like Chief
Executive Women, male champions of change as well as the power of Engineering in pursuit of
inclusivity.
Conclusion
The result from the report analysis has revealed that Qantas is one of the most popular
Airlines in Australia and around the world as a result of its effectiveness in the governance

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corporate strategies, as well as organizational culture. The expansion corporate strategy of
Qantas has revealed that Qantas has a strong focus on a high level of growth and safety of its
customers. To increase profitability, the company should focus on diversification as well as a
business corporate strategy is Qantas is already an established brand. Diversification will see the
company offer variety of products. Business stability strategy will increase innovations and
enhance performance.

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References
Bonn, I. and Fisher, J., 2011. Sustainability: the missing ingredient in strategy. Journal of
business strategy.
Blum, S., Formánková, L. and Dobrotić, I., 2014. Family policies in ‘hybrid’welfare states after
the crisis: Pathways between policy expansion and retrenchment. Social Policy &
Administration, 48(4), pp.468-491.
Burton, R., Obel, B. and Haakonsson, D., 2015. How to get the matrix organization to
work. Journal of Organization Design JOD, 4(3), pp.37-45.
Eisend, M., Evanschitzky, H. and Gilliland, D.I., 2016. The influence of organizational and
national culture on new product performance. Journal of Product Innovation
Management, 33(3), pp.260-276.
Guiso, L., Sapienza, P. and Zingales, L., 2015. The value of corporate culture. Journal of
Financial Economics, 117(1), pp.60-76.
Moen, Ø., Bakås, O., Bolstad, A. and Pedersen, V., 2010. International market expansion
strategies for high-tech firms: partnership selection criteria for forming strategic
alliances. International Journal of Business and Management, 5(1), p.20.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Business, 6(03), p.117.
Tseng, S.M., 2010. The correlation between organizational culture and knowledge conversion on
corporate performance. Journal of knowledge management.
Qantas, 2020. Our History. [Online] Available at: https://www.qantas.com/au/en/about-us/our-
company/our-history.html [Accessed 15 April 2020].
Qantas, 2020. Our Governance. [Online] Available at: https://www.qantas.com/au/en/qantas-
group/acting-responsibly/our-governance.html?int_cam=au%3Aabout-us%3Aheading-and-links

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%3Auseful-links%3Aen%3Ann [Accessed 15 April 2020].
Qantas, 2020.Acting responsibility, learning more about our commitment to the community we
serve. [Online] Available at: https://www.qantas.com/au/en/qantas-group/acting-responsibly/our-
community.html?int_cam=au%3Aacting-responsibly%3Aarticle%3Aour-community%3Aen
%3Ann [Accessed 15 April 2020].
Qantas, 2020. Our Commitment to people, culture and leadership. [Online] Available at:
https://www.qantas.com/au/en/qantas-group/acting-responsibly/our-people.html?int_cam=au
%3Aacting-responsibly%3Aarticle%3Aour-people%3Aen%3Ann [Accessed 15 April 2020].