Risk Management Plan-Qantas Airline Case Study

Added on -2020-02-24

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RISK MANAGEMENT PLAN-QANTAS AIRLINE CASE STUDY1RISK MANAGEMENT PLAN-QANTAS AIRLINE CASE STUDYNameInstitutionProfessorCourseDate
RISK MANAGEMENT PLAN-QANTAS AIRLINE CASE STUDY2Part 2Risks Facing Qantas Airline GroupThe risks facing Qantas Airline can be identified as illustrated in the SWOT diagram below;SWOT Analysis DiagramStrengthsStrong, reputable company name in the home market.Fuel efficient and modern aircraft.Have strong competitive subsidiary brands.Strong government support.WeaknessesMuch concentrated in the Australian region at the expense of the international segment of the business. Competition from other international airline businessesOpportunitiesThere are opportunities to grow both domestic and international markets.The company business operations have not saturated in all the continents.Threats The increase in fuel prices is likely to affect the company business operations.The cost of acquiring and maintaining the staff has beenincreasing.New airlines entry threats in the industry and competition in the domestic market Global economic crisis Other Tools and Techniques Tool Identification TechniquesProbability and Impact MatrixRisk Data Quality ManagementExpected Monetary Value AnalysisSimulation Technique (Monte Carlo Analysis)Root Cause AnalysisChecklist AnalysisAssumption AnalysisInformation Gathering Techniques
RISK MANAGEMENT PLAN-QANTAS AIRLINE CASE STUDY3Part 3Risk AnalysisLikelihood of the is occurringThere is a large likelihood of the risks facing Qantas Airline to occur. The increase of cost fuel isevident from the fact oil prices a prone to fluctuation all over the world[ CITATION Sky161 \l 1033 ].Secondly, the increasing the cost of maintaining the company employees may increase becauseof the trade unions and employment agencies that call for the protection of the workers'rights[ CITATION The15 \l 1033 ]. Third, any lucrative business will attract new competitors.Likewise, the existing competitors are likely to intensify their competition to either increase theirmarket share or to maintain their competitive advantage. Therefore, there is a risk for thereduction of the Qantas' Airline domestic market. Finally, the global financial and economiccrisis affects all companies undertaking the international business[ CITATION And16 \l 1033 ].Similarly, Qantas Airline is likely to suffer from the consequences of the economic recession.The Impacts of the RiskThe occurrence of the risks mentioned above will have the following consequences in the eventof their occurrence;Fuel increaseThe unmanageable increase in fuel prices may force the company to reduce its businessoperations[ CITATION Geo14 \l 1033 ]. For example, the Qantas Airline may end reducing itsbusiness international operations. This will have negative impacts on the company profits andmay also be an opportunity for the competitors to thrive.Costs of acquiring and maintaining staff.The costs of maintaining staff will contribute to negative impacts on the company profits. Thecosts being used for normal business operations may exceed the capital expenditure making itdifficult for the company to progress. Additionally, the attempts to lay off or retrench someworkers may result into litigations that will cost the company heavily.Threat of the new entrantsThe entry of the new players in the industry will increase the competition, and this negativelyaffects the Qantas Airline profit.Global economic crisisThe global financial crisis will affect the international business operations of Qantas Airline.This may lead to the closure of some of its international business segments.

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