Strategic Management of Qantas Airways

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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1STRATEGIC MANAGEMENT
Executive Summary
The report is based on the analysis of a major airlines organization of Australia named Qantas
Airways. The organization will be analysed based on the external environment and the
industry in which it operates. The competitive environment of the organization has been
analysed in the report along with the threats and opportunities. The resources which have
been gained by the organization and the capabilities have been analysed. The core
competencies have been discussed based on which an information system has been
recommended. The recommendation is based on the implementation of artificial intelligence
for managing data and the flights by the organization.

2STRATEGIC MANAGEMENT
Table of Contents
Part 1..............................................................................................................................3
Introduction................................................................................................................3
Background of Qantas Airways.................................................................................3
Background of airlines industry.................................................................................3
General environment analysis....................................................................................4
Industry environment analysis...................................................................................6
Competitive environment...........................................................................................7
Opportunities and threats...........................................................................................7
Part 2..............................................................................................................................8
Resources of Qantas Airways....................................................................................8
Identification of the capabilities of Qantas Airways..................................................8
Core competencies of Qantas Airways......................................................................9
Proposed information system to be implemented in Qantas Airways.......................9
Recommendations based on the information system...............................................10
Conclusion....................................................................................................................11
References....................................................................................................................12

3STRATEGIC MANAGEMENT
Part 1
Introduction
The report will be based on the internal and external environment of an organization
that operates in a competitive industry. The organization that has been chosen for analysis is
Qantas Airways that operates in the airlines industry of Australia which is highly competitive
in nature. The micro and macro environment of Qantas Airways will be analysed in the report
along with recommendations based on the information system (Barros, Hernangómez and
Martin-Cruz 2016). The information system that can be implemented by the organization in
order to increase the speed of operations will be recommended in the report. This will help in
improving the customer base of Qantas Airways as well.
Background of Qantas Airways
Qantas Airways is the flag bearer organization in Australian airlines industry with
respect to fleet size, international destinations and international flights. This is the oldest
airlines based organization in the country after other two major organizations namely,
Avianca and KLM. The organization was established in the year 1920 and the international
passenger based flights have started operations in 1935. The airlines organization is based in
Sydney in the suburb of Mascot. Qantas had 65% share in domestic airlines industry in the
year 2014 and 14.9% of the passengers travel in and out of the country.
Background of airlines industry
The domestic airlines are subjected to the turbulent conditions related to trading in the
last five years. The price based competition that has taken place between Virgin and Qantas
in the Australian airlines industry has an immense effect on its performance. The two
organizations have started reducing the prices of their services with the aim of increasing
their shares in the industry. Qantas Airways has tried to compete with its competition in the