Qantas International Growth and Restructuring

This assignment examines Qantas' need to improve its international growth through corporate restructuring. It analyzes the airline's strategies, potential impact on profitability, employee resistance, and cultural issues. The assignment proposes solutions for overcoming employee resistance and emphasizes the importance of employee participation in decision-making. A questionnaire is included to gather employee feedback on the proposed changes.

Business Finance and sustainable Financial: Research Report

Abstract
The underlying research study is aimed at analyzing the effectiveness of implementing
adopting organizational changes in Qantas Airways. The study has measured the need of
implementing organizational change in the airline with the help of survey questionnaire method.
Various set of recommendations and suggestible solutions are also provided to the airline of the
Australia on the basis of survey results and other findings.

Introduction
This research study emphasizes on analyzing the effectiveness of an organization’s
change management strategy through the application of theoretical models. The research report
presents an analysis of the change management strategy to be adopted by the Qantas Airways for
improving its growth and development. The report considers the change drivers, strategies
employed, management resistance and cultural issues that can be faced by the airline for
implementing the planned organizational change. The research report has analyzed the
effectiveness of the organizational change through evaluating the quantitative data collected
from survey questionnaire method. Also, the results obtained are compared with change
management strategies of David Jones in order to compare the change management strategies of
both companies.
Background information
The Qantas Airways, a flag carrier airline of Australia that operates many domestic and
international flights across all parts of the world. The airline mainly provides extensive air
services in Australia and New Zealand and carried about 30 million passengers in a year.
However, the company is recently facing issues due to staff lay-off and thus is planning to
restructure its business unit for improving its financial results that are recently declining (Pirotti,
and Venzin, 2016).
Literature review
Fairbrother, Paddon and Teicher (2002) stated that the adoption of changes in
organizational environment has become vital for every business entity in order to attain
competitive advantage in the marketplace. The organizational changes enable a business entity to
match the needs and expectations of the external marketplace and thus ensuring its sustainability.
The organizational changes facilities a business entity to explore new skills, opportunities and
creativity that can prove beneficial for its growth and development. The Qantas airway, as such,
is also recommended to adopt the organizational change of its corporate restructuring. This is
required by the airline to improve its revenue growth which is on decline due to issues such as
increased fuel and staffing costs (Fairbrother, Paddon and Teicher, 2002).

According to Bamber (2013), the corporate restructuring will enable the airline to focus
on its key operational area by segment between its domestic and international operations. Thus,
the airline can significantly invest more in the business operations of its business unit that will
help it in realizing more revenue. Also, the airline can focus more on its operational activities
that are incurring huge expenditure and can develop effective strategies for reducing its operational
cost. The separation of the management structure of international and domestic airline will ensure that
each business unit can carry its functions without each other dependence. This will help them to
appropriately address the market challenges and opportunities and improving the profitability of its
overall business (Bamber, 2013).
4. Research methodology
4.1 Sample / Case selection
The sample selection process involves choosing the respective respondents for carrying
out the survey. The presents study involves collection of quantitative data through the survey
questionnaire method. The questionnaire is presented to top management and employees of the
Qantas airways for identifying the change drivers, strategies employed and the barriers faced for
implementing the organizational change management strategy. For this context, 50 respondents
are selected through the use of random sampling method in order to avoid biasness in the
research study (Jackson, 2008). The questionnaire will be presented to the target population on a
random basis for collecting their responses in context of the research problem.
4.2 Data collection
The data is collected through the use of questionnaire survey method. The questionnaire
developed consists of only closed-ended questions for avoiding vagueness in the research study
through limiting a checked on the responses provided by the respondents. Also, the close-ended
questionnaire helps in easy collection of information from the respondents without consuming
their much time.
4.3 Data analysis
Data analysis is a vital part of the research study that helps in analyzing the primary and
secondary information related to the research topic. The data collected through survey

questionnaire method is analyzed with the help of graphical techniques. The data collected is
analyzed through the graphical tools such as pie-chart for providing easy interpretation of data to
the readers. The data collected in the survey questionnaire method is analyzed as follows:
Findings related to job position within the organization
14%
38%
48%
Job position with the organization
Executive Management Employees
As depicted from the above figure, the majority of the respondents are employees
followed by management people and minority number of respondents presents executive level
position.
Findings related to organization need to implement the change management strategy of
restructuring for enhancing its growth and development

70%
30%
Organization needs to implement the change
management strategy of restructuring for
enhancing its growth and development
Yes No
As depicted in the figure, majority of the respondents stated that there is large need for
organizational restructuring of Qantas Airways. In this context, it can be said that transformation
of organization structure will prove to be a min key of success for the company. The airline is
struggling at present to keep in pace with global airlines and therefore requires the adoption of
organizational change of restructuring. The organizational restructuring will facilitate in
implementing more flexibility into the business structure and thus help in maximization of
shareholder’s value (Qantas posts record profit after painful restructuring, 2016).
Findings related to planned organizational change improving the organization profitability and
growth

62%
32%
6%
planned organizational change will help in
improving the organization profitability and
growth
Yes No Can’t say
As illustrated in the figure, the majority of the respondents are of the opinion that the
implementation of the planned organizational change will help in increasing the profitability and
growth of the airline to a large extent. This finding can be supported from the fact that Qantas
domestic is profitable as compared to its intentional business unit. As such, the corporate
restructuring will help in improving the profitability of Qantas domestic more that can help the
airline in realizing sustainable returns from the international business as well (Wensveen, 2016).
Findings related to employee barriers faced on implementing the planned organizational change
of restructuring
86%
8% 6%
Organization is facing employee barriers on
implementing the planned organizational change
of restructuring
Yes No Can’t say

As depicted from the above figure, it can be stated that organization is facing large
resistance from employees in adopting the organizational change of restructuring. In this context,
it is essential for the top leaders of the airline to communicate properly about the needs and
benefits of the planned changes for its long-term sustainability and growth. The employees must
be motivated properly so that they can accept readily the planned organizational change (Robin,
2012).
Findings related to changes occurred in the organization structure with implementation of
planned organizational change
42%
32%
16%
10%
There have occurred any changes in the
organization structure with implementation of
planned organizational change
Strongly Agree Agree Disagree Strongly Disagree
As depicted from the above figure, majority of the respondents strongly agrees to the fact
that the implementation of organizational changes has resulted in increasing its revenue growth.
The fact can be illustrated from the increased dividend yield of the airline recently and improved
profitability of its international business unit (Bamber, 2013).
5. Results and discussion
As interpreted from the data analyzed, the main drivers for the organizational change in
the airline are its decreased profitability and complex business operations of its overall business.
As such, the corporate restructuring into two divisions will help the airline to focus on the areas
requiring improvement for attaining sustainable growth and development. The major barriers

faced by the airline for the adoption of the planned organizational change are resistance from
employees. The airline as analyzed from the data collected is facing large employee barriers for
restructuring its business unit. This is due to the change in the organizational culture that is not
readily accepted by the employees. The restructuring is causing the airline to recruit new
employees form foreign countries that are creating a culture barrier between the local and foreign
employees. The management in this context is recommended to improve co-ordination among all
the level of its employees through facilitating proper communication and interaction (Wensveen,
2016).
In this regard, the case study of David Jones has reflected the strategies implemented by
the company management for achieving success as an omni-channel retailer and regaining its
position as a premier department store in Australia. As such, the company has developed strategy
for allowing the customers to select the method of their shopping as per their wish such as by
store, phone or by online website. Also, it has provided the capability to allow customers to
select the method of their purchase such as through post or courier or from the nearby
department stores. Thus, the company has effectively transformed itself as an online retailer
through developing its online communication channel that has helped them to achieve customer
satisfaction. The company thus has effectively restructured its organizational unit as per the
needs and customer preferences (Carter and Rovell, 2003). The Qantas airways need to learn
from the change management strategies of David Jones for successful adoption of its
organizational changes.
6. Conclusion and recommendation
Thus, it can be concluded from the overall research study that Qantas need to improve its
international growth and development through adopting a change management strategy of
corporate restructuring. The airline is also recommended to overcome the employee resistance
and cultural issues faced for successful adoption of its planned organizational change through
improving employee participation in the decision-making process (Carter and Rovell, 2003).
7. Limitation and future research
The main limitation of the research is that it is mainly objective in nature and lacks
subjectivity for developing an in-depth knowledge of the research topic. The future researchers

in this context can carry out the research regarding the different strategies that can be adopted for
overcoming the employee resistance to organizational changes.

References
Bamber, G.J. et al. 2013. Up In the Air: How Airlines Can Improve Performance by Engaging
Their Employees. Cornell University Press.
Carter, D. and Rovell, D. 2003. On the Ball: What You Can Learn about Business from
America's Sports Leaders. FT Press.
Fairbrother, P., Paddon, M. and Teicher, J. 2002. Privatisation, Globalisation, and Labour:
Studies from Australia. Federation Press.
Hume, N. 2012. Qantas restructures to improve returns. [Online]. Available at:
https://www.ft.com/content/3357cb8c-a3be-11e1-988e-00144feabdc0 Accessed on: 3
September, 2017].
Jackson, S.L. 2008. Research Methods: A Modular Approach. Cengage Learning.
Pirotti, G. and Venzin, M. 2016. Resilient Organizations: Responsible Leadership in Times of
Uncertainty. Cambridge University Press.
Qantas posts record profit after painful restructuring. 2016. [Online]. Available at:
https://www.thenational.ae/business/qantas-posts-record-profit-after-painful-restructuring-
1.142778 [Accessed on: 3 September, 2017].
Robin, M. 2012. What’s behind Qantas’ restructuring decision? [Online]. Available at:
https://www.smartcompany.com.au/people-human-resources/leadership/why-is-qantas-splitting-
up-its-domestic-and-international-business/ [Accessed on: 3 September, 2017].
Wensveen, J. 2016. Air Transportation: A Management Perspective. Routledge.

Appendix: Questionnaire
1. Please mention your job position with the organization?
a. Executive
b. Management
c. Employees
2. Do you agree that the organization needs to implement the change management strategy of
restructuring for enhancing its growth and development?
a. Yes b. No
3. Do you think that the planned organizational change will help in improving the organization
profitability and growth?
a. Yes b. No c. Can’t say
4. Does your organization is facing employee barriers on implementing the planned
organizational change of restructuring?
a. Yes b. No c. Can’t say
5. Do you agree that there have occurred any changes in the organization structure with
implementation of planned organizational change?
A: Strongly Agree
B: Agree
C: Disagree
D: Strongly Disagree