Management in the Global Business Environment: Qantas Case Study

This report provides an executive summary analyzing international challenges and opportunities for managers operating in a global business environment. It examines the complexities of global market dynamics, including cultural and linguistic differences, legal and political issues, and the formation of new business relationships. The report uses the Qantas case study to illustrate these challenges and opportunities, focusing on the airline's expansion and international competition. The analysis includes insights into conflict-generating situations and potential solutions for effective management in the global market. The report concludes with a personal perspective on conflict resolution and recommendations for addressing challenges in a competitive global environment. The assignment is supported by academic discussions and references to provide a comprehensive understanding of the subject.

Management in the Global Business Environment
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Executive summary
The aim of the report is to conduct an analysed that includes international challenges and
possible opportunities for the managers that are operating the business in the global
environment. The entire analysis is supported with the academic discussions as well as with
the recent practical example of the Australian organisation that is Qantas. The findings of the
report show that there are many challenges as well as the opportunities that are faced by the
managers. These challenges affect the working of the managers as well as the companies. In
addition, the opportunities lead to the rise in the ways to grab and learn more in global
market. Qantas Company remained in news recently for the expansion as well as for the
international competition which has been discussed because this lead to challenges as well as
opportunities which are determined. In the end, the report consist of different personal view
on the conflict generating and solutions that can be handled in effective manner.

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Contents
Introduction................................................................................................................................3
Managers in global market.........................................................................................................4
International challenges for managers operating in a global environment............................4
Possible opportunities for managers operating in a global environment...............................5
Qantas case.................................................................................................................................6
Some Conflict generating and solutions can be handled...........................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
In the international market there is presence of the broad title for the manager who oversees
the global operation of the company. In the dynamic environment, the international manager
who is responsible for the foreign business deals with the issues related to the competition
and expansion in the market. In this paper, it is essential to talk about the international
competition and expansion issues faced by the Australian company in market. The company
who remained in the news recently is Qantas Company. The company is in news because it is
trying to chases the premium market but it also raised the improving premium economy
challenge. This decision of the company is linked with the different opportunities and
challenges which is faced by them in Australian market.

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Managers in global market
International challenges for managers operating in a global environment
While performing the business activities in the international market, the managers of the
companies deals with different challenges as well as the opportunities. The international
business majorly means the commercial transactions that consist of two or more countries
(Deresky, 2017). Some of the challenges that are witnessed by the managers in the market
are: -
In global market, market witnesses the major challenge of understanding the different
languages as well as cultures (Mooney, 2019). This is fact that different countries have their
own language as well as culture which they follow while dealing for any sort of business in
the market. The managers who go out to deal in different countries find the differences in the
culture and language which influence their way of operating in international market
(LaMarco, 2019). This leads to huddle for managers as they deal with customers with diverse
culture due to which their needs vary.
One of the major challenge that is faced by the managers of company include as they have
staff and operations within difference borders as it have centralized communication system
that makes it possible in order to compare notes. Further, in the global environment,
managers deals with different legal elements while operating business across boards which
include many laws, rules of tax, different regulations that are surrounding trade among the
different countries. In addition to this, many differences are found due to the political issues
which affect the working of companies (Hamilton & Webster, 2018). Thus, this leads to the
challenge as they need to take care about the legal as well as the political issues.

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Possible opportunities for managers operating in a global environment
Along with this, the managers found different opportunities in the market while operating the
business in the international market. Some of the opportunities that have been witnessed
include: -
The managers operate the business in the global market which gives them the opportunity to
from the new relationships in the market with suppliers, customers, talent management
companies and many others. Forming long-term new connection leads to different benefits
for the companies as they can easily supply the products across the different countries. Any
business that is performing operations requires effective suppliers so that they can complete
their procedure to provide the services to end customers. The managers of the company also
get wide range of opportunities by going global to access to the new talent from the market
(Cascio & Boudreau, 2016). The managers can meet the needs of the workers by contacting
the international labour companies that provide the unique advantages majorly in terms of the
enhanced productivity with the effective skills in terms of language that is supported with the
diverse educational background and more (Rossum, 2017). Furthermore, international
sourcing of talent by the managers leads to the opportunity for companies to improve the
innovation output within the company.
In addition, managers have opportunity to develop diverse skills in global market which is
possible by interacting with different people which enhance the interpersonal skills as well as
the communication skills. Along with this, the learning of new skills is opportunity for the
managers in the global market as they learn and develop the decision making skills majorly in
the competitive market. This has been witnessed that the competition is continuously
increasing due to which the managers need to develop the skills that contribute in taking the
hard decisions (Lasserre, 2017). Managers have opportunity to learn ways through which

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they can easily resolve organisational challenges in terms of international competition as well
as expansion. All these opportunities can grab by the managers which will enhance their skill
sets and qualities. Further, this can be understood with the help of the case study of Qantas
company who remained in the news recently for the international competition and expansion.
Qantas case
Qantas Company has announced on 24th July 2018 that it would fly its 787-9s to Hong Kong
this is considered as one of the second-largest port in the market of Asia after Singapore
which is largest. The company consider Hong Kong as its first Asian destination majorly for
its 787s and perhaps its edges over the market of Singapore due to Hong Kong’s higher
demand for fright and it remains longer flying times due to which the company believe that
they can better utilised Hong Kong than the market of Singapore (Burbaite, 2019). This entire
dealing of the company within Hong Kong leads to the different international challenges and
expansion challenges for the company.
One of the major challenges that are affecting working of company includes facing
opposition from one of the player available in field that is Virgin Australia. The airline virgin
Australia deals with the fear that if the Qantas and Cathay are permitted to expand their
codesharing deal then it would lead to attention of power by two major carriers that
contribute in controlling route of Hong Kong (Creedy, 2019). This reflects that the
competition over flights of Hong Kong was heating up continuously. This fuelled by strong
demand for travel among Asia and Australia leads to rise in competition which is faced by
Qantas brand. This makes the competitor to do a race for the one of the most valuable market.
Virgin Australia remained on the similar path as like Qantas in terms of the growth plans with
the sight set expansions majorly into the market of Greater china. The company has taken this

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step because China market for the airways is considered as the fastest growing as well as
most valuable Australian market.
Another challenge is that it requires the attention of international manager is partial offering
of the premium economy leads to the common challenge for the company (Grant, 2016). It
has been witnessed that introduction of the year-round premium economy leads to the major
issue that are linked with the slow introduction of the new product that is aircraft 787 in the
Hong Kong market. The aircraft 787 is considered as the new as well as very attractive
product to sell although it leads to the 787 deployment on Melbourne-Hong Kong with the
two weekly Brisbane-Hong Kong 787 flights. This leads to the major challenge for the
expansion of the business because the passengers majorly flying on the other days of the
week either have to forgo the premium economy or they detour via Sydney (The Blue Swan
daily, 2018). However, it has been found that the major benefit availed by the company is
that virgin Australia does not provide the premium economy to Hong Kong while on the
other hand Cathay pacific offers economy in terms of premium on the most of the long-haul
flight. The major advantage avail by the Qantas company is that it consist of the strong home
market pull as well as passenger base majorly known with the product but perhaps not which
the flight has what type of offerings. This makes it simpler to reach out the passengers to sell
at the prior sale that upgrade through cash or points.
The major opportunity that has been witnessed from the case of Qantas is that they can attain
the high amount of revenue in the market by forming the alliances with the Hong-Kong
(Bamber, 2018). The route of Hong-Kong gets connect to the other routes due to which the
company can connect to the more places. In addition to this, the company can meet the
demand of fright on the quickly basis which contribute effectively in reducing the time
period. This is the possible opportunity that appears with the new international existence of

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the company. Furthermore, another opportunity is possible to attain by the company include
the rise in the customer base which leads to the opportunity of the high market share.
Thus, the entire case of Qantas Company reflects that it remains difficult for the business to
get indulge in the international business as it leads to the wide range of the challenges.
However, along with this, there is presence of the opportunity as well as which makes the
company to attain the positive improvement within the operations.
Some Conflict generating and solutions can be handled
According to my view in the case of the Qantas Company, it has been witnessed that they
need to adopt some of the solution in the manner to deal with the issues which is faced by the
companies in the current market.
Proper review: - Qantas Company need to look towards the aircraft 787 specification before
linking it to another route as this involves the safety as well security. This will help them in
handing any issue that occurs in the aircraft 787 along with this it will safeguard the risk or
security factor.
Competition: - Dealing with competition is considered as one of the major factor that can
influence working. Virgin company is giving the tough competition to Qantas and in this
situation the company is not able to take any sort of the strict steps that can affect the survival
in the market (Herzig, Kelman, Krikun, Matthews & Browning, 2018). Thus, Qantas
Company should analyse the strategy of the virgin company and take the proper steps to deal
with that strategy that helps them to survive in the market. In addition to this, to deal with the
competitors it becomes essential for the company to look towards their own strategy and to
form something really effective.

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I believe that it becomes difficult for the companies to deal in the market which remains
highly competitive due to which the managers of the company should inculcate few
management skills that helps them to deal in global market. In addition to this, the managers
of the company should always think for the expansion of the business instead of the presence
of challenges because in the global market the managers need to handle the challenges and
come up with the resolution of the same. As per my perception, there should be proper mode
of entry that should be adopted by Qantas Company in order to achieve the success with the
Hong-Kong route. This can be forming alliances with the company in order to work together
and to achieve the success in the market (Schellenberg, Harker & Jafari, 2018).

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Conclusion
In the end of the report, this can be concluded that the managers of the companies find wide
range of challenges as well as opportunities in the global environment while performing their
business operations. The opportunity can be grabbed by the manager with the motive to
enhancing their own knowledge and skills with the benefits of the firm. The manager deals
with the challenges as well as the opportunities that are witnessed with the help of the Qantas
Company who remained in news recently with announcement that they will fly with its 787-
9s to Hong Kong which meets the growing needs of the people in the market. In addition, the
report shows the wide range of the challenges and opportunities that are linked with the case.
In the end, the personal view has been presented on the ways to generate conflicts and
solutions that are required to be handled in the effective process.

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References
Bamber, G. J. (2018). Low-cost airlines’ product and labor market strategic choices:
Australian perspectives. Members-only Library.
Burbaite, R. (2019). Virgin Australia protests against Qantas-Cathay HK flights. Retrieved
from: https://www.aerotime.aero/ruta.burbaite/22282-virgin-australia-protests-against-
qantas-cathay-hk-flights
Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: From
international HR to talent management. Journal of World Business, 51(1), 103-114.
Creedy, S. (2019). Cathay, Qantas Lose Codeshare Battle. Retrieved from:
https://www.airlineratings.com/news/cathay-qantas-lose-codeshare-battle/
Deresky, H. (2017). International management: Managing across borders and cultures.
Pearson Education India.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Hamilton, L., & Webster, P. (2018). The international business environment. Oxford
University Press.
Herzig, M., Kelman, K., Krikun, A., Matthews, S. R., & Browning, Y. (2018). Key Learnings
from an International Social Entrepreneurship Collaboration: Songs to Change Our
World. MEIEA Journal, 18(1), 3-71.