Organisational Change Project: Analysis of Qantas Airways Limited

This project examines Qantas Airways Limited, focusing on its organizational challenges and opportunities for improvement. It begins with an executive summary and an overview of Qantas, followed by an in-depth internal and external analysis using PESTLE and SWOT frameworks to identify key issues such as limited international presence and pricing concerns. The project then reviews relevant literature on change management, including transformational and developmental change strategies. Based on the analysis, the project recommends specific change strategies, detailing the resources needed for implementation. The project aims to provide insights into how Qantas can address its challenges and enhance its competitive position in the aviation industry.

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ORGANISATIONAL CHANGE PROJECT
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Author Note

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Executive summary
This paper talks about the company Qantas Airways Limited and sheds a light on the current
issues that exist in the organization. This paper provides an internal and external analysis of the
organization and determines the existing issues that later can prove to be detrimental for the
organization. This paper also provides suitable strategies as recommendation for the company in
order to implement effective changes that will help the company resolve the issues and pave for
the success of Qantas Airways Limited.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Brief overview of Qantas Airways Limited.................................................................................3
Internal analysis of Qantas Airways Limited..............................................................................4
External analysis of Qantas Airways Limited.............................................................................5
Literature review..........................................................................................................................8
Change strategies to improve situations of Qantas Airways Limited........................................10
Transformational change.......................................................................................................10
Developmental change...........................................................................................................11
Recommendation for the suitable strategy................................................................................11
Resources needed to implement the strategy.............................................................................12
Conclusion.....................................................................................................................................12

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Introduction
Change management is a term for the approaches that an organization takes in order to
organize, prepare, support and assist teams, organizations and individuals’ to make effective and
efficient changes in the organization(Fernandez and Rainey 2017).Change has become necessary
and essential in all the organizations because of various factors like dynamic society; change in
the global economy and also to challenge the status quo (Spencer 2018). This paper is going to
shed a light on the airline company,Qantas Airways Limited and provide a reflection on the
internal and external factors and the existing issues in the situation and provide probable
recommendation for change that will help in making situation better for the company and pave
way for success.
Discussion
Brief overview of Qantas Airways Limited
Qantas Airways Limited is an Australian airline based in Sydney and is the largest airline
in the world by the size of the fleet, international destination and international flights. It is the
third oldest airline in the world after KLM and Avianca. The company was founded in the year
1920 in Winton, Queensland, Australia Qantas Airways Limited has a domestic market share of
60% in Australia(Investor.qantas.com 2019). Qantas Airways Limited started as air taxi flights
and joy rides and later turned in to a fully fledged airline business. In the year 1998, Qantas with
British Airways, Cathay Pacific, Canadian Airlines and American Airlines cofounded Oneworld
Alliance that was created for the travelers who frequently travelled to international countries.
The Company currently owns Jetstar Airways. Qantas in 2018 gained an annual profit of about

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14.9% which was a result of the domestic business of the airline Jetstar that is owned by Qantas
and the overall revenue of the company was $980 million (NewsComAu 2019). Qantas Airways
Limited has been very successful however there are certain issues in the organization of the
company in terms of their limited presence in the international market and because of their price
of international flights that has negatively impacted the reputation of Qantas.
Internal analysis of Qantas Airways Limited
Qantas Airways Limited is one of the most successful airline companies in the world that
has been operating its business for about ninety nine years in the aviation industry. Qantas has a
strong presence in the domestic as well as the international market. The company is backed by
the government and is considered to be one of the largest and top airlines that is currently
operating in Australia. The company has a positive reputation in the market and the company has
managed to build this positive reputation through sponsorship and advertising. The company
provides its customers with good services like programs for the frequent flyers and lounges
especially for the loyal customers of the company(Gao et al. 2018). Qantas Airways Limited has
more 2700 employees working under the company(Qantas.com 2019). However, with so many
positive aspects the company has certain drawbacks in terms of their price fixing that has
previously affected the image and the reputation of the company in a negative way. The other
factor is that Qantas has very little presence internationally in comparison to the leading airline
companies in the global market (Zook and Graham 2018).Qantas Airways has been very
successful in the market because of their services and the flights however the airways has less
international presence when compared to their domestic presence in the market and the company
has the opportunity to expand their business in other continents in order to make sure that the
business grows and generates more revenue in the market. There are certain factors that can

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become a threat to the company because of their effects on the internal aspects of the company
like the rise in the labor prices and the expansion of other global airlines in the market.
External analysis of Qantas Airways Limited
Qantas Airways Limited has been a successful company since its inception and has
acquired a positive reputation in the market. The external analysis of the company; Qantas
Airways Limited is based on various factorslike political, social, economical, environmental,
technological and legislative. The political factors of Australia have a huge role to play in
determining the aspects that may have a impact on the profitability of the company. The political
stability of Australia has a vital role to play in the success of the company and has helped the
company grow in the domestic as well as the international market. The cordial relationship
between Australia and China has opened doors for the aviation market that has encouraged the
company to broaden and open their services in China as well. China and Australia have signed a
pact which is the Open Skies Pact in the year 2016 which has removed the restrictions between
the countries and has led to the opening of new routes. However this policy will increase the
competition for Qantas Airways in the market.
Qantas Airways Limited gets support from the Australian government that has
contributed to the sustainability and the growth of the company. However the aviationpolicy that
has been introduced by the Australian government has had a negative effect on the prospects of
growth of the domestic airlines. The decline in the oil prices has helped in increasing the profits
of the company however volatility has become a concern for the company.The repealing of the
carbon tax by the Australian government has been beneficial for the Qantas Airways as the tax
on carbon had lead to the penalization of legitimate businesses due to the increased cost of
electricity(Department of the Environment and Energy 2019).

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Qantas Airways is one of the most successful airline companies in Australia and has
gained public support and trust that has led the company to acquire a loyal fan base that has been
beneficial for the company. The company has partnerships in Australia that has led to boost the
customer base of Qantas. This has helped the company in generating profits that has paved way
for the success of the company.
Technology has become one of the important aspects in the world today and people
literally are becoming dependent on technology for their daily use. The investments in innovative
technology have become very critical to the success of Qantas Airways. The company has
adopted certain technological devices like Stan streaming and Wi-Fi in their flights that has
helped in enriching the customer experience of the company which has managed to attract the
customers of the company that has led to positive sales of the tickets of the company.
The jet fuel emitted by the airways contribute to more than 95 of the overall emissions b
the Qantas Airways Limited that becomes a problem for the company as this has a negative
impact on the environment. However the company has come up with many initiatives in order to
curb these emissions like the company has introduced new aircrafts and has gotten rid of the old
aircrafts that emits fuels at a higher rate in order to meet the safety standards set by the
Australian government.The company has been using fight planning in order to minimize the fuel
use by determining the fuel efficient path with the help of the wind and weather. The company
uses User Preferred Routing (UPR) to optimize their route while in the flight(Qantas.com 2019).
There are many other initiatives taken by the company like maintenance procedures to drive the
fuel efficiency, use of ground power rather than onboard turbines in the gate which helps in fuel
efficiency. The company currently has been creating partnerships in order to conduct research
and several experiments that help in delivering insights about customer sustainability. Qantas has

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been taking measures to curb noise pollution and is trying to maintain all the safety standards
that have been set by the Australian government(Qantas.com 2019).
Qantas Airways has been a very successful company in the market especially in the
domestic market and it can be seen that the company has gained a positive position as well as
reputation in the market. However there have been some issues in the company that may
negatively impact the company in the long run. Qantas Airways Limited has become very
popular in Australia because of the domestic flights however the company only operates in about
27 international countries which includes seasonal destinationsand in about 14 countries all
across America, Africa, Europe, Oceania and Asia excluding all the destinations that are served
or covered by the subsidiaries of Qantas Airways. Due to this the company has very little
international presence in the market that is becoming an issue for the company as there are other
airlines in the market that have very strong international presence as well as domestic presence
that have the capacity to become a strong competition to Qantas and this may lead to the loss of
the company in the near future.Middle East airlines like Etihad and Emirates are becoming a big
competition as they are using excellent geographical locations that are providing one stop to the
same services to Asia, Africa, Europe and America unlike Qantas Airways(Alshubaily 2017).
Price fixing became an issue for the company and was fined $20 million to the Department of
Justice of US because of their conspiracy that fixed charges of the air cargo(Accc.gov.au
2019).The price structure of the Qantas Airways is expensive when compared to the rising
Middle Eastern airlines like Etihad, Emirates and other airlines like Virgin that offer the same
services at a lower cost which has become a problem for the company as people are opting for
cheaper airlines over Qantas Airways which is becoming a problem for the company(James
Massola 2019). In order to curb these problems the company needs to over go certain changes in

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the business that will help them compete with the strong competition in the market and regain the
positive reputation in terms of their services in the market.
By analyzing the internal and external factors it can be seen that there are certain changes
that are needed in Qantas Airways. There are factors like expensive flights, low international
presence which have been affecting the reputation and the sales of the company and thus changes
are needed which will help the company retain its position and compete with the other forces in
the market which will pave way for the success of the company.
Literature review
Change is very necessary in business today because of the dynamic society that is constantly
evolving and changing. According to George (2016) change is necessary in an organization for
growth opportunities. Jensen et al (2016) opined change is vital and necessary in the
organizations that help employees in learning new skills, in exploring new opportunities and
helps in exercising the creativity of the employees in various ways for the benefits of the
organization or business through effective new ideas and commitment.Barbosa et al (2015)
stated that it is necessary for businesses to make changes in the organization aligning with the
needs of the current society for the productivity of organizations.(Cummings, Bridgman and
Brown (2016) has stated Lewin’s change theory and has stated that change is usually short lived
and it usually returns to the old structure thus states the importance of permanency in order to
make permanent change with the objective of the organizations. Lewin in his theory provides a
three step for change. The first step is unfreezing and then prepare to change, second is the
implementation of the change and lastly is to stick to the change. He states that this will help the
organizations make positive change and retain the change in the organization.Kenny (2019)
stated that it is necessary to step out of the comfort zone in order to make positive changes as

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fear restricts effective and positive change in an organization.As per Stephan (2016) Change is a
process that is driven externally and focuses on the response of the organizations and the
adaption of the organizations to their environment in order to increase the organization’s
legitimacy and their probability for survival. Petrou, Demerouti and Schaufeli (2015) highlight
the importance of change in organizations in order to deal with the pressures of the environment
in order to achieve the goals of growth and survival. On the other hand, Suddaby and Foster
(2017) argue change is important in order to cope up with the unexpected shifts that often occur
in the environment of the organizations. According toRozman (2017) the process of change
management impacts the employees of the organization and sometimes it become difficult for
the employees to adapt to the changes. He also states that the change covers diverse problems in
the organization. However,Shah, Irani and Sharif (2017) states that change is difficult to adjust in
the initial stages however later they become beneficial for both the employees as well as the
organization.Dyllick and Muff (2016) opined development change helps improve the current
business and makes the business unique that differentiates the business from their competitors in
the market which helps in building a reputation in the market.Hornstein(2015) has stated the
view points of Kotter and has said that in order to implement change about 75% people
belonging to the management should buy the change. He provides 8 steps in order to effectively
implement change in the organization where he states that the first step is to create an urgency
for change, the next is to form a coalition, next is to create a vision, then the organizations needs
to communicate the decided change, the next step is to curb issues and obstacles, the next step is
to create short term goals and wins, the next step is to build the change and the last one is to
anchor change. He states that this is important and necessary for effective change in the
organization.Newman (2016) states in order to implement change the employees need to be

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notified in order to make sure they are comfortable with the change that will help the
organization in improving the performance of the employees. Many scholars have argued that
making changes in the organization can be risky and may disassociate the company from their
goals that they try to obtain in the organization (Hardy and Maguire 2016). Thus according to
Vaara, Sonenshien and Boje (2016) it is important to make changes and assess before
implementing the changes so that it fulfills the organizational goals in an ethical manner. At
lastDereli (2015) opines that change has helped many organizations to bounce back in the market
and creative and innovative changes in the organization has helped in curbing competition as
well as gain a uniqueness in the market that helps company in acquiring an advantage in the
market.
Change strategies to improve situations of Qantas Airways Limited
Qantas Airways has been facing certain challenges that are affecting the sales of the
company and in order to curb these problems the company needs to implement certain strategies
in order to improve and curb the situation of the company. The changes that Qantas Airways
may take are the following:
Transformational change
Transformational change is a plan that is mainly aimed at transforming or shifting the
operation course of an organization(Imran, Ilyas and Aslam 2016). An effective transformational
change strategy in a company helps a company to implement steps into the proper place in order
to ensure and acquire profitability for the long term. It is vital and essential for organizations to
continuously and constantly examine their underlying strategies. This includes understanding the
cultural trends, dynamic changes in the society and assessing the competition in the market. In
order to implement transformational plan organizations need to understand five steps that is the

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definition of the goal, review the alternatives, formulate strategies, select the perfect change plan,
execute the plan and then monitor it in order to ensure the changes have a positive
impact(McAlpine et al. 2015). However the transformational change is challenging for two key
reasons. The first one isthat the future of the change is unknown when the organization begins
and the change is usually determined by trial and error as the new information is received and
gathered. This strategy sometimes become difficult to manage the transformation that is
proposed by the organization because of the pre determined, linear plans and the time bound.
The other factor is that the state of the future is radically different in comparison to the current
state that the employees and the people and the culture also need to change in order to implement
the changes successfully.
Developmental change
Developmental changes are those plans that are implemented in order to improve the
existing procedures of a business(Bennett 2017). It is highly beneficial as long as the
organization or the business keeps the employees updated about the changes that are going to be
implemented and provide them with the necessary training that will help in successfully
implementing the changes in the organization in order to lessen the stress for the employees
during the change.Development change is the first step that later leads to making other changes
in the organization that helps the companies to meet the demands of the market. This helps
organizations to take efficient, sensible and measures approach in order to make changes that
help organizations to overcome the issues.
Recommendation for the suitable strategy
Qantas Airways Limited has certainissues that are negatively impacting the organization.
The company needs to undergo change and implement the developmental change strategy that