Qantas Airlines' Organizational Change: Strategies and Challenges

This report examines the organizational changes implemented by Qantas Airlines, focusing on strategic adaptations to maintain competitiveness in a challenging market. The company's initiatives include developing Jetstar as a cost-leading airline, constructing loyalty programs, and diversifying its business segments to mitigate risks. The report analyzes the drivers behind these changes, such as the 2008 global financial crisis and increasing competition, and evaluates the strategies employed, including rationalizing core competencies and engaging in price wars. The challenges faced by Qantas, including maintaining a unique market position and sustaining competitive advantages, are also discussed. Finally, the report highlights the importance of human resource support in facilitating these organizational changes, emphasizing the need for an excellent human resource management system. The report uses references like Hayes (2014), Hendry (2012) and Milanpintar.com (2017) to support the analysis.

Running head: ORGANIZATINAL CHANGE IN QANTAS AIRLINES
ORGANIZATINAL CHANGE IN QANTAS AIRLINES
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1ORGANIZATINAL CHANGE IN QANTAS AIRLINES
1. Qantas Airline Company was established in 1920 at Queensland, Australia. Qantas Airline
is Australia’s domestic and largest airline company. It is also one of the powerful brands in
Australia and the most successful airline company in the world. It was originally termed and
registered as Queensland and Northern Territory Aerial Services Limited (QANTAS). This
brand has reputation in providing operational reliability, safety and excellent customer
services. The main business of the Qantas Group is related to transportation, for which it uses
two complementary airline brands- Qantas and Jetstar. The company has more than 3000
employees and around 93% is based in Australia (Qantas.com, 2017).
2. The Qantas airline has implemented a significant change in the context of strategic focus
and competitive advantage or sustainability. The change initiative includes the development
of an airline JetStar, which is a cost-leading airline alongside in Qantas. The company has
also taken strategies such as constructing loyalty program to face threats from new entrants.
The company has focused on the development of five segments diversification that would
help in developing the secondary subsidiaries, which aids it in smoothening the revenues and
profit generation. It will also minimize the risks that could arise from the sole dependency on
the single business unit, which was Qantas alone. Other changes include resource and
capacity distribution among five business segments for maximum profitability. The
international strategy includes growth in the new markets, like Asia. The company has to
reduce the barriers for the entry and focus on the global and transitional strategy for
penetrating the Asian market.
3. The strategic change in a company is occurred in response to stabilizing and
sustaining the business activity at the corporate, organizational and personal levels. It is
followed by the planning, initiating, realizing and controlling. The strategic change initiatives
help to establish a unique positioning in the market, controlling threats and revealing
opportunities (Hayes, 2014). The Qantas Airline Company has taken changes initiatives as

2ORGANIZATINAL CHANGE IN QANTAS AIRLINES
this company has been facing number of problems related to global financial crisis in 2008.
For this reason, there is incensement of the new entrant competition. The company requires
developing new competitive strategies. The company wants to deliver the returns to its
shareholders. The changes have been taken for maximizing the ability of the company to
sustain the competitive advantages and to achieve highest average returns.
4. The organization Qantas airline is going through a number of challenges, as it had to take
change initiatives. The company generated revenues more than 15.8 billion dollars. However,
due to global financial crisis in 2008 the company has faced problems related to sustaining
the prior revenue generation. The company also faced problems like providing sustainable
returns to its shareholders and increasing competition with new entrants (Milanpintar.com,
2017). The brand needs to sustain in the competitive international market with expanding the
competences.
5. The Qantas has used change management like building group strategy that would provide
sustaining returns to its shareholders. The company has also used competitive strategies like
developing a cost-leading airline Jetstar along with services in Qantas. However, the
company developed strategies that focus on the rationalization of the core competences and
development of an approach that would resist other forces related to competition in
international market. The company has done this by price wars with the competitors and
minimizing costs by involving the suppliers. The company has developed a loyalty program
that has helped it to face the threats from the new entrants.
6. There were various challenges faced by the airline company. The challenges include
sustainability in the growing market with all the competitors or entrants are also approaching
the same market. The company needs to maintain its unique position in the market. The

3ORGANIZATINAL CHANGE IN QANTAS AIRLINES
company has faced challenges related to competitive advantages and the company needs to
develop strategies that would help them to sustain in the market.
7. The human resource support services are related to provide excellent support
system to the company’s stuffs and work structure (Hendry, 2012). The company gets human
resource support by providing an excellent human resource system to the organizational work
structure. The company needs an excellent human resource manager and up-to-date human
resource management team.

4ORGANIZATINAL CHANGE IN QANTAS AIRLINES
References
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Hendry, C. (2012). Human resource management. Routledge.
Milanpintar.com. 2017. Strategic Management – Group report: Qantas case study analysis.
Milan Pintar E-Portfolio. Retrieved 4 October 2017, from
https://milanpintar.com/2015/10/25/strategic-management-group-report-qantas-case-
study-analysis/
Qantas.com. 2017. Our Company | Qantas. Qantas.com. Retrieved 4 October 2017, from
https://www.qantas.com/travel/airlines/company/global/en