Qantas Business Environment Analysis: Threats and Recommendations

This report analyzes the business environment of Qantas, focusing on the challenges and threats the airline faces. The report highlights the dynamic nature of the airline industry and the impact of competition from companies like Fiji Airways, Virgin Australia, and others. It also discusses the influence of government regulations on the company's operations and profitability. The report further examines the impact of volatile factors such as fuel costs and foreign exchange rates, along with the challenges related to cost management and pricing strategies. The analysis emphasizes the need for Qantas to navigate these complexities to maintain profitability and adapt to the ever-changing market conditions. The report also references the impact of maintenance costs on pricing.

Running Head: Management
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QANTAS
Business environment
4/5/2020

Management
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Analyze the environment in which the business operates, identify possible threats and
evaluate their impact on the business.
The company Qantas has a dynamic working environment as the airline industry in which
they operate their business is quite a fluctuation and depending upon certain factors. There are
certain possible threats which the company has and its impact on the business affects the
profitability of the company (Zhang, et al., 2016).
In the airline's company, there is a huge competition in the market which is the biggest
threat for the company and it affects the profitability of the company also. The major competitors
of the company Qantas are Fiji Airways, Virgin Australia, Air Asia, Etihad, Singapore Airlines,
Asian rivals, etc. (Limnios-Sekeris, 2015). The government brought several rules and regulations
for the company which creates hinder issues and affects the expansion of the Qantas Company.
As the business environment is dynamic and due to emerging policies of the government
in the airlines the company has the threat of declining their profits and faces many financial
issues also. The company Qantas has to comply with new rules and regulations so it affects the
compliances of the company and has to change many legal laws.
The major threat in the company is related to the fuel and foreign exchange as they are
volatile and this threat affects the effective decision making of the company. Another major
threat is related to the management of the cost in the company which is not proper and it is
affecting the pricing policy of the company. The company Qantas offers a cheap cost but due to
the drastic fluctuation in the cost of fuel, the company has to struggle a lot (Zhang, et al., 2016).
Even the airline's company has to make many costs in the maintenance of their fleet so this also
affects the pricing of the company.

Management
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References
Limnios-Sekeris, I. (2015). Stakeholders and competition in the transportation of migrants:
moving Greeks to Australia in the post-War era. The Journal of Transport History, 36(1),
97-115.
Zhang, Y., Sampaio, B., & Fu, X. (2016). Duopoly Competition between Airline Groups with
Dual-brand Services-The case of the Australian domestic market.