Business Report: Qantas Airways Global Expansion and Influences

This report provides a comprehensive analysis of Qantas Airways Limited's global business expansion. It begins with an executive summary and background of the company, including its business type, size, and life cycle. The report then delves into the internal influences affecting expansion, such as product offerings, location, management structure, resources, and business culture. Following this, the external influences, including political, economic, social, technical, legal, geographic, and competitive factors, are examined. The report analyzes how Qantas has navigated these influences, particularly in the Asia-Pacific region. The conclusion assesses the success of Qantas's expansion based on financial data and strategic initiatives, highlighting its ability to manage internal strengths and external opportunities. Finally, the report provides a list of references used in the analysis.

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Table of Contents
Executive Summary:........................................................................................................................2
Background:.....................................................................................................................................2
Expansion globally:.........................................................................................................................3
Internal influences:......................................................................................................................3
External influences:.....................................................................................................................4
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

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Executive Summary:
Qantas Airways Limited, the largest airline by fleet size, international flights and
destinations, is the flag carrier if Australia. As this company was formed in 1920 it can be said
that this company is the third oldest airline in this world. The CEO and board of directors of this
company were interested to expand the business of this company. However, whether the global
business expansion was successful or not will be discussed in this report. At first background of
this company is analysed. The business type, size of the business, industry, legal structure,
business life cycle of this company are discussed. There are certain internal influences which can
affect the expansion procedure of a business organisation. In this report, products, location,
management, resources, and business culture of Qantas will be discussed as a part of internal
influences. To expand the business globally and maintain the international business successfully,
the executive team of this company is utilising its internal strengths. The analysis of internal
influences reflects the way this company managed its weakness and threats by using its strengths
and opportunities. After analysing the internal influences, the external influences will be
analysed. The political, economic, social, technical, legal, geographic, competitive situation,
markets, institutional are external influences on business which can affect the global expansion
procedure of a business organisation. To analyse the external influences of Qantas Airways
Limited in this report several factors like political, economic, social, technical, legal, geographic,
competitive situation are discussed. In the conclusion part, whether this company is successful to
manage the expansion part or not is analysed by using statistical data. The annual report of
Qantas 2018 is proof that this company is generating revenue and providing the best customer
experience.
Background:
Qantas Airways Limited offers transportation of travellers and customers through 2
airlines which are Qantas and Jetstar. This nature of this company is operating domestics and
international flights. This company is successful to provide service in international, domestic,
and regional levels (Shaffner, Mills, and Mills). To get an idea about the size of a business
organisation, total revenue, assets can be used. According to the annual report of Qantas 2017,
total assets of this company was A$17.2 billion, total equity was A$3.54 billion and the total
employee was 26,150 (Qantas.com). Qantas Airways Limited, an Australia based business

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organisation, operates in the domestic and international airline. The provision of freight services,
international and domestic air transportation services, and the operation of a frequent flyer
loyalty program are controlled by this company. It is an Australian public company. By
becoming a public company, Qantas Airline has accomplished additional offerings to generate
revenue through the sales of new shares and the creation of new shares in the marketplace. After
doing business for ninety years Qantas Airline Limited is in its post-maturity phase of its life-
cycle.
Expansion globally:
To enhance the market share, and generate revenue, the management tea, of this company
expand the business of the Qantas Airline Limited globally. To respond to the global economy
changes and geopolitical shifts, this company has focused to improve the service in the Asia-
Pacific region, which is the biggest aviation market in the world. Half of the international
network of this company is now dedicated to Asia. Through strategic partnerships, a joint
venture with China Eastern this company is managing its business in the market of Asia-Pacific
region (Qantas.com). However, internal and external influences are affecting the business of this
company which will be analysed in this part.
Internal influences:
It can be said that there are five internal influences which can affect the expansion
procedure of Qantas Airlines. Those internal factors will be discussed in this part.
Product:
By using 2 airline brands Qantas and Jetstar, this company continue its service which is
the transportation of customer. For the domestic passenger, this company provide premium
product and services. Through Qantas International, this company provide premium full-service
international airline for its customer (Qantas.com).
Location:
Headquarter of this company is located in Mascot, Sydney, Australia. This company
carries premium international traffic to and from Australia. Out of its total revenue, this company

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earns 38% from the Asia route, 34% from the America route, 16% from the Europe route and
12% from the other route (Qantas.com).

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Management:
The CEO of this company is Alan Joyce (Qantas.com). Both the centralised and
decentralised organisational structure is followed by this company. To improve every aspect of
management, this company introduced Adaptalift Hyster’s Fork Track management system. To
prioritise the safety issues, this company implemented a Qantas Management System (QMS)
which would manage all aspects of safety, security and health. To reduce cost and enhance
operational efficiency, the executive team of this company introduced a sustainable future
program (Qantas.com).
Resources:
This company is the owner of intangible asset worth of $870 million in 2019
(Qantas.com). Tangible assets of this company in 2019 is $12.877 million. Return on tangible
asset of this company in 2019 was 4.76% (Qantas.com). This company is the largest airline in
Australia. The board of directors are successful to maintain its human resources. HR
management of this company manages four key areas of this company which are corporate
issues, shared services, improvement and learning, and business segment (Xian).
Business culture:
Business principals, behaviour, and values of this company are approved by the Board of
Directors. The employees are bound to follow the policies, regulations of this company, fixed by
the Board of directors. The board of directors of this company prioritise safety, service, inventive
cooperation, and integrity
External influences:
Political  Successful to develop good relationships in the Asia Pacific region. By
developing a good relationship with the government of China, this
company is getting the benefits of open aviation market of this country
(Qantas.com).
 The success of this company depends on political stability, support
from the government.
Economic  The growth prospect of the domestic airline is affected by the liberal

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policy of the Australian government (Qantas.com).
 Due to the price of oil, the profitability of this company is always
volatile.
 Global financial crisis.
Social  Being the largest airline of Australia, this company receive public trust,
local consumer base and support.
Technical  By investing huge amount in innovation and technology this company
is ensuring customer satisfaction and efficient operation.
 To enhance the customer experience this company introduced Wi-Fi
and Stan streaming in Qantas Flights (Qantas.com).
Legal  This expansion procedure of this company is affected by the carbon tax
issues.
Geographic  Though this company is successful to present throughout the world yet
to enhance its revenue this company has to focus on the market of Asia
and Africa.
Competitiv
e situation
 This company has to do business in an intensely competitive
environment. Competitors of this company are Virgin Australia, JetBlue
Airways, Emirates, Malaysian Airlines, Singapore Airlines, British
Airways, Cathay Pacific, Delta, Air Asia and Etihad (Homsombat, Lei
and Fu).
When the business of this company expanded globally certain challenges affects the
business growth of this company. Low-margin international flights, Global financial crisis, issues
with the long distances flights are key challenges faced by Qantas Airline. To improve the global
business operation, this company has invested money for technical advancement. The CEO and
board of directors of this company are managing these challenges by developing a strategic plan
for the expansion procedure, implementing the plan to create the most efficient business
operation.

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Conclusion:
This report can be concluded in this way that the executive team of Qantas Airlines are
successful to expand the business successfully to generate revenue. According to the annual
report of Qantas in 2018, this company accomplished a record operating cash flow of $3.4 billion
and record statutory earnings per share of 56 per cent share. By overshooting the annual target of
delivery, this company earned $ 463 million billion as transformation benefits
(Investor.qantas.com). Internal influences line products, location, management, resources,
business culture are managed by the executive of this airline company appropriately. This report
concludes that the senior executive team of this company utilise its strengths and opportunities to
generate the profit by managing the internal and external influences.

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References:
Homsombat, Winai, Zheng Lei, and Xiaowen Fu. "Competitive effects of the airlines-within-
airlines strategy–Pricing and route entry patterns." Transportation Research Part E: Logistics
and Transportation Review 63 (2014): 1-16.
Investor.qantas.com. "FINANCIAL PERFORMANCE". Investor.Qantas.Com, 2018,
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/
file/annual-reports/2018-Annual-Report-ASX.pdf.
Qantas.com. "Geopolitical Shifts And The Rise Of Asia | Qantas US". Qantas.Com, 2019,
https://www.qantas.com/us/en/qantas-group/looking-ahead/geopolitical-shifts-and-the-rise-of-
asia.html.
Qantas.com. "Qantas Group And Australia". Qantas.Com, 2017,
https://www.qantas.com/infodetail/about/company/qantas-group-economic-contribution-fact-
sheet-2017.pdf.
Shaffner, Ellen, Albert J. Mills, and J. Helms Mills. "Reading Qantas History: Discourses on
Intersectionality and the Early Years of Qantas." Insights and Reflections on the Study of
Gender and Intersectionality in the Cultures of Airlines Overtime (2017): 445-469.
Xian, Wang. "Case Study on Qantas of ITS Strategic Management: The High Flyer of the Airline
Industry." (2018).