BUMGT 5920: Qantas Airlines' Management in Global Business Environment

This essay provides an in-depth analysis of the challenges encountered by Qantas Airlines within the global business environment. It begins by outlining the company's struggles, including financial losses and intense competition from Middle Eastern and low-cost carriers. The essay explores the impact of international expansion, highlighting issues such as financial constraints, staff turnover, and the complexities of navigating different time zones and political landscapes. Furthermore, it identifies key barriers like language differences and currency fluctuations. The essay then offers recommendations for Qantas, emphasizing the importance of exceptional customer service, data-driven predictions, and innovative loyalty programs. The analysis draws upon academic references to support its arguments, offering a comprehensive overview of the airline's challenges and potential strategies for improvement in the global market. The essay also discusses the challenges faced by airlines due to expansion in the global market and lastly the essay discusses the recommendations for Qantas airlines and how it can improve itself in order to be successful in the global or the international market.

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QANTAS AIRLINES
MANAGEMENT IN GLOBAL BUSINESS ENVIRONMENT
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8/9/2019

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Qantas Australia is one of the biggest and the oldest airline and it is also going
through a lot of crisis. On 23rd august the company announced a loss of a$244m. It was the
first time that the company faced losses after 17years. Qantas is successful in the market of
Australia but the problem started when it entered the international division. The company is
now in partnership with a Dubai based airline named Emirates. Qantas is worries about their
less trumpeted cause and also due to the growth of price and route competition from different
state- backed airlines which are moving from Middle East to the Australian markets. Virgin
Australia is one of the main competitors of Qantas (Chang, Park, Jeong, & Lee, 2014). China
southern airlines is one of the biggest carrier of china and it the biggest and the most
aggressive competitor of Australia. Previous year, China Southern expanded its services to
New Zealand and Australia which is a six-fold to 42 flights in a particular week and it is
planning to raise them into 55 flights a week. The following essay discusses about the
challenges faced by Qantas airlines due to strong competition in the global industry, the
essay then discusses challenges faced by airlines due to expansion in the global market and
lastly the essay discusses the recommendations for Qantas airlines and how it can improve
itself in order to be successful in the global or the international market (Belobaba, Odoni, &
Barnhart, 2015).
Qantas airlines have suffered a lot during the past few years and one of the main
problems is competition from Middle East carriers (Emirates and Etihad). Both of these
companies use their geographical locations in an excellent way as they has one stop and the
same airline service to Australia, New Zealand and Asia and some of the locations in
Europe as well. Due to all this the travelling process Ireland to America has improved and
changed (Franke, & John, 2011). Qantas airlines is also affect ted by its local competition
from the company Ryanair as it a low cost airline which provides domestic and short haul
business (Shaw, 2016). Although Qantas airlines is a traditional airline, which provides a lot
of good services as well as Qantas airline have a very high standards with a good and
skilled workforce. The Australian people are emotionally much attached to Qantas but when
it comes to buying tickets they go with the one of the cheapest options that is available in the
market. The 13 main competitors of Qantas airlines are: Lufthansa Air India Airlines, Etihad
Airways, Malaysia Airlines, Qatar Airways, Emirates, Singapore, British Airways, Turkish
Airlines, Air France, Virgin Atlantic, Air New Zealand and United Airlines. Qantas also feels
that it faces various challenges due to the increase of fuel price but to some extent they are
the reason behind it as the companies should be aware of such situation and should plan their

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strategies accordingly, however Qantas did not build any strategy to overcome this barrier
and hence this company is responsible for its own failure. The airlines nowadays are facing
issues due to wrong strategic decisions. Qantas airlines are just complaining about the long
and hard international competition which is lowering down the airfares.
One of the biggest barrier and challenge for Qantas expansion is the international
market is foreign affairs. In terms of the revenue per available seat kilometre, the measure of
the productivity of single seats for the airplane seats. The airline provides branded pyjamas
and lie flat bed like seats and they provide customers with full and good services although the
routes of Qantas do to bring in many profits (Hojeghan, & Esfangareh, 2011). As Qantas is
already facing issues regarding its market share if it expands itself into an international
market then it might go into more losses and due to more loss the company might have to
face the following challenges. The first and the most important challenge is the shortage of
cash as the airline will have to borrow money from the market and in order to meet and cost
of expansion, premises and equipment (Assaf, & Josiassen, 2011). When a company like
Qantas is already going into losses and if to also take the decision of expansion then the
company will have to compromise on the quality of the facilities and produces and increase
in production can lead to bad quality and this can eventually lead to the loss of customers and
also the loss of sales. When the business will expand it will also have to focus on a lot of
sections and hence the company will need a large team of managers who can supervise and
look after different duties and also at different locations. Due to expansion there will be an
Increase in the capital of requirements as a large business means a large workforce, more
facilities, more equipment’s and more of investment which would be difficult for Qantas
airlines as it is already going into losses.
After this the company will also face the issue of staff turnover as during the
expansion of the company the employees might have to give extra time and effort and this
thing can bring their morale down and also there will be less productivity and the employees
might even leave the company (Cooper, Vafadari, & Hieda, 2015). Another main issue is the
financial challenges that Qantas will face during expansion. As already discussed expansion
requires a lot of financial investment and it can affect the company on a bad manner if the
company will not be able to keep up with the promises. The company might also face a lot of
struggles in order to repay the loan (David, 2013).

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Apart from this the company can face timing issues when expanding the airline as the
international market will have different time zones and it then a little difficult in order to
coordinate with the international business. There will also be a threat of local politics for
Qantas airlines as the political atmosphere might look very dissimilar from the domestic
setting and not every single country lets a business function as it desires, so this must
continuously be deliberated (Ciliberto, & Williams, 2010). Another one of the most important
barrier is language. If a company move in new and global market then the key barrier would
be language and then the indigenous language dismiss become a wall toward achievement.
This obstacle is slowly pending down with software and apps that interprets words into a
practical language, but this knowledge is still very defective. What a small business owner
may think is a praise strength actually be a serious affront (Lawton, Rajwani, & O'Kane,
2011). The next important barrier is the fluctuations in the currency American businesses
knowledgeable this in 2015. With the dollar wired in contradiction of the Euro at near historic
levels, expected profits suddenly vanish founded on the variations of value in global monies
(Coles, Fenclova, & Dinan, 2011). There might also be dues in money exchanges,
particularly when done through credit card trades that further dip into the income limitations.
When the home financial unit trades lesser, it’s actually well for business, and that isn’t
permanently improved for the customer.
Some of the recommendations for Qantas are Providing Exceptional; Loyalty-
Building Service by Using Customer Data, The clienteles of Qantas should with stories about
how the airlines departed above and beyond to provide good customer experience. The airline
should have a dedicated side that achieves the social media stations and replies to the
grievance of the customers and post in actual life. Their side should focus on monitoring all
the customer behaviours and the online explanations and the airline should build good
relationships with the customers. The airlines should use new technologies like the inflight
mobile and tablets to access the customer’s profile (Duval, 2013).
Second is it Can Make Accurate Predictions About What Flyers Will Buy, Airlines
should use the data management stage such as umbel in order to be cost effective and to grow
the base of the customers and the return on investment in order to become clear
understanding of their target customers and to have data insights. The main aim of Qantas
airlines should be able to use data in an effective manner. Qantas should provide timely and
valuable information at the time of check-in, airport navigation and to make the journey for
customers more comfortable and valuable (Morrison, & Winston, 2010).

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The third and the last one is Redefining How Loyalty Programs Are Run, Qantas
airlines like the other airlines should find data that can be used in construction and improving
the program of loyalty. By the use of data insights and through understanding their clienteles
actions favourites. The airline should have a very deep understanding of the customers and
the flyer program. Qantas airline should provide various programs of loyalty in order to make
the customers feel special and Qantas airline should earn Loyalty by using all the statistics
visions in order to make developments crossways the whole business counting new design of
the product, new destinations and routes, customer support exercise, capital allocations, and
creative plan (Amankwah‐Amoah, & Debrah, 2011).
Through this essay one can learn the following things as this essay discusses about the
issues faced by Qantas airlines faces issues form the global market from its competitors and
also the challenges faced by the airlines during expansion. The essay shows that Qantas
airlines have suffered due to competition from Middle East carriers (Emirates and Etihad).
Qantas airlines is also affect ted by its local competition from the company Ryanair as it a
low cost airline which provides domestic and short haul business. The 13 main competitors of
Qantas airlines are: Air India, Turkish Airlines, Etihad Airways, Malaysia Airlines, Qatar
Airways, Emirates, Lufthansa, British Airways, Singapore Airlines, Air France, Air New
Zealand Virgin Atlantic, United Airlines and. The challenges faced by Qantas airlines due to
expansion in global market are, the company can face timing issues when expanding the
airline as the international market will have different time zones and it then a little difficult in
order to coordinate with the international business. There will also be a threat of local politics
for Qantas airlines as the political environment might look very different from the domestic
environment and not each single country lets a business function as it desires, so this must
continuously be deliberated. Another one of the most important barrier is language and so on
and lastly the some of the recommendations for Qantas airline are Providing Excellent;
Loyalty-Building Service by Using Customer Data, The airline should have a dedicated team
that manages the social media channels and responds to the complaint of the customers and
post in real life. The main aim of Qantas airlines should be able to use data in an effective
manner. Qantas should Redefine How Loyalty Programs Are Run; Qantas airlines like the
other airlines should find data that can be used in building and improving the program of
loyalty.

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References
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