Qantas: Economic, Industry Environment, and Investment Attractiveness

This business report provides an analysis of Qantas's economic and industry environment, highlighting its significant contribution to the Australian economy. It examines key factors affecting the company's attractiveness for investment, including economic growth, political environment, exchange rates, and domestic competition. The report emphasizes the importance of understanding customer needs, market size, and the impact of global perceptions on Qantas's brand and operations. It also touches upon the airline's role in facilitating the flow of goods, people, and capital within Australia, while acknowledging challenges such as fluctuating fuel prices and labor demands. Desklib offers this report along with a wealth of other solved assignments and study resources.

Business Report Qantas

Economic and industry environment for the industry
Qantas make the largest contribution to the value added of Qantas group and also impact the
employment conditions by making up it 76% of the total value added to the group and 77% of
the total employment of contribution
(Economic contribution of the Qantas Group to Australia in
FY17 The Qantas Group, 2017). The air transport of Australia contributes towards the economic
development. It depicts the wider economic benefit which is being underpinned by bot the direct
connections among the cities to enable the flow of goods, people, capital, technology and so on.
Further, the ongoing economic slowdown has meant that the struggling airlines tends to
contend with declining passenger traffic, high aviation fuel prices, labour demands and operating
costs. All such factors tend to made the airlines loss making and prone to the bankruptcies as
they can no longer tends to afford to run their operations effectively.
Key factors that affect the company’s attractiveness for investment
The decision by the business to enter within the international market is quite complicated that
include few major factors that will consider the analysis of attractiveness to target the
international market.

Economic growth and levels of disposable income: It is an essential factor of underlying
the strength of international market. For this, emerging economics tends to experience the
faster rates of economic growth than the developed economies (Zhu and et. al., 2019). It
leads to create the growth of middle class with increasing disposable incomes that have
enhance the demand for the products and services of the international and domestic
businesses.

Political environment/exchange rates: This factor is intangible but also important in
nature in regard of its reliability as the legal system within the target country and area.
Trading within the international market tends to give great exposure of the business to
exchange their rates towards the fluctuations
(Factors Influencing the Attractiveness of
International Markets, 2021). For instance, profits may be earned from the internal side of
the internal market but somehow it will also exchange their rates of volatility that reduce
the value of profits.

Domestic competition: Within the international market, there are high chances of market
attractiveness as the business will have to compete in an effective manner against the

local or domestic competition. For this, there are number of benefits which are being
enjoyed by the competitors as they also have better control over the domestic factors. It is
also important for the detailed understanding of customers and needs and wants
(Ślusarczyk and et. al., 2020). Also the size and growth of the market is also an essential
factor. As the strength of business is related products and services profitability. The
productivity is everything for the company like the brand recognition, market share
growth and decline, customer loyalty, production capacity and distribution strength.
There is no shortage of proper information for making the market portfolio decisions as the
global citizens rely on the global success of an organisation considering the signal of quality and
innovation. They also worried about the behaviour of Qantas in the responsible manner on the
concerning issues like consumer health, rights of workers and the environment.

REFERENCES
Books and Journals
Ślusarczyk, B and et. al., 2020. Predictors of Industry 4.0 technologies affecting logistic
enterprises’ performance: International perspective from economic lens.
Technological
and economic development of economy,
26(6), pp.1263-1283.
Zhu, Y and et. al., 2019. Industry-environment system management based on an uncertain
Gaussian diffusion optimization model for coal-dependent cities in ecologically fragile
areas.
Journal of Cleaner Production,
234, pp.832-857.
OnlineEconomic contribution of the Qantas Group to Australia in FY17 The Qantas Group. 2017.
[Online] Available through: <https://www.qantas.com/infodetail/about/company/dae-
final-report-2017.pdf>./Factors Influencing the Attractiveness of International Markets. 2021. [Online] Available
through: <https://www.tutor2u.net/business/reference/factors-influencing-the-
attractiveness-of-international-markets>./