Strategic Management of Qantas Airways: A Comprehensive Analysis

This report provides a comprehensive strategic analysis of Qantas Airways, examining its social responsibility and managerial ethics in engaging with stakeholders. It explores the external environment using PESTEL and Porter's Five Forces frameworks, identifying opportunities and threats. The internal environment is assessed through a resource-based view, highlighting strengths and weaknesses. Furthermore, the report delves into the strategic leadership of Alan Joyce, illustrating how his decisions have shaped Qantas Airways' strategy and contributed to its overall success. The analysis covers various aspects, including environmental sustainability initiatives, gender diversity programs, and the impact of political and economic factors on the airline's operations. The report also details the company's multi-brand strategy, resource management, and the influence of competitive rivalry within the Australian aviation market. Finally, it discusses key leadership decisions and their impact on the company's performance.

Running head: STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
Strategic Management of Qantas Airways
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1STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
Executive Summary
The primary purpose of this report is to discuss about the social responsibility and the
managerial ethics of Qantas Airways that have helped it in engaging with the stakeholders.
This report elucidates on the internal and the external environment in relation to Qantas
Airways that have helped it in making the strategies. This report discusses about the strategic
leadership of Qantas Airways and how it have contributed to the success of the organization.

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Table of Contents
Introduction................................................................................................................................3
Social responsibility and the managerial ethics.........................................................................3
External Environment of Qantas Airways.................................................................................3
Internal environment of Qantas Airways...................................................................................5
Strategic Leadership of Qantas Airways....................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

3STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
Introduction
Strategic management helps in developing the strategic vision that can help a
company in implementing the strategies. It can help a company in gaining the competitive
advantage that can outperform competitors which helps in it in achieving the dominance
within the market. It helps an organization in being proactive that can help in ensuring the
survival of the firm. It helps in the developing of the core competencies that can help a
business in the area of survival. Qantas Airways refers to the largest low-cost airline of
Australia which operates the international services from the Australia and the domestic
services within the Australia and the New Zealand (Qantas.com 2020). This report discusses
about the social responsibility and the managerial ethics which is practised in the organisation
that helps it in engaging with the stakeholders. This report elucidates on the external
environment of the business that can help in identifying the opportunities and the threats.
This report throws light on the internal environment of Qantas Airways and the strength
along with the weakness of the organization. This report discusses about strategic leadership
in Qantas Airways and how it have contributed to the success of the organization.
Social responsibility and the managerial ethics
Qantas Airways have minimised the effect on the environment by taking recourse to
the sustainable aviation with the help of the emissions. Qantas Airways recognises the fact
that the human-induced climate change would prove to be significant issue for aviation
industry. The company is playing an active role for committing to the emission targets by the
end of the year 2050. The company have made the partnership with the external consultants
that have helped the company in understanding physical and the transition risks. The
organization have taken recourse to climate scenario analysis that have helped the company
in estimating the positioning of the company that can help it in withstanding the various
climate futures. The company is instrumental in operating biggest carbon offsetting program
that can help the company in combating the issue of the climate change (Rothaermel, 2016, p.
92). The company are making the investment in the sustainable aviation fuel that can help the
company in minimising the adverse effect on the environment. The company have considered
the climate scenarios which are informed by International Energy Agency’s Energy
Transition Pathways. The company makes use of the Reference Technology Scenario, Two
Degrees Scenario and the Beyond Two Degrees Scenario that have helped the company in
controlling the rate of the emissions.
Managerial ethics refer to standard of the conduct which are used by the managers for
carrying out the business. The company values the diverse lived experiences of the people
and the inclusive culture of the company have contributed to the success of the business. The
company have challenged the stereotypes that have helped the company in achieving the
gender balance within the framework of the company (Ansoff et al., 2018. p.24). The
company have made use of Nancy Bird Walton Program that have helped the company in
making the commitment in the area of the gender diversity in the aviation company. The
company have made the target of the 40 % intake in relation to the female cadet pilots by the
end of the year 2028. The company have leveraged the partnerships with various kinds of the
external organisations like the Male Champions of Change and Power of Engineering that
have helped the company in attaining the aims.
External Environment of Qantas Airways
PESTEL Forces

4STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
Political- The government of Australia have bestowed the favours on Qantas Airways and it
have helped the airlines in getting 65 % market share within country. Government provides
support to the airlines financially and it takes a strong interest in the management of the
company. Stable political condition in Australia have been able to develop the business of the
airlines and the government have provided the political assistance that have helped in
increasing the revenue of the Qantas Airways (Austrade.gov.au 2020).
Economic- Australia have been able to sustain the economic growth that have minimised the
risk pertaining to the business. It have helped in providing the safe environment which have
facilitated aviation industry of Australia (David and David, 2016, p.56). The country have
been successful in responding to the global changes that have helped in bringing about the
steady growth of the Qantas Airways.
Social- The Australians get the better education that have helped in improving the job
prospects of the people living in Australia. It have helped the Australians in having better
quality of the life that can be advantageous for Qantas Airways. The airlines have the good
standard of the service that have helped in providing satisfaction to the people.
Technological- Technology have made significant development in Australia that have proved
to the benefit of Qantas Airways. The passengers can book the airline with the help of the
online platform that have proved to be convenient for the people.
Environmental- The regulatory boards of Australia have the laws for dealing with
environmental effectiveness on part of the airline operators. There are legislative instruments
in Australia which governs the aspect of the environmental regulation in Australia that would
have effect on Qantas Airways.
Legal- The airlines have to follow the legal aspects of countries along with the airline
industry. The company abides by the security rules that have helped in increasing the profit of
the airlines company.
Porter’s Five forces
Threat of New Entrants- The threat of the new entrants can be said to be low as the new
airlines company would require huge amount of the investment that can help them in
establishing their footing in the Australian soil. The new entrants would require a large
amount of the capital and this minimises the risk for Qantas Airways from the threat of the
new entrants (Lasserre, 2017, p. 56). Australia have adopted the highly prescriptive approach
that helps them in the arena of the aviation safety regulation that can hinder the entry of the
new companies.
Threat of Substitutes- There are various kinds of airlines company within Australia that
have posed threat for the Qantas Airways. The existence of Virgin Australia, Regional
Express Airlines, Alliance Airlines, Jet star Airways and Tiger air Australia that have made
the threat from the substitutes greater for Qantas Airways.
Bargaining power of customers- The bargaining power of the customers can be said to be
high on account of the presence of the many reputed aviation companies within Australia.
There are other airlines that offer the low cost options along with the premium travelling
service that can threaten the presence of Qantas Australia in the market of Australia
(Abc.net.au 2020).
Bargaining power of suppliers- The bargaining power of the suppliers can be said to be
lower in relation to the aviation sector of Australia as there exist large number of the

5STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
suppliers who offer the similar kind of the services. There exist various suppliers like
Aerochute International, Brumby Aircraft Australia, Foxcon Aviation and the Howard
Hughes Engineering that can supply the aircraft parts to the reputed aviation companies of
Australia.
Competitive rivalry- The competitive rivalry can be said to be immense for Qantas Airways
owing to the presence of other reputed aviation companies within Australia. The airlines can
be said to be competitive as they travel to various destination and have the flight deals that
proves to be convenient for the people. The aviation companies have their online apps that
helps the people in booking the tickets and in managing the trip.
Qantas Airways have received the international traffic rights that have helped the
company in spreading their presence in the international domain. There exists the global
aviation liberalisation in Australia that have provided the opportunities for Qantas Airways.
The threats lie in the path of Qantas Airways as there are other airlines company like Virgin
Australia and the Tiger air Australia that can pose the stiff competition to the fortunes of
Qantas Airways.
Internal environment of Qantas Airways
Resource-based view refers to the model which perceives the resources to be integral
for the superior performance of a firm. The resources play an important role that can help the
companies in achieving the higher organizational performance. Qantas Airways possess the
resources- tangible and the intangible. The company offers the best airline services in
Australia and they enjoy the excellent slots at the airports (Meyer, Neck and Meeks, 2017, p.
18). It helps the business passengers in disembarking so that they can quickly arrive at the
meetings. The company was able to acquire the 37 new aeroplanes which comprises of two A
380 Airbus, two A 330- 220’s and the seven single-aisle A 320-200’s that have helped in
winning over the people. The company is instrumental in operating frequent flyer program
that acts as a business unit and which is made up of around five million members. The airline
possess the holiday travel business unit which is known as the QH tours which is under
established brand of the Vival Holidays and the Qantas tours. Qantas Airways operates multi-
brand strategy and the services of the airlines are felt across the continent of Australia. The
company operates the two business- Snap Fresh which manufactures the frozen meats and the
Q catering which is premium catering business. Catering services are provided to the airlines
along with the other premium airlines. It have helped in increasing the revenue of the airlines
that have proved to be advantageous for the company. The company is also instrumental in
operating the Qatar engineering that is large-scale maintenance along with repair unit of the
business (Trigeorgis and Reuer, 2017, p. 45). The company have the well-trained staff that
have helped in providing the unique service to the people. The company have adopted the
multi-brand strategy that have helped the company in getting the positive returns from the
people. The organization maintains the reputation of the brand by the adoption of the
effective marketing strategies. The branding of the company is supported by the local people
that have aided in the popularity of the company (Stanley and Mactaggart, 2017, p. 67). The
airlines comprises of the old fleet and the former CEO called Geoff Dixon took recourse to
outsourcing which antagonized the baggage handlers and the engineers.
The strength of Qantas Airways lies in the fact that the airlines maintains the good
reputation that have ensured the success of the company within Australian market. The
weakness of the organisation resides in the fact that there exists dispute in between the board
and the workers of the organisation. The people in the board want the cheaper elements in
value chain and the unions wanted to defend existing situation in the company.

6STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
Strategic Leadership of Qantas Airways
The Irishman Alan Joyce have been able to provide the strategic leadership to the
company that have helped the company in rising to the new heights. The strategies of Joyce
have helped in the growth of Qantas Airways and ensured the success of the company within
the framework of the turbulent airline industry of Australia (Albers et al., 2017, p. 90). He
had the ability of taking the risks that have paved the path for the development of the
business. Joyce had to face the public backlash after the grounding of the airline however he
managed to bring down the unions with the help of dynamic leadership style. He took the
courageous steps that helped in taking care of the success of Qantas Airways. Alan Joyce
favours the open-plan approach that have helped him in understanding the concern of the
subordinates along with the fellow workers (Forsyth, 2018, p. 87). He understands the need
for the diversity and the collaboration that have helped in ensuring the success of
organization.
Conclusion
Qantas Airways have resorted to the climate scenario analysis that have helped
company in facing the risks in relation to the climate. The organization have used Nancy Bird
Walton Program that have helped company in committing to gender diversity within the
framework of aviation industry. The government provides the support to the airlines company
that have aided in the process of management of company. The new entrants would not be
able to pose threat to Qantas Airways as a large amount of the investment is needed by the
aviation companies for establishing their presence in the market. Qantas Airways provides
best airlines services that have helped in the growth of company.

7STRATEGIC MANAGEMENT OF QANTAS AIRWAYS
References
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