Business Environment and Stakeholder Analysis of Qantas Airways

This report provides a comprehensive analysis of the business environment of Qantas Airways. It begins with an overview of the company, its history, and its position in the Australian airline industry. The report then identifies and assesses the influence of both external stakeholders, such as customers, competitors, suppliers, media, and the government, and internal stakeholders, including employees, managers, board of directors, and investors. The analysis further delves into the business environment, highlighting Australia's stable political and regulatory landscape while also identifying potential threats such as limited resources, price sensitivity, skilled human resource limitations, and fuel price fluctuations. The report concludes by evaluating the impact of these threats on Qantas Airways, providing a detailed understanding of the company's operational challenges and strategic considerations within the competitive airline industry.

Running head: BUSINESS ENVIRONMENT OF QANTAS AIRWAYS
BUSINESS ENVIRONMENT OF QANTAS AIRWAYS
Name of the Student
Name of the University
Author Note

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Answer to Question 1 – About the company
Qantas Airways is flag carrier airlines organizations operating Australia that has
gained the largest fleet size based on the international destinations and international flights.
This is considered to be oldest airlines in the entire world after KLM and Avianca and was
established in the year 1920. The organization had started its international flights in the year
1935. The organization has its base in Sydney that is located in the suburb of Mascot with the
main hub that is located in Sydney Airport (Qantas.com. 2019).
The share that has been currently developed by Qantas within the year 2014 is 65% of
domestic market of Australia and the organization carried 14.9% of the total passengers who
travel in and out of the country. The subsidiary airlines of Qantas Airways operate in
different parts of the country in order to serve the domestic customers (Qantas.com. 2019).
Qantas also owns the low-cost based airlines organization Jetstar Airways. Jetstar operates
bith the international routes from Australia and the company also operates its domestic flights
within New Zealand and Australia. Qantas currently holds the stakes in airlines organizations
that are operated by Jetstar (Qantas.com. 2019).
The airline industry of Australia has depicted major levels of growth in the last twenty
years and the aviation capacity of the country has grown in a huge manner. The average
annual rate of growth that has been depicted by the Australian airlines industry is around 4%
per year. The increase in rates of growth is mainly based on the capacity of flights from the
countries in Southeast Asia, New Zealand, the Middle East, US and China. The international
aviation capacity in Australia also grew by 4.2% within 12 months (Argyris & Monu, 2015).
Answer to Question 2 – External Stakeholders of the company

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Stakeholders are the groups or individuals who are able to influence the organization
or can be affected as well. The external stakeholders of the organization have a major impact
on the operations and they are also influenced by the profits that are gained by the company
as well. The customers are considered to be major external stakeholders of Qantas Airways
who have an impact on the organizational operations. The price of services that are offered by
Qantas are affected by the demands of the customers. The local communities of Australia are
influenced by the profitability levels and types of services of Qantas Airways (Argyris &
Monu, 2015).
The organization needs to plan its operations in such a manner that can have a
positive impact on the local communities. The competitors of Qantas Airways in Australia
include, Air India, Etihad Airways, Malaysia Airlines, Qatar Airways, Emirates, Lufthansa,
British Airways, Air France, Virgin Atlantic and United Airlines. The levels of competition
in airlines industry is able to affect the profitability and revenues of Qantas in a huge manner.
The suppliers or partners are also an important part of the external stakeholder group of
Qantas Airways (Biswas et al., 2017).
Profit margins that are gained by the organization are influenced in a huge manner by
the price of raw materials that are charged by the suppliers. Media is also an important
external stakeholder of Qantas Airways in terms of development of the reputation of the
company. The government regulations are able to affect operations that are developed by a
major organization like Qantas Airways. Government is thereby considered to be an
important external stakeholder of the organization and has an impact on the profitability
levels of the organization (Cardwell, Williams & Pyle, 2017).
Answer to Question 3 – Internal Stakeholders of the company

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The internal stakeholders are the individuals or groups within the organization who
have a major impact on the revenues that are gained. The major internal stakeholders of the
modern organizations include, employees, board of the directors, managers. Qantas Airways
also depends on the internal stakeholders for the proper development of operations and
revenues that are gained as well. The employees or staff of Qantas Airways are able to
support the ways by which the organization provides its best levels of services to the
customers (Henisz, 2017).
Relationship that is developed with the consumers is influenced by the levels of skills
of the employees of Qantas Airways. The managers of Qantas Airways have an impact on the
decisions that are made by the organization based on prices that will be charged for different
services that are offered to the customers. The work process of the employees and staff of
Qantas is influenced in a huge manner by the decisions that are made by the managers. The
board of directors of Qantas Airways are responsible for deciding the ways by which the
organization aims to operate in the airline industry (Hueske & Guenther, 2015).
The investors also have a major impact on the ways by which Qantas is able to
develop its operations in the airlines industry for a long period of time. Profitability of Qantas
on the other hand has an influence on the levels of investments that are made by the
organization. Qantas will be able to maintain its operations in a profitable manner with the
support that is provided by the investors of the organization. The internal stakeholders of
Qantas are able to play a major role in enhancing the profitability levels of the organization in
the highly competitive airline industry of Australia (Kazadi, Lievens & Mahr, 2016).
Answer to Question 4 – Analysis of the business environment
Australia has a stable political environment and a transparent regulatory system as
well. The sound frameworks of governance in the country are able to underpin economic

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resilience. Australia has gained fifth position in the world based on its economic stability
levels and safety that is provided by the business environment as well. The efficient, friendly
and stable environment of business is able to provide major levels of security to the
Australian organizations. Australia has also been rated as one of the most business friendly
environment in the world (Korschun, 2015). The regulatory environment of Australia is also
highly robust in nature. Australia has gained a high rank based on the levels of social capital
based on the levels of soundness of the banks and the central bank policy as well. The
transparency levels of business environment in Australia is able to provide the organizations
with support to gain revenues and maintain the operations as well (Prajogo, 2016).
The major threats are faced by Qantas due to limited levels of resources as the foreign
investments in the organization are capped due to implementation of Qantas Sales Act. The
airlines industry is highly price sensitive in nature and recession has a major impact on the
profit margins that are gained by the organization as well (Razmus & Laguna, 2018). The
limitation of skilled human resources is also considered to be a major part of the threats that
are provided to the operations and service quality of the organization. The dependence of
Qantas Airways in Australia is high and the organization is affected in a negative manner by
the support that is offered by the organization. Fuel prices can also affect the operations of
Qantas Airways in the airlines industry of Australia. The organization needs to be enhance
the prices of services in order to the maintain the profit levels in an effective manner (Smith
et al., 2019).

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