Strategic Analysis: Qantas Case Study on Issues and Solutions

This case study analysis identifies three key strategic issues facing Qantas: employee retention, customer satisfaction, and a lack of effective change management. The analysis uses resource-based view theory to explain employee retention issues, highlighting the importance of employee engagement and the negative impact of corporate restructuring. Customer satisfaction is analyzed using the disconfirmation paradigm, emphasizing the need to meet customer expectations in a competitive market. The lack of effective change management is explained using Lewin's Change Model, focusing on the challenges of unfreezing employee attitudes and resistance to change. The recommendations include rebuilding employee relationships through corporate social responsibility and parity wage increases, enhancing customer experience through improved communication and public relations, and engaging stakeholders in decision-making processes during corporate restructuring and strategic alliances. The analysis concludes that by addressing these issues, Qantas can enhance its competitive advantage and improve its market reputation. Desklib provides access to similar solved assignments and study resources for students.

CASE STUDY ANALYSIS SHEET [Use only bullet points to fill out this template individually either by hand or Ms office ]
CASE NAME: STUDENT’S NAME AND ID: CASE NAME:
Identification of Strategic
issues/problems
(Identify at least three
pertinent issues that
management needs to address.
Give examples from the case)
Analyse the identified strategic issues
(Review the given firm’s financial, marketing, production, managerial competence, and
other factors contributing to the success and failure of the firm. Identify potential
reasons of these success/failure using theories/concepts relevant
theories/concepts/model sourcing from textbook/journal/other relevant sources.)
Develop a set of justified
recommendations
(What needs to be done to the identified problems/issues and
why?)
1) Issues in regards with
employee retention.
 It is due to low
employees
engagement. It has
been discovered by
Australian Licensed
Aircraft engineers
Association
(ALAEA) that
employee
engagement is only
32% which is very
low as compared to
their competitors,
Virgin Atlantic.
 Managers of Qantas
are not able to
satisfy their
employees with their
long-haul processes.
 Qantas collaboration
with Emirates also
led managers to fire
their employees as
they are reducing
their fleet size in a
strategic manner.
 Restructuring strategy
in regards with
establishing Qantas
International into a
1) Issues in respect to employee retention
 This strategic issue can be analysed through Resource-based- view theory
whereby organisation's resources are used for attaining sustainable competitive
advantage. Organisational employees are termed as intangible resources as
their quality of service can be measured in respect to their performance.
 Managers of Qantas are not able to maintain relationships with their
employees which can effect their performance level and customer service.
 They can adopt this theory in practice by assessing their employees
engagement for securing sustainable competitive advantage.
 Workers discontent in regards with corporate restructuring led to increase in
hostility in industrial relations. This issues can be analysed through by
resource-based theory in an effective manner.
2) Lacking in customer satisfaction and losing brand reputation
 In global airline industry, competitiveness is increasing in a significant manner
which led managers of Qantas to provide excellent customer experiences as
well as build their reputation in market.
 Industrial relations with their employees, punctuality issues and enhanced role
of their competitors led Qantas to hamper their reputation in the market.
 This practice have led them to decrease their customers in a significant
manner.
 Disconfirmation paradigm can be used for understanding of customer
satisfaction as it indicates that buyers compare their experience of new service
1) Managing employee engagement and retention
 It is imperative for managers of Qantas to rebuilds their
relationships with their employees. This can be done
through enlightening corporate social responsibilities.
 It is recommended to managers of Qantas to accept
parity wage increases which is closely aligned with
increase employee engagement. For retaining their
employees, managers of Qantas would go for
adopting corporate governance principles.
 They can also engage their employees in decision-
making processes in order to make them felt a sense
of ownership. They should be heard in regards with
their grievances as well as issues so that they can get
satisfaction in performing their tasks in an effective
manner.
2) Managing customer satisfaction as well as brand
reputation
 It is imperative for managers of Qantas are required to
re-engage with their employees through adopting
strategies. They should understand the value of
employees as well as customers in order to enhance
their excellence in a significant manner. For

premium hub in Asia
which reduces the
workforce in a
significant manner
in the areas of pilots,
airport
administration and
many more.
 Industrial conflict also
raised due to labour
outsourcing in a
significant manner.
2) Lacking in customer
satisfaction
 Qantas was not able to
provide expected
travelling experience
to their business
travellers which led
them to move
towards Virgin
Atlantic.
 This practice led to
harm the reputation
and image of Qantas
in a significant
manner.
 A bitter relationship
among executive
management as well
as engineering
workers in the year
of 2008 led them to
suffer with
differentiated issues
such as punctuality
issues and many
more.
3) Lacking in making
effective
improvisations and
changes
 This is considered as
with that of a standard they are expecting. In order to satisfy their customers,
managers of Qantas should provide excellent services for fulfilling their
expectations in a strategic manner.
3) Lack of change management and improvisation techniques
 This strategic issue can be explained through the use of Lewin's Change model
which can be understood through three stages such as unfreezing, freezing and
changing. Under unfreezing process, managers of Qantas should make their
employees understand about the benefits of restructuring as well as strategic
alliances.
 Managers of Qantas were not able to change the attitudes of their employees
which led them to make the restructuring process longer then expected.
 Resistance of employees led in increasing the time of restructuring process
longer and also increase their costs.
 Lacking in effective transformation strategy led managers of Qantas to reduce
the chances of getting competitive advantage in respect to Virgin Atlantic.
enhancing customer experience and their brand
image, managers of Qantas should work on
establishing their communication channels in an
effective manner.
 They should work on enhancing their brand with the
help of making public relations. They should
emphasise on rebuilding their brand through their
premium products. They can also publicise their
corporate social responsibilities
 in order to make an enhanced image in the eyes of
public. For enhancing customer experience, managers
of Qantas should make smart decisions for
persuading their targeted audience. They can also ask
for feedbacks from customers for making their
experiences better.
3) Managing issues in relevance with change
management
 It is important to make strategic changes and
transformation with time in an organisation. For
managing change in an effective manner, it is
essential to engage stakeholders such as employees,
investors and many more.
 It is imperative for managers of Qantas to engage their
stakeholders in decisions like corporate restructuring
as well as strategic alliances. Informed stakeholders

one of the significant
challenge for
Qantas.
 Their major
competitors like
Virgin Atlantic have
changed their
processes and adopt
an improvised form
of innovative
practices for
persuading travellers
towards them in a
strategic manner.
 Corporate
restructuring policies
in regards with
covering the areas of
Asia and Middle
East.
led Qantas to enhance their reputation in their market
in an effective manner. In order to transform their
operations and gain competitive advantage.
 It is imperative for them to make clear strategies in an
effective manner. Change management model should
be analysed by managers of Qantas for gaining
insights before making any transformation in a
strategic manner.