A Detailed Analysis of Management and Supply Chain in Qantas Group

This report provides an in-depth analysis of the Qantas Group's management strategies, focusing on innovation and supply chain management within the airline industry. It examines the organization's sales-oriented approach, its implementation of both network and coupling innovation models, and how these models contribute to achieving a competitive advantage. The report explores the evolution of Qantas's supply chain, emphasizing its procurement strategy, which prioritizes sustainability and risk reduction, and the division of its supply chain into inbound and outbound logistics. Furthermore, the report analyzes the roles of managers in the supply chain, specifically in areas such as yield management and catering, highlighting their efforts to enhance efficiency, customer satisfaction, and loyalty. The conclusion emphasizes the Qantas Group's success as a well-managed organization due to its high level of innovation and efficient supply chain system, supporting its sales objectives through strategic and sustainable approaches.

Introduction to Management 0
Title: Introduction to Management
Assignment Name:
Student Name:
Course Name and Number:
Professor:
Date:

Introduction to Management 1
Abstract
The main aim of this assignment to understand the management approaches of an
organization and the different aspects which helps in managing the different processes and
activities of the organization. In this assignment, the service organization Qantas Group has
been analyzed.
The management approaches of the organization have been analyzed by examining the level
of innovation practiced in the Qantas Group. Along with it, as the Qantas Group offers
services to the customers which include different stages and suppliers, the supply chain of the
organization has been examined.
The main findings obtained in this assignment exhibits that the main driving force of the
organization is their innovation that is applied in their different activities. Also, the main
focus of the organization is attaining a competitive advantage and more loyal customers.
These are the two driving force of the organization.

Introduction to Management 2
Contents
Introduction................................................................................................................................3
Management in the Qantas Group..............................................................................................3
Conclusion..................................................................................................................................6
References..................................................................................................................................7

Introduction to Management 3
Introduction
The automotive industry can be defined as the business which involves manufacturing
and selling vehicles which are self-powered. Some of the vehicles include farm equipment,
trucks, passenger cars, and many other commercial vehicles too. The automotive industry has
played a crucial role in offering consumers with services to easily commute to places by
easily covering a long distance that can be for entertainment, work, or shopping. The Qantas
group has the main focus on sales and thus, they have adopted the approach of sales
orientation. The main focus of the organization is on selling maximum services and thus, they
have a lesser focus on the marketing approaches. The pricing of the product is also done
strategically, by focusing on the value of the service being offered and the amount which the
customer will happily pay. This also forces the organization to increase the level of
innovation in the services offered and also, in the different processes and functions that have
to be performed to reduce the cost. The organization Qantas Group uses many different
innovative approaches, in this initiative, they apply different positioning strategies which are
influenced by the competitors and are also unique, as the company’s strategy of introducing
Jetstar.
Management in the Qantas Group
The organization, Qantas Group, works in a volatile market, thus, for the organization
innovation is the key to survive in such high intensified environment. Also, the airline
industry with each passing year is experiencing a reduction in the prices of their services,
therefore, the organization has to incorporate more innovative approaches in their processes
and functions. The Qantas Group have an effective innovation program which is modified
and evolved every year according to the latest trends and the latest technology. From the
invention of business class flights to introducing a frequent flyer program, the organization
has utilized innovative methods by keeping in focus their sales, customers, and competitors
(Flynn, Koufteros and Lu, 2016). The organization is also able to achieve innovation through
the continuous changes that are made in the Qantas Group. According to the innovative
approaches of the Qantas Group, this can be stated that the organization has incorporated two
innovation models in their processes and function, which are the network model and coupling
model.
The organization utilized the power of knowledge by analyzing the different trends in
the market and also, the services offered by the competitors. After that the organization

Introduction to Management 4
implements a strategy that helps them in attaining competitive advantage, for example, the
organization’s approach of Jetstar, was under the same initiative (Head, 2018). This also
highlights a crucial trait of a network model that is innovation with the help of system
integration. The organization utilized their strength of extensive networking for increasing the
standard of innovation in the organization. Though in the Qantas Group many a time certain
innovation approaches have exhibited several threats like loss of customers, but according to
the latest trends in the market, the Qantas Group approaches are both offensive and defensive.
In this connection, the current approach of the organization to start a direct flight from Perth
to London has been made possible due to the extensive networking of the organization with
Airbus and Boeing, to have a non-stop flight network. The innovation model adopted by the
organization is the coupling model. The organization’s innovation approach of inflatable life
rafts was made, with the help of various elements, but the biggest emphasis was given to
research and development (Quain, 2019). The organization utilized the information attained
through research and implemented them for further development. This innovative approach
also offered the Qantas Group with a strong competitive advantage. Furthermore, the
organization enhanced this innovative approach by effective marketing practices by
conveying the new approaches of the organization to the targeted audiences (Raynes and
Tsui, 2019).
The other aspect which helps in analyzing the level of management in a service
organization after innovation is their supply chain. Though, the supply chain is also
determined according to the learning capabilities of the organization, along with the
innovation. But, for the Qantas Group, the supply chain management requires effective
social, environmental, and also collaborative abilities of the organization with its different
possessions, practices, and network. The Qantas Group in recent years has upgraded its
supply chain by becoming more socially responsible by continuously improving its logistics
strategy. The main systems and logistics of the organization are in-house, which includes
various different systems and catering. But, the most crucial item for the organization is fuel.
But, the constant instability in the prices of the fuel has made it essential for the organization
to develop a strong procurement approach (Hove-Sibanda and Pooe, 2018). The Qantas
Group supply chain commences with the procurement of fuel. Therefore, the main focus of
the procurement strategy of the organization is on increasing the value offered to the
stakeholders. The process of procurement in the organization can be defined as systematic
and disciplined, with the main aim of purchasing through external sources that helps in the

Introduction to Management 5
ethical supply chain of services. Due to this, the organization invests approximately 60% of
their revenues on their supplies. The main focus of the organization in their procurement
process is on sustainability and reduction of risks (Qantas, 2018). The Qantas Group has a
green procurement policy that helps in preventing the environment. Also, with the biofuel
feedstock developed by the organization, the Qantas Group is making an initiative to reduce
the growing level of carbon dioxide in the environment.
The supply chain management of the Qantas Group can be divided into two chains
inbound and outbound logistics. The inbound includes passenger service system, route
selection, planning of facilities, and yield management system. The outbound chain includes
flight connection, hotel reservation system, and barrage system. The organization has
improved its inbound logistic system by creating its official website, which has facilitated the
organization to easily connect with the customers. Also, this has offered the organization with
a competitive advantage as this strategic move serves the customers with personalized
services, as the customers can select their meals, can book a taxi on the destination, and can
also select their routes (Lee, Kim and Lee, 2016). Furthermore, the payments methods have
increased which can be made through cash, debit cards, or different online payment methods.
The organization gets an efficient passenger support system service through Amadeus. The
organization has recently collaborative with Travel Intelligence Solutions to have a more
efficient supply chain by informing the customers and the employees about different
uncertainties.
The managers of the organization play a crucial role in the Qantas Group supply
chain. The main aim of implementing yield management system is to reduce the seat
vacancies in flights. Therefore, it is the duty of the yield managers to appropriately use the
statistical data for estimating and forecasting booking in the future. The Qantas Group also
have a specialized IT team known as PROS that utilized the seat pricing system and helps in
increasing the profits of the organization (Samson, Donnet and Daft, 2018).
The other responsibility of the managers of Qantas Group in the supply chain is
ensuring that the Snap Fresh and Q Catering are managed appropriately. They are the main
suppliers of the meal to the organization. The managers have to analyze the different market
trends, the seasonal produce which should be included in the meals, along with ensuring that
all the processes are conducted under a set budget. The Qantas Group supply chain for meals

Introduction to Management 6
and other catering components includes refrigerated vehicles and also, a strong team that
ensure that the supply chain functions without any disturbance (Sarina and Wright, 2016).
The managers of the Qantas Group have to effectively implement outbound supply
chain strategies. The Qantas Engineering is a crucial part of the organization and the
managers of the organization are responsible for hiring a strong workforce that helps in
managing the huge supply chain and also, in attaining competitive advantages from time to
time. The recent addition made by the managers to the supply chain management of the
Qantas Group for improving their service delivery is introducing electronic airway bill
system that helps in reducing the use of paper. Many such sustainable approaches made by
the managers of the organization has helped in more growth that is both strategic and
sustainable.
The managers, thus have the main focus on managing the supply chain process in
Qantas Group by regularly fulfilling their responsibilities towards the stakeholders, suppliers,
and the customers. The managers ensure that all the different components involved in the
inbound and outbound logistics are performed in a cost-effective manner and also reduces
inventory, the transaction speed increase from time to time, and finally, attaining more
satisfied and loyal customers. Thus, with the collaboration of all these attributes the
organization is able to manage different relationships of the supply chain (Song, Cai and
Feng, 2017).
Conclusion
Thus, this can be concluded that the organization Qantas Group exhibit a perfect
example of a well-managed organization due to the high level of innovation practiced in the
organization along with an efficient supply system. The organization though have the main
focus on attaining loyal customers and their sales-oriented approach appropriately helps the
organization in accomplishing its objectives with strategic and sustainable approaches.

Introduction to Management 7
References
Flynn, B., Koufteros, X. and Lu, G. (2016). On Theory in Supply Chain Uncertainty and its
Implications for Supply Chain Integration. Journal of Supply Chain Management, 52(3),
pp.3-27.
Head, B. (2018). Innovate or die: Australia's 20 most innovative companies. [online]
Australian Financial Review. Available at: https://www.afr.com/boss/innovate-or-die-
australias-20-most-innovative-companies-20180514-h101te [Accessed 8 May 2019].
Hove-Sibanda, P. and Pooe, R. (2018). Enhancing supply chain performance through supply
chain practices. Journal of Transport and Supply Chain Management, 12(1), pp.25-30.
Lee, J., Kim, S. and Lee, S. (2016). Sustainable Supply Chain Capabilities: Accumulation,
Strategic Types and Performance. Sustainability, 8(6), p.503.
Qantas (2018). Procurement | Qantas. [online] Qantas.com. Available at:
https://www.qantas.com/travel/airlines/purchasing-policy/global/en [Accessed 8 May 2019].
Quain, S. (2019). Difference Between Market Orientation & Sales Orientation. [online]
Smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/difference-between-
market-orientation-sales-orientation-25893.html [Accessed 8 May 2019].
Raynes, C. and Tsui, K. (2019). Review of Airline-within-Airline strategy: Case studies of
the Singapore Airlines Group and Qantas Group. Case Studies on Transport Policy, 7(1),
pp.150-165.
Samson, D., Donnet, T. and Daft, R. (2018). Management. 6th ed. Victoria: Cengage
Learning Australia.
Sarina, T. and Wright, C. (2016). Mutual gains or mutual losses? Organisational
fragmentation and employment relations outcomes at Qantas Group. Journal of Industrial
Relations, 57(5), pp.686-706.
Song, Y., Cai, J. and Feng, T. (2017). The Influence of Green Supply Chain Integration on
Firm Performance: A Contingency and Configuration Perspective. Sustainability, 9(5), p.763.

Introduction to Management 8