Detailed Strategic Management Report for Qantas Airways Limited

This report provides a comprehensive strategic analysis of Qantas Airways Limited. It begins with an executive summary and introduction, outlining the airline's history and operational efficiency. The report delves into the company's social responsibilities and managerial ethics, emphasizing stakeholder engagement and ethical standards. It then explores the external environment using PESTEL analysis, identifying political, economic, social, technological, environmental, and legal factors influencing Qantas. The report also conducts a SWOT analysis, highlighting the airline's strengths, weaknesses, opportunities, and threats. Furthermore, it examines the strategic leadership of the CEO, Alan Joyce, and the impact of his leadership style on the organization's success. The report concludes by summarizing key findings and emphasizing the importance of strategic management in Qantas's continued growth and competitiveness.

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Qantas Airlines

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Executive summary
The report has included and discussed the principles and concepts of strategic management of
Qantas Airways Limited. In an organization, strategic management is required for managing the
products and services for the growth and development of the business. The analysis of PESTEL
and SWOT analysis helps the organization to analyze the position of the organization in the
market. Strategic leadership will be analyzed which is adopted by the CEO for making the
business successful. The social responsibilities and managerial ethics practices were discussed
which helps in engaging stakeholders. The current strategies are outlined in the report and
reviewed for creating competitive advantages.

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Contents
Introduction......................................................................................................................................3
Social responsibility.........................................................................................................................3
Managerial ethics.............................................................................................................................3
External environment.......................................................................................................................4
Opportunities and threats.................................................................................................................6
Strengths and weakness...................................................................................................................7
Strategic leadership..........................................................................................................................8
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
In the world, Qantas airway is a strong established Australian airline. It was founded in 1920 and
it is the third oldest airline and it’s headquarter is in Mascot, Sydney in Australia. In the report,
the strategic analysis of Qantas Airlines will be discussed. It provides safe and luxury traveling
services with the help of operational efficiency. The external and internal environment will be
discussed along with the SWOT analysis of the organization. CEO of the organization follows
the strategic leadership which affects the organization and contributes to the success of the
organization. The strategic goal of the organization is to provide the services of the best quality
to customers. The social responsibilities and managerial practices will be analyzed which helps
the organization in becoming successful. The strengths and weaknesses will be analyzed along
with the opportunities and threats to the organization. The internal and external environment of
the organization will be discussed which makes the business successful. The strategic leadership
of the CEO will be analysed which contributes to the success of Qantas Airlines.
Social responsibility
In an organization, the adoption of social responsibilities is considered as essential for engaging
the stakeholders. Social responsibility in Qantas Airways is considered a strategy for providing
new opportunities and giving the essential competitive advantages to rival organizations. Social
responsibility includes taking the initiative for taking up the organization by following the
transcending the legal regulations of the organization. it includes taking the initiative for serving
the society, environment, humanitarian activism and services of the community. They consider
the employees as the key to their success. They provide an appealing, efficient and supportive
working environment for being fair, honest and responsible. They focus on maintaining lasting
working relationships and supporting the employees to go through all stages of life (Vitell,
2015). They enable employees to participate in our business success with generous compensation
and recognize outstanding personal performance.
Managerial ethics
Managerial ethics practices which are followed in the Qantas group is for developing the ethical
standards which include the code of conduct ethics. In the Qantas group, the anti-bribery and
corruption policy is focused as failure to comply with anti-bribery and corruption laws is a

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criminal offense. Penalties for breach of anti-bribery the law is important to both individuals and
the Qantas Group, including possible imprisonment, huge fines and loss of reputation (Griseri
and Seppala, 2010). The guidelines are followed which helps the managers in making decisions
and decrease the number of conflicts in the team. For the community, they make a positive
contribution by applying the skills and resources for the operations of the business. The main
objective is to deliver the sustainable societal impact and they engage themselves in long-term
partnerships with the trusts and NGOs. In order to manage the work and process, the policies are
followed for the satisfaction of employees and customers. The corporate governance framework
is adopted which ensures in creating, protecting and enhancing the value of shareholders. They
are committed to applying the laws and regulations and conduct business with a high level of
ethics and integrity (Trevino and Nelson, 2016). Their employees have a responsibility to
understand how they are committed to competition law affects their dealings with customers and
competitors and suppliers. In order to manage the conflicts of interest, they, directly and
indirectly, involved in the activities for the customers, suppliers, and competition. For the
employees, they consider the whistleblowing policy and treat people with respect by giving equal
employment opportunities for the employment practices and provides the benefits of promotion,
transfers, training, and other benefits for the employees.
External environment
The external and internal environment directly impacts on the operations of the business. In
Qantas Airline, the internal and external environment will be analyzed with the PESTEL
analysis. PESTEL analysis is considered a strategic tool that includes the political, social,
economic, environmental and legal environment which impacts the company. It helps in
analyzing the key drivers for change. It directly impacts on making the decisions and
relationships in the organization. The operation of Qantas Airlines is considered as complex and
includes the dynamic environment which requires the regular changes and technological changes
(Nieh and McLean, 2011).
Political environment
The political factors which influence the Qantas Airlines include political stability, change in
policies, government system, and taxation. A high degree of political stability provides a

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predictable growth trend for the market, thereby providing a stable and friendly business
environment. Currently, Qantas Airways Limited is serving in different countries, and each
country has its own political tensions. Increasing tensions and instability in the global political
environment will affect the growth of the gold industry and limit the growth opportunities
available to Qantas Limited (Nieh and McLean, 2011).
For Qantas, it is important to study current trends in the country's political situation, as changes
in government may change government priorities in developing different industries.
Economic environment
In economic factors, the airlines are required to consider the foreign exchange rate, saving rate,
inflation and labor market conditions. The factors which influence the Qantas airlines are
economic stage, market labor conditions, financial market efficiency, and economic structures.
The performance of the business is influenced by the infrastructure facilities of the environment
and it increases with the growth potential. GDP growth rate helps in determining Qantas' ability
to pursue its long-term growth strategy. Demand and supply of labor determine wage levels and
supply of skilled labor in the organization (Mitchell and Palmer, 2011). The expansion strategies
help in influencing the financial market efficiencies for operating the business and improving the
liquidity positions and strengthening the ability for entering into new market.
Social factors
It includes the factors for influencing the Qantas airways limited which are demographic trends,
equality and power distance, societal norms and online shopping. For Qantas Limited, it is
important to understand people's general attitudes towards immigration as it may affect the
company's ability to bring international managers to the host country (Mitchell and Palmer,
2011).
Technological factor
Globally, rapid technological progress and technological proliferation increases the significance
of understanding technological factors in strategic decision-making processes. Technological
factors include marketing on social media, innovation and development in operations, R&D on
technologies and shortening the product life cycles (Idowu and Louche, 2011). Qantas Airways

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make the investment in R&D for analyzing the competitor's strategies at the micro as well as
macro-level and influences the value chain of the business and prevailing the structure of cost.
The adoption of new technologies has shortened the life cycle of new product development.
Today, new products are developing rapidly, and supply chain partners are gaining more power.
It pressurized Qantas Limited.
Environmental factors
Environmental analysis is significant for business for making a presence in the international
market. It includes the recycling and waste management, renewable technologies, weather and
climatic conditions, attitudes towards the eco-friendly products of Qantas Airways. In countries,
subsidies are provided for encouraging investment in renewable technologies. Qantas can benefit
the investment in renewable technologies to ensure long-term sustainability. As a result of the
increased brand image, investment helps in increasing the satisfaction of shareholders and
expanding the base of customers (Idowu and Louche, 2011).
Legal factors
It is significant for the business to consider the legal factors as it impacts on the position in the
market. It includes the following rules and regulations which are employee protection laws,
consumer protection laws, and intellectual property laws.
Opportunities and threats
Opportunities
In the Australian market, Qantas airlines have various opportunities which include the
advancement in technologies for managing the operations in an effective manner. The platform
of social media is considered helpful for managing the organization for promoting the brand
name in an effective manner (Cespa and Cestone2017).
Threats

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The main opportunity available to Qantas is primarily the airline's ability to further tap existing
growth opportunities in the industry. The only major action an airline needs to take is to change
its strategy to realize growth opportunities.
The main threat of such a transaction of Etihad Airways and Virgin Atlantic to Qantas is mainly
due to the Qantas Sales Act implemented by the Foreign Investment Review Board restricting
the airline from competing with other airlines (Pan, et al., 2019).
Strengths and weakness
Strengths
Qantas' main strength lies in its world-renowned brand, the flagship airline headquartered in
Australia. In addition, it is a leader in the Australian aviation industry with a market share of
approximately 65%. Qantas' strength lies in its reputation for providing quality air travel services
to passengers on time in the industry. Qantas airlines includes the many domestic flights which
helps in gaining the profitability on a large amount. Many of the routes in domestic helps in
sustaining the leadership position in the market. Their strong marketing and public relations is
the strength of the organization (Sivalingam, 2018).
Weakness
As far as Qantas has been a market leader, the main disadvantage is the decline in the company's
performance. An analysis of Qantas' disadvantages further indicates that the management
efficiency of airlines is not high, which has led to the failure of the company's strategy. Airlines
does not have any strong feature for sustaining because of the threat of competition. Core
competence areas are required in the organization for achieving the competitive advantages
(Schmid, et al., 2018).
Strategic leadership
Since 2008 the CEO of Qantas Airways is Alan Joyce who has effective leadership skills for
operating and growing the business. He had adopted the strategy which includes maintaining the
pressure on the competition includes sourcing of products, relationship with suppliers and
customer experiences. He has very strong communication skills as a leader requires

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communicating with the team in an effective way of dealing and making the team understand the
work (Rothaermel, 2017). He brings innovation in business for the growth and development of
the business. Effective leadership is required for managing and allocating the work with
maintaining and building a strong relationship.
Qantas is one of the most profitable airlines is because of the effective strategies of the CEO
which helps in making the business successful. It is analyzed that Alan Joyce is very passionate
about the environmental, social and governance factors. He follows the participative leadership
style which includes the employees for making the decision-making process (Barney and
Hesterly, 2010).
Qantas Airways seems to accommodate almost all aspects of leadership style in the management
of company operations and activities. The company's top management is essential when dealing
with the management of employees' multiculturalism and reviewing the opinions of shareholders
(Yüksel, 2012).
Conclusion
To conclude, it is analyzed that Qantas airways are one of the most popular airlines in Australia
and it is expanding in the international market rapidly. The internal as well as external
environment analysis indicated the significant strengths and weaknesses of the airlines and it also
helped in highlighting the major opportunities and threats. Social responsibility which the
organization adopts for increasing the sales and profits includes a sustainable competitive
advantage. Managerial ethics practice which is adapted for engaging with stakeholders includes
the ethics policies and procedure which are followed for the satisfaction of employees. External
and internal environment includes the PESTEL analysis will be discussed which helps in
analyzing the SWOT analysis of the organization. Leadership skills of Qantas Airlines help in
making the strategies and gaining competitive advantages.

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Reference
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Concepts and cases (pp. 4-25). Upper Saddle River, NJ: Prentice Hall.
Cespa, G. and Cestone, G., 2007. Corporate social responsibility and managerial
entrenchment. Journal of Economics & Management Strategy, 16(3), pp.741-771.
Griseri, P. and Seppala, N., 2010. Business ethics and corporate social responsibility. Cengage
Learning.
Idowu, S.O. and Louche, C. eds., 2011. Theory and practice of corporate social responsibility.
Berlin: Springer.
Mitchell, M.S. and Palmer, N.F., 2011. The managerial relevance of ethical efficacy.
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Vitell, S.J., 2015. A case for consumer social responsibility (CnSR): Including a selected review
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774.

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Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), p.52.