• Introduction

Qantas is the world’s second oldest airline and Australia’s oldest airline that began in Queensland in 1920. They have since expanded to become Australia’s largest domestic and international airline.

 

Qantas employ over thirty-five thousand people from around Australia. Qantas own airline subsidiaries such as Jetstar who are a low cost carrier and Network Aviation who was created recently to cater for fly-in-fly-out contracts with mining companies.

 

Over the years Qantas has realised that the aviation industry is changing and that as a business they required to change and implement new ways to deal with the emerging industry changes as they arise. They have acknowledged that there is an intense competition for talent and recognize the importance to provide there employees with great benefits, a healthy and safe workplace and a diverse work environment.

 

This report is written using various types of research materials, including various Internet information, journals and textbooks sourced from the university library and course material covered to date.

 

The content of this report includes a discussion of the following;

• An introduction to Qantas and there history
• Strategic analysis of Qantas in the form of a SWOT analysis
• Outline of Qantas past and current business strategy
• A summary of the HR implications based on the strategic analysis and the outlined business strategy that has been implemented within Qantas
• A list of HR strategies that are recommended to Qantas based on the strategic analysis, business strategy and HR implications.
• Report conclusion

 

 

 

 

 

• Part A: Perform a strategic analysis of Qantas

This SWOT analysis is a simple but useful framework for analyzing the strengths and weaknesses, as well as the opportunities and threats that Qantas can be faced with.

 

SWOT Analysis Table

	Positive	Negative
Internal Factors	Strengths: Excellent facilities and service Excellent safety record over 90 years – no fatalities recorded Globally well known as a premium airline company High Australian dollar	Weaknesses: Expensive when compared to other airline carriers Maintenance is expensive due to high labour costs in Australia Industrial disputes between unions and Qantas management
External Factors	Opportunities: Supplying the mining boom with FIFO flights Developing Jetstar to be the best low fair airline worldwde Buying new aircrafts e.g. A380 more fuel efficient and less carbon emissions	Threats: Rising fuel costs Economic downturn e.g. European crisis Global warming New airline carriers

 

Qantas is currently in a growth state with their domestic market as they are trying to increase sales, revenue and market share. When compared to their international market they are losing sales, revenue and market share due to poor management. A way of overturning this decline, they are able to increase staff, increase the size of their fleet by leasing air crafts and purchase new air crafts that save the company money in the long run.

• Part B: Outline Qantas Business Strategy

A business strategy describes how a particular business intents to succeed in its chosen market place against its competitors. It therefore identifies the best attempt that management can make at defining and securing the future of the business.

 

In 2011 Qantas identified that its business strategies are focused at being “one of Australia’s great businesses and among the worlds great airline groups” (Qantas Business Strategy, 2011). Qantas are also focused at “strengthen their brands, maintain the loyalty of their customers and the passion of their people and deliver sustainable returns to shareholders” (Qantas Business Strategy, 2011).

 

To deal with the vision that Qantas have, they have developed business strategies to be implemented during the financial year. They have identified certain areas in which they would need to excel to meet their group strategies and goals. Qantas have identified that they need to make:

• “Safety, always a priority
• Loyal customers passionate about the Qantas brands
• Passionate people delivering exceptional experiences through customer service
• Multiple brands delivering the right experiences to the right mix of customers, cost competitively
• The best loyalty program in the world, driving even deeper levels of customer engagement across all brands
• Unrivaled strength in corporate sales and distribution
• Innovative leverage of partners
• Disciplined approach to capital management” (Qantas Business Strategy, 2011).

Furthermore in 2011 Qantas identified that focusing on their key stakeholders has never been more important. These key stakeholders are the shareholders, customers and employees. The way that Qantas aims to satisfy these key stakeholders is shown below in Figure 1.

 

 

 

Figure 1 – How to satisfy Key Stakeholders

(Qantas Business Strategy, 2011)

 

By achieving their 2011 business strategies Qantas can pursue to become one of the greatest businesses and be part of the best in the world, which they believe can bring immediate successful returns to their shareholders and portray themselves as one of the best airline companies in the world.

 

However to become one of the best and successful, there are a number of underlying themes that Qantas will need to deal with so that they don’t influence their performance and outlook in achieving their goals and business strategies for 2011. The following challenges will ultimately shape their future.

 

 

 

Figure 2 – Challenges to meeting strategies

(Qantas Business Strategy, 2011)

 

When comparing the 2011 vision to the 2010 vision, Qantas was purely focused and driven on “strengthening the business” (Qantas Business Strategy, 2010). Qantas aimed to achieve this business vision by implementing the following strategies:

• “Maximizing power of two brand strategy by becoming the worlds best premium airline (Qantas) and worlds best low fares airline (Jetstar)
• Improving the international business and capitalising on attractive growth opportunities
• Building on a profit maximising 65% domestic market share
• Grow and enhance Qantas Frequent Flyer
• Grow asset light business which deliver attractive returns
• Return business to profitability, optimizing portfolio business and investments” (Qantas Business Strategy, 2010).

The difference between the business strategies outlined in 2011 and 2010 is that the 2011 strategies are focused on customer service and improving sales whilst the 2010 strategies were focused on purely building profit. This shows that Qantas has moved from being a profit-based focused business to a more customer-orientated focused business

• References
• Qantas Business Strategy 2011, (2011) Qantas Airways Limited 2011 Strategy Day, Investor Presentation, Sydney, <http://www.qantas.com.au/infodetail/about/investors/qantas-strategy-day-presentation-2011.pdf> (3 April 2012)

 

• Qantas Business Strategy 2010, (2010) Qantas Group Strengthening the business, Investor Presentation, Sydney, <http://www.qantas.com.au/infodetail/about/investors/macquarie-conference-presentation.pdf> (5 April 2012)

 

• Lucas. I., Edkins. G., (2001), Managing human factors at Qantas: investing in a new approach for the future, Vol 1, pp 12-13