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The importance of communication
The importance of communication
The importance of communication
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Is change going to keep Qantas in the air, or force them to the ground? No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares. B arack Obama has quoted, “Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.” This quote perfectly encapsulates that change is something a business owner must strive to do, and not to wait for change to occur. Change can be defined as, “the continuous adoption of business strategies and structures in response to internal pressures …show more content…
Step 3: Create a vision for change Jetstar was the vision for change for Qantas. It was the introduction of a low-cost airline that would prove to be beneficial for the company. Qantas saw that Virgin Blue was successful, so introduced their own. Step 4: Communicate the vision Currently within Qantas, Long-Haul Pilots gather every Tuesday to discuss the advancement of implementing expansion within the company (Qantas, 2017). Step 5: Remove obstacles There are systems which run workshops for staff at Qantas, so that these staff can receive a better understanding of what is expected of them and so they improve (Qantas, 2017). Step 6: Create short-term wins Over the past couple of months, Qantas have received an increase of 2% in share prices. The company should strive to celebrate upon these achievements by offering bonuses to employees. This is crucial as this will keep employees motivated in the workplace (Rundell, 2014). Step 7: Consolidate Improvements Qantas ensure that the old systems are disregarded and the new systems are continuously …show more content…
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002). Change is always going to occur within a business, however it is crucial a business prepares and improves upon change. Qantas are a prime example of how to manage change effectively. John Kotter’s 8-step theory, is a theory all businesses should strive to follow, as it clearly is essential in a business’s improvements. This theory gives businesses an insight into how to handle change and not let change overcome your business. It is recommended that this theory is used in all aspects of a business when come face to face with change. It is important that if you are ever running a business, you change before the change comes to you. Change can have either a positive or negative effect on a business and it is extremely important to strive to make it a positive
The main factors, which caused Qantas to change was that, the business was under government ownership until 1995, with a classical/scientific management structure. Meaning the business maintained a:
Qantas is the 11th largest airline as of 2014 and ranked 1st in Australia, whose prime function is the quality transportation of passengers and airfreight across domestic and international routes. Qantas has been successful due to its innovative cost controlling of the business in expense minimisation. However as a result of this, the business has undergone capital-labour substitution and the casualisation of the workforce. This developed workers’ concerns of their remuneration, employment conditions and job security which caused the engineers and ground workers disputes in 2011. Qantas has responded to these workplace disputes with the strategies of negotiation, grievance procedures and tribunals within its contractual and legislative grounds.
A situational analysis is the first step in the marketing process and is essential in providing businesses with information regarding its current position within the market enhancing their understanding of their competitors. This involves conducting a SWOT and product life cycle analysis as to gather information from both the external and internal business environment. A SWOT analysis involves business identifying internal strengths and weakness whilst determining possible opportunities and threats from the external business environment. This process is conducted at Qantas as I as follows; strengths; Excellent safety record, successful fuel hedging programme and Australia’s leading domestic carrier comprising 65% of domestic market share and 84% of the corporate market. Weaknesses; ongoing disputes between Qantas management and militant unions and higher labour and operational costs as opposed to competitors, opportunities; growth in the Asian market has seen proposed new launch a premium airline within Asia and the expansion Jetstar international and improving aircraft technology , Threats; the continuing glob...
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
The industry for Qantas Airways Limited is a company that guides a long distance in airline, which is in international and domestic location. Qantas Airways Limited is a company that established as a world airline that comes from Australia.
One of the many influences that affect Qantas is the presence of globalisation, which has heavily affected the airline both positively and negatively. Globalisation is a process which refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Globalisation is responsible for the removal of many trade barriers and the increased level of competition that Qantas has been exposed to. The increased levels of competition has increased consumer sovereignty and forced Qantas to implement strategies to gain a competitive advantage in order to redirect consumers towards their business. Qantas has implemented a cost leadership strategy as a response to globalisation and the influence of cost based competition. One way that Qantas achieved this was by using Globalisation itself to the business’ advantage. Globalisation ha...
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
As an emerging leader whose desire is to see progress in his/her organization change is inevitable and necessary. Although change is an important component of moving forward and growing a lot of people resist change, this resistance can be contributed to our fear of the unknown which is what change represent to many people. Hence, when it comes to implementing change it would be best to start off by recognizing and identify what needs to be change ad how to bring about that change. You can’t convince others to go on a journey if you are not aware where you are going.
The International Air Transport Association (IATA). 2014. Airline Cost Performance. IATA Economics Briefing. [report] IATA, p. 31.
The change process within any organization can prove to be difficult and very stressful, not only for the employees but also for the management team. Hayes (2014), highlights seven core activities that must take place in order for change to be effective: recognizing the need for change, diagnosing the change and formulating a future state, planning the desired change, implementing the strategies, sustaining the implemented change, managing all those involved and learning from the change. Individually, these steps are comprised of key actions and decisions that must be properly addressed in order to move on to the next step. This paper is going to examine how change managers manage the implementation of change and strategies used
Organizational change, particularly large-scale change, becomes part of the company’s history; therefore, it is crucial that senior leadership plan the change thoroughly. Planning may include understanding the current state of the organization, the external and internal environment, and identifying the organization’s long-term vision simultaneously. Choosing the right approach is significant in the change process as it may be true with British Airlines’ wildcat strike blunder. This blunder is now added to British Airway history where they lost 40 million pounds because of an oversight. Ideally, changes in the organization will have minimal employee impact and operational disruption; however, this is not the case with British Airways when
Robbins et al. (2011, p. 186), states ‘Change is an organizational reality and affects every part of a manager’s job’. Today’s wave of change primarily created by economic condition so change is now such a constant feature of organization life (Goodman, E. 2011, p.243). Organizations need to be changed at one point or another in structure, technology or people. These changes are defined as organizational change (Robbins et al. 2011, p.18). Organizational change is important because changes can increase effectiveness and efficiency, the innovation of products, services as well as dealing with changes in external and internal forces (Goodman, E. 2011, p.243). However, ‘the bottom line is that organizational change is difficult because management systems are design and people are rewarded for stability’ (Lawler, E.E. & Worley, C.G. 2006, p.11).