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How have internal and external influences impacted qantas
External and internal analysis of qantas
Internal influences of qantas
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Qantas Airlines Business Report
Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt management practices to overcome both internal and external influences and had to change its narrow-minded culture. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and air travel.
Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001.
The source of change:
The factors that had caused Qantas to change were that Qantas had to become:
• A more competitive, efficient and profitable business with less competition in the domestic markets.
•Qantas had to pay taxes and levies paid by other business in Australia
• Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management
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:
• A strict hierarchical organizational structure
• Clear lines of communication and responsibility
• Jobs broken down into simple tasks; division of labor and specialization
• Strict rules and procedures
• Impersonal evaluation of employee performance to avoid favoritism and bias
• Formal record keeping
Also Qantas was running with an autocratic leadership style meaning autocratic managers like to make all the important decisions and closely supervise and control workers. Managers do not trust workers and simply give orders (one-way communication) that they expect to be obeyed. This approach derives from the views of Taylor as to how to motivate workers and relates to McGregor’s theory X view of workers. This approach has limitations but it can be effective in certain situations.
...ly First is due to their usage rate, user status and loyalty; many will continue to fly even if they consider First or Business Class poor value. An economy passenger may be behaviourally grouped by occasion; the peak time for travel is usually around the holidays so customers are busy visiting the friends or family. Qantas has marketed to travellers in the past around the holidays (Christmas and New Year) to encourage readiness among potential travellers.
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
... 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.
When the attacks of September 11th occurred, the federal government had to completely close down some airports in the US. This created a negative effect on the industry as it was a shock to their entire organization. Planes in the US and around the world were canceled due to this attack as well. Planes were not flying anywhere, as the plan was to prevent any other attack. Each plane that was cancelled had to be paid by the airline company directly. According to the International Air Transport Association there was a drastic change in the amount of flights between the date before and after the event. Around 37,600 less flights flew the day after the attack had occurred. The number of flights dramatically decreased in those three days; in addition every...
After September 11th, 2001, the airline industry experienced a significant drop in travel. The reasons for the airline industry downfalls also included a weak U.S and global economy, a tremendous increase in fuel costs, fears of terrorist's attacks, and a decrease in both business and vacation travel.
...yment. Competitors began to record profits and apply competition throughout their network. Creditors, customers and investors were becoming increasingly concerned with the performance of AA. Finally in November 2011, American Airlines filed for bankruptcy protection: the first time it had ever done so.
For economic factor, Qantas Airways Limited was stable because the economic in Australia was in good
After the Air mail Act in 1934, which separated the ownership of aircraft manufacturer and airlines, the President of the UATC had to be resigned and he moved to another airline at the time, which is Trans-Canada Airlines, now Air Canada. After this fall, Boeing’s company was broken into several parts, the first one was aircraft manufacturing, the second part is the parts supplier, and the third part is the United Air Lines airline group. After having a separate airline, they needed a new president to fresh sta...
Along with the low stock index numbers of September 17th, the airline industry and travel stocks were also rocked. One of several airlines announcing layoffs, US Airways said that they would be terminating 11,000 jobs. These heavy losses were contributed to airlines “being grounded last week [week of September 11th], plus passengers have been apprehensive to fly, in the wake of the hijackings” (Stock Markets Reopen 1).
The base closure was attributed to cost-cutting measures by parent company Qantas as well as increased competition from the re-introduction of flights by Asian carriers into Darwin airport. On 28 April 2009, Jetstar commenced daily direct services from Auckland to the Gold Coast and Sydney. On 10 June 2009, Jetstar commenced domestic New Zealand flights between Auckland, Wellington, Christchurch and Queenstown using Airbus A320 aircraft; services to Dunedin commenced later. Jetstar replaced Qantas subsidiary Jetconnect on these routes.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
Air travel began in the early 1900s and scheduled flights started in the 1920s (Harris). In the early years, the airline industry competition was nonexistent. The competitive environment changed dramatically over the course of the last century specifically when the industry underwent regulation and then deregulation. The future success of the airline industry depends on the ability to adapt with rapidly changing industry environmental factors.
This company became the public limited company in the 1946. The company has international and the local routes and its performance is increasing day by day with the pace of the growth as compare to the other airlines in the industries in the area and the channels in which this airline is working. External factors affecting the Air India Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which affect the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled.
... organizational structure that needs to be maintained for its operations in Australia. As the suggestion has been of total ownership thus span of control is needed and these factors have been discussed in this report to illustrate how effective the organization can be in Australia.