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Sarah Nicholls

on 21 May 2013

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Transcript of qantas

Qantas Internal & External Environmental Analysis Elise Anderson & Sarah Nicholls Inside Qantas MISSION STATEMENT - is unpublished. Themes include being a great Australian company, and one of the worldwide airline groups.

AIM - manage our operations, costs and productivity to ensure profitability for our shareholders, while maintaining the quality and reputation of our product.

VISION - "broadening our horizons"

GOAL - "Our goal is to give each customer the best possible travel experience, form the time they choose to fly with us to when they arrive at their ultimate destination" VALUES “Our Customers: Customers are at the centre of everything we do”
“Our Brand: Our brand takes the spirit of Australia to the world”
“Our Priority: There is no greater priority than safety and security”
“Our Future: Investment and innovation help shape our future”
“Our Business: Being a good business is as important as being a great airline inaction" Corporate Level Strategy Corporate level strategy describes how organisations gain competitive advantage by operating in several businesses simultaneously. HR Strategy Qantas understands that their staff have very different work, life and family responsibilities. Securing Resources For Change Business Level Strategy Business level strategies refer to the choices a firm makes about its competitive framework in a single business or industry, achieved through cost leadership or differentiation strategies. Economic Factors External Factors to be Considered ◦PAST
1. Price of fuel (Value of Australian Dollar)
2. Key economies slowing down due to GFC
3. Consumer confidence/spending fluctuations
4. Rise of low cost carriers (LLCs)
5. Demise of Ansett Australia lead to its current position in market share.

1. Price of fuel – availability of resources, changing use of resources.
2. Eurozone crisis constantly looming on the horizon
3. Union militancy
4. According to International Air Transport Association, the Business travel market relies on strong economic conditions.
5. Consumer confidence/spending fluctuations Social Factors PAST
1. Competition with other modes of transport
2. Decline in domestic travel due to overseas travel options.
3. Travel used to be a luxury, now it is relatively standard
4. Increased disclosure to stakeholders, not mandatory, but trending.
5. Current social trend to become “Employer of Choice”; Employer Branding
6. Leisure travel is growing faster than business travel

1. Varying consumer confidence in the reliability of air transport
2. Growing demand due to increased population, shifting social norms and the perception towards air travel
3. Continuing social spotlight on sustainability
5. High consumer choice due to increased competition/choice
6. Growing global ‘standards of living’
7. Declining customer loyalty to individual airlines Political Factors PAST
1.Change in government/leadership
2. Changes in International political landscape
3. Wars and conflicts
4. Funding, initiatives and subsidies
5. Industry deregulation in 1990’s

1. Changing international political landscape
2. Internal conflicts - union disputes
3. Political disagreements and government relationships creating restrictions and difficulties
4. Government and community responses to climate change
5. International government initiative pushing potential merger with British Airways. Technological Factors ◦ PAST
1. Digital developments and cost cutting with technology
2. Industrialization and technology have raised education levels
3. Development of larger airline designs enabling airlines to achieve better economies of scale.
4. Increased access to information due to technology improvements
6. The collapse of the dot.com boom

1.Dynamism of technology
2. Possible reduction in business traveller due to virtual global connectedness
3. Digital developments and cost cutting with new technology
4. Advanced navigation equipment
5. Competition with other modes of transport – e.g. fast rail Demographic Factors PAST
1. Rise of socio-economic status of many individuals/nations.
2. Traveller motivations have become increasingly fragmented and diverse and harder to segment into clearly definable customer groupings.
3. Growing income levels in the Asia-Pacific Area.
4. Cultural transformation and diversity management
5. Rise of “family holidays” and leisure travel rather than business travel.

1. Increased desire for domestic and international travel – globalisation
2. Rise of younger travellers
3. Service provision with high quality
4. Changing demographics of workforce – aging population, young workforce with different attitudes and priorities
5. Increasing propensity of leisure travel due to attitudes of younger demographics. Legislative Factors PAST
1. Workplace agreements/ industrial action
2. Changes in the OH&S Act
3. Trade union activism regarding maintaining equitable employment standards for Qantas maintenance and ground handling staff
4. 2013 Australian Employment Law changes need to be obeyed in managing staff

1. Changes in workplace agreements/ industrial action legislation
2. Alliances and partnerships to create travel networks.
3.Changes in Market consolidation/fragmentation regulation
4. OH&S and Employment legislation changes.
5. Changing nature of environmental regulation and government pressures Environmental Factors PAST
1. Pollution issues.
2. Managing sustainability factors – costs.
3. Environmental governance frameworks – communication to stakeholders.
4. Undertaking ‘Fleet Renewal Project’ to reduce carbon footprint.
5. Volcanic ash and snow grounding flights

1. Oil and petrol availability – alternative fuel sources, natural resources
2. Pollution and environmental consideration
3. Carbon tax, emissions trading scheme…etc.
4. Changing public perception
5. Possible changes in fuel resources International Factors PAST
1. Market overcapacity
2. Growing standard of living globally (Particularly in Asian Countries India, China etc)
3. Growth of international Tourism – see diagram
4. Uneven international playing field (Gov subsidies, regulation, sustainability spotlight)
5. Qantas international alliance with Emirates approved 2013

1. Growth in the Asian market and demand for travel to Asian countries – growth of china an India
2. Partnerships and alliances with other airlines (global loyalty programs)
3. Political disagreements and government relationships creating restrictions and difficulties
4. Globalisation – hyper-competitiveness
5. Skill shortages and labour shortages
6. Rise of remote area connectivity References Anon., 2006. Australian Bureau of Statistics. [Online]
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[Accessed 22 04 2013].
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MarketLine, 2013. Company Profile: Qantas Airways Limited, Mascot, NSW Australia: Qantas Airlines Limited.
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Available at: http://blackboard.acu.edu.au/webct/cobaltMainFrame.dowebct
[Accessed 29 05 2011].
Porter, M., 2008. The Five Competitive Forces that Shape Strategy. JSTOR ed. s.l.:Harvard Business Review.
Qantas Airways Limited, 2010. QANTAS DATA BOOK 2010, Melbourne, Australia: Qantas Australia.
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The Boston Consultancy Group, 2010. Global Trends in Managing People: Creating People Advantage, s.l.: World Federation of People Management Associations.
Wensveen, J., 2010. THE AIRLINE INDUSTRY: Trends, Challenges, Strategies, Sydney Australia: Leadership and Policy Seminar Series. External Factors to be
Considered External Factors to be Considered
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