Discuss about the Organizational Change in Qantas Airlines for Strategic Management.
Qantas Airline Company was established in 1920 at Queensland, Australia. Qantas Airline is Australia’s domestic and largest airline company. It is also one of the powerful brands in Australia and the most successful airline company in the world. It was originally termed and registered as Queensland and Northern Territory Aerial Services Limited (QANTAS). This brand has reputation in providing operational reliability, safety and excellent customer services. The main business of the Qantas Group is related to transportation, for which it uses two complementary airline brands- Qantas and Jetstar. The company has more than 3000 employees and around 93% is based in Australia (Qantas.com, 2017).
The Qantas airline has implemented a significant change in the context of strategic focus and competitive advantage or sustainability. The change initiative includes the development of an airline JetStar, which is a cost-leading airline alongside in Qantas. The company has also taken strategies such as constructing loyalty program to face threats from new entrants. The company has focused on the development of five segments diversification that would help in developing the secondary subsidiaries, which aids it in smoothening the revenues and profit generation. It will also minimize the risks that could arise from the sole dependency on the single business unit, which was Qantas alone. Other changes include resource and capacity distribution among five business segments for maximum profitability. The international strategy includes growth in the new markets, like Asia. The company has to reduce the barriers for the entry and focus on the global and transitional strategy for penetrating the Asian market.
The strategic change in a company is occurred in response to stabilizing and sustaining the business activity at the corporate, organizational and personal levels. It is followed by the planning, initiating, realizing and controlling. The strategic change initiatives help to establish a unique positioning in the market, controlling threats and revealing opportunities (Hayes, 2014). The Qantas Airline Company has taken changes initiatives as this company has been facing number of problems related to global financial crisis in 2008. For this reason, there is incensement of the new entrant competition. The company requires developing new competitive strategies. The company wants to deliver the returns to its shareholders. The changes have been taken for maximizing the ability of the company to sustain the competitive advantages and to achieve highest average returns.
The organization Qantas airline is going through a number of challenges, as it had to take change initiatives. The company generated revenues more than 15.8 billion dollars. However, due to global financial crisis in 2008 the company has faced problems related to sustaining the prior revenue generation. The company also faced problems like providing sustainable returns to its shareholders and increasing competition with new entrants (Milanpintar.com, 2017). The brand needs to sustain in the competitive international market with expanding the competences.
The Qantas has used change management like building group strategy that would provide sustaining returns to its shareholders. The company has also used competitive strategies like developing a cost-leading airline Jetstar along with services in Qantas. However, the company developed strategies that focus on the rationalization of the core competences and development of an approach that would resist other forces related to competition in international market. The company has done this by price wars with the competitors and minimizing costs by involving the suppliers. The company has developed a loyalty program that has helped it to face the threats from the new entrants.
There were various challenges faced by the airline company. The challenges include sustainability in the growing market with all the competitors or entrants are also approaching the same market. The company needs to maintain its unique position in the market. The company has faced challenges related to competitive advantages and the company needs to develop strategies that would help them to sustain in the market.
The human resource support services are related to provide excellent support system to the company’s stuffs and work structure (Hendry, 2012). The company gets human resource support by providing an excellent human resource system to the organizational work structure. The company needs an excellent human resource manager and up-to-date human resource management team.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Hendry, C. (2012). Human resource management. Routledge.
Milanpintar.com. 2017. Strategic Management – Group report: Qantas case study analysis. Milan Pintar E-Portfolio. Retrieved 4 October 2017, from https://milanpintar.com/2015/10/25/strategic-management-group-report-qantas-case-study-analysis/
Qantas.com. 2017. Our Company | Qantas. Qantas.com. Retrieved 4 October 2017, from https://www.qantas.com/travel/airlines/company/global/en