Strategic Analysis Report
Nav-Star Consultants
Prepared for: Michael Lloyd (Tutor) Authors: Stephen Hill (7136196) Rohan Dwyer (6825079) Natalie Fraser (8382719) Vivian Ng (7660162) Due: 25/05/2012 Word Count: 2385 Tutorial: Thursday 1800-1900
Qantas Head Office 203 Coward Street Mascot NSW 2020 Ph: (02) 9691 3636 Fax: (02) 8222 4700
MGB309: Strategic Management
Semester 1, 2012
Contents
1 2 3 Preface ............................................................................................................................................. 2 Executive Summary .......................................................................................................................... 3 Two Potential Strategies
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This combined strategy will address effective controls and policies, enabling cost reductions from non value-adding activities and redirecting capital to value-adding functions, thus effectively progressing Qantas’ strategic objectives towards sustainable practices and growth.
3|Page Nav-Star Consultants
MGB309: Strategic Management
Semester 1, 2012
3
Two Potential Strategies
The strategic objectives for Qantas’ future intent are to mitigate potential risks. This can be
achieved via either a global or functional level strategy. This report analyses the benefits and limitations of these strategies and presents a realistic recommendation for long term strategic sustainability.
3.1 Global Strategy
Global strategy plays a vital role in strengthening organisations such as Qantas (Hill & Jones, 2010). Through the use of integration and global standardisation Qantas will be able to enhance its operations and increase its aviation market share. These strategies will enhance Qantas’ consumer base, whilst improving customer service outcomes. The implementation of these strategies will enable superior quality service delivery and improved performance against rivals in the aviation industry.
3.1.1 Integration Strategy
In order to counter strong competition in international markets, increasing importance is placed on Multinational Organisations such as Qantas to integrate its overseas operations. Global Integration Strategy positions organisations
Her success has recently come in 2011. My plan is to open a second sleep study in San Antonio, Texas. Roxanne will continue to manage the center in Corpus Christ and will help me virtually manage the San Antonio location. Because Roxanne has the information needed to model her sleep center it will be much easier to open up my own sleep evaluation center based on her proposal.
By using strategies like Fuel hedging in order to turn a variable cost into a fixed cost means that qantas can lock in a certain price for fuel (via contract) and save money if the price of fuel increases. Qantas’ future in efficiency looks to be very promising as an increase in use of E commerce, more efficient planes, and improved economies of scale all work in favour to ensure qantas’ ability to
The outcomes of the changes saw a more effective/ more efficient management structure, allowing Qantas to deal with changes in the internal and external business environment more effectively.
Rivalry among industry competitors has caused attention to be focused on tariff levels. Airfare prices were at an all time low in 2009. This suggested a strong competitive rivalry based on price differentiation. This price differentiation will cause a dramatic loss in revenue if these prices continue to drop and this would lead to a reduced competitiveness. In an effort to safeguard revenue and reduce expenditure, Qantas has developed a strategy to deal with a change in the external competitive environment. .
Another strategy that Qantas has used to respond to globalisation is through product differentiation. Qantas maintained it’s competitive advantage by providing a service which was unique and different to those of it’s competitor. Qantas was known for having ‘the best safety record of any airline in the world’. The airline was also ‘true-blue’ Australian and was Australian owned. This made the business different and attracted customers towards Qantas giving it a competitive edge over it’s foreign competition. Following the deregulation of Qantas, the business has started to lose sight of what it really was. The business has recently decided to implement another
Maintain Qantas frequent flyer as a driver of loyalty across group and as a leading loyalty program.
Qantas has been actively involved in carrying out corporate social responsibilities throughout the years. For example, they have taken measures to reduce their carbon footprint. Greenhouse gas emissions is a huge issue which looms large over the aviation industry. As such, Qantas has prioritised reducing carbon emissions from aviation fuel. Qantas has invested in next generation aircrafts which are more fuel – efficient, such as the Airbus A380 and Boeing 787 Dreamliner. The Qantas group invests in Bombardier Q400 for regional routes, which expends 35% less fuel than other similarly sized aircrafts.
It is also their vision ‘to be a great airline that champion’s the Spirit of Australia’ (Qantas.com). Since it is their vision to demonstrate the Australian Spirit to the public, it is vital that they start incorporating practices that reflect this conduct within the
Organisations come to exist to fulfill many purposes and reasons. For example some pursue to provide essential services for the community benefit, whereas others for profit produce goods or services. Therefore in general terms business plays a role in overall contribution of our society. The market today is very strong and competitive. Hence marketing activities often can be a differentiating factor between industry leaders and the other market players. The purpose of this report is to examine the marketing objectives of Qantas airlines. This assignment wishes to firstly focus on giving a background of the company. Secondly defining the term segmentation and target market and describing Qantas apparent target market. Thirdly the positioning Strategy Qantas has taken, fourthly explaining the role that Integrated Marketing Communication plays in the company’s current marketing effort. Lastly marketing communication tools, messages, and media that Qantas uses to communicate with the different audiences it targets.
The boards of directors are implicating new strategies to help Qantas renew in the post maturity stage. These strategies are:
using their own core competencies to turn the airline around. By applying their own strategies,
As one of the most publicised and well-known companies in the nation Qantas’ reputation can hinge on their sustainability practices. Any slip up for the company will attract media attention which is why it is pivotal that Qantas has adequate sustainability practices in effect. As an international airline, the amount of resources in which Qantas can lead to a significant impact on the environment. There are many areas within the daily routine in which Qantas need to be wary of how the company’s actions are affecting the environment. Some of the main sustainability issues in which Qantas need to focus upon is there carbon emission footprint, this includes practices such as fuel consumption and efficiency and releasing emissions. The safety of
Within the Sustainability Report of Qantas 2014, Qantas states it would be their “first priority and underpins everything that is done within the company, the operational safety of aircraft, the occupational health and safety of employees and contractors, and the wellbeing of customers.” (Qantas, 2014) Through their major priority in maintaining employees, contractors and customers in good shape, it
To identify an appropriate strategy for a given industry one must look into the external and internal factors influencing the company. The following report will discuss these factors regarding Ryanair, which is one of the leading budget European airlines.
This proposal analyzes the feasibility of establishing a neighborhood bar in a gentrified mixed use area that abuts a university. The conceptual model used for the design and operations of the neighborhood bar familiarly known as Cheers and it is the equivalent of the Starbucks concept Third Place. The target area in which the neighborhood bar would be sited contains virtually no informal gathering places for neighborhood residents. A number of shops and upscale restaurants line the pedestrian mall in the center of the neighborhood, but the business hours of these enterprises preclude casual use by those who live in the neighborhood but commute to jobs in nearby urban areas or at the university. A Porter's Five Forces analysis indicates that there are only a few factors that would have negative influence on the establishment of a neighborhood bar in the location selected and these barriers are not substantial, nor are they sufficient to prevent the establishment and survival of the proposed business. The SWOT analysis triangulates well with the Five Forces analysis, adding credibility to the potential for establishing a profitable enterprise in the target area.