The paper "Mission, External Environment, Internal Capabilities and Competencies of the Qantas Group" is an outstanding example of a management case study. This case study is documented to analyze the mission, external environment, internal capabilities and competencies, competitive advantages, and strategic policies and actions of Qantas Group. The case will also discuss reasons for not supporting some or all Qantas' current strategic and provide recommendations on two key recommendations for Qantas' executive leadership group. Qantas is an Australian national airline established in 1920 (Qantas 2014). According to Tay (2013), the Airline Company is ranked as the largest in Australia with a market share of 65% in the domestic market and 18.
8% of travellers traveling outside Australia. In 1935, the company started its international services and has since grown in the number of destinations to 65 local and 28 international destinations. Over the years, the company has faced very stiff competition from other established domestic and international airlines such as Virgin Australia, Virgin Blue, JetStar Airways, Singapore Airlines, Singapore Airlines, Etihad Airlines, Air New Zealand and Emirates among others (Fickling & Wang 2012).
The company has been forced to rethink its strategy so as to sustain change. In 2011, Qantas Airlines, therefore, announced that it would conduct key structural changes owing to its financial losses and the declining share of the market. The company mission The company mission is actually in line with structural changes and objectives. According to the Qantas website (2014), the mission states that ‘ Qantas is the largest premium airline in Australia and are committed to being the best. The mission continues to say that the aim of the company is to meet customers’ expectations whenever they fly and therefore they often invest in their business and always endeavor to offer customers excellent services’ .
This can primarily be summarized as fulfilling shareholder’ s value. This mission statement will guide the companies expands into the Asian market. In a bid to fulfill this mission, the company has outlined various strategic objectives, including restructuring its businesses, put in place cost reductions and efficiency measures, effective financial management, global outsourcing, job cutting and expanding strategic alliances staring with Emirates Airlines (Mules 2013, p. 3).
The business restructuring would entail separating of the domestic and international management arms of Qantas Airlines External environment Qantas Airline’ s capability to continue staying as one of the stronger brands in the Airline industry can be attributed to its competence and quality status which comes from the internal environment (Crain 2009, p. 33). This involves the company’ s strategic objectives and goals which can be realized through its competency. These objectives, however, must be very dynamic to sustain external environmental forces which include Political, Economical, Social, Technological, Environmental and Legal (PESTLE). Political IBISWorld (2014) claims that as a national airline, the Qantas on different occasions received political patronage to gain competitive advantage.
Over the years, the government of Australia has been dedicated to taking measures that endeavors to assist Qantas to survive the difficult economic times. For instance, for two decades, the government of Australia liberalized the airline industry with a focus on state subsidies and tax reduction (IBISWorld 2014). Additionally, The Economic Times (2008) contends that the government entered into an agreement with the US government to remove the trade restrictions on the Open Skies airline between the two nations.