Essays on Strategic Management-Qantas Case Study

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The paper "Strategic Management-Qantas " Is a great example of a Management Case Study. In the contemporary business world, organizations have strategies that show the long-term direction as well as the scope that they intend to follow (Parthasarthy, 2007). A good strategy enables an organization to utilize its resources effectively in a dynamic environment and to maximize the wealth of the shareholders (Johnson, Scholes, & Whittington, 2009). Strategic management is thus involved with the organization’ s future operations. According to Hanson, et. al, (2011), the decisions that are arrived to enable a firm to gain a competitive edge over its rivals.

Therefore, strategic decisions play a crucial role in matching the organization’ s resources with its activities (Hanson, et. al., 2011).   Company Profile Australian national airline, Qantas, was started in the early 20th century in Winton, Queensland. At that time, it was known as Queensland and Northern Territory Aerial Services. It began business with a fleet of eight aircraft, which is operated out of a hanger in outback Longreach. With time, the company has grown in leaps and bounds, increasing its fleet to a large number of modern aircraft.

This has been a result of growing business through increased sales, mergers, and acquisitions which saw it become one of the most influential and preferred airlines in the world. In 1992 for instance, the company experienced a turnaround in its general operations after buying out the country’ s domestic carrier, Australian Airlines, from the government. Further plans then saw the company privatize the whole group, with British Airways taking up a 25 percent stake, while the public bought out shares worth A $1.5 billion. The transaction left Qantas owned 55 percent by Australians, which was just over the required by law figure of 51 percent (Hanson et. al.

2011). The years 2005 and 2006 saw it take the second position globally. Over the years, the management at Qantas Airlines has strived to diversify its business prospects, by venturing into other related businesses. They include baggage handling, check-in, passenger lounges, catering, wine supply, engineering, and holiday travel business. It also runs a frequent flyer program which is a program that rewards loyal customers. In the past, it has supplied 450, 000 award seats on program partner airlines (Hanson et. al.

2011). General Environment Analysis Hanson, et. al. (2011), in their studies, explains that an organization is surrounded by forces emanating from within or outside. Qantas Airways as an organization exists in the context of complex environmental forces, many of which give rise to opportunities, and other threats to the organization. The external environmental forces that affect Qantas Airways likely success include demographic, economic, political/legal, socio-cultural, technological, and global. The demographic segments that can hinder the likely success of Qantas Airways include population size, age structure, ethnic mix, income distribution, and geographic distribution (Hanson et.

al, 2011). Qantas Airlines benefit from the fact that its clientele is composed of a diverse demographic background. In the recent past, the Airline formed the Oneworld Alliance with other big airlines including; American Airlines, Canadian Airlines, British Airways, Cathay Pacific, Iberia, and Finnair. As a result, it benefits from a wide geographic coverage. In addition, the Airline has a joined partnership with other Airlines to share departure lounges and flight bookings in order to provide travelers with an opportunity to travel to destinations of their choice.

Furthermore, Qantas Airline is an established airline, and is, therefore, able to reach many destinations. These are especially so in China, Asia, Africa, Indonesia, Japan, Pakistan, India, Afghanistan, and the United States (Walker, 2007).

References

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