Assessment 3: A case study of Qantas Airline: The grounded kangaroo
EXECUTIVE SUMMARY
Qantas is the world’s second oldest airline and it fall into a long-run labour dispute which once stopped the running of the company. The CEO of Qantas, Alan Joyce has taken several actions before and during the dispute. This essay will discuss the reason and the cause of such industrial relations problem. Then, to analysis and judge the industrial action of both Qantas and the labour unions with some of the management concept. In the last, possible solution and recommendation will discuss to show the benefit of management skills.
Table of contents
INTRODUCTION 1-2
PROBLEM IDENTIFICATION2-3
PROBLEM ANALYSIS AND JUSTIFICATION3-5
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On the other side, this labour disputes and stoppages occurred because that the low wages of stuff comparing with the high level leaderships and what the Unions fear is a plan which would lay off about 1000 “redundant” jobs (The Economist 2011, p75). This essay is to find and discuss the problem of Qantas in managing the labour disputes and international plans, possible solutions and recommendations will be included depends on the management theories, which Industrial relations and globalization strategy theories will be used.
PROBLEM IDENTIFICATION
Firstly, in the provided case “The grounded kangaroo”, the cause of such problem is that the chief executive proposed a 71% increase in his salary package. In 2010/2011 fiscal year of Qantas, it reported that the net profit before tax was up to $250 million AUD (about $265 million USD), which is a 115% growth from previous fiscal year (Qantas Annual Report 2011, p. 8). There is already a big gap between the income of staff and high level managers. In this case, CEO wanted to put numbers of annual income into his own pocket is quite individualism and it must intensify the conflicts between workers and employers. Otherwise, a five-year strategic plan was based on cutting cost to reduce expenses, including cut 1000 staff from its 33600 workforces, which may be the reason why unions against this plan
On October 22nd, 2001, the Industrial dispute between QANTAS and its employees was initiated with the offering of a new Enterprise Bargaining Agreement. This proposed an 18-month wage freeze for employees plus a sliding scale profit share scheme. Ten out of twelve unions under QANTAS accepted the terms of the agreement, barring the unions of manufacturing employees (AWU and AMWU). They were holding out for a 4-6% pay rise. On the 8th May 2002, some ten months later, the dispute was resolved when QANTAS agreed to an across the board 6% pay increase. This essay provides an in-depth analysis into the dispute, including causes, the resolution process, the role of stakeholders, and costs and benefits for all concerned.
This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both internal and external environment), competitor’s analysis and finally the swot analysis.
1. What did the union do to prepare for negotiations? What additional sources of information might it have used? What were the union's primary objectives?
The main focus of this report is to identify the legal classification, the characteristics, the life cycle stage of Qantas and one internal and external stakeholder that is affected by the activates of Qantas. The legal classification describes that Qantas is a public company and has changed its legal classification in the growth and maturity stages of the business life cycle. The characteristics of Qantas talks about the company's industrial classification and sector classification. The business life cycle is explained and gives reason why Qantas is in the renewal stage of post maturity. There is also description of one internal and external
Qantas is Australia’s largest domestic and international airline. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and travel. In order to have an effective business and operations process, a company, like Qantas must be aware of the influences that can affect it. By being aware of the influences it enables the business to make decision and choices that can get the most out of each influence, by doing this it can assist the business in its endeavours for success.
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. .
Marketing strategies are an extremely important factor in determining the overall success of large global businesses (LGB). Marketing strategies are plans of action intended to promote and sell goods or services. There are a number of marketing strategies available, however, this report focuses specifically on pricing, promotion and global marketing. These determine how a business sells its goods and services, subsequently affecting market share, profitability, and cash flow. This is demonstrated when looking at the global businesses of Qantas Pty Ltd and Apple Pty Ltd. Qantas is an Australian based airline, which has grown from an airmail company to the largest airline in Australia,
• A catastrophic industry crisis as 200 000 staff were cut in the world aviation industry.
By outsourcing, Qantas is able to significantly reduce costs and maintain it’s competitive advantage. However this advantage also has a draw back, hundreds of engineers have also been cut from their jobs and have had their jobs given to people overseas. This puts a bad reputation on the name of the business as an Australian business will cut jobs from Australian workers and supple foreign workers with jobs. Families and friends of these workers may feel resentment towards Qantas and choose to travel with another airline instead resulting in a loss of customers. This strategy has been effective in reducing cost but has resulted in a reduction of quality and safety and led to a decreased business reputation resulting in a loss of customers and stakeholders.
Founded in Queensland Australia in 1920, Qantas has now become Australia 's biggest name in relation to domestic and international airline. Originally registered as the Queensland and Northern Territory Aerial Services Limited (QANTAS). Qantas is widely regarded as one of the world 's top airlines and one of the strongest brands in Australia. Over the years it has managed to build a reputation for excellence in
Qantas is established in the Queensland outback in 1920 and after that it has become biggest domestic and international airline and strong brand in the Australia. It is enrolled as the Queensland and Northern Territory Aerial Services Limited (QANTAS) and the group two airlines brands are Qantas and Jetstar those provides transportation services of the customers. Qantas created its strong brand reputation through deliver safe and secure services, focus on customer services, maintain reliability of operations and focus on maintenance, engineering and technology (Qantas Airways Limited, 2014). Quanta main business aims or objectives are:
The Aussie Air negotiations were a series of five-party talks between Down Under Air (DUA), the Aussie Air Shareholders (AAS), Aussie Air Management, the Federal Government and the Aussie Air Workers’ Unions. I was the united unions’ spokesperson for the negotiations, representing their interests in order of priority: job security, current management’s contract length and stock prices. This paper will review the contents of the negotiations, relating them to key ideas and concepts gleaned from research and lectures through thorough reflection and critical analysis. It will discuss the success of the negotiations, the tactics used to claim value, the methodology of creating value, and the revision of strategies with dynamic relationships as new information emerged. It will also examine the politics of coalitions formed and the observations of cognitive biases and emotions.
Boeing was recently faced with the scandals which hurt the reputation of Boeing. The top management recognized the problem and tried to figure it out by effective management strategies.
The British Airways case study was a very interesting case to read. It proves that not all people can be leaders, especially the chairman, board and chief executives of British European Airways (BEA) and British Overseas Airways Corporation (BOAC.) According to the case study of British Airways, the life at the “old” British Airways was “bloody awful” (Changing the Culture of British Airways, 1990, p. 1).
British Airways (BA) is a company that encountered several difficulties back in the 1970’s and 1980’s. The poor performances of the organization, was leading the company to failure. BA was offering a service that even though it accomplished the mission of the company, was not providing customer satisfaction. The organization was not taking into consideration the needs of the costumer and was not providing an acceptable customer service experience. “Productivity at BA in the 1970s was strikingly bad, especially in contrast to other leading foreign airlines” (Jick, Peiperl, 2010, p.28). Due to numerous changes, the company increased their revenues and became a respectful and well know organization.