EMILIA BILIC
RESEACH A BUSINESS AND EXAMINES ITS INPUTS, TRANSFORMATION PROCESSES AND OUTPUTS. EXPLAIN THE IMPACT OF TECHNOLOGY ON THIS BUSINESS. THEN DISCUSS WHAT CORPORATE SOCIAL RESPONSIBILTY IS AND HOW A BUSINESS CAN TAKE ADVANTAGE OF IT.
Operations management is concerned with overseeing, designing and controlling the process of production and then turning raw materials and resources into outputs of finished goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. Qantas has grown to be Australia 's largest domestic and international airline. Its forte is acquiring customer satisfaction
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Qantas uses Sabre Air Flight Suite Systems which is a complex scheduling system, to automate its flight scheduling to make sure that each flight has pilots, cabin crew, catering, airport and engineering support as well as allowing the customer to be given a departure and arrival time.
Outputs are the final process of operations processes and the final service delivered to Quantas’ customers. Qantas continues to further more on high levels of customer service and to do so it has adapted the “Net Promoter Score”. The Net Promoter Score is a customer loyalty metric developed in 2003. Its objective was to determine a clear and easily interpretable customer satisfaction score which can be compared over time or between different industries. The program assessed to what extent a respondent would recommend Qantas to his/her friends, relatives or colleagues. As well as provided customers with the “Frequent Flyer Points”. It is Australia’s largest and engaging loyalty program. The program has over 8 million members, more than 50% household penetration. It allows customers to gain points and fly more frequently with lower costs.
All businesses benefit from the thoughtful application of technology. The use of technology can be an operations strategy particularly if it is able to produce a competitive advantage. With the advantage of technology it has reduced the number of unskilled jobs and increased the need for highly skilled workers so there
* Human resource management= the management function focused on maximizing the effectiveness of the workforce by recruiting world-class talent, promoting career development and determining workforce strategies to boost organizational effectiveness
Operations management refers to all levels of an organisation and how best to efficiently convene, fund, maintain and maximise its services and/or operations, both internal and external. The core goal/objective of operations management it to maximise outputs while reducing and minimising the inputs required to achieve the desired results.
This method involves selling products below production cost. This attracts customers to the business, who then purchase other products. Ultimately, this improves profits, brand loyalty, and market share. Qantas has used this strategy during the launch of its subsidiary, Jetstar, in 2006. For example, flights from Melbourne to Sydney was offered at $19. These low airfares attracted customers away from its competitors, such as Virgin Blue. This had seen
Qantas’ financial performance has been very successful in recent years with the business recovering strongly from GFC and a large decrease in revenue to ear 377 million in 2010. The effective financial performance has been the result of effective profitability, liquidity, efficiency, return on capital, good solvency and growth including the establishment of a new airline (jet star).
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
Qantas is a global company whose primary operation involves carrying passengers, however it also has other functions that are crucial to the success of the business, including its freight
James, T. (2011) defines Operations Management as the management of the processes which aid production of goods and or services. This implies that all production activities must be coordinated well to ensure a lean process of resource management is adopted.
Operations Management in an organisation is repsonsible for managing and in making decisions concerning the activities that convert inputs into outputs , that is goods and services. This covers both short term actvities as well as longer term activities to meet strategic goals. Inputs can be the raw materaials need to manufacture goods such as furniture or the computers needed to create a service like online shopping site. Operation management’s role is to make decisions to improve how operation activities function, for example, to improve the final quality of the output or to change production methods to be more efficient in terms of cost and in time.
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:
Operations Management explores the way organizations produce and distribute goods and services. Everything you wear, eat, sit on, use or read comes to you courtesy of the
The basic requirements for operation managements is understanding of the customers’ needs and satisfied them, and use fewer resources to maximise the efficiency and effective of the company’s productivity. Therefore two typical Australia companies have been shown blew. One is the largest Australian supermarket, Woolworths Limited, and another one is the largest airline company in Australia, Qantas Limited.
Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.
result of this, no other airline in the industry’s history has enjoyed the customer loyalty and
Through s Porters Five Forces analysis (Figure 1 – Appendices) the greatest threat for Qantas is the rivalry. Qantas is taking advantage of this opportunity as through the alliance it creates greater certainty for the shareholders while also being able to increase its numbers in international routes to 33 one-stop destinations in Europe in addition to 31 one-stop destinations in the Middle East and North Africa (Ryan, 2012). Additionally, as competition was putting pressure on the market while Qantas was restricted by financial reasons, this alliance came as a great opportunity. Furthermore, from 31st of March Qantas frequent flier point users were able to book Emirates flights while the customers’ high status with Qantas was recognized at Emirates as well. Lastly, on European, Asian and African destinations Qantas mirrored Emirates baggage policies (from 20kg to 30kg) (Panaus Travel, 2013).