Business Studies Assessment Task : Qantas

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.

Pinpointing non core assets for sale, including terminals at Sydney and Melbourne airports and outsourcing activities to reduce the complexities of running a full service airline.

1) Qantas Airways Limited is the national airline of Australia, it is also the largest airline in Australia. The Qantas Group’s principal business is providing domestic and international air transport services for passengers. Additionally, Qantas owns several subsidiary companies such as Jetstar and QantasLink that also operates flights to domestic and international locations, and Q Catering, a premium full service flight caterer.

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

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. .

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

Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt management practices to overcome both internal and external influences and had to change its narrow-minded culture. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas

This is where the business will keep the price of a product or service high in order to encourage customer to associate it will high quality.

In this strategic analysis report I as senior manager of Jetstar have developed PESTEL analysis, SWOT analysis, competitive analysis, created new mission and value

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.

Virgin Australia which was formerly called Virgin Blue is the Australia’s second largest airline. The airline was started in 2000 by British business tycoon Sir Richard Branson and former Virgin Blue CEO Brett Godfrey. The airlines started as low-cost carrier, but went on to become a “new-world carrier” (Virgin Blue media release, 2011). This low cost airline went on to become a full-service airline by 2012 with the name of Virgin Australia. Since the year 2000 the airlines grew rapidly and posed threat to Qantas airline and over the years Virgin Blue looking at the marketing trends and characteristics of the aviation industry grew into a Full Service Airline and is considered a four star airline by research consultancy firm Skytrax.

Provide full value of money for customers through reduce cost and enhance level of quality (Qantas Airways Limited, 2014).

Corporate Communication ensures a communication strategy with an organization’s stakeholders, suppliers, customers and employees. It is a strategy framework that helps an organization build a better understanding and repute with people whose attitudes and actions hold influence the success of their business. This strategy identifies each of the aforementioned groups and describes the required approaches. In regards to the customers, one needs to project an image that the company will cater to the needs of the customers with quality products and subpar service. Excellent managerial services and good

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).