Qantas Report

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1. Executive Summary
Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold (Qantas Web Site, 2008). Identification of target markets is imperative to Qantas’s success. Mortished (2003) explains that Qantas uses Behavioural segmentation to select its target market. This allows for the market to be divided and products and advertising to be specifically aimed at the most responsive customers. Qantas divides its target market into two main groups; Business and leisure Qantas has three major problems. 1.) Fuel efficiency, 2.) Lack of communication between employers and employees, 3.) Competition in the corporate customer market (Ferguson 2003). To overcome these issues, Qantas must modify aircraft sizes and engines to become more fuel efficient and reduce CO2 emissions over coming years. During the next two years, Qantas should plan to reduce industrial conflict by reorganizing the communication system and its organizational structure, making it more flexible and adaptive, thus empowering employees with project management responsibilities. Grievance procedures must be improved with a formal process to resolve work conflicts. Qantas must maintain and increase its corporate customer market share in order to remain profitable and successful. Over the next 5 years Qantas aims to hedge fuel prices and use more efficient aircraft to limit further fuel costs improve employee/employer relationships by reducing the number of employment relations disputes and retain corporate market share by enhancing facilities and lounges to appeal to corporate travellers.

2. Table of Contents
1. Executive Summary1
2. Table of Contents2
4. Who is the Customer/Market and how are we giving value4
4. 1 Segmenting Market Variables:4
5. Analysis of the global marketplace6
5. 1 Financial Influences6
5.2 Social and Cultural Influences.7
5.3 Legal Influences7
5.4 Political Influences7
5.5 Technological Influences8
5.6 Geographic Influences8
5.7 New Systems, E-Commerce and Procedures8
6. Analysis of the Competitors8
6.1 Virgin Blue9
6.2 Tiger Airways10
7. SWOT Analysis11
8. Strategic Human Resource Management12
8. 1 Qantas Management:12
8.2 Qantas Staff, Regulation, and Management Issues12
8.4 Training and Development Strategies13
9. Implementation Items/Plans14
9.1 Fuel efficiency14
9.2 Possible Industrial Conflict Strategies14
9.3 Maintaining and building the corporate customer market15 10. References16
11. Appendices19

3. What is the issue?
Qantas was privatised in 1995, and in 1999 joined the Oneworld airline alliance, the most global of the world’s alliances (Qantas web site, 2008). The September 11 terrorist attacks in 2001 had a major impact on Qantas, as the demand for international travel greatly declined (Qantas web site, 2008). The company was spared financial losses due to the demise of Ansett Australia Qantas’s major domestic competitor on September 12, 2001 (Qantas Annual Report, 2002). This immediately increased Qantas’s domestic market share compensating for the loss of international tickets (see Appendix B). World events, including the war in Iraq and the SARS epidemic collaborated in devastating Qantas’s profitability in 2003 (Qantas Annual Report, 2003) (see Appendix C). These events had a drastic impact on Qantas’s international operations with the number of passengers falling by up to 45% on some routes. The company responded by reducing flights, reducing staff members, increasing redundancies and reducing capital expenditure by retiring old aircraft (Boyle, 2003). In 2004 the international tourism market improved, lifting Qantas’s profits (see appendix D). Qantas responded by introducing two new airlines; Jetstar, a low cost domestic airline and Jetstar Asia, a low cost airline to supply the growing intra Asian tourist market with a budget option (Qantas web...
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