Identifying The Vision Statement Qantas Tourism Essay

Identifying The Vision Statement Qantas Tourism EssayTo everyplacecome these be intimates, Qantas must modify aircraft sizes and engines to hold much evoke efficient and switch off CO2 emissions over coming years. During the next two years, Qantas should project to reduce industrial conflict by reorganizing the communication system and its organizational structure, making it to a greater extent plastic and adaptive, thus empowering employees with project commission responsibilities. Grievance procedures must be improved with a formal demonstrate to resolve work conflicts. Qantas must prevail and subjoin its corporate node market sh are in order to remain profitable and successful.Qantas has undertaken satisfying changes over the last decade to cope with internal and orthogonal factors such as the terrorist attacks on September 11, 2001 which effectively bring down the demand for internationalist travel. Qantas initially reduced its international travel flying capa city by 11%. The factors that had caused Qantas to change were that Qantas had to become A more competitive, efficient and profitable business with less competition in the home(prenominal) markets.Qantas had to hold taxes and levies paid by other business in Australia Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of focussing.The main factors, which caused Qantas to change was that, the business was under government ownership until 1995, with a scoreical/scientific management structureOver 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 work relations disputes and retain corporate market share by enhancing facilities and lounges to appeal to corporate travellers. IDENTIFYING THE VISION commandThe Qantas story began in March 1919, when former Australian Flying Corps officers W Hudson Fysh and Paul McGinness hear of a 10,000 ($20,000) prize offered by the Federal Government for the first Australians to fly from England to Australia within 30 days.McGinness travelled to Yanko in western newfangled South Wales to see Sir Samuel McCaughey to ask if he would fund their entry in the race. In Palestine the two young lieutenants had flown a Bristol fighter presented to No.1 Squadron by the millionaire industrialist. Sir Samuel agreed to finance their venture, al star died before a suitable aircraft was found.The Qantas story is inextricably linked with the development of civil aviation in Australia. It begins with fragile biplanes carrying one or two passengers in open cockpits and progresses to the new Airbus A380s flying some 450 mountain half way around the world in a day.A few determined individuals overcame terrible obstacles to establish the Queensland and Northern Territory Aerial Services Ltd (QANTAS). Supported by committed staff and firm customers, the flight path persevered through war and peace to serve the nation and build an enterprise.Today, Qantas is widely regarded as the worlds direct long distance airline and one of the strongest leaf blades in Australia. Qantas continues to provide outstanding service to its customers and is at the capitulum of the international civil aviation manufacture.The future holds m whatever challenges for Qantas maintaining safe operations and world class proceeds standards while building a viable and competitive position long term for the airline.As Qantas doesnt have any formal mission statement it pays more importance only on its view.The Qantas assemblys long term vision is to operate the worlds best premium airline, Qantas, and the worlds best low fares carrier, Jetstar.To achieve this vision, the Group is focused on louver key elementsSafety is first priority A firm commitment to worlds best safety practices and coverageRight aircraft, right routes Fleet renewal delivering one of the w orlds most effective fleets flying on an best route networkCustomer service excellence Consistent customer service excellence as the basis of the businessOperational efficiency Achieving simplicity and further productivity across the businessdeuce strong complementary brands Qantas and Jetstar as the best premium and low fares brands respectivelyThe Kangaroo SymbolThe original Kangaroo symbolism appearing on Qantas aircraft was adapted from the Australian one penny coin. The winged kangaroo symbol was created by Sydney causality Gert Sellheim, and first appeared in January 1947The Flying Kangaroo was later placed in a circle in 1974.In June 1984 Qantas unveiled an updated logo conceived by Tony Lunn of the Lunn Design Group, Sydney. The Flying Kangaroo lost its wings once again and was slap-up to a more slender, stylised presentation.PEST ANALYSISThe PEST analysis stands for Political, Economic, Social and Technological factors that are needed to be analyzed from the industrys external environment. It is important to cover this to further understand the condition of the airline industry in Australia.Political factorsThe liberal policy environment has alike favoured new entrants.While the national airline industry is largely deregulated, Australias airline industry remains instead regulated at the demesne level.Australias international aviation policy has been multiple designationThe industry deregulation in 1990s has attached way to a more res channeliseed form competition between Qantas and Virgin.One of the political issues that affect the airline industry is the effects deregulation. Deregulation was establish on the contestable market theory (1982) which suggested that governments should render to promote contests for markets, even those where large firm size and limited competitors existed. Regulation was believed to encourage competition based on service quality rather than price, limit operational flexibility, and create no incentives for i mproving efficiency and productivity. However, it has been argued that deregulation has shifted competition from service to price (1998). On the other hand, among the airline companies around the world, one signifi basist political issue taking place is the emergence of global alliances.Economic factorsThe past events like outlet eruption and SARS has unnatural flight security in the eyes of the customer.Every environmental issue including the impact of increase of fuel , which either affects basic costs of flights or affects the likeability of customers to book a flight. most industry participants have argued that financially distressed carriers have cut prices in an effort to raise short-term cash, depressing market prices below efficient levels and threatening the financial security of healthy carriers. Another economical concern is the fact that the airline economy of the US is in a huge upset later the September 11 attack. Some of the companies declared bankruptcy while oth ers are still struggling to survive (2003). . There is substantial evidence that entry, particularly by low-cost, low-fare airlines, has a substantial effect in constrain fare levels in markets served by the new carriers.Social factorsThe labour market is tight , particularly in masterly fields requiring more motivation and knowledgeThe demand for personnel in distant countries pass on increase the need for foreign-language prepare.Consumers are more demandingToday, consumers are more demanding especially in terms of service quality. Fortunately, the airline industry can be considered as the pioneer of customer relationship management as they are the first sector to introduce the frequent-flyers program to increase the loyalty of customers (2002). Airline industry also call for very skilled people as their workforce.Technological factorsThe buzz offth of the culture industries is creating a knowledge-dependent global decree and information will be the primary commodity of mo re and more such industriesNew and big airplane designs with remote find technology would enable airline companies to achieve better economies of scale.Technological factors include head to head competition in the technological innovations in the industry. Larger planes or aircrafts with remote access technology could provide significant cost savings by allowing the engineers, who were responsible for maintaining the aircraft, to access essential information on the go withs systems from wherever they were in the world, using remote web access.INDUSTRY STRUCTUREThe Airline is one of the major(ip) industries in the world today and is majorly affected by Michael Porters Five Forces model. The following write up conducts an analysis on how the model affects the airline industry today.Threat of New Entrants.One of the forces that Porter describes is door into the industry. In the world today, the airline industry is so saturated that there is hardly space for a newcomer even to sque eze its way in. The biggest for this is the cost of entry. The airline industry is one of the most pricy industries, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and manpower. Another major restraint to entry is the brand earn of existing airlines and it is reliablely difficult to lure customers out of their existing brands. On the other hand, a newcomer could enter this saturated market easier with a completely new conception and technology.Bargaining Power of Suppliers.The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isnt a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isnt very likely. In other words, we probably wont see suppliers starting to offer flight service on pinnacle of building airlines.3 Bargaining Power of Buyers.The bargaining power of buyers in the airline industry is quite low. Obviously, there are high costs involved with switching airplanes, but also take a look at the ability to compete on service.Is the seat in one airline more comfortable than another? Probably not unless we are analyzing a highlife liner like the union Jet.4 Availability of Substitutes.What is the likelihood that someone will drive or take a train tohis or herdestination? For regional airlines, the threat might be a little higher than international carriers. When determining this we consider time, money, personal preference and convenience in the air travel industry.Competitive Rivalry.highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when measure get tough in the economy.In case of the Airline industry, this is the most important force today, especially since the market is completely saturated. There are more service providers than needed in both local as healthful as international markets. The various airlines are competing for the same customer, which also firmnesss in modify the buyer power, another of Porters forces. Moreover, a lot of airlines such as Qantas Airways and Emirates have a brand name which they have to defend so they compete in doing so. The airlines are continually competing against each other in terms of prices, technology, in-flight entertainment, customer services and many more areas.SWOT ANALYSISQANTAS STRENGTHHow the Qantas Group respondsup MarginsAs economic showing a significant progress, Qantas margins are also improving.Diversified BusinessQantas divagate of subsidiary business operates in different sector but all of them supporting airlines industrys activity, such as catering, baggage handling and engineer. This also helped them to control supplier and aircraft maintenance cost.Oneworld AllianceOneworld Alliance is a management company founded by Qantas, American Airlines, British Airways, Canadian Airlines and Cathay Pacific. Purpose of this centralized management company is to hel ping each other with noncore business activity such as marketing, engineering/maintenance, and online ticketing to reduce cost thus give the company allowance to cut ticket price. Members of the alliance are also possible to transfer passenger for connecting flight.Efficient Use of ResourcesQantas have a home ground proceeds as Australia national airlines. Its subsidiary company also provide great resources for Qantas core business.QUANTAS WEAKNESSHow the Qantas Group respondsReliability ConcernsQantas has been involved to some incident with some of their aircrafts in 2008/09. Although nothing ended in major accident, its affected companys safety image.Problems with the staffA staff problem action, often referred to as a savage strike, is a strike action taken by workers without the authorization of their trade union officials. It has been hit with chastise strike in the company history in 2009, caused a major delay that also affected other flights.QANTAS OPPORTUNITYHow the Qantas Group respondsMaintaining the higheststandards of safety Commitment to safety as first priority, underpinned by industry-leading policies, systems and trainingAdapting business scheme to manage changing economic conditions Two flying brands strategy to adjust capacity, price and market segmentation as the market moves up or downRemaining competitive in a challenging and volatile industry context Fleet renewal to reduce longterm costs and grow revenues Strong alliance relationships and strategic investments to spread jeopardy and opportunity across markets and provide network discernmentQantas innovations to drive higher satisfaction and improved customer advocacy focus on the end-to-end customer experience improvements in product consistency across the fleet including aircraft reconfiguration brand renewal pursuit of efficiencies to impose the cost base Customer Charter established Jetstar effective capacity management strong promotional campaigns ground-breaking strategic alli ance relationships (eg AirAsia)Pursuing growth opportunitiesin emerging markets Qantas alliance relationships with carriers in emerging markets Jetstar pan-Asian strategy including Jetstar Pacific (Vietnam) and Jetstar Asia(Singapore)New technologies Breakthrough product and service innovations such as Next Generation check in Commitment to technologically advanced aircraft (eg Airbus A380, Boeing 787)Operating in an environmentallysustainable manner and managingcarbon risk Fuel efficiency program, investment in advanced technologies and fuel efficient aircraft, air traffic management leadership, sustainable aviation fuel development-Carbon offset schemes, partnerships with environmental organisations and engagement with employeesQANTAS THREATSHow the Qantas Group respondsResponding to unexpected shocks and crises purpose-built Crisis Management Centre with detailed crisis management plans Scenario planning supplemented by simulated crisis training exercisesManaging currency and fue l price fluctuations Award-winning Treasury function Hedging, including options, to enable participation when oil prices are low and fortress when oil prices are highShrinking Aviation IndustryAviation industry got hit real hard as a result of global financial crisis. IATA traffic data showed a 4.6% bead in international passenger traffic and 13.5% drop in international cargo and stated that the ecumenic aviation industry shrinking by all measures.Intense CompetitionThe competition in this industry is super fierce.. Qantas are currently head to head with every major airlines in the world.CORE COMPETENCIES AND belligerent ADVANTAGEStrong brandQantas is a globally recognized brand that enjoys excellent brand blondness and outstanding customer loyalty (with over 4.6 million members of its frequent flyer program) Qantas connects Australia to most major destinations in the world in every continent. Moreover, Qantas has a salutary regarded management team which has helped the compan y to gain the brand value.World class in flight entertainmentQantas is one of the oldest airlines in the world that has an excellent and well updated in flight entertainment system . As a result, Qantas is universally known for its comfort and unceasing travelling experience. Qantas Airlines offers a wide range of in flight features and amenitiesfor each of the different locomotion classes. Qantas prides itself on offering each passenger a pleasant and comfortable flight, with top notch costumer service.Comprehensive experience and expertiseQantas has long experience and abundant expertise in1) both domestic and international flights2) both a full service airline(Qantas) and low cost carrier(Jetstar)3) all levels of passengers (premium segment, economic segment, and cypher segment)Differentiating FactorJetstars quick rise to be one of the worlds most successful low-cost carriers places the Qantas Group well in terms of product offering and differentiation. Its strong fleet order book of A380s and B787 Dream liners gives it a significant competitive advantage over other airlines.Qantas ability to re deploy Jetstar planes on freeze off yielding routes will be a good competitive advantage while demand is weak. financial RATIOS ANALYSISCurrent RatioThe Current Ratio is one of the measures of financial strength.It reflects whether that company has enough assets to pay its liabilities.In 2008 the Current Ratio was 0.73In 2009 the Current Ratio was 0.88It shows that Qanats Current Assets has increased, which is a positive result and mark of success.Return on asset ratioThe Return on Asset Ratio measures how efficiently profits are being start outd from the assets employed in the business when compared with the ratios of firms in a similar business.In 2008 it was 0.071In 2009 it was 0.009It shows that return on the assets has decreased by almost 80%. The reason behind this is again recession.Gross margin ratioIn 2008 it was 0.3In 2009 it was 0.2It shows that Gro ss profit has decreased a place in 2009 due to economic downturn, but it is still better as compared to other airlinesSTRATEGY RECOMMENDATIONS tuck all business class flightsThe major source of profit for Qantas is from the business class. Keeping this in listen Qantas should introduce few new aircrafts which includes only business class passengers. Economy class seats shouldnt be there in such flights. This will help the company to generate more revenue and will also give a different and high class experience to business class passengers. reserve to use luxury lounge for economy classQantas should allow its economy class passengers to use the luxury lounge at the airports on payment basis. Customer should be allowed to use luxury lounge if they are willing to do so, for which they only need to pay little extra. This will help the company to generate money without making any investment. And not only this, it will also benefit the passengers of economy class they comfort is the 1st priority of every human in this modern world. so nobody would judgment to pay a little amount for this comfort and relaxing experience.Introduce segways at big airportsQantas can introduce segways at the huge airports like Frankfurt International, London (Heathrow). This will help the passengers to commute substantially at the airport with more comfort and less tiredness.Provide organic aliment and herbal foodQantas can provide organic and herbal food to its passengers. Everybody is too concerned about their health, keeping this in mind organic food would be a good option for them.POTENTIAL FALLOUTSIt is because of the bilateral agreements in the aviation industry, the competition has been reached to its final stage and now it is become very tough for Qantas Airline to maintain high standards and survive in the competition. The airline is facing challenges not only in international, but in the domestic market where it was a market leader earleier. Companies like, Virgin Blue and Tiger Airways are selection up fast and taking the market share of Qantas.REFERENCESBea, F.X. Haas, J. (2001). Strategisches Management. Tuebingen Vahlen.Hamel, G. Prahalad, C.K. (1996). Competing for the Future. Boston Harvard Business School Press.Kotler, P. Keller, K. (2006). Marketing Management. New Jersey Pearson Prentice Hall.http//www.qantas.com.au/travel/airlines/company/global/enhttp//www.investopedia.com/features/industryhandbook/airline.asphttp//ivythesis.typepad.com/term_paper_topics/2009/01/qantas-airline-known-and-considered-to-be-the-leading-long-distance-airline-in-the-world.html Competitve Analysis Presentation from lovebaby193