Qantas Case Study (1 Viewer)
- Thread starter Chat1
- Start date
Here's my summarised section for globalisation, I hope that can help 
Globalisation
Reasons for International Expansion
Limited Domestic Demand
Deregulation of Domestic Markets lead to increased competition. E.g. Virgin Blue
Ability to achieve economies of scale, therefore financial benefits
Cushioning of the economic cycle. I.e. If domestic sales go down, Qantas still has international sales.
Sharing of resources
Methods for International Expansion
Global alliances such as One World
Acquisition/Merger of other airlines. E.g. Compass, Impulse
Low Frills Airlines
Code Sharing agreements
Influences on the business (globally)
Financial -
Changes in foreign currencies. i.e. Large proportion of Qantas revenue comes in foreign dollars
Changes in interest rates (on debt (overseas lenders)
Fuel/Commodity prices increases
Political -
Terrorism/Instability. I.e. September 11 terrorist attacks
ACCC against alliances
Reduction in demand because of particular actions by govts
Legal -
Protectionism of markets by Govts. i.e. Japan
Airlines that are subsidised by governments i.e. Malaysian airlines
Affected by local laws
Social/Cultural -
Multilingual Speaking hostesses
Changes in menus for different cultural tastes
Visual screens are in multiple languages
Globalisation
Reasons for International Expansion
Limited Domestic Demand
Deregulation of Domestic Markets lead to increased competition. E.g. Virgin Blue
Ability to achieve economies of scale, therefore financial benefits
Cushioning of the economic cycle. I.e. If domestic sales go down, Qantas still has international sales.
Sharing of resources
Methods for International Expansion
Global alliances such as One World
Acquisition/Merger of other airlines. E.g. Compass, Impulse
Low Frills Airlines
Code Sharing agreements
Influences on the business (globally)
Financial -
Changes in foreign currencies. i.e. Large proportion of Qantas revenue comes in foreign dollars
Changes in interest rates (on debt (overseas lenders)
Fuel/Commodity prices increases
Political -
Terrorism/Instability. I.e. September 11 terrorist attacks
ACCC against alliances
Reduction in demand because of particular actions by govts
Legal -
Protectionism of markets by Govts. i.e. Japan
Airlines that are subsidised by governments i.e. Malaysian airlines
Affected by local laws
Social/Cultural -
Multilingual Speaking hostesses
Changes in menus for different cultural tastes
Visual screens are in multiple languages
truly-in-bliss
my love is like woah!
- Joined
- Jun 3, 2003
- Messages
- 2,995
- Location
- Strathfield, Sydney Gender: Female
- Gender
- Female
- HSC
- 2003
well global does include the other topics as wel... so i just added more stuff to each of the sections.... but my notes are primarily based on global...
here's the marketing section I summarised
Marketing
- Qantas is a business which marketing good/service to markets that are diverse and worldwide
- Qantas is working on building customer relationships
- Creating a choice of products, faster product turnaround,
- Customer loyalty/reward program to encourage customers
- Strengths V Extensive networks, superior locations, global branding, safety record
- Qantas in growth stage, with collapse of Ansett
- Qantas is to expand further take on more staff, offer more services, become more competitive, takeover competitors, increase market share, reduce labour costs
- Complex market segmentation with each segment having specific needs
- 4.6 billion to be spent on near airbus
- 300 million in in-flight entertainment system and more comfort based features
- Qantas frequent flyer points, to retain customers and increase market share.
- Pricing methods
X Price Penetration V Low frills airline (Australian Airlines)
X Competition based
X Full fares charged business travellers
X Promotional fares to stimulate demand
X Loss leaders to be tempters when entering new routes
- Promotion
X Personal selling based on sales representatives
X Advertising on TV, radio, newspaper
X Loyalty programs for customer retention Fly buys
X Less mass marketing and more target marketing because it is more cost effective
X Sales promotions
X Publicity such as news releases
X Sponsors of sporting teams, charities and cultural activities.
- Distribution
X Sales via retail outlets
X Qantas owns some travel agencies
X Telephone sales centres, airport ticket sales, internet
Marketing
- Qantas is a business which marketing good/service to markets that are diverse and worldwide
- Qantas is working on building customer relationships
- Creating a choice of products, faster product turnaround,
- Customer loyalty/reward program to encourage customers
- Strengths V Extensive networks, superior locations, global branding, safety record
- Qantas in growth stage, with collapse of Ansett
- Qantas is to expand further take on more staff, offer more services, become more competitive, takeover competitors, increase market share, reduce labour costs
- Complex market segmentation with each segment having specific needs
- 4.6 billion to be spent on near airbus
- 300 million in in-flight entertainment system and more comfort based features
- Qantas frequent flyer points, to retain customers and increase market share.
- Pricing methods
X Price Penetration V Low frills airline (Australian Airlines)
X Competition based
X Full fares charged business travellers
X Promotional fares to stimulate demand
X Loss leaders to be tempters when entering new routes
- Promotion
X Personal selling based on sales representatives
X Advertising on TV, radio, newspaper
X Loyalty programs for customer retention Fly buys
X Less mass marketing and more target marketing because it is more cost effective
X Sales promotions
X Publicity such as news releases
X Sponsors of sporting teams, charities and cultural activities.
- Distribution
X Sales via retail outlets
X Qantas owns some travel agencies
X Telephone sales centres, airport ticket sales, internet
truly-in-bliss
my love is like woah!
- Joined
- Jun 3, 2003
- Messages
- 2,995
- Location
- Strathfield, Sydney Gender: Female
- Gender
- Female
- HSC
- 2003
chris u r tops dude... haha
truly-in-bliss
my love is like woah!
- Joined
- Jun 3, 2003
- Messages
- 2,995
- Location
- Strathfield, Sydney Gender: Female
- Gender
- Female
- HSC
- 2003
haha well i figure.....it relaly doesnt make that much of a differnce.... i am sure u know more overall... so yeah.. btw r u KR? the one who sent meeh the email? i am a lil ocnfused..someone realli nice sent meeh an email replying to a quesiton i asked.... but he didnt put his username..
I'm quite happy helping, after the HSC I hope to organise my notes into being a bit more structured, this year there all over the place, hehe
, but to answer you question about KR I didn't send an e-mail to you without a user name, so It wouldn't be me.
truly-in-bliss
my love is like woah!
- Joined
- Jun 3, 2003
- Messages
- 2,995
- Location
- Strathfield, Sydney Gender: Female
- Gender
- Female
- HSC
- 2003
coolies, i think i have figured out who it is though, dong worry, and KR if ur reading this, thankz heapz.
And because I love you guys so much... Here's more qantas stuff
Employment Relations
Use CT, competitive tendering to get employees to change
Introduced performance standards so employees knew what was expected of them
Customer relation program was a way to establish a new corporate culture for the merged entity
Strong, the CEO at the time, wanted to give the people ownership, control and initiative, so the customer service was a self sustaining momentum.
Cost containment and good customer service went hand and hand. I.e. it saves money
Qantas put staff in face to face contact with customers over a meal or trough its priority one program. They found that feedback the staff heard from the customers themselves, resulted in them being more likely to accept it.
Importance on good customer service was paramount for maintaining competition.
Staff were checked for their performance against established Key Performance indicators in order so they could see how they were going.
Its resulted in productivity increasing and complementary letters risen sharply which motivates them from the positive feedback.
Resulted in changing 2000 managed employees that could make decisions for customers on the spot.
CT resulted in them being have an increased level of trust and ownership.
Enterprise agreements to create greater labour flexibility
Offered profit sharing scheme with employees every time Qantas meet its profit target
Employment Relations
Use CT, competitive tendering to get employees to change
Introduced performance standards so employees knew what was expected of them
Customer relation program was a way to establish a new corporate culture for the merged entity
Strong, the CEO at the time, wanted to give the people ownership, control and initiative, so the customer service was a self sustaining momentum.
Cost containment and good customer service went hand and hand. I.e. it saves money
Qantas put staff in face to face contact with customers over a meal or trough its priority one program. They found that feedback the staff heard from the customers themselves, resulted in them being more likely to accept it.
Importance on good customer service was paramount for maintaining competition.
Staff were checked for their performance against established Key Performance indicators in order so they could see how they were going.
Its resulted in productivity increasing and complementary letters risen sharply which motivates them from the positive feedback.
Resulted in changing 2000 managed employees that could make decisions for customers on the spot.
CT resulted in them being have an increased level of trust and ownership.
Enterprise agreements to create greater labour flexibility
Offered profit sharing scheme with employees every time Qantas meet its profit target
Financial Management
Cost reductions
o Downsizing
o Lobbying government for protection
o Relocation of planes from international to expanding domestic market
o Consideration of selling catering operations and of sale and lease back of terminals
Floating parts of its holiday wing, Qantas holidays
Strategies including segmenting flying markets
Qantas to raise 800million is equity financing to fund fleet expansion
Much of debt is sourced overseas through US dollar leases
Uses currency swaps and revenue hedge contracts
Uses internal and external funds
Debt to equity 49:51 in 2002
Sales increased by 11% in 2002
Liquidity is low, but so is other carries 0:47 : 1
Gearing rose from 66% in 199 to 113% in 2001, to 92% in 2002
Sale and lease back of terminals to free up capital
Purchasing of cheap aircraft from fire sales such as when Ansett assets were sold.
Cost reductions
o Downsizing
o Lobbying government for protection
o Relocation of planes from international to expanding domestic market
o Consideration of selling catering operations and of sale and lease back of terminals
Floating parts of its holiday wing, Qantas holidays
Strategies including segmenting flying markets
Qantas to raise 800million is equity financing to fund fleet expansion
Much of debt is sourced overseas through US dollar leases
Uses currency swaps and revenue hedge contracts
Uses internal and external funds
Debt to equity 49:51 in 2002
Sales increased by 11% in 2002
Liquidity is low, but so is other carries 0:47 : 1
Gearing rose from 66% in 199 to 113% in 2001, to 92% in 2002
Sale and lease back of terminals to free up capital
Purchasing of cheap aircraft from fire sales such as when Ansett assets were sold.
Management and Change
Was a government run business up to 1995
Privatized in 1995 which resulted in the company having to adopt sound management practices, change its inefficient culture and overcome internal and external influences.
Had to cope with various external events such as SARS, war with Iraq, Ansett levy, Virgin
Qantas kangaroo logo represents a proud history focused on reliability, engineering excellence and customer service.
Under govt ownership was a classic/scientific management structure
Seen as a job for life, not profit motivated
Changed management practices were done to make it more competitive, efficient and profitable.
These included:-
o Flattened management structure
o Increased flexibility and communication
o Participative approach to change and employment relations
o Eradication of inefficient work practices
o Placement of executives on performance contracts
o Introduction of new technology
Change been reinforced and constantly revaluated and improved
CEO forfeited bonus in sympathy of workers having to accept 18month wage freeze
Qantas had necessary resources to implement the change and a clear vision for change was identified and clearly communicated by senior management and staff.
Employees given chance to start the changes immediately
Structural responses to change :-
o Outsourcing Maintenance to Thailand
o Alliances
o Joint operations (Qantas and British Airways)
o Budget airline
People were sceptical of change
Thought it was going to cost too much. I.e. New aircraft and re-training of employees, due to technology changes
Inertia of managers and owners because of a loss of 600 jobs.
Loss of career prospects for employees, - loss of job for life and long established perks
Change was successful in Qantas being one of the top airlines of the world
Change was effective:-
Pressure to change
Vision was identified
Resources made available
Change was reinforced
Was a government run business up to 1995
Privatized in 1995 which resulted in the company having to adopt sound management practices, change its inefficient culture and overcome internal and external influences.
Had to cope with various external events such as SARS, war with Iraq, Ansett levy, Virgin
Qantas kangaroo logo represents a proud history focused on reliability, engineering excellence and customer service.
Under govt ownership was a classic/scientific management structure
Seen as a job for life, not profit motivated
Changed management practices were done to make it more competitive, efficient and profitable.
These included:-
o Flattened management structure
o Increased flexibility and communication
o Participative approach to change and employment relations
o Eradication of inefficient work practices
o Placement of executives on performance contracts
o Introduction of new technology
Change been reinforced and constantly revaluated and improved
CEO forfeited bonus in sympathy of workers having to accept 18month wage freeze
Qantas had necessary resources to implement the change and a clear vision for change was identified and clearly communicated by senior management and staff.
Employees given chance to start the changes immediately
Structural responses to change :-
o Outsourcing Maintenance to Thailand
o Alliances
o Joint operations (Qantas and British Airways)
o Budget airline
People were sceptical of change
Thought it was going to cost too much. I.e. New aircraft and re-training of employees, due to technology changes
Inertia of managers and owners because of a loss of 600 jobs.
Loss of career prospects for employees, - loss of job for life and long established perks
Change was successful in Qantas being one of the top airlines of the world
Change was effective:-
Pressure to change
Vision was identified
Resources made available
Change was reinforced
emybemy
New Member
thankyou very very much chris
sneaky pete
Member
thats a really nice condensed case study
im not doing qantas but yeah, its a nice summary
im not doing qantas but yeah, its a nice summary