Topic: The Qantas Group in the global and domestic airline industry in late 2012
Order Description
Individual report (30%):
Your individual report is on the firm Qantas. You are recommended to read the case study on this company in your prescribed textbook (pp. 442-448) entitled ‘The Qantas Group in the global and domestic airline industry in late 2012.’ Besides this document, you must also do some additional research about this company by consulting the Qantas official website, newspapers, business magazines, and the related websites. You should follow the 13 steps given in the “Introduction: A summary of the case analysis process” written by Dallas Hanson (see pp. 416 – 418). In step 13, in particular, recommend a set of strategies for the company to take advantage of its opportunities and to handle the threats. Your recommendations must be at all the three levels, i.e., business level, corporate level, and international level. Make sure the strategies chosen fit in with your analysis and conclusions.
Individual business report:
Your business report follows all the 13 steps of the case analysis process mentioned above. The word length is 2500 words that include in-text citations but excludes your reference list.
Criteria for marking:
Ø Analysis
Ø Follow through all the steps for case analysis process
Ø Integration
Ø Logic and robustness of your recommendations to the firm on the business level, corporate level, and international level strategies.
Ø Ability to access, manage, and evaluate data and information
Ø Critical thinking, diagnosis, and decision making
Ø Ability to write the business report comprehensively
Ø Referencing
Dear BUMGT3702 students,
Students are required to read the QANTAS case study on pp. 442-448 of their prescribed textbook entitled “The QANTASD Group in the global and domesitc airline industry in late 2012).”
Students are also required to access and use Dallas Hanson 13 steps Introduction: A summary of the case analysis process within their prescribed textbook on pp. 416-418.
The Individual Report must follow all 13 steps of the case analysis mentioned by Dalls Hanson and in sequential order.
This report is 2500 words in length excluding the Bibliography.
All analysis needs to be supported with reference to expert opinion.
Recomendations written must cover the business level, corproate level and international level.
Bibliography (not included in word count)
(needs to cite a minimum of ten references in alphabeitcal order of author’s surname)
Student who submit late will incur a late penalty of 10% per day, so please do note be late in submitting your assignment.
Individual Business Report Format
2500 Word Report – Worth 30 Marks
Step One
Identify and document what industry it is and the timeframe of the strategic analysis to be undertaken
Step Two
Conduct a general environmental analysis of the Australian and international aviation sector including:
1. Economic factors – domestic and international
2. Physical factor – airplanes and airports both domestically and internationally that QANTAS own and have access to?
3. Sociocultural – what cultural issues is QANTAS facing in entering into the Asian region.?
4-5. Political and legal – the issues of obtaining landing rights in foreign countries. What about foreign majority ownership of QANTAS to attract foreign investment? Will it be allowed by the Federal government? If yes, why? If no, why not?
6. Demographics – what is the age and income demographic of customers who use QANTAS International and Jetstar in Australia?
7. Global – what is QANTAS global strategy for expansion?
Potential sources include:
• QANTAS annual report 2012. 2013 and 2014
• Economic outlook for Australia and Asia in 2012, 2013 and 2014
• OECD Report
• International Monetary Fund Report 2012-2014
Step Three
Undertake an industry analysis of the five forces impacting QANTAS domestically and internationally, they are:
1. Threat of new entrants (10 in the domestic Austrlian aviation sector, (2) internationally and in Asia.
2. Bargaining power of suppliers of (new aircraft, catering, unions)
3. Bargaining power of buyers of new aircraft and negotiating new Enterprise Bargaining Agreements with the unions.
4. Threat of substitute products
5. Rivalry among competing firms in the domestic and international aviation sector.
(Please remember you are not to define these concepts but apply them to the aviation sector that QANTAS and Jetstar operate in 2012 and beyond).
Step Four
Conduct a competitive environment analysis both domestically and internationally.
Students are required to ask and respond to the following questions, such as:
Domestic competitive environmental analysis
1. Is there a strategic set of competitors that Jetstar needs to compete against within Australia in 2012 and onwards? If yes who are within the Australia aviation sector?
2. How do JetStar’s Australian domestic aviation competitors seek to achieve a competitive advantage over its rival Jetstar in 2012 and onwards?
3. What are the core capabilities of JetStar’s domestic aviation competitors in 2012 and onwards?
4. What business strategy do JetStar competitors in 2012 and onward implement in the Australian domestic aviation sector?
5. What potential threats do JetStar competitors represent in the Australian domestic aviation sector from 2012 onwards?
International competitive environmental analysis
6. Is there a strategic set of competitors that QANTAS International needs to compete against in 2012 and onwards? If yes, who are QANTAS key international competitors within the international aviation sector?
7. How do QANTAS International aviation competitors seek to achieve a competitive advantage over QANTAS International in 2012 and onwards?
8. What are the core capabilities of QANTAS International aviation competitors in 2012 and onwards?
9. What business strategy do QANTAS International competitors currently implement in 2012 and onwards to achieve a competitive advantage?
10. What potential threats do QANTAS International competitors represent in the International aviation sector from 2012 onwards?
Step Five
Conduct an Opportunities and Threat analysis for JetStar in the Australian domestic aviation sector
Conduct a second opportunities and threat analysis for QANTAS International with the global aviation sector
Please Note:
In undertaking an opportunities and threat analysis students are required to complete two tables.
One table will focus on the domestic aviation sector and the other table will focus on the international aviation sector.
Step Six
Internal analysis of tangible and intangible resources
Tangible resources include terminal access, number of aircraft, number of routes domestically and internationally
Intangible resources include customer loyalty, perception of customer service, brand identification, brand reputation both domestically and internationally.
Student should undertake an financial analysis of QANTAS financial state as of 2012 referring to the QWANTAS 2012 annual report;
Calculations to be performed should include:
• current liquidity ratio
• Debt to equity ratio
• annual profit and loss statement
After doing some research on QANTAS you need to:
• forecast suggest how QANTAS cashflow and working capital can be maintained
• maintain adequate liquid assets to meet maturing financial obligations
• maintain a reasonable ration to debt to equity funding and
• generate acceptable returns on funds invested in the business.
Step Seven
Make a list of capabilities of what Jetstar and QANTAS international can do that achieves competitive advantage of key rivals.
Step Eight
Undertake a core competency analysis for JetStar domestically as well as QANTAS Internationally
Students are to conduct a core competency analysis by identifying capabilities that are strengths and hard to imitate and rare. See below for an example of what to do.
Heading: Core competency analysis for JetStar in the Australian domestic aviation sector
List 10 competencies here Rare set of competencies Hard and costly to imitate High impact high urgency core competencies Competencies sustain business competitive advantage of competitors
Step Nine
Conduct a value chain analysis (refer to chapter 3 of your textbook).
This section will enable students to identify external trends in both the domestic and international market that JetStar and QANTAS are operating in respectively.
Step Ten
Students are required to undertake weaknesses analysis of both JetStar and QANTAS International
For example:
1. Are fuel costs too expensive in Australia and on international routes?
2. Are salaries too expensive compared to competitors domestically and internationally?
3. Do unions inflate the wages of QANTAS and Jetstar staff compare to competitors?
4. What routes are commercially non viable domestically and internationally?
5. Does JetStar and/or QANTAS face excess investment in aircraft purchases in the foreseeable future?
6. Does the 51% Australian ownership laws placed on QANTAS limit its competitiveness and long term financial sustainability? If yes, why? If no, why not?
7. Should QANTAS divest itself of non core business operations? If yes, which products or services both domestically and internationally?
8. Does QANTAS require new leadership and directions to face the challenge confronting JetStar and QANTAS in 2012 and onwards?
9. Is the Board of QANTAS innovative and creative or are new ideas and strategic direction required to re-invigorate QANTAS business strategic direction?
Please note, that the above questions are just some questions that you may wish to consider in completing the weakness analysis section of this report.
Step Eleven
Resulting from your SWOT analysis list down five to seven key success factors that you suggest JetStar implements to maintain profitability and long term sustainable competiveness over rival is the Australian domestic aviation sector.
Secondly, list down five to seven success factors that QANTAS International needs to implement to sustain profitability and long term sustainable competitive advantage over international rivals in the aviation sector.
Remember each statement needs to be measurable, actionable and by when.
Step Twelve
Firstly document JetStar current 2012 high impact high urgency business strategies in order to achieve a competitive advantage over key Australian domestic aviation competitors.
Secondly, document QANTAS International current 2012 high impact high urgency business strategies in order to achieve a competitive advantage over its international aviation competitors.
Step Thirteen
Document QANTAS current business strategies to take advantage of opportunities, and minimise or eliminate threats within the Austrlian domestic and international aviation sector.
Develop a list of alternative strategies and use the external and internal analysis to assess their potential outcome in achieving set business objectives within a given timeframe.
For the QANTAS case study you will need to develop strategies that meet one or more of the following:
• Business level strategies
• Domestic level strategies (for JetStar)
• International level strategies (for QANTAS International)
Please note that your strategy will consist of:
• Objectives to be achieved (must be measurable and set in a timeframe)
• Actions to be taken to achieve the stated objective (Often one objective needs 3 to 6 action statement to be documented)
• By whom
• By when and
• Estimated cost
Please refer to next page for an example of a strategic action plan
An Example Of A Strategic Business Action Plan
Business Objective Action to be taken By Whom By When Estimated Cost
For Example
It is the objective of Tiger airlines within Australia to provide consistent and reliable customer service to its customers in Australia Tiger airline customer service staff will be trained to be friendly and meet each customer with a smile. Customer service staff Induction training $300 per customer service staff
Tiger airline customer service staff and management will be helpful to each and every customer Management and customer service staff Every day by
management,
supervisor and
customer service staff
Tiger airline staff will keep customers informed of changing arrival and departing times By customer service staff and management At least one to two hours prior to arrival or departure time
Tiger airline staff will inform customers ten and five minutes prior to the cut of time that passengers need to come to the front of the counter for boarding Customer service staff Ten minutes and 5 minutes prior to the cut off time for boarding.
Tiger airline will listen to customer complaints and take immediate action. Customer service staff and management Whenever a customer has a compliant or a query.
Tiger airline will have a compliant telephone line that will be serviced by a person and the complaint will be taken down, confirmed and actioned with 24 hours of the compliant being registered. Tiger management to implement.
Compliant telephone to be manned by a person 24 hours a day 7 days a week. Ongoing 24 hours a day 7 days a week manned by a person to listen to and tae
JetStar Strategic Business Action Plan Template
Business Objective Action to be taken By Whom By When Estimated Cost
QANTA International Strategic Business Action Plan Template
Business Objective Action to be taken By Whom By When Estimated Cost
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