Topic > Qantas Analysis - 819

Qantas is a commercial airline, Australia's largest airline and one of the oldest airlines in the world as they pride themselves on the fact that "staff are the most important part of their business" . In today's economy, the commercial airline service industry is extremely competitive, high-tech and safety-sensitive, as we can see with many new low-cost airlines coming up and constant promotions from various airlines, which have had a huge impact on Qantas. Due to these situations, Qantas has lost a significant amount of business, resulting in many job losses and lost profits. To reduce losses, Qantas considered downsizing to strengthen its business. Tony Sheldon, national secretary of the Transport Workers Union, had suggested that 'at least' 3000 jobs would be cut after reading the Qantas reports (Hall, 2014). Internal management and marketing strategies need to be implemented early for the company to get back on its feet. In the airline industry, machines and products are not the central arena of an organization, but people, employees and customers are. The airline industry is no longer a traditional product-focused industrial model of business structures and industrial relations, but rather a customer service-focused environment, so HRM expertise is essential to be the driving force of internal marketing strategies to build loyalty the customers. The human resources department is crucial in establishing strategies for organizations as it aligns policies, procedures and activities with the strategic organizational development imperatives of the organization as suggested by Appelbaum (2004). Consequently, it is imperative that the Qantas HR department strategises in order… middle of paper… market share and, above all, loss of life (Appelbaum, 2004). To achieve Qantas' goals and objectives as an airline, which include opening doors to the world, growing with Asia, building a strong and profitable business and being the best solution for global travellers, strategic management must be implemented. Strategic management is defined by Thompson and Strickland as “the process by which managers establish the long-term direction of an organization, set specific performance objectives, develop strategies to achieve these objectives in light of all internal and external circumstances relevant and are committed to carrying out the chosen objectives". action plans” (Stone, 2014). Qantas must gain a competitive advantage through precise and concise strategic management in order to have an edge and manage environmental influences over its competitors.