Qantas Airways Business Environment
The micro-environment is a component of the business internal environment thus constitutes factors which influence a firm’s operation from within. On the other hand, the macro-environment is composed of factors that affect a company’s operation from outside its scope. As a result, the business has no direct control of its external environment but rather a strategy for adapting to these conditions in order to remain operational (Roy & Thérin, 2008). Background Information In this report, Qantas Airways has been chosen as the preferred business organization for the discussion. The company is a representation of a successful business strategy and competitiveness both in the domestic and international market. It was also observed that Qantas’ dominance in the international market has greatly reduced.
A combination of these factors have subsequently resulted in the decline of the company’s profitability, and even plunging the firm into a losing streak during the 2011 to 2014 trading period (Lucarelli, 2014). It is stated that over the recent past, international airlines have explored the Asian market while also dominating their regional operations. As a result, it has become very difficult for Qantas Airways to effectively meet its operating costs or even venture into new markets (Whyte, Prideaux & Sakata, 2012). Some of these international companies which remain the biggest threat to Qantas are; Emirates, Chinese Airlines, British Airways and Air Canada. Considering that Qantas is providing highly exclusive services, it was difficult for the company to lower its ticket cost hence causing a loss in customer base and overall financial income.
As a solution to the problem of instantaneous economic fluctuations, Qantas Airways has introduced a new method of operation that will protect the company during low-booking seasons or consequential decline in ticket prices. One such strategy is the introduction of low-cost airlines which are designed to provide basic air travel services without necessarily including luxurious treatments to customers (Prideaux, 2013). Qantas Airlines has also introduced loyalty points and the Qantas club for ensuring that its satisfied customers are retained for future engagements. There are also various subsidiaries which have been introduced to operate in Southeast Asia, New Zealand and Australia hence providing additional income. Additionally, the company showed affection and respect to members of the LGBT society by flying their flag and supporting their mission.
It is believed that these decisions have impacted positively on the firm’s financial performance. Since Qantas Airways is traversing different territories in its flight operations, the company is affected by both political and economic regulations of such nations. The firm is also under regulations of the international business community as well as the relevant aviation organizations. Some of these laws are restrictive in terms of the number of flights per region, size of the fleet and also encompasses hefty taxations or trade quotas resulting from political enmity (De Jonge, 2011). References Babatunde, B. O. , & Adebisi, A. O. Strategic Environmental Scanning and Organization Performance in a Competitive Business Environment. Channel View Publications. Lucarelli, G. The corporate strategy of Qantas Airways. A case study.
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