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Qantas- Business management and change
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If change can be defined as ‘any alteration that takes place in the business and work environment than it must be said that, the magnitude of change being experienced in today’s business environment can only be compared with that of the Industrial Revolution in the 18th century. There has been no other industry that has been so extensively affected by the change occurring in everyday business than that of the airline industry. The leading airline operating within the Australian industry is Qantas. Qantas in Brief Aviators Paul McGinnes and Wilmot Hudson Fysh established Qantas, on the 16th of November 1920. The company Name Qantas is derived from Queensland And Northern Territory Aerial Services Ltd. Qantas’ Prime function is the transportation of passengers within an extensive air network, which serves a total of 32 countries worldwide, with 142 destinations (67 Nationally and 75 Globally). Qantas’ subsidiary companies also serve specific markets, which include: Qantas Link Qantas Freight Qantas Holidays Qantas Flight Catering Qantas’ strategic alliance with OneWorld in addition to Codesharing alliances with 18 international airlines allow Qantas to deliver a global service to its’ customers. Qantas is the leading company in the Australian airline industry with a domestic market share of approximately 80%. Nature and Sources Of Change For Qantas Qantas has experienced much change and turbulence in its’ operations over recent years, the major forces driving change and affecting the way in which Qantas operates can be sourced form both external and internal business environments. External Influences The external business environment comprises of the factors and characteristics that are largely outside the direct control of the owners, directors and managers. It is the external business environment is a major source or driver for the change Qantas has recently experienced. There are 6 key external Influences currently impacting on the operations of Qantas: 1. Economic Influences Fluctuations in the level of economic activity occur in all market economies. Economic activity results in a pattern of peaks, troughs, recession and recovery within Australia and throughout the world, which impacts on all business including Qantas. The recent Terrorism attacks on the world, namely September 11, 2001, have had a considerable impact on the international aviation industry. Internationally it has been recorded that major U.S, Japanese and European airlines have been forced to retrench staff and reduce their flying capacity by 20%, and in some cases major American Airlines have declared that daily operations were resulting in a loss of up to $20 million. Europe, South East Asia and Japan have also experienced a downturn of up to 30% in some key routes as a result of the terrorist attacks. Qantas was significantly impacted upon by the downturn in the international aviation industry as a result of 78% of Qantas’s profits being generated on international operations. In the years leading up to the financial year impacted upon by the terrorist attacks of 2001 Qantas were experiencing a healthy increase in profits. In the year following the terrorist attacks Qantas recorded a titanic loss of profits with the profits generated falling from a level of $458.7 million in June 2001, to $203 million in the period between July-June2002.
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