For the purpose of this assignment, you need to identify a company (Australian Company only) in any industry of your choice and examine the structure of their operation and their strategies. The...

Qantas Airlines
Evaluation of Company and their strategies
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1. Introduction – Industry and your company
The Australian Airline Industry serves more than 20 million people and has been growing rapidly defying all previous trends. The industry was not much affected by the global financial crisis as the airlines continued to make profit. The industry has seen many players coming in to capture the market share with some of the airlines like Qantas has been able to maintain their hold. The low cost airlines like Virgin Australia that have been trying to shake the old players have played a big role in reducing the profits of the established players but the market is still in good position to continue making its profit. As forecasted by International Air Transport Association, the previous calendar year 2017 saw a profit of US $34 billion which is also an improvement over the old figures. (Australian Aviation,2018). The positive trend has been observed from quite some time while 2018 will become consecutive 4th year of making sustainable profits with 9.4% of return on capital which shows the prospects of growth of this industry. The reason can also be attributed to the recovering economy as more people are travelling and demand for air cargo has been booming which is again due to increase demand of inventory to restock. Other reason for rising profitability has been increase in number of routes of airlines.
Some challenges that have been rising for profitability are increase in the fuel cost by 1.7%, increase in the wages of staff and rise in prices of jet oil. But overall the good news is the players are able to pay their debt and reduce the interest payments.
Qantas Airways is the third oldest airlines in the world and the company is on verge of completing their 100 years by 2020. This makes the upcoming facts very obvious like being the largest airline by fleet size, international flights in Australia. The airlines is an Australian public company which majorly operates in Australia, New Zealand and part of Asia. The presence is extended till UK and USA. The company is an employer of more than 35,000 people and holds a market share of around 25% in airlines market. The company got affected by global economic crisis temporarily but got recovered very soon by maintaining its quality service. The Airline owns 2 major
ands i.e. Qantas and Jetstar. The latter was launches in 2004 for offering low cost services to the customers. The major part of business comes from the domestic market while internationally flying accounts for around 20-25% of revenue. The domestic sales were as much as 70% of the total sale and the dominance is on the rise. There has been slight decline in the market share since the low cost airlines started increasing in the market. The launch of Jetstar also led to cannibalization as industry trend slowly moved towards low-cost airlines.
2. Company’s Structure
The analysis will understand how Qantas has allocated the responsibilities, power and roles within the organization. The common used forms of organization structure that most companies follow are centralized and decentralized structure.
The company owns a diverse portfolio of airlines related business. The various Airlines that operates are Jetstar, Jetconnect (operations in New Zealand), Jets Transport Express, Network Aviation, Qantas International, Qantas Domestic, QantasLink and Qantas Freight which serves road-based transportation to Express Freight ca
iers.
These subsidiaries mentioned above are headed by different executives which are responsible for roles and responsibilities used under the area of their technical expertise. The company has kept their focus on giving them responsibilities which align with the company goals and objectives. The Chief executive officer manages the 2 vertical that company owns i.e. Qantas Domestic and Qantas International. These are independent with each other but the operations are looked over by the head of the company. Other divisions include the commercial and operation vertical which help in managing the operations smoothly. The focus behind using this type of structure...