Solution
Tp Academic answered on
Aug 31 2020
INTERNATIONAL BUSINESS
QANTAS AIRLINE
Executive Summary
After getting success in domestic level, the organisations make vision to expand business in international market. In case of Qantas, this airline is one of the largest in both domestic and global market. The international business of Qantas Airlines has been analysed in this report. Porter’s five force analysis is done in order to understand effects of macro environment on business of Qantas. In addition, a micro environment analysis is also done in order to describe who are customers, suppliers and competitors of Qantas. The cu
ent industry trend is also analysed in this report. The geopolitical risks for Qantas have been described in this report. The opportunities for this Airlie are pointed out. Recommendations are given for Qantas and implementing those recommended strategies, Qantas can ga
opportunities easily.
Table of Contents
Introduction 3
Background of the organization 3
Macro environment analysis 3
Micro environment analysis 6
Geopolitical risks for Qantas 7
Opportunities 8
Conclusion 9
Recommendation 9
References 10
Introduction
This is a strategic report on international business of an organization. Qantas, flag ca
ier of Australia, is the chosen organization for this report. The purpose of this report is to analyse global business opportunities of this airline. A
ief overview of this company is given at the starting of the repost. In addition, macro environment analysis is done in both European and Asian market. The micro environmental analysis is also done in order to identify and analyse industry trend, customers, competitors, suppliers and so on other things. The Geopolitical risks that this airline has been experiencing and will experience in future are recognized and analysed in this report. In addition, this report is also highlighted opportunities for Qantas in global market. At the end, recommendations are given in order state the strategy that may help this company to resolve global business issues.
Background of the organization
Qantas, founded in 1920 and it became one of the largest domestic and international airlines of Australia. This airline has achieved the reputation as safe, full of operational reliable and appropriate engineering. The maintenance of consumer service is also an important factor that enlisted this company in world largest airlines list. Cu
ent workforce strength of this company is 30000 employees approximate and 93% approximate employees are from Australia only. Remaining 7% approximately are migrated people, who are from Iraq, Syria, Myanmar, and so on others. The
ands of this company provide service in domestic, international and regional level. Annual revenue of the company was A$ 16.1 billion in 2017. Total assets of Qantas are A$ 17.2 billion approximately. The vision of this company is “to provide the best quality service and achieve top position in global aviation industry”. The mission of this airline is “to develop quality of service, customer service and increase experience in order to satisfy customers” (Qantas.com, 2018).
Macro environment analysis
Both internal and external environment have influence on business. In different market, the impacts of environmental factors are different. As per the view of Jenkins and Williamson (2015, p.12), the global business organizations experience different effects of macro environmental factors. In case of aviation industry, the impacts of these macro environmental factors are following:
Porter’s five force analysis is done for Qantas in both European and Asian market. The specific markets are UK market of Europe and Japan market of Asia.
Figure 1: Porter’s Five Force Analysis
(Source: Created by author)
Power of customers
Buyers or customers are one of the core stakeholders of business. The sales percentage of product or service is dependent on buying decisions of consumers (Lasse
e, 2017, p.56). Qantas is one of the leading
ands and provide quality and luxurious services, so the target market of this company includes customers, who are from high financial status (Qantas.com, 2018). The market of UK and Japan is consisted of those customers, who have high financial status. In both market the demand of luxury flight service is too high. In this case it can be said that in both market the bargaining power of customers are medium. It is because his organization already achieved reputation of safe and luxurious service.
Power of suppliers
The suppliers of products or services are important part of any business and its supply chain. According to the opinion of Frynas and Mellahi (2015, p.91), the service or product quality influence on demand of it in market. In UK, there is...