Every organization operates in a certain, specific to it, external environment. For this reason each company is exposed to certain risks and influences over which it has no control. The only solution in such a situation is to respond to the influence in an adequate and timely manner…
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Since an organization, being interrelated and interdependent with its environment, has to be continuously adjusting to new circumstances, it makes sense to apply the strategic contingencies approach to managing external changes that affect the company’s operations.
This is exactly what Group of Qantas Airways Limited companies is doing. Qantas has faces a number of strategic contingencies that affected strategic choices and HR planning of the company. therefore, the purpose of this paper is to determine the strategic contingencies that impact Qantas’ strategic decisions, and examine how such decisions affect HR planning. In addition, recommendations regarding commitment of employees and HR planning will be given on the basis of strategic contingencies analysis.
Qantas Airways was founded in 1920 in Queensland. Since then the company has become, according to its website, world’s leading long distance airline business. Group of Qantas Airways Limited companies consists of Qantas Airways and 7 subsidiary companies. It is a recognized brand in Australia, and is already operating some subsidiary businesses, among which are Jetstar, Qantas Holidays and Q Catering (Our Company 2011). Though the company is quite large and operates internationally, it has been heavily influenced by the recent financial crisis, natural disasters, increases in prices for fuel and complex negotiations with labour unions. As a result, prices for Qantas shares dropped by one third by June 2011 and the company has decided to cut jobs in order to increase profitability. This strategic decision was taken under the influence of a number of the strategic contingencies that affect business operations of Qantas. Strategic contingencies Definitely, no organization exists in vacuum. On the contrary, each one is a part of larger systems, such as financial, social or legal, and operates in certain specific environments. Therefore, an organization, being an integral part of its external environment, is influenced by it, whether such influence is predictable or not. Similarly, an organization has some influence on its external environment, since both are interrelated and, in some cases, even interdependent systems. For this reason Lawrence and Lorch (1967) introduced using systems approach to managing organizations and built a foundation for the contingency theory. The core essence of the contingency theory is that there exists no ideal prescribed way to organize a company. instead, it should be organized in accordance to the nature of its operations and environment (Walker 2007 , 40). So, the contingency approach connects HR management practices with organizational performance on the basis of the idea that if HR policies and practices are more flexible and responsive to the external environment and immediate circumstances, the overall organizational performance improves (Guest 1997, 267). Therefore, effective HR policies should be based on the qualities of the particular environment in relation to company’s function, and the extent to which the environment of the company is uncertain. At the same time, it should be remembered that no theory is perfect. Regarding the contingency approach, Child (1977, 170) argues that it does not take into account all of the difficulties relation to organizational design that a company may face under the influence of multiple external contingencies. Therefore, it might be that a combination of several
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This paper analyzes the proposed recommendations for Qantas airlines and provides alternative strategy identification and discussion considering gap analysis and changes in the current marketing strategy. The author of this paper presents implementation of each strategy, its expected results and solution.
As the report stresses since each company operates in a unique environment and has unique characteristics, each one’s situation is different. Nevertheless, it is obvious that the general principle of adjusting to the external environment should be followed in order for the company to remain successful.
According to the paper the major problem of the report is that of competitive rivalry in the Southeast region where established full service players such as Singapore Airlines and Cathay Pacific continue to have loyal customers. Qantas should focus on new product development, look for newer destination with fewer carriers and attract new customer base. Qantas should use its brand equity and develop new customer base and introduce new destinations.
The project seeks to present the present situation at Qantas Airways which Australia’s flag carrier and regarded as one of the most well known airlines in the world. The company’s maintenance and repair costs account for one of the most expensive in the world; however, they are the least efficient at the same time.
Qantas has a strong governance structure and board which includes individuals with a wide range of experiences. The airline also operates a range of businesses that include baggage handling, check in and passenger lounges.
dditionally, British Airways maintains a cargo carrying business which provides considerable revenue to the company’s portfolio and profit expectations. Currently, the global economic slowdown is greatly impacting the firm’s ability to remain competitive due to the fact that
The main idea was to identify the cause of the problem. After having detailed survey of its history, a short survey was conducted and based on the data collected problems were analyzed.
Problems that were addressed was relating to the sales of Qantas and the factors that were affecting the strong market giant of Australia's business.
The findings of the study lead to the assumption that the firm has all prospects to overcome these problems but accurate strategic plans are required. One of the most significant characteristics of modern market is the extremely high competition in all industrial sectors. Apart from the competition, the financial and political turbulences occurring within the international market have severely affected the performance of firms in all countries internationally.
best and largest scheduled airline in the UK, which conducts flights to 550 destinations at any time from the variety of the best located airports / About British Airways, 2007/.
The British Airways group has a complex structure, which includes British Airways Plc and numerous