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QANTAS and the Middle Eastern success model

pleeeeeeeeeeeeeeeeeease important notice i need this assignmnet to be done by References/Bibliography
Academy of Management Style
Based on the Style guide for authors/Academy of Management Journal

this is the case study

QANTAS and the Middle Eastern success model

Background
Air Australia (AA) “ previously known as Strategic Airline – is 100% Australian owned company.
It offers scheduled passengers services to international leisure destinations; Bali, Phuket and
Honolulu as well as to domestic destinations initially including Melbourne, Brisbane, Perth, Port
Hedland and Derby. On Friday 17th of February , just a day after Qantas announced 500
job cuts, news broke that the Brisbane-based budget airline, had entered into voluntary
administration after just four months of operation. The appointed Administrator has suspended
Air Australia s ticket sales and called for immediate expressions of interest in the sale of the
business.
Australian airlines are hardly the only ones facing challenges around the world. The recent
collapses of long-established carriers such as the 66-year old Hungarian carrier Malev, the 24-
year old Spain s Spanair, and venerable, 78-year old American Airlines underscore the grim
financial reality the industry faces. In India, Kingfisher Airlines (India s third-largest airline) has
not been profitable for a single quarter since it started operations in 2005, reporting a $90
million loss in the December 2011 quarter.
The Aviation Industry
The aviation industry is notoriously difficult with large capital and operating costs, high fuel
costs and faces increasing competition at a global scale. In Australia, it is also particularly
exposed to the rising dollar, despite having the world s fourth busiest air route (Sydney-
Melbourne – http://www.ausbt.com.au/sydney-melbourne-is-world-s-fourth-busiest-air-route).
According the International Air Transport Association (IATA), the global aviation industry has
finished in the red for six of the past nine years. Following the GFC and record-high oil prices in
2008, it showed a return of -4.6% (IATA 2011). Given the weak global economy, IATA is
forecasting a return of -1.4% for . To sum it up, in the past nine years, airlines as a whole
suffered an aggregate loss of US$47.9 billion.
The Middle Eastern success model
Despite the worrying numbers worldwide, Middle Eastern airlines seem to have found the
winning formula. They have experienced unprecedented growth at an annual rate of nearly 20%
over the past few years. Dubai airport is rapidly closing the gap on London s Heathrow in its
number of passengers and its new airport, planned to open in the early 2020s, will make Dubai
the biggest airport in the world.
The success of the airlines in the UAE is simply staggering. Since its second year of operation,
Emirates (wholly owned by Dubai s sovereign-wealth fund) has made a profit every year while
doubling in size every three to four years. It recently placed a huge order for 50 Boeing 777 jets.
Etihad (the Abu Dhabi airline set up by royal decree in 2003) has shown its first sign of profit this
year, growing its revenue by 36% in the past 12-month period. Last December, it put an order
for 12 Boeing jets with options for 25 787 Dreamliner aircraft.
Page 16 of 31 MGT3SMG Strategic Management / Bundoora (Melbourne) Campus
Faculty of Business, Economics & Law, La Trobe University
The success of airlines from the Gulf is partly due to their geographical location, becoming a hub
between West and East. However, it s not the only reason. Emirates (which basically provide the
blueprint for Qatar Airways and Etihad) had early support from Dubai which encouraged other
countries to open routes to the Gulf. It reviewed its immigration laws making it easier for
visitors to pass through. Its pilots and engineers are paid at globally competitive rates but most
cabin crew and other staff are recruited on low pay.

Your Written Case Study Assignment should address the entire questions below;
What approach should be employed by QANTAS in regaining strategic competitiveness in light
of competition from airlines from Persian Gulf?
Use theoretical models and concepts covered in the course, and in Chapters 1-4 (Hanson et al,
2011) to answer this general question, basing your discussion on the questions below:
(a) What is strategic management and strategic competitiveness? How have the characteristics
of the 21st century competitive landscape influenced the strategic competitiveness of firms?
Discuss these, and the effect they may have had on QANTAS.
(b) What role does the external environment (EE) have in firm performance, and which elements
of the EE have been of crucial importance for QANTAS? Discuss their influence.
(c) What role does the internal environment (IE) have in firm performance, and which elements
of the IE have been of crucial importance for QANTAS? Discuss their influence.
(d) How can firms use business level strategy (BLS) to achieve competitiveness? Discuss the BLS
used by QANTAS to reach the position they are in today and how it remains relevant for the
future.
Structure: Use the following headings.
1. Introduction
2. Strategic management and strategic competitiveness
3. External Environment
4. Internal Environment
5. Business level Strategies
6. Conclusion
7. References

please make sure that you read that!!!!!!!!!
Individual Assignment Guidelines:
This individual assignment should be no longer than 1000 words. Marks will be awarded for
form (spelling, grammar, format and neat presentation) as well as content (appropriate use of
theory in the discussion of strategy and the appropriateness and quality of the discussion).
Please note that all work not your own (whether directly quoted or paraphrased) must be
referenced and listed in the reference list. There are at least two reasons for this “ it is
plagiarism if you do not reference and referencing lends credibility to your arguments. It is
critical that your work is grounded in strategic management theory.

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