Qantas- Change Management – Flashcards

Responses to pressure of globalization: August 17 ,2011 -domestic move down-market in response to competitors Virgin and Tiger -major financial pressure on international airlines -asia the growth area

People- employment of staff with different characteristics eg. Jetstar staff Policies- Qantas moving away from all work being done in Australia by Australians Culture- move from a GBE with a government department culture to a corporate profit maximizing culture

Customers- larger number of cheap no-frills customers; more leisure travel Competitors- two domestic low-frills competitor; changing international scene, Emirates, US Airlines Suppliers- new planes high tech and greater efficiency; higher fuel costs

Society attitudes- concern about pollution/carbon; less trust in larger airlines Technology- online booking, self check-in,; more efficient planes Education- customers and employers understand the changing force of air travel Economic- financial crisis leads to less travel and preference for no-frills travel Legal/Political- ownership restrictions; carbon pricing; safety concerns

-Competitors -Customer demand -rising costs -low productivity (per $)

-Employees/Unions -costs of changing -competitors- international and domestic -organizational inertia -Legislation

-"To do nothing, or tinker around the edges, would only guarantee the end of Qantas International in our home Australian market"- Chief executive Alan Joyce said to news

-Alan Joyce revitalizes the management team since he became CEO in 2008 -increased focus on communication - build on "pride and passion", with more engagement with employees

-AIM: return Qantas international to profitability -cut about 1000 jobs from its 36,000 strong workforce (five year strategic plan) -closer alliances with other airlines such as British Airways -Set up two new Asia-focused airlines: a premium focused airline based in Singapore or Kuala Lumpur, and budget Japanese airline -a $9 billion fleet upgrade- "State of the art", -Delay of purchasing larger aircraft for six years

-simultaneous presentations to investors, employees and government -Alan Joyce conducts multiple interviews -more detail two weeks after the major announcement

-Union resistance to redundancies in Australia and sending Australian jobs overseas -Politicians concerned about Australian jobs being set overseas

-Best domestic Airline (2010) -Skytrax World Airline Awards - Qantas has been listed in the top ten leading airlines for seven consecutive years. -Other Skytrax awards - Best Airline Australasia (2005, 2006, 2009), Best Regional Airline Australasia (2006, 2008, 2009), Best Premium Economy (2010), Best Airline Seat, Premium Economy (2010)

Qantas has built on previous changes: -purchase of domestic competitors: Australian airlines, Ansett, Impulse -setting up Jetstar in response to the Virgin low-cost model -increasingly using Asia as a hub for international operations including maintenance

-program of building 'engagement among staff -building an expectation of ongoing change -selling the message of 'change' being the only road to survival

-communication -participation -support -negotiation

-Manipulation- is Qantas Internationals loss genuine -Threat- implied that if change doesn't occur Qantas will die

-decisiveness -communication -accountability -teamwork -flexibility -adaptability

Strategy - flexibility; Asian focus; smaller aircraft; Structure - new divisions: Jetstar & Asian divisions Systems - online booking; Staff - redundancies; new off-shore employees; Style - Move from Geoff Dixon (autocratic) to Alan Joyce (persuasive/consultative) Shared values - Move from 'government/public service' to 'corporate' values Skills - Greater emphasis on two way communication and EQ to build employee engagement

Move to more of the smaller A320 aircraft (110) Delay of the larger A380 aircraft (6) Most new A320 aircraft will be the new more fuel efficient design (around 80 A320neo) Continue some maintenance in South East Asia Establish a low cost airline in Japan Establish another new airline in Asia

Recruitment and selection outside of Australia Concerns about training - especially on low-cost airlines Retrenchment of staff - another 1000 within 5 years Resistance from Unions about redundancies & offshoring jobs= industrial dispute

Safety (best safety record) Reduce carbon emissions Ethical employee redundancies Support for the arts Travel for people in need e.g. medical flights