This report is conducted on the basis of the anticipated implementation of a Strategic Plan of recommendation at Qantas that incorporates the survival of the firm in a competitive market. At Qantas, most of the problems associated with the current strategic plan have been identified through the extract from an article dated in July 2003. Consequently, management at Qantas has accepted the needs to extend strategic analysis and implementation of a new plan of recommendations were welcomed.
In this report, the plan of recommendation involved a series of nine steps in the process of constructing the new Strategic Plan1. The mission statement was firstly formed followed by assessing the firm’s strengths and weaknesses. Opportunities and threats facing the firm were also identified and through this the Key Success Factors of Qantas was derived. Competitor analysis was the next step taken which lead to the creation of company goals and objectives.
By doing so, strategic options were formulated to select the appropriate strategies for the firm’s survival and turn them into action plans for implementation. The Balanced Scorecard approach was chosen as a control to measure performance at the overall organization level which assisted in recognizing the performance of each key strategic area of the business. After conducting this report, it was evidently shown that the need for a continuous Strategic Plan was apparent.
In understanding the importance of survival in a competitive market, the firm must address the needs of a sound strategic management in today’s volatile business environment. Qantas was founded in 1920 in the Queensland outback and was originally registered as Queensland and Northern Territory Aerial Services Limited (QANTAS). It is Australia’s strongest airline company providing travel to passengers and air fright, domestically and internationally.
It has built a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer service. However, at present, Qantas recognized the need for implementing new strategies as profits have been downgraded dramatically due to a variety of problems such as the SARS2 incident, an economic slowdown, the war in Iraq, and industry overcapacity. This has lead to the construction of a new Strategic Plan. Having defined the mission statement, management began with constructing a SWOT analysis of the organisation.
The aim of this SWOT analysis was to identify the Key Success Factors of the firm and the development of Goals and Objectives. Strategies were ultimately derived and controls were drawn up in order to achieve the firm’s mission and ensure the survival of the organisation in a competitive market. “Qantas Procurement3 will provide our Qantas Group clients with quality products and services, evaluated using total cost and best practice philosophies, purchased from ‘best practice’, financially stable suppliers and delivered on time at internationally competitive prices.
At the same time we will provide job satisfaction for our employees by supporting them with appropriate levels of technology, providing personal development opportunities and ensuring their involvement by empowering them to make decisions. “4 This mission statement5 expresses the character, identity and scope of operations of the organization. It also addresses the importance of earning a profit while meeting the firm’s social responsibility.