Task

Qantas organizational structure - case analysis

Introduction

Qantas Airways is Australia's national carrier. It is among the world's oldest airlines. Its rich history has made it a pioneer in the aviation sector.

Qantas has an extensive history. It has modified its organisational structure to meet the shifting demands of the aviation industry. Its ability to adapt has made it a leader in the industry.

It can effectively manage a wide range of operations. Its history shows how it has managed obstacles effectively in growing competition. We will investigate how Qantas has achieved this.

We will analyse its organisational structure in this case study. Let's have a look at how it has influenced the airline's overall performance and operational efficiency.

An overview of Qantas

The airline was Founded in 1920 in Queensland, Australia. Today, it has grown into one of the most recognised brands globally. The airline offers both domestic and international flights. It offers a wide range of services and destinations. The airline has expanded its portfolio by including many services.

It has included low-cost flights, freight services, and loyalty programs. All these services play a critical role in increasing its revenue systems.

In order to effectively manage its complex operations, Qantas has created an organisational structure. This structure aligns with its goals and allows the company to react quickly to market developments.

Operational Strategy

1. Qantas International and Qantas Domestic

The airline has two primary divisions- Qantas Domestic and Qantas International. They handle their own sphere of operations.  Every division is in charge of fleet management, customer service, and route planning. This division has helped Qantas to modify its plans as the need arises. It can quickly adjust to the changing needs.

For example, the domestic division focuses on providing reliable services to major cities and regional areas. It focuses on efficiency and explores the Australian market. The international sector, on the other hand, is focused on long-haul flight services. It accommodates both business and leisure travellers and global expansion.

2. The Jetstar Group

Jetstar is Qantas's low cost carrier. It provides domestic services and also covers the Asia-Pacific area. However, it functions as a separate group. It has its own management team and business model.

These are designed to cater for its low-cost segment. This division is strategic. It allows jesters to compete fiercely. They can keep their price competitive without compromising their image.

Jetstar had autonomy and flexibility. It enables Jetstar to work with complete force. It also helped with cost efficiency and competitive pricing. This led to Jetstar's success.

3.  Qantas Freight

Qantas Freight is responsible for airline cargo operations. They offer air freight services. This division helps to manage the overall revenue strategy. It assists with economic turndowns. It also functions as a separate unit and focuses on logistics. It also helps with supply chain management and partnership with other global companies.

Its organisational setup allows it to integrate with passenger airline operations. It uses the same aircraft and routes. This leads to more efficiency and revenue. The division has strong relationships with other cargo carriers. This enhances its global reach and operations.

4. Loyalty Qantas

Qantas has one of the most successful loyalty programs in the world. It is known as a frequent flyer program. This division generates a great source of income for the company.

It also contributes to customer retention. It helps with financial stability and builds strong relationships. The partnership leads to co-branded products which helps the company to diversify.

The loyalty division focuses on partnerships, marketing, and consumer engagement. It has a high level of autonomy. This leads to the addition of travel-related products, and retail alliances. It also follows credit card partnerships that improve the overall consumer experience.

5. Strategic Leadership and Corporate Management

The corporate management group is at the top of the organisational hierarchy. It is headed by the CEO. The CEO with other executives handles the overall strategic direction of the company. They oversee the performance of each group and ensure each segment meets the long-term goals.

The management team is important to coordinate the many divisions. They make sure there are enough resources and a perfect strategy. They also stay put with the new technologies.

Strategic Consequences of Organisational Structure

The operational structure is a successful one. It has contributed a lot to the success of the company.

1. Flexibility and Rapidity

Qantas is able to respond to changes in the market with ease. This has been successful because of its divisional structure. Each division has autonomy and hence can quickly change to the customers' needs. The aviation sector needs to be quick with technology and other changes. They have to consider the always-changing costs of fuel, the state of the economy, and other laws. All these events have an impact on operations.

2. Operational efficiency

Operational efficiency has been enhanced by the division of work. It has led to better workflows and cost cutting. It also allows each division to excel in its operations. For example, Qantas Freight's integration with passenger services enables it to share resources. It helps to make more effective use of the airline's fleet. These efforts help Qantas to keep up with high efficiency. They can focus on various business units and increase profits.

3. Distinguishing Your Brand

The divisional structure also shapes Qantas' different identity.  It offers low-cost and premium brands. This has been able to save Qantas its market share without meddling with the quality.  Qantas has a brand image as a premium carrier and superior service. Jetstar competes in low-cost markets and offers a unique value proposition.

4. Strategic Alliances and Partnerships

The structure also helps the company to form good alliances. The company has a strong network both in the country and globally. Each division can make connections to broaden its base. For example, Qantas has formed alliances with the global carriers. This enhanced its worldwide outreach and offered customers more options.

Obstacles and Limitations

1. Integration and Coordination

One of the biggest challenges is the chance of a gap. The division operates independently. However, it can be hard to keep them coordinated. Without proper flow, the efficiency might decrease. It may lead to ineffectiveness, and lower the quality.

In order to reduce this risk, the Qantas team focuses on keeping the teams aligned. They ensure their smooth collaboration. It requires strong leadership and clear communication channels.

2. Allocation of Resources

The distribution of resources across divisions presents another difficulty. Under such a division, there could be rivalry for resources.

Employees might argue over money, skills, and technology. It can be challenging to make sure that resources are distributed in a way to satisfy all. The divided resources should be as per the needs of the division.

In order to overcome this difficulty, Qantas has established a centralised decision-making process. Under this resources are delivered as per the priority. This aids in striking a balance between the demands of the many divisions and the company's overarching goals.

3. Disparities in Culture

Within the organisation, there may be individual divisions. there can be different corporate cultures in the organisations. This leads to innovative measures and makes the employees more active. On the other hand, it can be hard to maintain the corporate identity.

Qantas has undertaken measures to foster a unified corporate culture. throughout the company, it stresses common objectives and values. This includes regular communication with leaders. It focuses on pan company events and cross-functional projects. They instil a sense of unity and collaboration.

In summary

One of the main reasons Qantas has been able to succeed in the challenging and competitive aviation sector is its divisional organisational structure. Qantas has achieved long-term success by maintaining flexibility, operational efficiency, and brand distinction. It strives for the alignment of its structure with its strategic aims.

Despite the obstacles posed by the structure, Qantas has been able to harness its organisational design and overcome these challenges. It has overcome issues for coordination and efficient resource allocation. All of this has happened owing to its effective leadership and strategic management.

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