Situation
The case Qantas Airlines: Twitter Nosedive embellishes upon the troubles that the airline faced in recent years. These troubles caused great harm to Qantas Airlines when the company made a social blunder announcing a Twitter contest that caused an unexpected outcry from the company’s global customer base. For the dissatisfied customers, it was a great opportunity to express their opinion in public. The unsuccessful contest brought a lot of attention, but not in the way Qantas was hoping for. This negative opinion of Qantas was exponentially spread resulting in serious damages to the company’s public image. These negative comments spiraled deep from the fact that the company was suffering with many technical engine and aircraft problems pertaining to the poor condition of aircrafts. These problems aided towards concerns with employee work unions that led to strikes and finally the grounding of the aircraft fleet for several days. This resulted in thousands of stranded customers around the world. From these series of events, the company now faces challenges with negative image in the eyes of the public.
Analysis
In order to keep the situation from rapidly expanding to the public, it would be advised that the company responds immediately to the situation. This should be executed through being proactive and sensitive to the situation of stakeholders such as the public, as well as shareholders of the company. In this situation, the internal stakeholders would include company shareholders, while external shareholders would consist of the public who are impacted the most. The main goal here is to silence the situation Qantas faces as soon as possible while proactively amending ties with public relations. As an advisor, severa...
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...eat of deteriorating the company’s financial well-being. However, no major risks lie at this point in time. If all steps and recommendations are followed, it is bullish that the situation Qantas currently faces, will be rectified in an efficient and timely manner.
Conclusion
Through initial analysis, it is evidant that Qantas does have negitive limelight with public relations. However, it is nothing that cannot be fixed. Throughout this analysis, we have embelished upon the situation Qantas faces, as well as evaluated and quantified potential alternatives that Olivia Wirth can present to upper management. We have also propsed a recommendation highlighting a compensation strategy, along with an action plan to implement the proposed recommendation. If all steps outlined above are followed by the company, we may finally be able to see a new hope for Qantas Airlines.
• Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management
The pros of an airline implementing a policy that bigger customers need to buy a second seat is that the weight capacity regulations will be followed to. As well as the cons of an airline implementing a policy that larger customers need to buy a second seat would result in a bigger people who travelling will not uses that airlines anymore, airlines would be glowered on by family or relatives of larger customers, airline’s policies could be vigorously monitored for discriminatory actions against overweight persons. As mentioned in the book there are no federal laws prohibiting discrimination against obese individual, although there are some places such as Wisconsin, DC, and California provide legal protection. (Harvey & Allard , 2012, p. 234)
Qantas is the 11th largest airline as of 2014 and ranked 1st in Australia, whose prime function is the quality transportation of passengers and airfreight across domestic and international routes. Qantas has been successful due to its innovative cost controlling of the business in expense minimisation. However as a result of this, the business has undergone capital-labour substitution and the casualisation of the workforce. This developed workers’ concerns of their remuneration, employment conditions and job security which caused the engineers and ground workers disputes in 2011. Qantas has responded to these workplace disputes with the strategies of negotiation, grievance procedures and tribunals within its contractual and legislative grounds.
have a sense of history. We have a very good opportunity to cure this airline,
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
Public relations are the practice of distributing the information between an organisation or individual and the public. The aim of PR practitioners by the client is often is to persuade stakeholders, partners, employees, investors and most importantly, the public. The practitioner’s communication stance is reaching the individuals or organisation ultimate goal. However many can examine and scrutinize public relations ethics to assert a PR problem within the industry. All PR organisations and individuals have a code of ethics of which the professionals are expected to follow. Regardless of these guidelines, ethics in individual practices seem to prove continuous and consistent violation worldwide. The James Hardie Industry, a company that is known for knowingly using products that caused thousands of people throughout Australia to grow to become sick and even resulting in death, from its products that produced massive profits is a prime example of the PR problem. However ethical communication and critically reflective practices are procedures that benefit both the public and the organisation when use correctly, opposite to the James Hardie case.
First of all, the power of suppliers under the Qantas Airways Limited is stable, which their supplier is a world’s fuel price for their airlines, self-supply fuel and large in their economy of scale. Then for power of customers, is also stable because the Qantas Airways Limited has already built a reputation for excellence in their safety, operational reliability, engineering and maintenance, and customer service. With that strength can opportunities for them to increase the power of customer, automatically it can be a comfort and the first choice for the customers to the services that given, especially when Qantas Airways Limited can put or offer a better price than other competitors that similar like
The Southwest Airlines company and its culture is one that is often cited in today 's business classes. The airline is widely known to be “different” compared to many of its competitors, a result of its founding values and strong corporate culture. This culture developed early in Southwest’s history and was deeply entrenched due to the competitiveness of the airline industry, as well as due to some of the pressures experienced as a result regulatory issues and stiff competition.
...onclude, the strategies used by Qantas in dealing with these influences have all been relatively effective. The use of technology has been the most effective in providing the business with a competitive advantage and has very little downsides when compared to other strategies. Operations management has dealt with globalisation effectively and greatly reduced costs and provided the business with a competitive advantage at the expense of the business reputation and individuality. Strategies which involve product differentiation have been used very effectively and are beneficial to Qantas. However the more cost leadership strategies that Qantas uses, the more likely that the business will lose it’s own individuality as the “Red Kangaroo”. In general, Qantas has been able to keep it’s business running relatively successfully and has dealt with it’s influences very well.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
DuBois, S. (2012, February 17). The real threat facing the airlines - Fortune Management. Fortune Management Career Blog RSS. Retrieved April 29, 2014, from http://management.fortune.cnn.com/2012/02/17/the-real-threat-facing-the-airlines/
Southwest Airlines has come from an underdog to being one of the best airlines in the industry. This reputation translates from its strategic management of resources. The Co-founder and former CEO, Herb Kelleher, established a unique corporate culture that leads to high customer satisfaction, employees’ morale, and one of the most profitable airlines in the industry (Jackson et al., 2012). The corporate culture concentrates on empowerment the workforce. It shows through Southwest Airlines core values that “happy employees lead to happy customers, which create happy shareholders” (Jackson et al., 2012). Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are focusing on the change process post the merger with AirTran, and evaluating alternatives to address the impacts of the merger.
Secondly, the grapevine aspect of social media is prevalent in this case. An inaccurate message was rapidly passed throughout Best Buy’s customer base and employees. In addition to the embarrassment that was felt by CEO, Brian Dunn, the company’s image was negatively impacted. Social media gives the oppo...
AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.