Qantas Case

Change at some point and extent will occur in all businesses. Change is driven by both internal and external influences, or it may come about as a reaction to other change. The changing nature of business means that their will be a considerable effect on effectiveness. The management of change will determine the size of the impact and thus the disruption to the whole business. The international airliner, Qantas, has undergone significant changes. These changes have been both internal and external and have led to a reorganization of the business and a change in the business culture.

External Influences: Economic

There are a number of external influences that Qantas has needed to address in its ongoing approach to managing change. A major external influence on Qantas is levels of economic activity. Due to the fluctuating levels of economic activity in Australia and the rest of the world Qantas, along with other businesses, have had to accommodate these changes effectively. The downturn in international aviation post the September 11th terrorism attacks had a major influence on the international aviation industry. During this period, Qantas experienced a 30% decline in bookings from some key routes following 9/11. In the 12 months to June 30, 2001 Qantas’ profits were up 22% from the previous year, however, from 01-02 the profit margin fell 55.7%. Unlike many other airlines Qantas was not dependant on international travel unlike other airlines as it held a domestic duopoly with Ansett. Following the aviation industry downturn of 2001 came the threats of the Iraq war and SARS which lead to a 20% decrease in profits in 02-03. Qantas’ management is proactive in its approach towards preparing for change. To match the downturn Qantas has employed effective management strategies to remain profitable, this increased profitability has been due, in part, by the embracing of the high yield end of the market. This