Critical Analysis On Alan Joyce Strategic Leadership

Question

Task: 1. Describe one (1) social responsibility and one (1) managerial ethics practice which the organisation uses to engage with stakeholders and discuss the impact of these practices.
  2. Analyse the external environments where the organisation operates, then locate the main opportunities and threats these environments generate,
  3 Analyse the internal environments of the organisation, then locate the main strengths and weakness that the organisation has,.
  4. Describe the strategic leadership of a successful CEO(s) in the organisation’s history and how this leadership has affected the strategy of the organisation and contributed to its organisational success

Answer

Executive Summary
It can be analysed from the report that Qantas has been through a challenging time but the Alan Joyce strategic leadership has managed to get the airlines back with rebranding. The external and internal analysis of the company has been done which concludes that the airline, being one of the oldest has a very good potential in the industry because of its set goodwill and core competencies.

Introduction
The main purpose of the report is to assess the business environment for Qantas and to analyse that how its practices are having an impact on the business position in the industry. The assignment is based on Qantas which is the 3^rd oldest airlines of Australia. The company lost its business in 2011 when Alan Joyce took tough decisions to bring it back into the industry with rebranding. The assignment has been prepared by doing internal as well as external analysis. This analysis on Alan Joyce strategic leadership helped in deriving the strengths and weaknesses of the company along with opportunities and threats which can harm the airline company in future. It can be concluded from the study on Alan Joyce strategic leadership that with proper direction, the business can reach heights.

 
1. Describe one (1) social responsibility and one (1) managerial ethics practice which the organization uses to engage with stakeholders and discuss the impact of these practices. 
 CSR: Corporate social responsibility is how organizations control their business activities to give a completely positive effect on society. It includes social impact, sustainability, and ethics of the core business, how business organizations make their money without adding extra efforts like philanthropy.

Managerial ethics: This is a fundamental part of business ethics, and it is a set of moral beliefs and principles that may affect the culture of employees. Doing the best thing for customers and employees and signifying the willingness to go very far.

CSR Practice of Qantas: As per Qantas Airways limited, the company emits a particular amount of produced carbon dioxide. The company has launched a program called a carbon offset which enables a tourist to counterbalance carbon release caused by their planes and swift to using neutral carbon. The Qantas industry seeks to function in a very sustainable manner, by optimizing and regularly increasing all its aspects of activities. The Qantas team standards and performance in the range of sustainability have been elaborate and clear (Bamber, 2018). The company developed a practice of sustainability management systems to ensure that social and environmental matters are considered throughout the company policies and decision making. The company and stakeholders practiced these sustainability management systems to measure the accuracy of the index composition to give the best representation of sustainability.

Managerial Ethics Practice of Qantas: The Qantas Group ensure leaders to show effective behavior often trickle down from top to bottom within the business organization. This is a crucial practice for managers to act purely and serve as examples for the remaining staff. It is essential to praise the staff and employees for adopting best practices as done under Alan Joyce strategic leadership. These practices are adopted by company stakeholders and it is very effective for future growth and success. The sustainability and managerial ethics have ensured the corporate social responsibility by involving in the cleanup functions in the Clean Up Australian Day (CUAD) (Xian, 2018).

2. Analyze the external environments where the organization operates, then locate the main opportunities and threats these environments generate.
Qantas Airline is the most popular airline in the country, and it operates its planes at the international and domestic destinations. The airline's group has made several strategic alliances with different other international airlines and it got the services in many countries, wherever it functioned.

Political factors: The government of the country display its influences in the team, and it has a 60% market share in Australia and its international and domestic flights. The stability in the political situation in Australia has developed its organization. The country is giving political support to the airlines and it is beginning its planes on several international destinations (Tugores-García, 2012).

Economic factors: When the economic condition in-country is not so fair then it will negatively impact the airline business, so it is important to take effective business continuously, so it works very hard. The economic recession will also impact the airline's income and it has to stop various flights.

Social factors: The social and environment of the airlines are best then many people want to travel by the airlines. The company is giving concession in the tickets along with certain excellent services to the tourists, so they got attracted and they want to travel by international and national destinations (Baxter, et. al., 2018).

Technological factors: The research carried on the study of Alan Joyce strategic leadership signifies that Qantas has adopted certain new planes in its fleet and want these airlines to boost the organization. The technology has created important developments in several sectors and passengers can see their online flight status. The plane schedule, ticket booking, and various services of Qantas are now giving on the internet it saves time and no there is no trouble at the airport during sitting in planes.

Environmental factors: Qantas do not waste their used energy gas as per the laws and rules defending the. The airline has to adopt environmental protection rules to ignore pollution and reduce fuel emission.

Legal factors: It is important for airlines to adopt the legal aspects of Australia and Airlines. The group has taken steps in controlling the security and health rules for employees and customers. The passengers can receive the best facilities and food; strict rules are followed for no smoking (Forsyth, 2017).

Five Forces Model of Qantas:
The Porter five forces model illustrated in the study of Alan Joyce strategic leadership affecting the airlines and affects the Qantas performance as follows;

Bargaining power of Purchasers: The bargaining power of purchasers in the Qantas airline industry is so high due to several options to choose from best class air traveling facilities, low-cost services, and certain others.There are different providers who provide these services that increase the purchasers buying power.
Bargaining control of suppliers: The bargaining power of suppliers is lower in the travel airline group due to a large number of suppliers providing the same type of services. In regard to the Qantas, it is lower due to some major airline companies in the industry like Virgin Airlines, etc.

The threat of substitute: It shows how new players in the market enforce threats to the current market players. If the industry will be beneficial and barriers to entry into the industry will be little, then it will attract various players and the threat of substitutes will be higher. Qantas will face the lower threat of substitute when current regulatory laws are enforced then some challenges to the new organizations interested to come in the market (Baxter, et. al., 2018).

Competition among current firms: It was very difficult in regards to the airline's industry of the country, as the present condition implies that company is opposing directly with Virgin Airlines in the local national market, and the rivalry is very severe that such airlines organizations are facing loss in their business activities. 

The threat of New Entry: In regard to the threat of new entry, it has lower down in the airlines particularly due to fact that new entrant needs high investment in communications in making up the airlines industry that would be crucial to perform.

Major threats and opportunities of Qantas Airlines:
Opportunities mean to such avenues in the surrounding of the environment of the business on which the company capitalizes to improve the returns.

Organization travel: There is a rush in the travel due to particularly in the number of tourists in both business and economic class are improved. It has made a high scope for a large number of revenues and income from both classes and also enhances the travel frequency for pleasure and business.

Fuel prices low: The prices of oil were reduced in 2015 and by this; the benefit of finance increased by a$33 million and decreases the cost.

Threats are such factors of the environment that can be harmful to the success of the business. Certain threats covered in the study of Alan Joyce strategic leadership are:

Rivalry: The Qantas faces high rivalry from brands like American Airlines, Lufthansa, British Airways and Air France (Forsyth, 2017).

Cost management: It is the typical threat of Qantas Airlines is the drastic changes in the cost of fuel and the upkeep and maintenance cost of the industry.
 
3 Analyze the internal environments of the organization, then locate the main strengths and weaknesses that the organization has.
Internal assessment of Qantas can be performed by using the resource-based model which will help in doing the analysis of the resources of the company. It will also help in determining the competencies of the company. As per this model, Qantas has number of resources which helps it in taking advantage of its strengths and overcome its weaknesses to take competitive advantage in the industry (Rizzetto, 2018).

Figure 1: Resource Based Model
Source: Strategic Management Insights. (2013)

As per the image provided in the study of Alan Joyce strategic leadership, it’s clear that Qantas has two types of resources which are tangible and intangible. The tangible resources of the company are the airplanes it has, the staff or the properties it has. The intangible resources are the goodwill it has created over the years. All the resources of the company have some attributes which creates core competencies for the company in the industry and provides competitive advantage. This process is known as VRIO framework which helps in assessing whether the particular resource is Valuable, rare, Difficult to imitate or able to have competitive value. After the analysis of the questions of value, the sustained competitive advantage is assessed for the company.

Resources
Tangible sources of the company are its new advanced airplanes, its businesses which are for frozen meals and a premium catering business. Intangible sources of the company include its goodwill due to which it gets the premium slots at major airports.

Capabilities
The company has capabilities of running multiple businesses all over Australia. The company provides services to other airline companies as well which is a big source of revenue for it.

Core competency

This shows that the company’s business creates core competencies as it has strong sister business and other businesses which are a great source of revenue for the company.

Strengths
The strengths of the company are its strong goodwill among the airports and the industry. The other major strength of the company discussed in the study of Alan Joyce strategic leadership is its airplanes which are newly designed and technologically upgraded. The company is one of the oldest airlines of Australia which creates a special position in the industry and let it capture the premium slots on major airports.

Weaknesses
The company’s resources can be substitutable which creates an opportunity for other business to come up. The company has some management issues which created disputes. The company’s flights fly fewer hours than most of the other companies which is a weakness for the company.

 
4. What is the role of Alan Joyce strategic leadership in the organization's history and how this leadership has affected the strategy of the organization and contributed to its organizational success? Discuss
Alan Joyce, the CEO of Qantas is a great leader as he has taken many tough decisions to turn the airline around from the challenges. In the year 2011, Alan Joyce strategic leadership faced a backlash from public for grounding the airline but again when the airline faced worst loss in its history, he was called by the union, politicians and the media to manage the airline. He emerged as a hero for the company and made Qantas one of the most profitable airlines of the world (Vilkinas, Murray and Kay, 2012).

Joyce is no doubt a transformational leader who has recognized the challenging decisions of the company and has delivered the financial results as well. As per Smith (2016), Alan courageously took the strategies which grew its business. He did not leave even in the darkest days of the company and managed to participate and lead the campaigns of social causes too by successfully implemented Alan Joyce strategic leadership. He is also a member of the Male Champions of Change and career Trackers.

Alan Joyce strategic leadership efforts have made Qantas a successful airline after going through its worst phase in 2011. As a part of Alan Joyce strategic leadership, he copped the big losses by restructuring the company. The company took advantage of the cheaper fuel in 2014-2015 and introduced some new flights which are nonstop, long haul and International flights. The company’s business was restructured into two divisions which were domestic and international. The characteristics of Alan Joyce strategic leadership include excellent leadership, clear vision, modest and very decisive. Alan made many hard calls like reducing the workforce which collected the negative reaction from public. However, these decisions focused on the long-term value creation of the company and results of growth which took company too much better position. The effective implementation of Alan Joyce strategic leadership has shown the side of his character which is inspirational. He has taken the decision to ground the entire airline and then emerge with a rebranding (Muenjohn, et. al., 2018).

Conclusion
It is analysed that Qantas has been involved in the socially environmental causes. The company being the oldest in the industry of Australia has faced few challenges back in 2011 but has managed to win over the challenges with the help of the CEO Alan Joyce strategic leadership. The argument is that whether the strengths and opportunities of the company would help in meeting the weaknesses and threats. The analysis shows that the company’s strengths like its reputation, goodwill and its other businesses (Catering, frozen meals and sister business like Jetstar) are supporting enough for meeting its weaknesses. The weaknesses like the disputes within the business and the competitor threats.

References
Bamber, G.J., 2018. Low-cost airlines’ product and labor market strategic choices: Australian perspectives. Alan Joyce strategic leadership Members-only Library.

Baxter, G., Srisaeng, P. and Wild, G., 2018. The role of freighter aircraft in a full-service network airline air freight services: The case of Qantas Freight. MAD-Magazine of Aviation Development, 6(4), pp.28-51.

Forsyth, P., 2017. The regulation and deregulation of Australia's domestic airline industry. In Airline Deregulation (pp. 48-84). Routledge.

Muenjohn, N., McMurray, A., Fernando, M., Hunt, J., Fitzgerald, M., McKenna, B., Intezari, A., Bankins, S. and Waterhouse, J., 2018. Leadership. Cambridge University Press.

Rizzetto, A., 2018. Economics of the airline industry-The Alitalia bankruptcy case: a review (Bachelor's thesis, Università Ca'Foscari Venezia).

Smith, M. 2016. True Leaders 2016: How Qantas CEO Alan Joyce became the turnaround king. Financial Review.

Strategic Management Insights. 2013. Resource Based View [Online]. Available on https://strategicmanagementinsight.com/topics/resource-based-view.html [Accessed on 3 Feb 2020].

Tugores-García, A., 2012. Analysis of global airline alliances as a strategy for international network development (Doctoral dissertation, Massachusetts Institute of Technology).

Vilkinas, T., Murray, D. and Kay, A.P., 2012, July. Toxicity in Leadership: A Case Study of Qantas to Explore the Impacts of Leadership. In Academy of Management Proceedings (Vol. 2012, No. 1, p. 15234). Alan Joyce strategic leadership Briarcliff Manor, NY 10510: Academy of Management.

Xian, W., 2018. Case Study on Qantas of ITS Strategic Management: The High Flyer of the Airline Industry.