Case Study – QANTAS Restructuring
Lachlan Sorby

This report was commissioned to examine QANTAS’ management processes and other business strategies. QANTAS’ decision to move some operations offshore was influenced by a number of factors; firstly, QANTAS reported a $215million profit loss for the half year ending December 31st 2011, compared to the same time the previous year. QANTAS also plans to reimage its heavy maintenance on its A380 Jumbo Jets and other large aircraft; by sending this maintenance offshore they can save millions.

Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold.
Over the next 5 years Qantas aims …show more content…

The purpose of this strategy is to increase QANTAS’ organizational “agility and absorption”, agility being the company’s ability to identify and capture business opportunities ahead of competitors consistently, where absorption is the power to withstand market shifts and change accordingly.

Through this strategy QANTAS can use its strengths and resources to excel in various market segments through innovation, whilst maintain brand presence, in Australia and globally, in various related businesses and improve its “buffer against crises”.

This strategy, now fairly dated, shows that QANTAS has a history of dealing with large change in its operations, whether that is the management of its employees or the management of related business.
“Mr Singleton said the low share price, poor marketing and international ratings, and combative industrial relations were evidence of management failings. He added that Mr Joyce was the wrong man for the job.
"Qantas is one of only two companies it and Telstra where Australians see them as a reflection of themselves," Mr Singleton said in an interview on Sky Business last night.
"Qantas now is undergoing a crisis of management because a wrong decision was made about a CEO. There is nothing good about Qantas any more: the marketing is wrong, its advertising is wrong and the persona of the company is wrong."
Due to the heavy