Companies Namely Airbus Qantas Airways Essay

Question:

Discuss About The Companies Namely Airbus And Qantas Airways?

Answer:

Introduction:

The report has taken Airbus and Qantas Airways for the analysis. The Airbus is recognized for being the leader in the aerospace industry. It has been further seen that the various operations of the company has been further seen to be based on designing, delivering aero space products and the manufacturing of the aerospace products. The company is further responsible for designing of the manufacturing service in a global scale. Airbus has been further identified as one of the largest aeronautics and space organization globally. The aircraft manufacturer relies on the strong Heritage situated in 180 locations along with 12000 with the direct suppliers (Airbusgroup 2017).

Qantas on the other hand has been ranked third in terms of the oldest airline carrier after KLM and Avianca. The company first entered in passenger flight business in 1935. Qantas Airways is considered as the flagship airline carrier of Australia and known for the sole carrier for the International destinations. It has been further considered as per the size of the fleet and international flight (Qantas.com. 2017).

The report has been further seen to aim for the organisational structure of both the selected companies based on the goods, services and the nature of the customer benefit package. The main interpretations of the study have been able to focus on operational strategy and strategic vision of the companies.

Findings:

A complete analysis of both the companies has aimed to understand the various types of the customer benefits for the individual organisation and the design of the value chain along with the disadvantages and advantages.

Customer Benefits Package of Airbus:

The customer benefits package is sub section of operation management of a business concern. Tangible and intangible services are observed as the two major aspects.

The results of the customer satisfaction index have been able to reveal that Airbus is popular globally. The customer approval and the various types of the loyalty factor has been further identified has been able to grow the different aspects of the business and able to remain in service even due to the recessions and the downswing in the economy. The different type of the other countries in Australia is seen to be the most satisfactory in nature. Qantas has been able to introduce store card for right to use for all the customers and comprise of the automatic rewards, additional cards can be taken into consideration for supplies made in Qantas Airlines, Qantas and Emirates. This has been further seen in self service of Airbus. It has been also seen that there is a protection of lost cards. It has been further seen with the convenience of the customers of the company has been able to arrange the payment of the bills and the purchases and electricity.

Customer Benefits Package of Qantas:

Qantas Airways has been able to consider the important considerations in the economy of Australia and the customers have been able to gain a huge advantage taken based on the same. The corporation supplying the economy flight fares provision to the customers has been further seen with particular amenities. Qantas Airways is further seen to consider greater connectivity, portfolio and the standardised improvement of the productivity and the safety. The various benefits of the organization have been seen in terms of increased loyalty with the employees and the customers.

Value Chain Analysis:

Input-Out Perspective of Value Chain

Value chain design is considered as important aspects of a certain company structure and has been helpful in understanding the various types of the internal activities of a certain firm.

The value chain interpretation of Airbus emphasizes to provide best service and supplies to its customers.

Figure 1: Overview of Value Chain of Airbus

(Source: Fujitsu.com. (2017)

Figure 2: Supply Chain process of Airbus

(Source: Airtn.eu. 2017)

Value chain interpretation of Airbus has been able to highlight on the convenient customer experience. The main functions for the value creation have been seen as follows:

In-bound logistics

It has been further seen that Airbus is responsible producing as well as owning its products. The company is able to control the network for distribution of the products (Yu, Ramanathan and Nath 2014).

Procurement and logistics:

The various regulations related to the company deals with minimizing problems of the blemished products.

Packaging and labelling material:

The labelling of the packaging material has been further able to enable the suppliers before the beginning of the production process. Furthermore, the suppliers are trusted with the responsibility for labelling and packing the materials (Slack, Chambers and Johnston 2013).

The various types of the considerations made for the Value chain of Qantas Airways has suggested on the cost effective factors along with the flexible opportunities. Keeping in mind demands of the customers of Qantas Airways has a latent capacity which is increased (Chou, Chuang and Shao 2014).

Figure 3: Qantas Airways Value Chain

Source: (Aircraftit.com. 2017)

The considerable amount of value and flexibility for the various types of the onshore projects which are implemented with the technological advancements and improved level of safety has been also take into consideration.

Advantages:

The benefits of the present strategy are listed below as follows:

  • It has been considered with a flexible strategic tool for the overall business outlook
  • Assists in the resolution of persisting issues in the organization
  • Assists in the evaluation process of SWOT
  • Makes possibility for the Industry value chain (Lawton 2017)

Disadvantages:

  • Only a few experts has been seen to get familiarized with the value chain process
  • The understanding of the strategic efforts understanding has been reduced significantly
  • In several occasion the structure of the business information is not maintained
  • The business needs to be adaptable to the designated business

Analysis:

Operational strategy of Airbus

The assembly lines of the aircraft and helicopter are seen to be located across Asia, Europe and the Americas. Till date the company has been able to achieve more than 2000 orders. The total amount of revenue generation has been seen with € 66.66 bn in 2016 which is identified as an increase by 3% in compare to 2014. The total amount of order book has been further identified as € 1060 bn which is an increase by 5% in compare to 2015. As per the reports published in 2016 the total global workforce at Airbus has been discerned to be 133782

Operational strategy of Qantas Airways

The main operations of Qantas Airways have been seen to be based in Sydney suburb of Mascot along with the main hub being located in Sydney Airport. As per the reports of 2014, the airline carrier has 65% share in the domestic market of Australia and carried 14.9% of the passengers in Australia. Some of the main form of the subsidiaries of the company has been identified with regional centre operation, within the premises of Australia under Qantas Link. It has been further discerned that the main subsidiary of Qantas has been identified to be Jetconnect and Jetstar. Jetconnect has been known to provide the services between Australia and New Zealand, while Jetstar is an economy airline operating in domestic services in Australia and New Zealand thereby holding various stakes in other brands under Jetstar. The company has many offices located globally for business, projects and assets.

Similarities and differences of the Operations

The similarity of the operations of Airbus and Qantas is based on the concept that both are based in the Airline industry. Qantas has been seen to use the service of Airbus A380 and Airbus 330-200.

The main difference has been seen in terms of the main area of operations. For Airbus the operating area is Toulouse, France, whereas the operating area of Qantas is seen in Australia from the Melbourne Airport.

Strategy and Strategic Vision:

The main strategy of Airbus is listed below as follows:

  • One single team formation
  • Brand promotion on cohesive system
  • Stores Refreshment
  • Lessening of cost and enhancing the process
  • Providing update on the product offering (Mellat-Parast et al. 2015)

The corporate planning process of the Qantas Airways has been mainly seen to be concerned with principles mentioned below:

  • Ownership of the board in terms of strategic priorities and overview
  • Prompt engagement policies along with appraisals and functions of marketing
  • Alignment: Consists of the integrated and consistent business formed along with corporate plan
  • Strategy for short term as well as long term planning
  • Enhances the overall robustness which comprises of the short term events of shock and various types of the long term events (Grant 2016).

Competitive priority of Airbus

This aspect for Airbus is seen to be high due to the increasing number of rival firms such as “Boeing, Bombardier, Mitsubishi, COMAC, Embraer and Irkut”. Moreover, it is regarded as the favourite of the entire industry. Despite of the factor such as recession, the partial prosperity associated to the competition of Airbus was not seen to get affected and the image of the company was not affected. In addition to this, the company holds high amount of customer loyalty (Business Insider. 2017).

Competitive priority of Qantas Airways

The important factors of the competitive advantage for Qantas Airways has been identified to be economy in flights and diversity. Primary focus has been considered with the cost reduction programs along with the core investment in the customer service along with the decrease in the capital expenditure (Qantas News Room. 2017);

Conclusion

The companies in general are seen to fight to retain the competitive internationally. The individual entities may consider the unique collaboration of customer base, along with several types of special facilities, services and employees. The prices of the consumer goods and the quantity levels have been seen to be worth emphasizing on for the purpose of global dominance.

With regards to Airbus it can be inferred that the company is having a well known position in terms of maintaining the suppliers irrespective of the positioning in Australia. Being the leader in economy flight fares along with its subsidiaries Qantas Airways should work on developing a way to share its knowledge. It should continue process optimization and emphasize people’s safety. The organization has difficulty associated to increasing amount of debt; it is able to accomodate the competitive advantage due its market size and scale of operations.

For the Manufacturing matters for Airbus recommendation has been identified with manufacturing and installation of the A380’s electrical system and lessening in the cash flow of the company. It has been further seen that it should give the primary focus on the customers. Airbus should be able to make improvements on the loyalty aspects of the customers. In addition to this, the focus should be given on demands of the Airliners and policy development accordingly. The company should be able to deliver the new products with an improved experience for the Airliners (Airbus. 2017).

Qantas Airways should emphasize on the production facilities along with the services. It should further focus on the costs associated to the passenger fare and provide better amenities. The decreases price of the tickets would be able to focus on increased facilities of customer loyalty. This particular strategy will be helpful for the company in increasing the overall profit margin and number of customers. The dealership of this has been seen to be conducive with the various types of establishments of the renowned companies and hence it will be helpful in terms of minimizing cost and building ties (Bazargan 2016).

References

Airbus. (2017). Challenges and achievements (2006-2009) | Airbus, Commercial Aircraft. [online] Available at: [Accessed 8 Aug. 2017].

Airbusgroup. (2017). About Airbus. [online] Available at: [Accessed 8 Aug. 2017].

Aircraftit.com. (2017). [online] Available at: [Accessed 8 Aug. 2017].

Airtn.eu. (2017). [online] Available at: [Accessed 8 Aug. 2017].

Bazargan, M., 2016. Airline operations and scheduling. Routledge.

Business Insider. (2017). Bombardier C-Series. [online] Available at: [Accessed 8 Aug. 2017].

Fujitsu.com. (2017). Visualizing the Value Chain [Airbus S.A.S.] : Fujitsu United States. [online] Available at: [Accessed 8 Aug. 2017].

Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Lawton, T.C., 2017. Cleared for take-off: structure and strategy in the low fare airline business. Routledge.

Mellat-Parast, M., Golmohammadi, D., McFadden, K.L. and Miller, J.W., 2015. Linking business strategy to service failures and financial performance: Empirical evidence from the US domestic airline industry. Journal of Operations Management, 38, pp.14-24.

Qantas News Room. (2017). Qantas Group Strategy Update. [online] Available at: [Accessed 8 Aug. 2017].

Qantas.com. (2017). [online] Available at: [Accessed 8 Aug. 2017].

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