Case Study Of Qantas Freight: Structure, Strategies, And Leadership

Structure of Qantas Freight

Discuss about the Case Study of Qantas freight.

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Qantas freight is a subsidiary company of Qantas. It is Australia’s leading air cargo carrier. The company provides freight and logistics services. The company offers the extensive network in the home country and foreign countries. The company helps businesses to achieve their export vision by offering access to the world. The company also transports pets. It also assures that the pet will receive highest level of care while travelling. The company offers freight service in three ways, Q-go priority, Q-go express and Q-go classic. When an urgent delivery is required then Q-go priority can be opted. A person can choose the preferred flight. Q-go express is used to move goods a bit faster than usual. The express handling is offered at both on ground and in the air. Q-go classic can be preferred when reliable and cost effective delivery is more than sufficient. It is ideal for the large scale shipments which are time acute but not urgent. The company is more than moving cargo. It connects people with the goods they need. The company also owns logistics business such as express freighters Australia; JETS transport express and Qantas courier New Zealand. This report defines the structure of Qantas Freight. The leadership styles are defined which are used by the company. The strategies of company with in Australia and outside country have been explained. Further the comments on the structure and strategies of company have been remarked.

The structure, strategies and leadership makes up an effective organisation. The understanding of Qantas Freight’s objectives, aims, mission and vision are helpful for the success of company. It also ensures continuity of the services of company in the long run. The Qantas Freight continued to grow it’s presence in the market (Richards, 2017). The organisation structure have important role in allocating responsibilities, power and roles. The organisation structure of the company reflects it’s management style and leader attitude to the environment in which it operates. The structure of company keeps delivering for customers and shareholders. Qantas Freight belongs to the country oldest airline that is Qantas airlines. The company uses mechanism for the flow of information in all the levels of management (Alexander & Merkert, 2018). The strategies and objectives of company are responsible for the structure of company. The strategies and objectives decide the organisational structure of Qantas freight. The company makes use of both centralised and decentralised organisational structure. The subsidies of the company are headed by the executives. The executives have important role and responsibility in exercising operations of company. They are imparted with authority. The employees of company are managed in such a way that their duty executes the goals and objectives of company. The chief executive officer manages the business of Qantas freight. The businesses of company Qantas domestic and international divide the commercial and operational functions. The structure of Qantas freight focuses on the strategies of company. These strategies are helpful in international and domestic business of the company (De Boer, 2018).

Leadership style

The management of company includes the members of corporate governance and executive top management team.  The practices and policies are set up by the higher level of management. The management embraces and implements policies in the organisation. The nature of the structure of company reflects that it has adopted matrix structure (Merkert & Ploix, 2014). The company maintains various departments such as project management, functional management and administrative management. There are various teams which work with all of these departments to make sure that the company is achieving goals and objectives successfully. The management of both Qantas international and domestic makes sure that the business runs independently according to the concern of organisation and market conditions. Qantas freight has exclusive team which represents divisional functioning. There are different CEOs for each division in the company. There are also non-executive directors who direct board and execute functions of company. The company have business executive team in it’s structure to look after strategies, policies and implementing plans. The team is also liable to take technical actions which are necessary by the company to perform (Francis & Lyon, 2016). The organisation structure of company also comprises mangers and air professionals. They are liable to perform tasks required for the skill development as this task is not performed by the ground level staff. The company complies with rules and regulations to conduct it’s activities successfully. The company maintains an appropriate corporate governance framework which is reflected from it’s functioning. The demand for Qantas freight is continued to grow. The company is transforming itself to deliver flexible and efficient operations for the constantly changing needs of customers. The company has also made significant investments in it’s structure to meet increased expectation of customers. The shippers are also using seamless digital platforms and real time access to the supply chain of company. The technology used in support service can differentiate carriers (Chandra, et. al. 2014).

Alan Joyce is the chief executive officer and managing director of Qantas since 2008. The company has implemented it’s biggest transformation under his leadership. A leadership style influences the behaviour of employees to determine direction and success of company. It is an effective management function which helps to maximise efficiency and in achieving organisational goals. The leadership style initiate action and provides guidance to employees. There are various leadership styles used by Qantas freight such as participation, authoritarian and delegation (Holten & Brenner, 2015). The participation style includes leaders and employees in the process of decision making. The authoritarian style is used by managers to order people what is expected by them. Finally the delegation style empowers employees to take decision by their own. The leaders are always held responsible for the decisions taken by employees in an organisation. It is because the leaders instruct employees to perform their work effectively (Renko, El Tarabishy, Carsrud & Brännback, 2015).

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The company uses all aspects of leadership styles in it’s management. Qantas freight practices leadership styles in the operation and activities of company. The top management of company is perilous while handling different culture of employees and reviewing views of shareholders. The company need to be cogent at the time of taking decisions otherwise it can result in conflicts with stakeholders and employees (Chang, Park, Jeong & Lee, 2014). There are some circumstances when the company need to turn out to be authoritative.  In this situation leader takes decision and followers are bound to follow the same. They do not have any authority in the important decision of company. It can also happen that the perspective of employees and trade unions is not favourable. The decision also results in criticism from stakeholders and experts. It has been noticed from the experience of company that it uses more of authoritative leadership style. The participative and delegate leadership style has some attributes in the management of company (Gregson, et. al. 2015).

The leadership style of company is also found on the basis of these elements such as vision, diverse management team, seeking opinion from employees and collaborative. The company considers that vision has great role behind the team to be effective. The top management of Qantas freight is based on providing direction and strategy to enable leadership. The vision of company supports to employees in the execution of tasks. The management of company includes individual from different fields. The team provides skills, education and training essential to enhance the management of company (Li, Wang & Cui, 2015). The management of team includes individuals from various disciplines so the leadership traits are needed to make management of company effective. The employees of the organisation are important source of information in the decision making process of organisation. It is because the employees have involvement in the activities of company on daily basis. They learn and observe the progress of organisation. The Qantas freight recognises the importance of employee information so the consultation is done with them by the top management in the important decision making process. It is also helpful in motivating and encouraging employees. The leaders should be honest and cooperative (Merkert & Alexander, 2018). The employees feel motivated towards achieving organisational goals by being collaborative.  

The effective strategy should adapt to the company’s mission and vision. It acts as roadmap to the company in achieving objectives. Qantas freight has established various strategies subject to the nature of problem. The company uses different strategies both in domestic and international operations. The company have strategies for both Australian and foreign market. The company is continued to maintain competitive marketing strategies even though it is facing rigid competition from air cargo companies like Virgin Australia Cargo.  Despite the competition, the company is continued to apply it’s price war marketing strategy. The company have announced a five year extension of international mail air freight agreement. As per this agreement, the company will handle 12,000 tonnes of mail and parcels out of Australia every year (Qantas, 2016). The Australia post group and international contract have built a five year domestic air freight agreement fleet. This agreement includes establishment of a domestic freighter fleet for the Australia post group. It became operational in 2016 (Qantas, 2016). The company will continue to be carrier of nation’s mail and parcel through to 2020. Qantas freight has been engaged as the largest provider of air freight services for the Australian post group. The company is committed to deliver products internationally and helping Australian customers to access global markets. The company have transformed itself to deliver flexible and efficient operations as per the changing needs of customers. The company supports e-commerce industry which relies on air freight for the express delivery of international packages and parcels.

The organisational structure helps companies to implement suitable strategies. It helps in achieving mission, vision and objectives of company. The strong organisation structure of company seems to cater interest of each stakeholder. It has been achieved by the management by adopting a combination of leadership styles (Le & Lappas, 2015). The leaders have been able to act simultaneously by using various leadership styles to address the problems at hand. It is an effective leadership style to be transformational and situational. It can be evidenced by the success of company in both domestic and foreign market.

It has become clear from the analysis of company’s strategy that the business should adopt various marketing strategies. Qantas freight seems to have practiced appropriate and suitable strategies. It attributes to the success of company in both domestic and foreign market (Alexander & Merkert, 2017). The company has been successful to claim a substantial market share by adopting these strategies. This report concludes that Qantas freight has applied effective marketing strategies and this is the reason company have been able to dominate market (Lyon, 2016).

Conclusion

Qantas freight is continue to expand it’s international network. The strong reputation in the customer service makes company an excellent choice for the domestic and international flight. The organisational structure, leadership style and marketing strategies are important aspects in the success of an organisation. The company deemed to have smooth running in the market due to the application of these concepts. Qantas freight has achieved success after putting these aspects into the consideration. The organisation structure is helpful in allocating resources and delegating duties effectively. On the other hand, the leadership styles provides direction to company and is effective in the decision making process. Finally the marketing strategies conclude the profitability as well as competitive advantage of company

References

Alexander, D. and Merkert, R., 2018. The air cargo industry. In The Routledge Companion to Air Transport Management (pp. 57-75). Routledge.

Alexander, D.W. and Merkert, R., 2017. Challenges to domestic air freight in Australia: Evaluating air traffic markets with gravity modelling. Journal of Air Transport Management, 61, pp.41-52.

Chandra, S., Chitgopeker, C.K., Crawford, B., Dwyer, J. and Gao, Y., 2014. Establishing a benchmark of fuel efficiency for commercial airline operations. Journal of Aviation Technology and Engineering, 4(1), p.6.

Chang, Y.T., Park, H.S., Jeong, J.B. and Lee, J.W., 2014. Evaluating economic and environmental efficiency of global airlines: A SBM-DEA approach. Transportation Research Part D: Transport and Environment, 27, pp.46-50.

De Boer, E.R., 2018. The Different Types of Frequent Flyer Programs. In Strategy in Airline Loyalty (pp. 29-57). Palgrave Macmillan, Cham.

Francis, G. and Lyon, D., 2016. Current Issues in Airport Management in New Zealand. In Air Transport in the Asia Pacific (pp. 73-91). Routledge.

Gregson, S., Hampson, I., Junor, A., Fraser, D., Quinlan, M. and Williamson, A., 2015. Supply chains, maintenance and safety in the Australian airline industry. Journal of Industrial Relations, 57(4), pp.604-623.

Holten, A.L. and Brenner, S.O., 2015. Leadership style and the process of organizational change. Leadership & Organization Development Journal, 36(1), pp.2-16.

Le, H. and Lappas, I., 2015. Continuing airworthiness: major drivers and challenges in civil and military aviation. Aviation, 19(4), pp.165-170.

Li, Y., Wang, Y.Z. and Cui, Q., 2015. Evaluating airline efficiency: an application of virtual frontier network SBM. Transportation Research Part E: Logistics and Transportation Review, 81, pp.1-17.

Lyon, D., 2016. Case studies from New Zealand about the shifting nature of airport–airline relationships. Journal of Airport Management, 10(4), pp.402-415.

Merkert, R. and Alexander, D., 2018. The air cargo industry. The Routledge Companion to Air Transport Management, p.18.

Merkert, R. and Ploix, B., 2014. The impact of terminal re-organisation on belly-hold freight operation chains at airports. Journal of Air Transport Management, 36, pp.78-84.

Qantas, 2016. Qantas freight and the Australia post group extended partnerships with international contract. [Online] Available at https://www.qantasnewsroom.com.au/media-releases/qantas-freight-and-the-australia-post-group-extend-partnership-with-international-contract/

Renko, M., El Tarabishy, A., Carsrud, A.L. and Brännback, M., 2015. Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1), pp.54-74.

Richards, M., 2017. Melbourne airport and Victoria’s transport network. Planning News, 43(2), p.12.

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