Managing Organizational Change

Managing Organizational Change

Introduction

The industry of airline in Australia has gone through major changes in the environment which it operates in during the last 16 years. These changes does include the absorption of the Impulse airlines into the Qantas airlines, collapse of the group of Ansett, and the entry of the Virgin Blue and its rapid growth followed and the termination of Australian Airlines, Jetconnect and Freedom Airlines. There has been changes in the regulations of the airline industry like the air services deregulations in the decade of 90s had kept its continuation in the stages since the development of the agreement of Open Skies between New Zealand and Australia. To compound a developed turbulent business where the risk is present by the deregulation of the government and this industry was facing problems in driving the profits. The US attacks of 9/11 and the war on Iraq has led to major downturns in this industry of Australia and that has led to change it further.

The turbulence of industry has been very ubiquitous during the last sixteen years which have elapsed from the policy of two airline got terminated in the year 1990. There has been unsustainable growth which has occurred in the industry which has been operating domestically and has been placed by a rotation of entry of the new players in the industry, there has been collapsed of some of the market players like Compass, Ansett and Impulse and the emergencies which are unsuspected. There has been an extreme cost of capital which was contributing additionally to the high cost of entry in the airline industry for domestic operations, finally increasing the power of market of the big players like Virgin Blue and Qantas. There is an environment which is highly competitive Qantas has to purse the policies and the practices for the change of organization and the development to the reposition for its ownself.

The airline industry was suffering from the worst hit since the attacks of Sept 2001. The CEO, Geoff Dixon who assumed this role had tough job to do. It was a big challenge for the CEO that how its going to keep itself profitable and how its going to remain competitive. The CEO himself knew that its going to be a tough task. He knew that tough decisions need to be taken and measures need to be implemented. Furthermore the Australian airline industry was being hit by the Ansett's collapse that was one of the competitors of Qantas, that airline was not in a position to overcome the consequences of 9/11 and therefore it collapsed. Eventually it was a good opportunity for Qantas to capture the market share of Ansett, therefore it has increased it own market share from 55% to 75%.

Just to remain on the completive edge, Qantas made an effort to do cost cutting of $1 billion per year through different means, one was retrenching six hundred employees and then fourteen hundred more employees from its workforce of 35,000 ...