Qantas Airline: Risk Management Plan
The risks facing Qantas Airline can be identified as illustrated in the diagram below;
SWOT Analysis Diagram
· Strong reputable company name in the home market.
· Fuel efficient and modern aircraft.
· Have strong competitive subsidiary brands.
· Strong government support.
· Much concentrated in the Australian region at the expense of the international segment of the business.
· Competition from other international airline businesses
· There are opportunities to grow both domestic and international markets.
· The company business operations have not saturated in all the continents.
· The increase of fuel prices is likely to affect the company business operations.
· The cost of acquiring and maintaining the staff has been increasing.
· New airlines entry in the industry and competition in the domestic market
· Global economic crisis
Other Tools and Techniques Tool Identification Techniques
- Probability and Impact Matrix
- Risk Data Quality Management
- Expected Monetary Value Analysis
- Simulation Technique (Monte Carlo Analysis)
- Root Cause Analysis
- Checklist Analysis
- Assumption Analysis
- Information Gathering Techniques
Likelihood of the is occurring
There is a large likelihood for the risks facing Qantas Airline to occur. The increase of increase is evident from the fact oil prices a prone to fluctuation all over the world (Sky News. Com , 2016). Secondly, the increasing the cost of maintain the company employees may increase because of the trade unions and employment agencies that calls for the protection of the workers’ rights (The Conversation , 2015). Third, any lucrative business will attract new competitors. Likewise, the existing competitors are likely to intensify their competition to either increase their market share of maintain their competitor advantage. Therefore, there is a risk for the reduction of the Qantas’ Airline domestic market. Finally, the global financial and economic crisis affects all companies undertaking the international business (Robertson, 2016). Similarly, Qantas Airline is likely to suffer from the consequences of economic recession.
The Impacts of the Risk
The occurrence of the above mentioned risks will have the following consequences in the event of their occurrence;
The unmanageable increase in fuel prices may force the company to reduce its business operations (Thomas, 2014). For example, the Qantas Airline may end reducing its business international operations. This will have negative impacts on the company profits and may also be an opportunity for the competitors to thrive.
Costs of acquiring and maintaining staff.
The costs of maintaining staff will contribute to negative impacts on the company profits. The costs being used for normal business operations may exceed the capital making it difficult for the company to progress. Additionally, the attempts to lay off or retrench some workers may result into litigations that will cost the company heavily.
Threat of the new entrants
The entry of the new players in the industry will increase the competition and this negatively affect the Qantas Airline profit.
Global economic crisis