Evolution and innovation are important to ensure the survival of any business. As a result, technology is the key to innovation today in the modern globalised business world. In looking at Australia Post and Qantas, the changes in the external environment, management skills and strategies for change and effective management have influenced these businesses in maintaining a competitive advantage and satisfactory profits.
As economic reform took hold, from the 1990's onwards, businesses were forced to innovate or exit. The new ideas for Australia Post were focused on the way in which economic growth is driven by investment in 'human capital' and innovation. The Australian Government embarked on a wide-ranging program where firstly, the financial system was deregulated and subject to greater competition. The tariffs were reduced and government businesses were corporatised. The Corporatisation of Australia Post in 1989 meant that the government instructs Australia Post to operate essentially as a commercial business.
The aim was to deliver services efficiently and to generate a commercial return on assets.
The events of September 11, 2001 had a big impact on Qantas. It experienced a 30% decline in bookings from some key routes following September 11. The War in Iraq and SARS affected all the airline operations leading to a 20% decrease in profits in 2002-2003. Qantas predicts that it will take 12 months to get loads and yields up to pre-SARS. Flights to non-SARS affected areas were also hit hard with a drop in bookings to Italy, Britain and Japan. In seeking to achieve its goals, the government has impacted Qantas through the laws it passes and enforces and the regulations in enacts. For example
Qantas is subject to the regulatory control of the Civil Aviation Safety Authority.
The technological innovations have impacted on various aspects of Qantas. It has meant that...