Strategic Management

An organisation typically achieves superior returns when it has a sound strategy that is well
implemented. A key part of determining an organisation’s strategy is a clear understanding of the
environment in which it operates. Evaluating the external environment is a critical part of the strategic
management process, and this assessment requires that you undertake an analysis of the industry
environment that Qantas Airlines is currently facing. To do so, you are required to apply Porter’s Five
Forces model to Qantas Airlines and reflect, using an academic article of your choice, on how analysing
the environment in this way can help to inform managers in creating the organisation’s strategy.

consider each of the following:
 A brief summary of the theory of Porter’s Five Forces model.
 An application of each of the five forces to Qantas Airlines, in which you identify whether the
existence of each force is high, medium or low, providing an overall summary of the industry’s
attractiveness regarding profitability.
 Your opinion on the usefulness and limitations of the five forces model, using an academic
article of your choice, and the analysis that you have undertaken of the industry environment
that Qantas Airlines is currently facing, to inform managers in creating the organisation’s
strategy