Buessinesses Are Constantly Under Pressure To Change As The Business Environment Changes Around Them

1576 words - 7 pages

Intro Sample...

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,... View More »

Body Sample...

These changes enabled Australia Post to reach agreement of staffing levels that resulted in savings that were essential to the change process. In response to changing times, the management of Australia Post considered how it was to face up to the impending challenges. In the late 1980’s the well known management consultants, McKinsey, were engaged to look closely at the business, its operations and its future. The McKinsey study highlighted the fact that Australia Post was losing money by the way its retail network was structured and run. It needed to look at how it was going to restructure its business to compete effectively. Australia Post adopted McKinsey’s option to reform the existing network as the way forward which started a wide-reaching process that resulted in the new initiative. The response to change had to be a solution that fitted with all of Australia Post’s stakeholders. The answer was licensed post offices (LPO’s). LPO’s replaced the existing semi-commercial relationships that had existed for 5 or 6 decades prior to the early 1990’s. The traditional arrangements with another business were costing Australia Post many millions of dollars a year. The intention was clear to convert unprofitable corporate post officers into a similar licensing format. Each licensed post office today has an independent business operator to whom Australia Post pays a commission for providing specified service on it behalf. As a result today, more business LPO’s do the more they get paid. The strategies that Australia Post adopted for change has resulted in them ...

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