1. Essay on Qantas Case Study
QANTAS
CASE ANALYSIS REPORT
MARK ANTHONY ANDRIJCICH
STUDENT NUMBER – 10513924
MGMT3347 – STRATEGIC MANAGEMENT
SEMESTER 2, 2011
TUTORIAL 4 – MONDAYS, 15:00
ROOM BUSN:161 – THE CULLITY TUTORIAL ROOM
TUTOR – DOUG MOFFAT
INDIVIADUAL CASE ANALYSIS REPORT
TABLE OF CONTENTS
EXECUTIVE SUMMARY....................................................3
EXTERNAL ANALYSIS OF QANTAS..............................4 ––Industry ––General Environment Analysis ––Six
General Elements ––Demographic ––Economic ––Global ––Political/Legal ––Socio–Cultural ––Technological
––The Industry Environment ––Michael Porter's 5 Forces That Shape Strategy ––Competitive Environment
INTERNAL ANALYSIS OF ... Show more content on Helpwriting.net ...
It operates in the low–cost airline segment through Jetstar. It is also engaged in providing time bound freight
services. Other services offered by Qantas include international and domestic holiday tours, catering, ground
handling, and engineering and maintenance services. The company also offers group flight training, and leverages
its infrastructure and competency for operational training. It also provides services for defense sector in aircraft
and engine maintenance, among others. Qantas is headquartered in Mascot, New South Wales, Australia (Qantas
2011b).
EXTERNAL ANALYSIS OF QANTAS
INDUSTRY
Qantas Airways Limited is in the airline and aviation industry–both domestic (Australian) and international. Its
main business is the transportation of passengers using two complementary airline brands–Qantas and Jetstar
(Qantas 2011a)
GENERAL ENVIRONMENT ANALYSIS
DEMOGRAPHIC
Growing Size of the Middle Class. The size of the middle class is growing globally and many of them like to travel
internationally as often as their work life and bank balance allows (Hanson 2010).
ECONOMIC
2. The Global Financial Crisis (GFC). The late–2000s financial crisis is considered by many economists to be the
worst financial crisis since the Great Depression of the 1930's (Reuters 2009). The impact of the GFC on airlines
has been severe, putting the industry in major trouble that may be prolonged (Hanson 20011, p. 439; Qantas 2009).
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3.
4. Qantas
Qantas Airways
STRATEGIC DIRECTION * Qantas Airways Limited may have won the capacity war between itself and Virgin
Australia, but the cost has been considerable. The company now needs to consider drastic measures that were
previously out of the question, such as selling low cost carrier Jetstar or its highly profitable loyalty programme.
Much of Qantas Airways Limited's future, however, is in the hands of the Australian Parliament, and whether or
not it dismantles the 1992 Qantas Sales Act to allow majority foreign ownership.
KEY FACTS
Summary 1 Qantas Airways Limited : Key Facts Full name of company: | Qantas Airways Limited | | | Address: |
10 Bourke Road, Mascot, New South Wales 2020, Australia | Tel: | +61 (02) 9691 ... Show more content on
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In February 2014, the company announced an A$252 million loss in the first half of FY14 alone, and the need to
cut costs by A$2 billion and the workforce by 5,000 full–time employees or part–time equivalents. Planning also to
exit underperforming routes, the airline as the end result of this cost reduction programme would be smaller but
hopefully profitable. Given the severity of the situation, Qantas is lobbying for the Federal Government not only to
repeal or at least alter theQantas Sales Act, but also to guarantee its debt. * Qantas is by some distance the leading
airline in Australia, in relation to both domestic flights and international flights. Despite a gradual eroding of share
in both the domestic and international markets, this is a situation that is unlikely to change over the forecast period.
Qantas is so resolute in its attempt to maintain its dominance that it has announced a determination not to allow its
domestic market share to fall below 65%. Euromonitor International's 49% value share for Qantas, down from 53%
in 2012, is including both international and domestic flights. Such a resolution has required Qantas to essentially
match any capacity that Virgin Australia adds to the market. This has been an expensive strategy for Qantas,
particularly since it has promised
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5.
6. Financial Analysis Of Qantas Airways Limited
Financial Ratio Analysis Qantas Airways Limited
Word count 3297
Introduction
This report is a financial analysis of Qantas Airways Australian covering the last two complete financial years 2015
to 2016. The analysis will be conducted using a series of financial ratios drawn from the main categories of
liquidity, profitability, and capital structure and market performance. The report will highlight what the ratios
indicate in the context of the company's operations. The report will endeavour to provide an overall assessment of
the company's performance for the most recent period and discussion about which aspect of the company's
financials has demonstrated the most improvement. The report recommendations will be supported by comparisons
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Qantas catering which comprises Snap Fresh and Q Catering, which operates five food manufacturing and catering
centres Australia wide and Qantas frequent, a 10–million–member frequent flyer loyalty program (IBISWorld,
2017).
Profitability
There will now be a look at the profitability aspect of Qantas airways operations. The following ratios have been
selected for the last two most recent years of 2015 and 2016 these are the Gross profit margin, return on equity
(ROE), and Return on Assets (ROA). The Ability to make profits and secure returns for investments are key
indicators of a company's financial viability (Birt, Chalmers, Maloney, Brooks, & Oliver, 2012). This is illustrated
by the large increase in earnings per share seen in the market performance section. In the data,
Table1 Profitability
Categories/Ratios 2016 2015 Change Percentage change profit available to owners 1029 557 472.00 84.7%
Equity 3260 3447 –187.00 –5.4%
profit 1643 1048 595.00 56.8%
Assets 16705 17530 –825.00 –4.7%
Sales Revenue 13961 13604 357.00 2.6%
ROE 7.7% 4.2% 0.04 84.7%
ROA 2.4% 1.5% 0.01 56.8%
Gross Profit Margin 11.8% 7.7% 0.04 52.8%
See Appendix 1 for calculations Data sourced from (Qantas Investor centre, 2017)
Analysis
There is a small to substantial
9. auditing case study--Virgin Australia Essay
Executive Summary
This report analyses Virgin Australia (ASX code VAH) and identifies its potential business and audit risks that will
need to be addressed in the 2014 audit. It is presented to the Virgin Australia Audit Committee as part of the 2014
Audit planning process.
The first part of this report provides a broad introduction into the business of Virgin Australian by examining its
principal sources of revenue, its nature of operating, its competitors, the market share and the regulations affecting
its operations. From this, it can be seen that Virgin Australia operates in a very competitive environment and
generates revenue by the core business of passenger and cargo transport.
The second part of this report analyses the ... Show more content on Helpwriting.net ...
Airport Lounges – Virgin Australia provides airport lounges at Sydney, Melbourne, Brisbane, Canberra, Adelaide,
Perth, Mackay and Gold Coast domestic airports. Designed for frequent travelers, entry is by membership only.
Velocity Rewards – Virgin Australia's loyalty program that allows points to be used to purchase airline travel, hotel
nights, car hire, online shopping and charitable donations.
Freight – Virgin Australia offers domestic and international freight services to its customers, including same day
and overnight express, perishable cargo, dangerous goods and animal transport services.
The diagram is company's every week flights, and we can observe it directly.
1.3 Competition Analysis
Virgin Australia is facing competition from both international market and domestic market.
The major competitor is Qantas Airways Limited which is the largest airline in Australia base on the number in
fleet. Qantas has 244 aircrafts and Virgin Australia has 128 aircrafts according to Australian civil aircraft register
search on 'Civil Aviation Safety Authority' on January 2014.
Domestic market Virgin Australia, including Tiger Australia (Virgin owns 60% of Tiger now), occupies 35% of the
domestic market share in Australia, and its major competitor Qantas, including its subsidiary Jetstar, accounts for a
majority of 61% of the domestic market share in January 2014.Qantas (QF) has grown by 18% over 5 years (Jan
2008 vs. Jan 2014) while Virgin Australia
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10.
11. Company Background And Product Description Essay
I. Company Background and Product Description
QANTAS, one of the world's oldest airline was founded in November 16, 1920 in Queensland. The company is
registered in the name of Queensland and Northern Territory Aerial Services Limited (QANTAS). It is the tenth
best airline in the world which ranked seventh in the category of world's best business class airlines and fourth in
world's best inflight entertainment in 2015 (Platt, 2015). Starting with the small biplane which had capabilities of
transporting only two passengers, the company has now advance and luxurious Airbus with capabilities of carrying
500 passengers around half way of the world in a single day. It employees over 30,000 people and collects about
$1.6 billions of revenue in a year. ("Qantas | All Inclusive Airfares On Australia Pacific 's Best Airline," 2016).
Transportation of passenger and air freight is the main business of the company, however it also work through
number of segments such as Jet star Group, Qantas domestic, Qantas international, Qantas Loyalty, Qantas Freight
and Corporate. ("QAN.AU Company Profile & Executives – Qantas Airways Ltd. – Wall Street Journal," 2016).
The Qantas domestic covers the domestic passengers flying with in Australia and the Qantas international covers
the international passengers. Both of these mostly caters for premium customers–both leisure and business and
operates through the name QantasLink covering over 2000 flights per week whereas Jet star deals with cost
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12.
13. Essay on Qantas
QANTAS ANNOUNCES PROFIT RESULT, RESPONSE TO ECONOMIC CONDITIONS
Highlights:
Strong portfolio performance: o Continuing record results for Jetstar and Qantas Frequent Flyer.1 o Revenue
growth of 6 per cent. o Yield and unit cost improvements. o Offset by industrial action and record high fuel costs.
Improvement in net operating cash flow of 5 per cent.
Strategic initiatives to transform Qantas International and grow Jetstar in Asia.
SYDNEY, 16 February 2012: The Qantas Group today announced underlying profit before tax2 of $202 million for
the half–year ended 31 December 2011, a decrease of $215 million compared with the prior corresponding period.
Statutory profit before tax was $58 million.3
The result reflects the $194 ... Show more content on Helpwriting.net ...
"After the grounding we prioritised the timely compensation of affected passengers and a series of initiatives to
restore customer confidence in the airline. These included free air fares for affected Australian residents, travel
vouchers for affected international residents and a range of special offers for Qantas Frequent Flyer members and
premium customers.
"With QantasLink recently being named the world's best regional airline by Air Transport World and Network
Aviation increasing our presence in mining regions, Qantas is very well–positioned domestically.
"We continue to work towards returning Qantas' international performance to profitability in the short term. Our
long–term goal is to ensure that the Qantas business – domestic and international combined – exceeds the cost of
capital on a sustainable basis."
Jetstar achieved record underlying EBIT of $147 million, up $4 million on last year's first–half earnings.
"Jetstar continues to increase capacity both domestically and internationally," Mr Joyce said.
"As well as the ongoing growth of Singapore–based Jetstar Asia, Jetstar Japan passed a number of milestones as it
moves towards commencing operations in July 2012.
"This joint investment with Japan Airlines and Mitsubishi will deliver true low–cost air travel across the
Japanese market and further expand the Jetstar franchise in the world's fastest–growing region."
Qantas
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14.
15. Qantas Strat Mgt
1.0 Introduction
The Australian domestic airlines industry operations usually consist of transportation of freight and passengers
domestically (IBISWORLD, 2010). The industry has been experiencing slightly negative annual revenue growth of
negative 0.4% for the past five years (IBISWorld, 2010). The domestic airlines industry consist of two major
players such as Qantas Airways and Virgin Blue, and three minor players such as Regional Express, Skywest and
Tiger Airways (IBISWorld, 2010).
2.0 External Analysis
External analysis is used to analyze the external environment of an organization to identify any threats and
opportunities, which is part of SWOT (Hill, Jones Galvin & Haidar, 2007). This part of the essay will be looking at
what ... Show more content on Helpwriting.net ...
The reason behind this is Qantas's diverse flight operation of 142 destinations and its access to huge customer base
(Datamonitor, 2007).
3.2 Weakness
Over dependence on domestic market with over 70% of its revenue generated domestically (Datamonitor, 2007).
With the Australian market not expected to grow Qantas would have problems with its sales in the future.
4.0 Strategies
There are three levels of strategies business, functional and corporate level strategies each are used by organization
to "survive and prosper in the fast changing and globlally competitive environment" (Hill et al, 2007). Therefore to
assist firms to create competitive advantage and distinctive competency at an organization level (Hills et al, 2007).
This part of the essay will be looking at what changes did Qantas implement to help them stay profitable and
competitively advantages.
4.1 Cost–Leadership Strategy
Cost leadership strategy is used by firms to surpass their competitors by reducing their cost from production of
goods or services and is part of the business level strategy (Hills et al, 2007). There are four factors that influence a
company's ability to build and sustain a competitive advantage: efficiency, quality, innovation and responsiveness
to customers. These factors allow a company to (1) differentiate its product offering to create greater perceived
customer value and (2) lower its cost structure, which will then build a competitive
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16.
17. Qantas PESTLE
PESTEL and Porter's Five Force Analysis of QANTAS Assessment 2: Report Fiona Anderson, Assessment 2:
Report MGT330– Kym Treharne Due Date:10 September 2014 Student Number: 11449245 Executive Summary
The following paper provides an analysis and evaluation of the current market position of Qantas and the airline
industry. By assessing the company both internally and externally by applying PESTLE and Porter's Five Force
frameworks, this report will assess Qantas' opportunities and strengths within the aviation industry. In addition to
this, the report will focus on the specific resources and capabilities that enable Qantas to obtain a competitive
advantage over its competitors through the use of the VRIO framework. A final analysis ... Show more content on
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How society is observed as it transmits to air travel has a great deal to do with September 11, 2001. As a result of
this tragic event, the judgments of the world have become increasingly profound to the background of passengers
traveling on planes. It has shaped something of a undesirable perception for particular cultures and beliefs. This
discourages people to travel with other passengers or airline, directly affects the airline industry (Reilly.N.J, 2010)
2.4 Technological Technological developments have both created new opportunities as well as threats for the
aviation industry. Development in information and communication technologies has enabled strong communication
and has consequently provided customers with an alternative for frequent travelling, for example; Qantas Frequent
Flyer programs. Airlines are now able to expand their outreach directly to consumers through e–commerce. For
example, airlines like Qantas are able to introduce ticketless travel through the use of technology (Thompson and
Gamble, 2012). 2.5 Legal The implementation of the carbon tax had a negative affect on the aviation industry, as
the airlines could not absorb the higher cost of fuel. This meant to offset costs travelers would pay extra in ticket
prices (Herald, 2011). Some governments provide subsidies that provide an unfair advantage and prices lower than
market conditions which affects the functioning of airline industries directly and Global
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18.
19. Qantas Report
1. Executive Summary
Qantas is one of the most recognised and longest running Australian companies. It is the world's second oldest
airline, and has a successful history to uphold (Qantas Web Site, 2008).
Identification of target markets is imperative to Qantas's success. Mortished (2003) explains that Qantas uses
Behavioural segmentation to select its target market. This allows for the market to be divided and products and
advertising to be specifically aimed at the most responsive customers. Qantas divides its target market into two
main groups; Business and leisure
Qantas has three major problems. 1.) Fuel efficiency, 2.) Lack of communication between employers and
employees, 3.) Competition in the corporate customer market (Ferguson ... Show more content on Helpwriting.net
...
This threat of further increasing fuel prices poses a greater challenge to Qantas than any international disaster.
Qantas recognised that change was necessary in order to remain successful in this volatile industry. In 2006 Qantas
launched Jetstar international, expanded freight and restructured catering (Qantas web site, 2008).
In 2007 Qantas had a successful year despite a failed takeover bid, fierce competition, aircraft delivery delays and
record fuel prices (Qantas Annual Report, 2007). Qantas must ensure that controllable, internal factors affecting the
business are managed to minimise impact from unexpected external factors.
Internal factors that must be addressed are poor industrial relations and human resource management. The
company must also attract a greater proportion of the corporate market share from its competitors and reduce CO2
emissions to ease government and public pressures.
4. Who is the Customer/Market and how are we giving value
Target market is the market segment to which a particular good or service is marketed. It is generally studied and
mapped by an organization through lists and reports containing demographic information that may have an effect
on the marketing of key products or services.
Qantas is a global company whose primary operation involves carrying passengers, however it also has other
functions that are crucial to the success of the business, including its freight
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20.
21. Pest Analysis
1.0 Introduction
Qantas Airways Limited was founded in Queensland in Australia in 1920, and it is one of the oldest airlines in the
world. Qantas is the acronym of the Queensland and Northern Territory Air Services. It is the Australia's largest
airline and Australia's national airline. Its parent company is Qantas Group. Qantas Group operates the Australian
aviation industry, including aviation (stock limited liability company operating international routes and Australia),
QantasLink, Jetstar (low–cost airlines), Jetstar Asia, and other aviation–related business. The kangaroo logo of
Qantas is a symbol of reliability, security, advanced technology and quality service.
2.0 Critical Information on Company
Qantas Airways Limited, together ... Show more content on Helpwriting.net ...
These really improved the convenience of flying. So, the aircraft is becoming the main means of transport.
3.1.2 Economic
After a financial crisis turned into the economic crisis, Qantas Airways Limited will inevitably be affected. Today,
global enterprises had to reduce spending in all areas; to reduce business travel is the preferred one (Bonn &
Rundle–Thiele, 2007; Greve, Nielsen, & Ruigrok, 2009). International Air Transport Association recently
published data show that in December last year, the year–on–year passengers in business class and first class
reduced by13.3%. In January this year, Asia–Pacific business class passengers fell by nearly 24 percent and
business class passengers in Europe decreased by 22.2%, respectively. It was a big blow to the aviation industry
(Graham, 2009).
3.1.3 Legal–political
The Australian government is taking measures to help Qantas Airways Limited to tide over the difficulties. British
Airways and Qantas Airways Limited are considering a potential merger, which is considered the most ambitious
initiatives in accelerating the integration process of world 's aviation industry (Duval, 2008). It was a truly global
airline step, because the two sides' route network coverage matched well. If the two companies successfully
merged, the two sides will reduce the waste of resources brought about by coincidence, by the combined route
network expansion, in a number of key revenue synergies and will further consolidate the
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22.
23. Strategic Management Essay
Strategic Management
Content:
1. Background of Qantas
2. Analysis of Qantas
External analysis
a. What industry is it?
b. General environment analysis
c. The industry environment
d. Competitive environment
e. You now have material about opportunities
Internal analysis
f. The firm's resources, tangible and intangible
g. Capabilities identification
h. Core competency analysis
i. Value chain analysis
j. Weakness
k. Pulling it together
l. Current strategies
3. Recommendation & Strategies
4. Conclusion
5. Reference
6. Appendix
Background of Qantas Qantas is a flag carrier airline in Australia which established in Winton, Queensland since
November 1920 and the second oldest airlines in the ... Show more content on Helpwriting.net ...
It obstructs the development of Qantas Airways said by Mr Abbott. The rule also limit their international marketing
expertise to improve Qantas which make Qantas cannot move on in aviation industry. Also, bilateral restrictions
block it flying. As the result, Qantas difficultly fight with other competitors such as Virgin Australia and Singapore
Airlines.
Sociocultural
In 20th century, women are commonly in the workforce, some of them flight for business purpose. The airline can
provide some specific products and services for women during their onboard. Nowadays, customers have the
expectations of customer service are higher than before. Customers demand of quality services, innovative
products and special experience during onboard.
Technological
Nowadays, science and technologies change rapidly. The demands of passengers will be change; they would expect
a higher level of products and services of airline than before. Qantas must apply more and more new technologies
by upgrading their products and facilities. Moreover, Qantas has to deliver innovative products and facilities so as
to attract more and more loyalty customers.
Global
Political events, diseases and terrorization will cause influences of the demand of flights; commonly, people will
24. afraid of their safety on the aircraft and the affecting areas, and also their health of bodies. For example, 11/9 terror,
SARS disease and shut down
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25.
26. Qantas Case Study
Q3: What makes the Australian Airline Industry different? Why do Qantas and Virgin Blue earn high profits when
many airlines worldwide operate at a loss?
Introduction
The airline industry is extremely volatile, with events such as the September 11 attacks and recently the global
financial crisis having adverse effects on the profitability of airlines worldwide. Only in 2007 has the international
airline industry been able to post a profit since 2001 (Clark 2007), and since more losses have been made, with
IATA forecasting overall losses for 2009 of $US11 billion (AFP 2009). With substantial increases in fuel costs over
the past 5 years and the constant need to purchase new and maintain existing aircraft, it is rare to find airlines ...
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In regards to the US airline industry, some blame for the widespread losses is attributed to the US bankruptcy laws
which have allowed for airlines to be "artificially protected from creditors" (Wikipedia 2009) whilst still competing
with 'healthy' airlines who have not declared bankruptcy. This significantly protects airlines from complete
collapse, and with all the US legacy carriers bar American Airlines filing for bankruptcy at one point, some argue it
is necessary to tighten these laws to reduce competition to a point which may be more sustainable. The Australian
industry on the other hand does not employ the same bankruptcy laws, with firms who are unable to pay their debts
left to perish much like Compass Airlines and Ansett.
Why do Qantas and Virgin Blue earn high profits when many airlines worldwide operate at a loss?
Although some of the success of Qantas and Virgin Blue does arise from the industrial factors raised above, their
ability to regularly produce high–levels of profit over sustained periods can be attributed as much to their strategic
implementations, in particular expanding and venturing into new areas which other international airlines are less
willing.
The fall of Ansett, the largest competitor to Qantas at the time, not only allowed for Qantas to gain an even greater
dominance in the market but was the catalyst for Qantas to initiate a whole new
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27.
28. The Marketing Objectives Of Qantas Airlines
Introduction
Organisations come to exist to fulfill many purposes and reasons. For example some pursue to provide essential
services for the community benefit, whereas others for profit produce goods or services. Therefore in general terms
business plays a role in overall contribution of our society. The market today is very strong and competitive. Hence
marketing activities often can be a differentiating factor between industry leaders and the other market players. The
purpose of this report is to examine the marketing objectives of Qantas airlines. This assignment wishes to firstly
focus on giving a background of the company. Secondly defining the term segmentation and target market and
describing Qantas apparent target market. Thirdly the positioning Strategy Qantas has taken, fourthly explaining
the role that Integrated Marketing Communication plays in the company's current marketing effort. Lastly
marketing communication tools, messages, and media that Qantas uses to communicate with the different
audiences it targets.
Company Background and Product Description
Founded in Queensland Australia in 1920, Qantas has now become Australia 's biggest name in relation to
domestic and international airline. Originally registered as the Queensland and Northern Territory Aerial Services
Limited (QANTAS). Qantas is widely regarded as one of the world 's top airlines and one of the strongest brands in
Australia. Over the years it has managed to build a reputation for excellence in
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29.
30. British Airways PLC British Airways Essay
British Airways PLC British Airways
British Airway's PLC is the largest international airline in the world. It is based at Heathrow airport in London, the
busiest international airport in the world, and has a global flight net–work through such partners as USAir in the
United States, Qantas in
Australia, and TAT European airlines in France. Via its own operational and those of its alliance partners, British
Airways serves
95 million passengers a year, using 441 airports in 86 countries and more than 1,000 planes. The principal
activities of British Airways is the operation of international and domestic scheduled and charter air services for
the carriage of passengers, freight and mail and the provision of ancillary services. ... Show more content on
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All the managers, in relation to activities under their individual control, are responsible for identifying and
ensuring compliance with environmental regulations affecting environment. Each director shall address
environmental matters regularly, identify items requiring action and make sure they are followed up. Authority for
environmental matters is devolved thought the director of safety, security and environment to head of environment
that is responsible.
There are twenty six subsidiary companies. Their principal Banks are:
Barclays plc; National Westminster Bank plc. Finally, there are BA's financial information group. These all from a
significant part of the structure of British Airways operation. Another section of BA's structure has to do with her
fleet of airlines. There are a growing number of fleets British airways operate, such as Boeing 747 fleet.
There is now the newer 777 fleet. Their flagship "Concorde" fleet
(introduced in 1976). I will go into the workings of one such fleet, as we progress; namely British Airways
(European) fleet. This gives insight into how the remainder of her fleet operate in a similar pattern. This section
concerns the geography of flights and their destinations, which can here be enumerated.
1 British Airways (European)
2 British Regional Airlines
3 British Asia Airways
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31.
32. Virgin Blue: Industry and Company Analysis
1. Executive Summary
The following report is a comprehensive industry and company analysis of the Australian domestic airline industry
and in particular Virgin Blue. The purpose of this report is to determine the success of Virgin Blue in the domestic
airline industry and how it plans to position itself into the future. Success in this report is about being competitive
and innovative in a challenging environment in order to meet the company's desired goals. In order to be successful
and to meet those goals the interests of the main stakeholders must be met.
The analysis uses Michael Porter's 5 forces model for industry analysis and a SWOT for Virgin Blue. The analysis
also includes a breakdown of Virgin Blue's financial performance ... Show more content on Helpwriting.net ...
As industries change, the competitive forces within an industry can change as well. This can bring opportunities
and pose threats. In the past ten years we have seen the arrival of Virgin Blue, the subsequent collapse of Ansett
followed by the introduction in 2004 of Jetstar and most recently the entry of Tiger Airways.
The first of Porter's five forces is the threat of new entrants which depends on the barriers to entry. The main
barriers to entry are brand loyalty, absolute cost advantages, economies of scale, switching costs and government
regulation Hill et al. (2007, p. 65).
Brand loyalty is a contributing factor for competitive advantage in the domestic airline industry. Businesses in
mature industries spend a lot of time and money developing their brand. Virgin Blue has a culture of helpfulness
and irreverence and the "flying kangaroo" symbol is central to the Qantas brand Hill et al. (2007, p. 116). Brand
loyalty makes it harder for new entrants to enter the market.
Mature industries such as the airline industry have time to develop absolute cost advantages and economies of
scale, reducing costs and increasing efficiency. Low cost carriers also focus on generating higher productivity by
lengthening shift times, using fewer cabin crew and intensifying aircraft utilisation which translates into more
flying per duty period Barkin et al. (cited in Spiess and Waring,
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33.
34. Qantas Airline Half Annual Financial Results For 2015 Essay
Qantas is renowned as the world 's foremost long distance carrier and among the most powerful brands in
Australian market, being established in Queensland in 1920. The company has been magnificently able to establish
a standing for distinction in safety, operational dependability, high end technology and excellent customer services.
It operates in local, national and international routes and destinations (QANTAS, 2015). Today, the airlines
operates across a network of 175 destinations in 42 countries covering all over the world with approximately
30,000 employees. The Qantas group also propagates subsidiary businesses like complementary airline brand
Jetstar, and other businesses in dedicated services such as Q Catering, Qantas Freight Enterprises and Qantas
Frequent Flyer (QANTAS, 2015).
This report is based on the study and research of Qantas airline half yearly financial results for 2015. The strategic
purpose of this report is to scrutinise the present strategies employed by the company in its transformation
programme, how it profits them, how it lowers the cost structure, the need and scope for imminent strategies for
future to further improve the profits and the direction of the company. In this report, an analysis of key economic
factors and trends has been done to identify the effect of these factors on future business, crucial drivers for
change, developments in the Asia Pacific region and how the company adopt their strategies for future progress
and course of the
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35.
36. Qantas Business Report Essay
Qantas Executive Statement:
Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland
outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson
Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view
profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in
1995 and has had to adopt management practices to overcome both internal and external influences and had to
change its narrow–minded culture. Although Qantas is primarily a passenger airline, air freight is also an integral
part of its core business. Other Qantas ... Show more content on Helpwriting.net ...
A stronger sense of leadership who possesses directorial characteristics
Political:
Focus on managers using power and influence to achieve their goals.
Balancing the interests of competing stakeholder groups.
Contingency:
Management practices at Qantas are more flexible and adapted to suit challenges in society such as the reaction to
terrorism, the introduction of viral disease and the ever changing market and customer requirements.
The outcomes of the changes saw a more effective/ more efficient management structure, allowing Qantas to deal
with changes in the internal and external business environment more effectively.
How the change was managed:
Challenges that required managers to react and ensure that changed occurred was the event of September 11, which
caused:
A catastrophic industry crisis as 200 000 staff were cut in the world aviation industry.
Qantas had lost 11% of its international air traffic and profits fell by $300 million.
Also the collapse of Ansett, which:
Qantas capitalized on by increasing its domestic share of the market from 55% to approximately 80%. Qantas
management had effectively filled the gap left by Ansett by moving planes from the depressed international routes
to the company's expanded domestic market and by leasing planes from overseas to expand its aircraft fleet by
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37.
38. Analysis of Qantas Airlines as an Employer
QANTAS Airlines As An Employer
Are Its Business Polices Consistent With Its HR Policies
Contents
A Snapshot Of QANTAS 3 QANTAS as a Caring Organization 3 Work–Life Balance at QANTAS 3 Rewarding
and Recognition at QANTAS 4 QANTAS as a Diverse Organization 4 Recruitment and Selection 4 Talent and
Inclusion 5 Flexible Work Arrangements 5 Compliance to Occupational Health and Security 5 Succession Planning
at QANTAS 6 Reality of Qantas 7 QANTAS as an Underpayer and Unreliable Employer 7 QANTAS As A Biased
Organization 8 Disastrous PR Practices of QANTAS 8 QANTAS and Its Industrial Relations 9 Findings 9
Recommendations 10 References 12
QANTAS Airlines is one of the most prominent businesses in Australia. Where QANTAS is said to have provided
employment to seven thousands Australian citizens, it is important to understand that QANTAS has been highly
criticized by its employees in recent years for not being a caring organization. There have been few instances
which have highlighted the non–professionalism of QANTAS management and also the discrepancies in its
system. It is important to analyse the operations of HR department of QANTAS and its overall strategy to evaluate
if the strategies of QANTAS as a business and its HR strategies are on the same page for achievements of the
objectives (Guest et. al, 2003). A Snapshot Of QANTAS
QANTAS operates an average of 450 domestic flights daily and around 540 international flights every week,
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39.
40. Qantas strategies Analysis
Criterion
Maximum Mark
Your mark
Research and analysis of company information
5.0
4.0
Considerations of constraints impacting organisational strategy
5.0
3.75
Application of relevant theories of strategy
5.0
3.75
Development of argument and applied critical thought
5.0
4.0
Written communication & referencing
5.0
3.25
Total marks
/25
18.75
EXECUTIVE SUMMARY
The report has discussesd and appliesd theoretical concepts and principles of strategic management into analyzing
the environment context where to Qantas Airways Limited operates.
It shows that, Qantas has a long history and sustainable development but needs to evolve in the global world.
ization context, the company has to continue ... Show more content on Helpwriting.net ...
In 2012, Qantas carries a 44.6% shares of the Australian domestic market and 18% of all passengers travelling in
and out of Australia while the respective market segments for Jetstar are 20,7% and 8%. The chart below compares
the top 10 international airlines.
Figure 1: Top 10 international airlines in Australia
(Source: ANNA– Airlines Network News and Analysis, 2010)
2.2. Resources and capabilities
– Tangible resources: Establisheding in 1920, Qantas Group has grown gradually and remain one of the largest and
strongest in Australian airways industry. During the last 5 recently years, Qantas has steadily expanded its
operations by increasing number of aircrafts, passengers, employees and destinations all over the world. Its
development can be demonstrated as data below:
Figure 2: Qantas's resources from 2008–2012 (Adopted from Qantas data book 2012, see Appendix)
Qantas's total asset increased from $19.7 billion in 2008 to $21.1 billion in 2012. More than half of its assets are
from property, plant and equipment which book value at $14.13m at the end of FY2012. Intangible assets values at
41. $610,000.
At the end of FY2012, the corporation had a cash balance of $3.4 billion, and 308 aircrafts from three main
suppliers Airbus, Boeing and Bombardiers. The Group has 12 Airbus A380, 30 Airbus A330, 60 Boeing B737, 36
Boeing B747 and 46 Bombardiers.
– Intangible resources:
Qantas has a strong reputation for long history
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42.
43. Provide Leadership Across and Organisation
Provide Leadership Across The Organisation | May 3
2013
| | |
Table of Contents Executive Summary 2 Introduction 2 Strategic Directions 3 Macro and Micro Forces 3 Media
and Language 4 Expectations 4 Issues and How They Are Addressed 5 Investigation of Incidents 5 Building Trust,
Confidence and Respect 5 Monitoring the Global Environment and New Technology 6 Flexibility and Adaptability
to Change 6 Consultation 7 Decision Making 8 Risk Management Plans 9 10 10 Accountabilities and
Responsibilities 11 Resource Management 11 Delegation 11 Positive Work Environment 12 Innovation 13 Ethical
Conduct 13 Interpersonal and Leadership Styles 14 Personal Objectives 14 Self–Performance and ... Show more
content on Helpwriting.net ...
Their strategic goals include: * Build on the Group's strong domestic businesses through a clear focus on the
customer. (Qantas, 2012, p. 13) * Turn around Qantas International through the "four pillars" of targeting global
gateways, growing with Asia, improving the customer experience and ensuring disciplined financial management.
(Qantas, 2012, p. 13) * Strengthen Jetstar's presence across Asia to capture the full benefits of the region's low–cost
leisure travel boom. (Qantas, 2012, p. 13) * Continue to expand Qantas Frequent Flyer by adding new partners and
increasing ways for members to earn and spend points. (Qantas, 2012, p. 13)
Qantas values its customers, employees and their safety. Safety is our first priority. This has been promoted
extensively everywhere. Badges were created having this motto written on it, showing the emphasis it has on
safety and in order to maintain this, standards are up to speed and bettered from the actual requirements.
Macro and Micro Forces
There are two types of environments which can have an impact on the organisational objectives and strategic goals.
The Macro environment include factor such as: * Demographics: The demographics of a nation can have a major
impact on organisations goals as people/customers are the main reason for this service. Australia has a
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47. Customer Benefits Packages And Value Chains
MONASH UNIVERSITY
Customer Benefits Packages and Value Chains
[Type the document subtitle]
[Type the author name]
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.
Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]
Contents
Executive summary 2
Introduction 3
Retail Company – Woolworths Limited 3
Service Company – Qantas Limited 3
Customer Benefits Package (CBP) 3
Woolworths Limited – CBP 4
Target customers and customer needs 4
Product availability 4
Qantas Limited – CBP 5
Target customers and customer needs 5
Understanding customer needs 5
Product availability 5
Value chain design and ... Show more content on Helpwriting.net ...
The basic requirements for operation managements is understanding of the customers' needs and satisfied them,
and use fewer resources to maximise the efficiency and effective of the company's productivity. Therefore two
typical Australia companies have been shown blew. One is the largest Australian supermarket, Woolworths
Limited, and another one is the largest airline company in Australia, Qantas Limited.
These are two typical different types companies: one is Retail Company which sells foods (Woolworths Limited);
another one is provide services to customers (Qantas Limited). The basic backgrounds of these two companies
have been given.
Retail Company – Woolworths Limited
When the first Woolworths supermarket open, the Founding CEO Percy Christmas has stated that a key principle
for Woolworths were "Every man, woman and child needs a handy place where good things are cheap" which has
been insisting by all the Woolworths employees and suppliers until now. Now Woolworths has more than 3,000
stores in Australia and New Zealand that span food, liquor, petrol and general merchandise. (Woolworths Limited,
2015).
Service Company – Qantas Limited
Founded in the Queensland mainland in 1920, Qantas has grown to be the Australia 's largest domestic and
international airline. Qantas has built a strong reputation in safety,
50. Ten Four Hours Cycle Of Sydney International Airport
Sydney International Airport
Shallu Shallu
MBA
June 24, 2016
Table of
Overview 2
Twenty–four Hours Cycle of Sydney International Airport 3
Connection between operations and theory 5
Customer Satisfaction through Service: 6
Safety Operations: 8
Other Operations: 8
Future Improvements Plan: 8
Airport Sustainability Precinct 9
Sydney Airport Sustainability Report: 9
References 11
Overview
Sydney International Airport is the oldest continuously operating airports in the world. It is also the privatized
airport of the Australian Government since 2002. It is also categories among the busiest airports of Australia. This
efficient airport facilitating communications and international trades, which is significant to the national ... Show
more content on Helpwriting.net ...
Additionally, there are 57 stands or aprons domestic and regional operations and 41 aprons for international and
freight operations.
The airfield of Sydney Airport has been modified and expanded in response to traffic growth and changes to
aircraft size and fleet mix. The airfield is inclusive of parallel runways along with the east–west runway, north–
south runway, aircraft parking as well as taxiways. The north–south runway, the parallel runway and the east–west
runway is 3,962, 2,438 and 2,530 meters long respectively. ILS (Instrument Landing Systems) are established
through all runways, whereas north–south runways are equipped with HIAL, i.e. High Intensity Approach
Lighting. The parallel runways are supported by RETs, i.e. Rapid Exit Taxiways to diminish occupancy time. In
order to facilitate the efficient movement of aircraft between terminals and runways, a taxiway system is linked to
the runways.
Specifically, a range of aircraft codes accommodates the Sydney Airport's operations, including:
Code C: A320 and B737;
Code D: B767;
Code E: A330, A340, B777 and B747;
Code F: A380 (operated from T1, i.e. International Terminal)
Overall, every operation of the Sydney International Airport is focused at providing transportation service.
Therefore, its vision is to foster the development of Sydney Airport by delivering a world class airport
53. Defending Territory Case Studies Analysis
IBU5COR ASSIGNMENT
Defending Territory Case Studies Analysis
Submitted by
SEEMAB ALAM (17480932)
Table of Contents
Introduction....................................................................................3
External Environment Analysis..............................................................3
General Environment Analysis...............................................................3
Industry environment..........................................................................4
The competitive Environment................................................................5
Opportunities and threats......................................................................6
Internal Analysis...............................................................................6
Tangible and Intangible Resources..........................................................6 Core
Capabilities...............................................................................6
Core Competency Analysis...................................................................7
Competitive Considerations in domestic strategy..........................................7
Current Strategies..............................................................................8
Recommendations..............................................................................8
Business Level..................................................................................8
Corporate Level..................................................................................8
International Level..............................................................................8
References........................................................................................9
Introduction
Qantas airline was first set up in Queensland, Australia in 1920 by to veterans. In civil aviation industry Qantas has
made their reputation and become the symbol of reliability, security and advanced technology in customer service.
Apart from the main business of passenger and cargo transport, Qantas also has many subsidiaries companies
including Qantas link, Jet star etc.
At the present time Qantas is one of the leading long haul airline companies and at the same time well–known
brand in Australia.
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54.
55. Project Task a: Valuation and Sensitivity Analysis
Task A
I choose Qantas Airways Limited (ASX code: QAN.AX) as the target company which is listed on the Australian
Stock Exchange (ASX).Qantas Airways is principally engaged in providing transport services at both international
and domestic level. It is also engaged in the provision of time definite freight services. Qantas focuses on selling of
international and domestic holiday tours, and associated support activities including information technology,
catering, ground handling, and engineering and maintenance. It operates its business through six divisions namely
Qantas, Qantas holidays, Jetstar and Qantas flight catering, Qantas freight and Qantas frequent player.
In the section 1, the report deals with the valuation of the company. ... Show more content on Helpwriting.net ...
Characteristic line and Beta
The beta factor of a stock is an indicator of the degree to which a stock responds to changes of the market return.
The characteristic Line shows the expected return for a selected share for a given rate of return for the market. The
slope of the Characteristic Line is commonly referred to as the stock's beta factor, or β. Use the regression
calculation to regress QAN's return on the index return. This relationship is provided by the regression and is
shown below(Use Excel to build the chart):
As we can read from the regression analysis, the beta is 0.287. It shows that if the overall market return goes up by
1% QAN's return will
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56.
57. Financial Ratio Analysis Qantas Airways Limited
Financial Ratio Analysis Qantas Airways Limited
Introduction
This report is a financial analysis of Qantas Airways Australian covering the last two complete financial years 2015
to 2016. The analysis will be conducted using a series of financial ratios drawn from the following categories of
the main ratio categories. Including profitability, asset efficiency, liquidity, capital structure, and market
performance. The report will highlight what the ratios indicate in the context of the company's operations. The
report will also endeavour to provide an overall assessment of the company's performance for the most recent
period and discussion about which aspect of the company's financials has demonstrated the most improvement.
The ... Show more content on Helpwriting.net ...
Jetstar includes Jetstar, Jetstar Asia and investments in Jetstar Pacific and Jetstar Japan (IBISWorld, 2017).Qantas
freight which includes Qantas ' air cargo and express freight businesses, operated under the Qantas Freight,
Australian air Express and Star Track Express brands (IBISWorld, 2017). Qantas catering which comprises Snap
Fresh and Q Catering, which operates five catering and food production centres across Australia and Qantas
frequent, a 10 million member frequent flyer loyalty program (IBISWorld, 2017).
Profitability
There will now be a look at the profitability aspect of Qantas airways operations. The following ratios have been
selected for the last two most recent years of 2015 and 2016 these are the Gross profit margin, return on equity
(ROE), and Return on Assets (ROA).The Ability to make profits and secure returns for investments are key
indicators of a company's financial viability (Birt, Chalmers, Maloney, Brooks, & Oliver, 2012). This is illustrated
by the large increase in earnings per share seen in the market performance section. In the data,
Table1 Profitability ratios
Categories 2016 2015 Change Percentage change profit available to owners 1029 557 472.00 84.7%
Equity 3260 3447 –187.00 –5.4%
profit 1643 1048 595.00 56.8%
Assets 16705 17530 –825.00 –4.7%
Sales Revenue 13961 13604 357.00 2.6%
ROE
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58.
59. Qantas Airways, South, And Northern Territory Aerial Services
Qantas Airways
Qantas was found in Winton, Queensland on 16 November 1920 as Queensland and northern territory aerial
services limited by Paul McGuinness, Hudson Fysh, Fergus McMaster and Arthur Baird. The airlines first aircraft
was an Avro 504K. The aircraft has a cruising speed of 105 kilometres per hour and carried one pilot and two
passenger. 84 years old Alexander Kennedy was the first passenger receiving ticket number one. The airline
operated air mail services subsidised by the Australian government, linking railheads in western Queensland.
Qantas Airways Ltd. is Australia 's number one domestic airline and a leader in the Asia–Pacific region. It is one of
the ten largest airlines in the world and is considered to be the second ... Show more content on Helpwriting.net ...
Qantas is divided into three closely related groups, Commercial, Customer and Marketing, and Operations. The
Commercial group includes sales and distribution, commercial planning, QantasLink and alliances. Customer and
Marketing includes customer experience, cabin crew, inflight services and marketing. The Operations group
comprises engineering, airports, catering, flight operations, operations planning and control and Qantas Aviation
Services. Jetstar, the Group's low fares airline also manages the Jetstar Asia operations based in Singapore. In
addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has
additional equity interests in airline and airline–related businesses, including a 27 per cent stake in Vietnam's
Jetstar Pacific; a 46 per cent interest in Air Pacific and an interest in Jetset Travelworld Group. Qantas is also a
partner with Australia Post in two jointly controlled entities: Australian air Express, a domestic air freight operator;
and Star Track Express, a national road freight business.
Between 1926 and 1928 they built seven de Havillanddh.50 and a single DH9. In 1928 a chartered Qantas aircraft
made the inaugural flight of the royal flying doctor service of Australia. In 1934 Qantas limited formed a new
company with Britain's Imperial airways and the name of the airline was, Qantas Empire Airways Limited (QEA).
Each partner held 49% and
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60.
61. Advantages And Disadvantages Of Qantas
Corporate Social Responsibility (CSR) encourages companies to take interest of all stakeholders into consideration
during their decision–making process and not make their choices based solely upon the interest of their
shareholders. By bring socially responsible, the company would make choices that protect social welfare which
can have an impact on the buying decisions of the customers and building a reputation for the company as to
whether the company is trustworthy or ethical.
Employee
As mentioned above, Qantas has announced its plan retrench up to 5,000 of their full–time employees. Employees
are one of the most important stakeholder of the group, by sacking 5,000 full–time employees would definitely be
a disadvantage on the stakeholder and an advantage on the shareholders. This may be the results according to the
shareholder theory where it is mentioned that the firm should stay focus on creating wealth for its owners and
allow the government establish legal framework to adjust the social problems. This means that the firm does not
take into any interest as to what it is doing could be socially unacceptable; leaving the issues unsolved, in hope that
the government will take care of the social issues left behind by the firm. Free market will eliminate firms engage
in unethical operations by ... Show more content on Helpwriting.net ...
This shows that Qantas has been depending on socially unethical methods to gain maximum profit. Furthermore,
the group was being fined of more than A$160 millions for conspiring with other airlines to increase the price of
freight through imposing of fuel and security charges between 2006 and 2000. (Ironside 2014). This is, perhaps the
reason why Qantas is striving hard to improve their technical services in hope to attract customers with new
technology and hopefully to improve the damaged
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62.
63. Qantas History Essay
History
Qantas was founded by the Paul McGinneses, Hudson Fysh, Fergus McMaster and Authur Braird in Winton,
Queensland on November 1920. Qantas is one of the largest airline in Australia and one one the oldest airline in the
world. The story began when Paul Mc Ginnes and W Hudson Fysh heard of the award of $20,000 prize offered by
the Government for the first Australians to fly in 30 days from England to Australia. The company was established
under the name of The Wstern Queensland Auto Aero Service Limited, abbreviated to the ' QANTAS'. the first
scheduled air service between Charleville and Cloncurry was in November 1922.
Its first head office was destroyed by fire in Longreach and now occupied in Brisbane since 1929.
Industry and product service ... Show more content on Helpwriting.net ...
Types of services of Qantas
In–fight entertainment systems installed on its aircraft, passengers could watch movies, read newspapers and listen
to music that are provided in all classes. The airline's inflight magazine is Qantas The Australian Way.
Cabin
Firstclass is available in the Boeing 747,International Airbus A330–200s, the A330–300 and Airbus A380.
Premium economy class is only available on Airbus A380 and all Boeing 747–400 aircraft . It can be seen as a
higher economy class but does not offer complimentary access to the Qantas premium lounges. Finally, all Qantas
mainline passenger aircraft is also provided economy class.
Directors
Leigh Clifford,AO – Chairman and Independent Non–Executive Director – November 2007.
Mr Clifford is a Director of Bechtel Group Inc. and Chairman of Bechtel Australia Pty Ltd, the Murdoch Childrens
Research Institute and the National Gallery of Victoria Foundation. Mr Clifford was Chief Executive of Rio Tinto
from 2000 to
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64.
65. Qantas Australia 's Largest Domestic And Worldwide Airline
Qantas founded in the Queensland outback in 1920 " Figure 1 visual depict Qantas in 1920", Qantas has grown–up
to be Australia 's largest domestic and worldwide airline. Registered in the beginning as the Queensland and
Northern Territory Aerial Services Limited (QANTAS), further Qantas is regarded as the world 's leading long
coldness airline and one of the strongest brands in Australia. Qantas had built a status for excellence in safety,
operational reliability, manufacturing and maintenance, and customer service. The Qantas Group 's chief business
is the transportation of clients using two balancing airline brands Qantas and Jetstar. Qantas airline brands operate
local, domestic and international services. The Group 's broad variety of ... Show more content on Helpwriting.net
...
This means that the operations manager will have to be involved in the growth of the business's goals so that the
operations department knows what resources and production methods are needed to meet these goals.
Cost leadership
Cost leadership refers to the strategies to create goods or services at the lowest possible cost whilst they are still
acceptable to customers. By reducing the costs of manufacture and distribution, a business will be able to increase
the advantage over competitors. Qantas main costs include staff (26%), aircraft operating e.g. maintenance (20%),
fuel (25%), depreciation (9%), marketing (4%), property (3%), IT (3%) and other (11%). To gain cost leadership,
operations management at Qantas must find ways to minimise costs. Qantas has targeted cost reduction of $1.5
billion over the next three years. The aim is to use the least quantity of inputs to deliver one unit of output. A
number of methods are available:
Economies of Scale the economics of the aviation industry which requires a large labour strength and large
reserves of capital have made strategic alliances necessary. Qantas is a member of the Oneworld Alliance "Figure 2
is visual depict Oneworld Alliance" which features 12 of the world's
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66.
67. Qantas Case Study
Question One: Outline the methods of expansion used by the company. Qantas which was founded in 1920 was
first only a domestic airline. Eventually the company began travelling internationally and started expanding itself
into the global market. Qantas today has become Australia's national airline and one of the world's leading long
distance airlines. To become one of the worlds's leading airlines; Qantas expanded into the global market in
numerous ways. Qantas became involved in global alliances for example: one world alliance – which is a global
airline service bringing together 11 of the world's biggest airlines. One world alliance helps to create loyal
customers with frequent ... Show more content on Helpwriting.net ...
An example in the case of Qantas is their constant struggle of market share between their domestic competitors,
Virgin Blue. This also has an inverse relationship with the domestic market, where if there are sudden fluctuations
in the international market, the domestic market may make up for the potential loss. In order to gain this
cushioning of the economic cycle, Qantas also had to effectively spread production costs and promote operation
efficiency for their growing international corporation. Economies of scale are the reduction in costs of productions
caused by increasing the scale of the production facility and spreading fixed costs over a larger output. This means
that as Qantas expands to global markets, they can possibly gain more revenue through services and this would
generate lower average costs and the potential for higher profits. The purchase of Australian Airlines in September
1992 allowed Qantas to more efficiently use their aircraft and improve management of passenger capacity and
transfers between domestic and international services. Through their increasing economies of sale, they were able
to gain a cushion for the economic
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68.
69. Strategic Planning, Product Positioning and Customer Value...
Strategic Planning, Product Positioning and Customer Value Marketing Theories Applications at Qantas Group
A Report By Amit Singh ID: c3099441
FM– Assign 2
Page I
Amit Singh ID: c3099441
Executive Summary
Qantas was founded in Queensland in 1920 as Queensland and Northern Territory Aerial Services. It is twelfth
largest and second oldest airline in the world. Since Qantas was privatised in 1993, it has operated profitably in
international and domestic air services and a range of related businesses. This report has attempted analyse and
discuss some of the marketing theories such as strategic planning, product positioning, and customer value that
Qantas has applied and what benefits it obtained strategically from applying ... Show more content on
Helpwriting.net ...
IV 1. Introduction ..................................................................................................1 1.1 Qantas Background
..............................................................................................1 1.2 Performance and Awards
.....................................................................................2 1.3
Challenges............................................................................................................2 2. Strategic
Planning........................................................................................2 2.2 Strategic Planning
Theory....................................................................................2 2.3 Qantas Strategic Planning
....................................................................................4 3. Product Positioning
......................................................................................7 3.2 Positioning
Theory...............................................................................................7 3.2 Qantas Product Positioning Strategies
.................................................................8 4. Customer Value
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70.
71. Qantas And Their Highly Turbulent ' Strategic Ride
Qantas and Their 'Highly Turbulent' Strategic Ride
It is often said that a key element of success is how companies strategically manage growth and their ability to
manage obstacles they are faced with. The Qantas Group is an example of a company which has been taken on a
'turbulent' ride, due to influences from the general, internal and external environments, since it first originated in
the nineteen–twenty's. Qantas' growth has been effected by its general environment due to the global financial
crisis, employee strikes, high fuel costs and emergence into global markets. In relation to these areas, the following
essay will analyse the Qantas group's effectiveness and competitiveness as a company and discuss how their
strategies have ... Show more content on Helpwriting.net ...
Qantas' mission is based on their goal to be, "the world's best premium airline, offering a genuinely global network,
providing outstating travel experience, working with strong partners– and putting safety first at all times."(Qantas,
2013). Qantas is faced with competition within the domestic airline industry from Virgin Australia and Tiger
airways and international competition comes from several major airline operators including Virgin Australia,
Singapore Airlines and Cathay Pacific (Fisher and Waschik, 2002 p. 317). Hill, Jones and Schilling (2013) describe
competitor analysis as focusing upon the overall industry in which a firm competes, to attempt to understand
objectives, strategies, assumptions and capabilities. This can be considered through an industry environment
analysis of the competitive forces model.
Michael Porter's well known framework, the Five Forces model, helps firms to analyse competitive forces in order
to identify opportunities and threats (Rappaport, Mauboussin, 2001, p 54). The first element to this model is the
threat of new entrants. Identifying this area is effective for the responsiveness of threats to the market share of
Qantas. Currently, the airline industry is inundated with suppliers of the service. The cost of entry is the key
contributor for this with a high cost of obtaining aircrafts, safety and security measures, customer service and
general operational activities. Secondly,
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72.
73. Financial Analysis : Qantas Airlines
FINANCIAL ANALYSIS
SUBMITTED BY:
PRIYA BINDRA–12978038
ALISHA DESHAR–13058812
AVTAR SINGH BHANGRA–13032771
TABLE OF CONTENTS
EXECUTIVE SUMMARY......................................................................................................................................3
INTRODUCTION..........................................................................................................................................................4
BUSINESS PERFORMANCE................................................................................................................................5
COMPETITORS 6
DISCLOSED AND PAID DIVIDENDS 7
OTHER ITEMS 7
FINANCIAL STATEMENT ANALYSIS.............................................................................................................7
CONCLUSION 13
APPENDIX..............................................................................................................................................................15
Qantas Cash Flow Statement for the year 2016 15
Profitability ratios 16
Liquidity ratios 16
REFRENCES................................................................................................................................................................17
EXECUTIVE SUMMARY
Qantas Airlines Limited is an ... Show more content on Helpwriting.net ...
Nonetheless as stated, the 2016 Annual Report reported a significant improvement Profit before Tax which is
almost 60% higher than the 2014 and 2015 results.
INTRODUCTION
This report's main purpose is to provide an overall analysis of the performance of Qantas Airlines Limited which
despite being Australia's largest local and international airline, QANTAS has been struggling with financial matters
since 2011 due to specific adjustments in the guidelines of accounting such as the assets impairment. It has also
forged an alliance with the Emirates Airlines which is based in the United Arab Emirates. There has been a notable
concentration on the reduction of the size of its fleet and number of jobs to mitigate the losses it suffered in 2004.
While Qantas airlines are its primary business, Qantas limited comprises five sectors including JetStar Group,
Qantas Freight, Qantas Loyalty, Qantas Domestic and Qantas International. This company offers, in addition to
transport of people and freight, logistic services. These include trucking services from state to state. It provides
these services to not only international air cargo courier services but also small and medium size businesses and
individuals. The company also offers these trucking services to a range of baggage services.
The Company's main strategy is delivery of sustainable returns to shareholders while focusing largely on safety.
However, the advantageous
76. Qantas Report
TABLE OF CONTENTS
Contents
EXECUTIVE SUMMARY 2
COMPANY BACKGROUND 3
EXTERNAL ANALYSIS 4
REMOTE ENVIRONMENT ANALYSIS 5
INDUSTRY ANALYSIS 7
COMPETITIVE ANALYSIS 12
INTERNAL ANALYSIS 13
STRATEGIC GAPS 15
STRATEGIC OPTIONS AVAILABLE 17
RECOMMENDED STRATEGY 21
IMPLEMENTATION PLAN 22
CONCLUSION 23
REFERENCES 24
APPENDIX 1 – Income Statement 25
APPENDIX 2 – Balance Sheet 26
EXECUTIVE SUMMARY
The passenger airline industry is very mature and competition has forced many airline companies to reduce prices
in order to utilise capacity. A remote analysis and industry analysis was carried out showing that the industry's
growth and profitability will be low.
Qantas will have to make use of ... Show more content on Helpwriting.net ...
Owing to the global financial crisis and the prolonged economic slowdown, Qantas's 2009 annual report shows a
77. subdued financial performance – revenue of $14.6 billion, 6.9% drop from 2008; profit before tax of $181 million,
a sharp decline of 87.1%; earnings per share of 5.6 cents as opposed to 49 cents in 2008; operating cash flow of
$1.1 billion, 46.9% fell down from 2008
Despite this extremely challenging operating environment, the Qantas Group maintained its operational excellence
by its broad scale, deep experience and exceptional human resource. In 2009, Qantas had achieved 334,000 flights
over 530 million kilometres. It carried 38 million passengers and prepared 36 million meals. Frequent flyer points
of 18% more were redeemed; 575,000 tonnes of freight were handled and 490,000 engineering tasks were
undertaken.
EXTERNAL ANALYSIS
A remote environment analysis and Industry environment analysis has been carried out for Qantas. As 80% of the
total group's revenue is "Passenger Revenue" and it operates in both Australia and overseas, the industry has been
defined as domestic and international passenger airline industry.
REMOTE ENVIRONMENT ANALYSIS
ECONOMIC
Many industries in the world were affected by the global financial crisis in 2008. Consumer spending decreased
because of the financial downturn. The impact of the financial crisis on the airline industry is high and negative.
Passengers
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78.
79. Case Study Of Qantas
In this long operation period, Qantas constantly developed and improved so as to achieved some achievement and
earn good reputation. For example, in 2012, it got different awards about entertainment facilities, the best first class
and business class within 10. In addition, it was the best safety airline in the world from Airline Ratings in 2013.
These good growth can lead Qantas come into a good situation and bring more passengers.
1.4 Affecting future strategy choice
Qantas got a lot of awards in past years, especially in safety aspect. Therefore, flying safety may be kept focus in
future strategy. Also, the service in different classes could be maintained or made better in order to retain the
reputation.
1.5 Mission
According to Qantas Fact Files (2010, p.5), the mission of Qantas is to "operate ... Show more content on
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Giving Make–A–Wish Australia as an example, it is an international charity whose mission is to give hope and
pleasure to children and teenagers whom are with life–threating disease. Qantas donates money to support and help
these kinds of people to find hope as well as enrich their life.
This aspect proved Qantas concern on people. It wants to provide help on Australia's people, therefore; it can
provide good service to passengers.
Environment is one of the topics it concerns as well. Pollution is inevitably to produce when there is flying.
However, Qantas still wants to try its best to reduce the pollution problem. For example, it joins energy saving
program, waste recycling as well as Fly Carbon Neutral Program to reduce the pollution problem that it bring.
Apart from community, people and environment aspect, Qantas also sponsor on arts and sports areas. It sponsors
on Sydney Theatre Company, The Australian Ballet, The Museum of Old and New Art and so on. Also,
competitive spirit is one of the Australia Spirit. Australian Paralympic Committee is one of
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80.
81. Business Analysis : Qantas And Jetstar Essay
Introduction:
Established in the Queensland outback in 1920, Qantas has become Australia 's biggest residential and global air
transport. Enrolled initially as the Queensland and Northern Territory Aerial Services Limited (QANTAS), Qantas
is generally viewed as the world 's heading long separation carrier and one of the strongest brands in Australia. We
have manufactured a notoriety for brilliance in security, operational dependability, building and support, and client
administration.
The Qantas Group 's fundamental business is the transportation of clients utilizing two integral carrier brands –
Qantas and Jetstar. We likewise work backup organizations including different aerial shuttles, and organizations in
authority markets, for example, Q Catering. Our aerial shuttle brands work local, household and global
administrations. The Group 's expansive arrangement of backup organizations ranges from Qantas Freight
Enterprises to Qantas Frequent Flyer. We utilize in excess of 30,000 individuals with pretty nearly 93 for every
penny of them based inside Australia (Our company).
Marketing auditing, marketing planning and corporate strategy :
Marketing planning and marketing audit by Qantas would help this airline in getting the information have a better
understanding of the demands of the customers, market demand, analysis of competitors in the market, dealers and
other forces present in the international market. A formal marketing planning of the Qantas airline will help it in
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82.
83. Qantas Analysis : Qantas And Jetstar
Overview
Qantas was found as Queensland and Northern Territory Aerial Services Limited in Winton, Queensland in 1920
(Qantas 2014). The company went through world wars and expanded drastically since then and is the world's
second oldest airline covering more than 180 destinations including its code share partners. Since its privatisation
in 1993, Qantas has become one of the most well–known and profitable airline globally.
Qantas' main operation includes the transportation of customers domestically, regionally and internationally
through their airline brands – Qantas and Jetstar. Their subsidiary operations comprise QantasLink, Qantas Freight
Enterprises, Q Catering, Qantas Frequent Flyer and other specialised businesses while employing over 33,000
employees. Locally, Qantas Link and Jetstar operate over 5,000 flights weekly in all states, covering 56 regional
and metropolitan destinations (Qantas 2014).
The company's performance had been deteriorating over the past few years with the Underlying Profit before Tax
(PBT) Loss of A$646million in the financial year ended 30 June 2014, down from the Underlying PBT Profit of
A$552 in the financial year ended 30 June 2011. Qantas blamed the increasing loss to growing market record fuel
costs (Qantas 2014).
The landscape of Qantas globally is extremely competitive. As of 2010, there are 68 global airlines with more than
10 million passengers globally which Qantas ranked 28th top airline serving most passengers worldwide
(OneWorld
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84.
85. Qantas Airways Ltd: Analysis and Valuation
TABLE OF CONTENTS
TOPICS PAGE NO.
1.0 Executive Summary...............................................................3–4
2.0 Objectives.............................................................................5
3.0 Economic Analysis.................................................................6–7
4.0 Industry Analysis....................................................................8–10
5.0 Company Profile.....................................................................11
5.1 Key Financial Ratios......................................................11–12
6.0 Valuations.............................................................................15
6.1 Dividend Valuation Model................................................14–16
6.2 Price–Earnings(P/E) Model................................................17
7.0 Limitations..............................................................................18
8.0 Conclusions and Recommendations.............................................19
5.0 List of References.....................................................................20–22
APPENDIX
1 Qantas Airways Ltd – Key Facts...............................................23–24
2 Ratio ... Show more content on Helpwriting.net ...
The report will serve as a guide to a potential investor who wants to make an investment in the said company.
Therefore, the report also gives a recommendation about whether or not to invest in the company.
Moreover, this report has been prepared to fulfil the passing criteria of HBC618 Personal Investment.
3.0 ECONOMIC ANALYSIS
The world economies depend on one another immensely as they are connected through trade, migration and
investment. Presently, global economy has slowed down as a result of the credit market turmoil and tightening of
financial conditions in the developed countries especially in US. On the other hand this has not affected the
economic growth in Asian countries such as India and China which still has been strong. This has been one of the
major factors for Australian economy to be in a strong position, as China and India are one of the biggest
86. consumers of Australian exports.
In the year 2008 Australia has seen an increase in its cash rate (also known as Interest rate) twice by 25 basis
points. At present the cash rate is 7.25 percent. One of the major reasons for such a tightening of monetary policy is
the rising inflation in Australia. Presently Australia is experiencing an inflation rate of 4.2 (Figure 1) percent which
is above the Reserve Bank target of 2 to 3 percent. In addition to this, Australian dollar is strengthening against
many currencies
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