...Introduction QANTAS is operating mainly domestically and internationally in air transportation company for various types of travelling, such as leisure and business, cargo and logistics facilities as well as support operations which includes: information technology, catering, ground handling, engineering and maintenance (Qantas Annual Report, 2013). Qantas Group also has dual brand strategy. It operates under Jetstar Airline, as a subsidiary. Jetstar is operating under a low-cost business model and it competes with local market airlines, such as Virgin Australia and Tiger. As for the Qantas airlines, it is positioned as a premium full-service carrier, providing hi-end experience for business class and corporate customers. They all have a major influence on the business, its strategy and therefore its performance. This business strategy gives Qantas Group its quite unique and competitive advantage situation of having two well known companies in the superior and low fares segments at the Domestic and International markets (Qantas Annual Report, 2013). The demographics of Australia is taking optimistic atmosphere within the business with the increase of Generation Y and retiring Baby boomers. Schedules become more significant over service quality in current constantly changing business environment around the world. Also, with the rise of ecological concern, consumers are searching for eco-friendly transport methods. However,...
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...QANTAS ANNUAL REPORT 2012 Broadening our horizons Qantas Annual Report 006 008 010 012 018 028 037 065 138 153 CHAIRMAN’S REPORT CEO’S REPORT FINANCIAL PERFORMANCE BOARD OF DIRECTORS REVIEW OF OPERATIONS CORPORATE GOVERNANCE STATEMENT DIRECTORS’ REPORT FINANCIAL REPORT SUSTAINABILITY REPORT FINANCIAL CALENDAR AND ADDITIONAL INFORMATION Broadening our horizons 002 QANTAS ANNUAL REPORT 2012 Broadening our horizons Building on unique Australian qualities – and the skills of its 33,600 people – the Qantas Group is broadening its horizons to secure a successful and profitable future. 003 004 QANTAS ANNUAL REPORT 2012 Heading For the Qantas Group, 2011/2012 was a year of transformation. We recorded an Underlying Profit Before Tax* despite significant challenges. We continued to build Qantas’ strong domestic network, Jetstar and Qantas Frequent Flyer. And we launched a five-year plan to turn around Qantas’ international network. FOR THE YEAR ENDED 30 JUNE 2012 *For explanations of non-statutory measures see the Review of Operations. 005 Building a stronger Qantas for our people, our customers, our shareholders and Australia The Qantas Group has a broad portfolio and a clearly defined strategy, with the following core goals: — Build on the Group’s strong domestic businesses through a clear focus on the customer. — Turn around Qantas International through the “four pillars” of targeting global gateways, growing with Asia, improving...
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...Assignment Title: QANTAS, JETSTAR AND VIRGIN AUSTRALIA A TALE OF CHANGING STRATEGIES Topic code and name | BUSN 3055 | Word count | 2020 | 1. Differentiated pricing is among the widely practiced Revenue Management tactics in which a firm offers its products/services at differentiated prices to distinct markets. And this tactic has been noticed by airline industry for more than four decades. Revenue Management also known as Yield Management has been well recognized as an essential practice in many businesses, and it is defined as the set of strategies adopted by a business to improve its profitability (Philips, 2005). It is among the most important applications of management science and operation research (Bell, 1998). Qantas, Australia’s foremost domestic and international carrier, established Jetstar in May 2004 as a budget airline. Its purpose is to cover the low-cost segment of the market, which began in around the year 2000 with the launch of a competitor, Virgin Blue. Until the time Jetstar began operations, Virgin Blue had been successfully eroding Qantas’s air market share, indeed with the collapsing of Ansett Airlines (Easdown, 2002), and capture around one-third of domestic airline market. In response, Jetstar was also designed to be a no-frills carrier, predominantly targeted at the leisure market. (Case Study) Market segmentation is a strategy that involved dividing the target market into subsets of consumers who have common needs and priorities....
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...Building a stronger Qantas Annual Report 2011 4 6 8 10 14 16 22 31 49 110 120 Chairman’s Report CEO’s Report Financial Performance Board of Directors Information on Qantas Review of Operations Corporate Governance Statement Directors’ Report Financial Report Sustainability Report Financial Calendar A STRONG PERFORMANCE IN CHALLENGING CONDITIONS THE QANTAS GROUP IN 2011 In 2010/2011 the Qantas Group reported a strong result in a complex and challenging global operating environment, with increased revenue across all business segments. The result was achieved while overcoming a series of natural disasters and operational disruptions, and despite the underperformance of Qantas’ international business. THE AVIATION INDUSTRY IS CHANGING THE QANTAS GROUP IN 2011 The Qantas Group faces a unique range of challenges and opportunities. We are in a strong position to address the challenges and realise the opportunities – but we must take decisive action, as we have throughout our history. SAFETY IS ALWAYS THE QANTAS GROUP’S FIRST PRIORITY WE INVEST $1.5 BILLION IN AIRCRAFT MAINTENANCE EACH YEAR SAFETY FIRST From our response to the QF32 incident to the risks posed by volcanic ash disruptions, we never compromise on the highest standards of safety. A safety-first culture across the Group ensures that risks are identified and addressed swiftly and decisively. We invest hundreds of millions of dollars in training to ensure that when incidents do occur our people react...
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...STUDY ABROAD INTERNATIONAL BUSINESS – MAN 4956 AUSTRALIA – SUMMER A 2012 CITY-AS-TEXT ASSIGNMENT PART A As I embarked on my 20 hour trip to Sydney, Australia I couldn’t help but to wonder what lied ahead. I have had certain interest since I was a child in visiting this country but as many people do, I had certain preconceptions. The only thing I knew of this country was what I had seen on TV on the Discovery Chanel about the animal population; which the country is home to more than 140 species of marsupials (animals with pouches to carry their young), including koalas, wombats and the Tasmanian devil, now found only in the Tasmanian wilderness. Australia is also home to many unique animal groups thus creating in my mind a fear for both the marine life and other animals known only to reside there; and no there are no kangaroos bounding around downtown. I was also concern about the culture shock, I had this idea that Australians where more tall, light skin, blue eyes, blonde hair, but that quickly change upon my arrival ; there’s a diversity in culture (mostly Asian) and both man and women were not to tall. My idea of an open fields and small dessert like rural areas and under developed city quickly changed upon my arrival, while much of the land is grassland or desert, Sydney is a highly developed city with an economically advanced mixed economy. The city is much developed with so many places to visit like: The Sydney Opera House, Darling Harbor, which overlooks the...
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...1 introduction 2. how Qantas Airways manages financial risk? 2.1 what is financial risk in Qantas Airways between 2009 to2012 ? 300s According to Qantas annual reports, there are different types of financial risk which are including liquidity risk, interest rate, foreign exchange and fuel price risks, and credit risk. Firstly, liquidity risk is the risk that the company will encounter difficulty in meeting obligations related with financial liabilities. The Qantas Group manages this risk by targeting a minimum liquidity level, ensuring long-term commitments are managed with respect to forecast available cash inflows, maintaining access to a variety of additional funding sources including commercial paper and standby facilities and managing maturity profiles. The Qantas Group has indicated its market risk in the following areas: interest rate, foreign exchange and fuel price. For interest rate risk, it refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The company manages interest rate risk by reference to pricing intervals spread across different periods of time with the proportion of floating and fixed rate debt managed separately. The mix of fixed and floating interest rate funding is managed by using three types of financial instrument: interest rate swaps, forward rate agreements and options. The other risks of market risk are foreign exchange and fuel price risks which are emphasised...
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...Qantas Airlines Business Report 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 operations include catering, tourism and E-commerce devoted to transport and air travel. Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001. The source of change: The factors that had caused Qantas to change were that Qantas had to become: • A more competitive, efficient and profitable business with...
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...organisations, who typically have difficulties assembling their staff for traditional classroom based training activities, either due to logistical difficulties or because of the impact this would have on work flows and business continuity. Such organisations have developed approaches to e-learning and competency development that overcome the logistical problems of conventional training by making innovative use of e-learning. This paper examines the approaches used by several leading global, Australian and Asian organisations, including Cisco Systems, Motorola, Qantas and several others by drawing on a field study conducted by the writer during –. It attempts to identify some key emerging trends and practices in the field, and lessons that can be learnt from the experiences of organisations reviewed, for the successful deployment of e-learning strategies. Key Words: e-learning, learning and content management systems, Australia and Asia Pacific Classification: , Introduction Since widespread internet access became available during the early to mid ’s, business has looked for opportunities to harness this new technology for its benefit. Max Zornada is an Adjunct Lecturer at the Adelaide Graduate School of Business, The...
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...Exam cases: Kodak Virgin Australia Post Pre-seen exam information Semester 2 2012 Global Strategy and Leadership © CPA Australia Ltd 2012 Case Scenario 1 Kodak case facts Eastman Kodak Company (Kodak) was founded in the late 19th century by amateur photographer George Eastman in Rochester, New York. With the slogan ‘you press the button, we do the rest,’ Kodak gave consumers the first simple camera in 1888, making a cumbersome and complicated process easy to use and readily accessible. A major multinational organisation, Kodak was listed on the New York Stock Exchange and became a powerhouse in the photography industry. The company led the way as an innovator, launching a large range of new products and processes to make photography simpler, more useful and more enjoyable. With the rapid growth of digital photography, competition against its product and being slow to embrace the move to digital technology Kodak has fallen on hard times. In January 2012, Kodak and its US subsidiaries filed voluntary petitions for Chapter 11 business reorganisation1 in the US Bankruptcy Court for the Southern District of New York. A company spokesperson said the aim of the business reorganisation was to enable Kodak to bolster liquidity, sell off nonstrategic intellectual property, and enable the company to focus on the most valuable business lines. The process will allow Kodak to continue normal business operations while it attempts to emerge a profitable and sustainable enterprise2...
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...that in many cases do not require direct payment (Macnamara, 2012). The main objective of public relations by an organization habitually is to convince the public, employees, partners,investors and other company stake holders to uphold a given point of view about the organization, its products, and leadership or of political decisions (L’Etang & Jacquie,2008). The main common activities consist of winning industry awards, speaking at conferences, proper employee communication and working with the press. Qantas is an Australian airline company established in 1920’s and it is the eleventh world largest airline and the 2nd oldest airline company in the world (Marianna, 2012). It is a company that was founded in the Queensland outback as the Queensland and the northern territory aerial services. This airline company was previous a government owned company; it did not view efficiency or profits as its major objective (Lynam, 2011). Just any other kind of business, Qantas has experienced several disputes or crisis in the past. Due to several challenges in the past, this airline company has suffered consecutive fall downs since the time it was founded. To overcome these challenges, the company had to employ various crisis management techniques in order to win the attention and trust of the public. Social media...
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...1. Introduction 1.1 Topic Chosen The chosen topic for my Research and Analysis Project would be “The business and financial performance of an organisation over a three years period”. The project would be carried out by analysing the business and financial performance as well as business performance of the Singapore Airlines which is the national airline of Singapore and comparing with its competitor Qantas. It will also include the impact of other major internal and external events on the company’s performance. 1.2 Reason for choosing the topic and the organisation Before choosing the topic for my Research and Analysis Project, I went through all the titles provided by Oxford Brookes University to make sure that the topic chosen would be not only feasible but also within my ability to find the information for the report. In my opinion, analysing the business and financial performance of the organisation would be the most important thing that should be understood by the modern day accounting profession. By choosing this topic, not only applying my knowledge but also it is much more related to what I have been studying so far. Studying Financial Reporting paper (F7) and Business Analysis paper (P3) support and provide basic knowledge in analysing the chosen organisation and undertaking my research project. The reason for choosing the airline industry is due to the fact that it plays significant role in our life. Without these industries, it may take...
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...Exam cases: Kodak Virgin Australia Post Pre-seen exam information Semester 2 2012 Global Strategy and Leadership © CPA Australia Ltd 2012 Case Scenario 1 Kodak case facts Eastman Kodak Company (Kodak) was founded in the late 19th century by amateur photographer George Eastman in Rochester, New York. With the slogan ‘you press the button, we do the rest,’ Kodak gave consumers the first simple camera in 1888, making a cumbersome and complicated process easy to use and readily accessible. A major multinational organisation, Kodak was listed on the New York Stock Exchange and became a powerhouse in the photography industry. The company led the way as an innovator, launching a large range of new products and processes to make photography simpler, more useful and more enjoyable. With the rapid growth of digital photography, competition against its product and being slow to embrace the move to digital technology Kodak has fallen on hard times. In January 2012, Kodak and its US subsidiaries filed voluntary petitions for Chapter 11 business reorganisation1 in the US Bankruptcy Court for the Southern District of New York. A company spokesperson said the aim of the business reorganisation was to enable Kodak to bolster liquidity, sell off nonstrategic intellectual property, and enable the company to focus on the most valuable business lines. The process will allow Kodak to continue normal business operations while it attempts to emerge a profitable and sustainable enterprise2....
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...the hiking in oil prices, large capital requirements (Capital assets) and stiff global competition within the airline industry, such as, the Gulf airline. The effect of the rising dollar has been significantly contributed to the hiking ticket prices of the Australian airline sector. The main Australian airlines have been impacted by the global crisis. This specific article in the Financial Times Review(Clarke & Smith, 2011), discusses that strategically Qantas was facing hard times due to the environment of the global financial crisis and it had embarked on an implementation plan to decrease internal and external flights to counter the effect of hiking oil prices and operational cost. However, in the United Arab Emirates, has been experienced growth and this has a direct concern to the threat of competition to Qantas (Vesperman, Wald & Gleich 2008, pp. 388-394). All these factors above are a contributed force to Qantas to remain competitive. This paper seeks To address the approaches that should be engaged by Qantas that are necessary to ensure ongoing competitive advantages for the future of the airline industry within this hypercompetitive environment. 2. Strategic Management and Strategic Competitiveness Strategic management is a continuous process that involves reviewing and directing the activities of a business and the environment threats and opportunities within which it operates. Strategic management has grown from an initial emphasis on planning to become a...
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...EXECUTIVE SUMMARY As everyone knows, Qantas is Australia’s largest airline, which is also one of the biggest global airlines in the world. It is committed to creating a reputation for safety, operational reliability and considerate customer service. All of these reputations have been playing a vital role in attracting increasing passengers to be loyal to Qantas. Consequently, Qantas has been becoming one of Australia’s most successful companies in aviation industry. With the rapid development of other competitors in aviation industry around the world, however, some challenges had been generated that Qantas has to overcome. Additionally, the key challenge for Qantas is about its global strategy, which is extraordinarily critical to determine the future of Qantas in the global aviation industry. To exactly and effectively understand Qantas’ global strategies, this report will be divided by five parts that could gradually make sense of the importance of global strategic management. Firstly, it will briefly introduce the history and growth of Qantas airline. Then this report will explain how Qantas’ global strategy operates. After that, it is going to analyze the nature and drivers of the company global strategies. Last but not the least, this report will analyze the challenges facing the global strategy and give some suggestions to overcome these challenges. More importantly, it emphasizes the importance of global strategic management for all companies in the world, not only...
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...Solution Manual to accompany Accounting: Business Reporting for Decision Making 4e Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks & Judy Oliver Prepared by Jacqueline Birt John Wiley & Sons Australia, Ltd 2012 Chapter 1: Introduction to accounting Comprehension Questions 1.1 What is a business transaction and how does it relate to the accounting process? Illustrate the concept of a business transaction with five examples relating to a mobile phone distributor. A business transaction can be defined as external exchanges of resources between the entity and another entity or individual that affects the assets, liabilities and owners’ equity items in an entity. The accounting process is the identifying, measuring and communicating of economic information about an entity to a variety of users for decision-making purposes. The first component of the process is the identification of business transactions which are then measured and communicated to the different users of financial reports. Business transactions for a mobile phone distributor include the following: 1. The contribution of capital by the owner to commence the business. This transaction would increase cash (asset) and increase capital (equity). 2. The purchase of inventory (mobile phones) on credit. This transaction would increase inventory (asset) and increase creditor (liability). 3. The payment of office rent. This transaction would decrease cash (asset) and decrease...
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