Qantas Report

6570 WordsAug 30, 201127 Pages
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…
Owing to the global financial crisis and the prolonged economic slowdown, Qantas’s 2009 annual report shows a 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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