The Group's principal activities are operating international and domestic air transportation services, providing freight services, selling international and domestic holiday tours and associated support activities including information technology, catering, ground handling and engineering and maintenance. (http://www.qantas.com.au)
Qantas flies to more than 142 destinations in about 40 countries. Besides Qantas the company's operations include an Australian regional carrier, QantasLink, and a low-fare carrier, Jetstar. Overall, the company's fleet includes about 219 aircraft. Qantas is part of the Oneworld global marketing and code-sharing alliance, which is led by British Airways and American Airlines. A proposed purchase of Qantas by an investment group led by Macquarie Bank and TPG failed to win shareholder approval in 2007. (http://www.qantas.com.au)
Stakeholders are all groups and individuals who have an interest in the company being analysed. In order to focus on these groups which have the power to influence, corporate level activities have to be identified first. This can include large shareholders, governments and trade unions. The power and interest of those stakeholder groups have an impact on the process by which strategy develops at the corporate level and in each individual business.(Williamson et al, 2004, pg. 9)
Qantas’ stakeholders are its shareholders, employees, customers, business partners and the community, indirect stakeholders include academics, the media, governments and non- governmental organisations. They all have a major influence on the business, its strategy and therefore its performance.
According to the Institute of Chartered Accountants in England and Wales “the objective of financial statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions”.(Institute of Chartered Accountants in England and Wales, 2002/2003, pg. 22) Furthermore, it says that this objective can usually be met by concentrating only on the information needs of present and potential investors which are the defining class of user. That is the reason why I will focus on present and potential stakeholders in the main part of this assignment.
Table of Contents
1. Introduction
1.1. Company profile Qantas Airways Limited
1.2. Qantas’ stakeholders
1.3. Legal form
1.3.1. Limited Liability
1.3.2. Corporate Personality
1.3.3. Lifting the Corporate Veil
1.3.4. Corporate Governance
2. Financial analysis and proposing strategy
2.1. Financial analysis
2.1.1 Fig.1: Financial analysis information
2.2. SWOT- Analysis
2.3. Strategy Development
3. Implementation of Strategy
3.1 Budgeting
3.2. Balanced Scorecard
3.2.1 The learning and Growth Perspective
3.1.2 The Business Process Perspective
3.1.3 The Customer Perspective
3.1.4 The Financial Perspective
4. Conclusion
Objectives and Topics
The primary objective of this assignment is to conduct a business deconstruction of Qantas Airways Limited by analyzing its financial performance, organizational structure, and strategic direction to identify areas for growth and improvement. The report evaluates the company's current standing, stakeholder interests, and legal framework, ultimately proposing the implementation of a Balanced Scorecard to align future strategies with operational success.
- Financial performance analysis and ratio evaluation
- SWOT analysis of the airline's market position
- Strategic development and resource allocation
- Application of the Balanced Scorecard for management control
- Assessment of corporate legal status and governance
Excerpt from the Book
1.3.2. Corporate Personality
Qantas “is a corporate body, an artificial person recognised by the law, with an identity separate from the members who compose it.”(Ellison & Harrison, 1999, pg. 158) The concept of corporate personality means that due to this status of being a legal entity and artificial person, the organisation has some of the powers and responsibilities which a natural person has. This means that Qantas can sign contracts, buy, own and transfer property, conduct its business, sue and also be sued.(Bové & Thill, 2005, pg. 95-96)
Summary of Chapters
1. Introduction: Provides an overview of Qantas Airways Limited, including its business activities, primary stakeholders, and the legal framework under which it operates.
2. Financial analysis and proposing strategy: Presents a detailed financial breakdown using ratio analysis and a SWOT analysis to identify strategic opportunities and weaknesses.
3. Implementation of Strategy: Examines how to budget effectively and introduces the Balanced Scorecard as a critical tool for aligning organizational vision with operational processes.
4. Conclusion: Summarizes the key findings and highlights the necessity for Qantas to adopt a structured, balanced approach to maintain its market position against industry challenges.
Keywords
Qantas, Airline Management, Financial Analysis, SWOT Analysis, Balanced Scorecard, Strategic Planning, Corporate Governance, Stakeholders, Limited Liability, Profitability, Budgeting, Business Process, Customer Perspective, Market Share, Operational Efficiency
Frequently Asked Questions
What is the core focus of this assignment?
The assignment focuses on the business deconstruction of Qantas Airways Limited, examining its operations, legal form, and financial health to inform future strategy.
What are the primary themes covered in the report?
The main themes include financial statement analysis, strategic business management, SWOT assessment, and the implementation of modern management frameworks like the Balanced Scorecard.
What is the main goal of the research?
The goal is to evaluate Qantas' ability to manage its resources and to propose strategic improvements that ensure long-term sustainability and shareholder value.
Which methodology is utilized for the analysis?
The author uses financial ratio analysis, SWOT assessment, and theoretical management frameworks such as the Balanced Scorecard to analyze corporate performance.
What does the main body of the work cover?
It covers the company profile, stakeholder analysis, legal structure, financial performance metrics, SWOT analysis, strategy development, and the application of balanced performance measures.
What keywords characterize the research?
Key terms include Qantas, Strategic Planning, Financial Analysis, Balanced Scorecard, Stakeholder Management, and Profitability.
How does the report interpret Qantas' financial performance in 2006?
The report notes a significant decrease in profit compared to 2005, primarily attributed to rising jet fuel costs, despite growth in passenger volumes and revenue.
Why is the Balanced Scorecard recommended for Qantas?
It is recommended because it helps translate long-term vision into daily actions by balancing financial measures with customer, process, and learning/growth perspectives.
- Quote paper
- Stefanie Aulenbach (Author), 2007, Business Deconstructed - QANTAS AIRWAYS LIMITED, Munich, GRIN Verlag, https://www.grin.com/document/79856
