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Overview
According to Shanahan (2011), Qantas Limited’s annual reports do not provide complete and extensive information required by external users for investment decision-making. Particularly, in the year 2005 there had been a change in the segment reporting of Qantas where the segments were based on risk and return factors as per AASB 114. However, from 1 January 2009 AASB 8 a more principle-based approach replaced AASB 114. The critical change in the standard was the definition of segment changed to a management approach, which requires an entity to disclose information separately that the chief operating decision maker (CODM) uses internally to assess segment performance (AASB 8.5 2009).
For the year ended 30 June 2011, Qantas Group (2011b ) had 5 operating segments Qantas, Jetstar, Qantas freight, Qantas frequent flyer and Jetset Travelworld group. Shanahan’s (2011) main concern was the lack of information given to the external users about the loss in the international operations and believes that as it is a key area of business it would have been analytically evaluated by the CODM. Therefore, conferring to AASB 8.5 (2009) this material should be independently provided in the annual reports as an operating segment. Absence of essential information will reduce investor confidence in the ‘credibility of financial reporting’ (Kothari 2000). The transparency of information will assist current and potential shareholders make better investment decisions that will in turn benefit the company as a whole. For instance Qantas Group (2012 ) showed a loss of $21 million in the Qantas segment due to the weak functioning of its international market. Additionally, the Qantas Group’s (2012 ) annual report mentions the international tr...
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...009 the focus of top management has been to recover from losses in the international segment, which finally lead to the implementation of the transformation plan in 2011. The transformation lead to positive changes such as achieving highest level of customer satisfaction since 2008 and a drastic drop in international losses (Qantas Group 2013 ).
Moreover, Qantas had been pushing for a debt guarantee from the government to compete with Virgin Australia, it seemed like an ideal scheme to divide the Qantas segment into international and domestic to show clearer and improved performance to external users and attract investors as there was a small possibility of debt guarantee (Freed 2013). Recent refusal of the debt guarantee and the likelihood of change in Qantas Sales Act, the improved disclosure will benefit foreign investors make investment decisions (Klan 2014).
• Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management
A situational analysis is the first step in the marketing process and is essential in providing businesses with information regarding its current position within the market enhancing their understanding of their competitors. This involves conducting a SWOT and product life cycle analysis as to gather information from both the external and internal business environment. A SWOT analysis involves business identifying internal strengths and weakness whilst determining possible opportunities and threats from the external business environment. This process is conducted at Qantas as I as follows; strengths; Excellent safety record, successful fuel hedging programme and Australia’s leading domestic carrier comprising 65% of domestic market share and 84% of the corporate market. Weaknesses; ongoing disputes between Qantas management and militant unions and higher labour and operational costs as opposed to competitors, opportunities; growth in the Asian market has seen proposed new launch a premium airline within Asia and the expansion Jetstar international and improving aircraft technology , Threats; the continuing glob...
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
Despite the growth in the market, Qantas International’s market share has been falling over the past 10years, from 34% in FY02 to 16% in FY13. The entry of Virgin Australia in 2000 in part explains this, however Virgin’s growth also coincided with the demise of Ansett in 2001 “… Virgin Blue will initially increase capacity on existing routes while evaluating what c...
No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares.
Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.
...onclude, the strategies used by Qantas in dealing with these influences have all been relatively effective. The use of technology has been the most effective in providing the business with a competitive advantage and has very little downsides when compared to other strategies. Operations management has dealt with globalisation effectively and greatly reduced costs and provided the business with a competitive advantage at the expense of the business reputation and individuality. Strategies which involve product differentiation have been used very effectively and are beneficial to Qantas. However the more cost leadership strategies that Qantas uses, the more likely that the business will lose it’s own individuality as the “Red Kangaroo”. In general, Qantas has been able to keep it’s business running relatively successfully and has dealt with it’s influences very well.
Therefore the British American Tobacco plc has to share its financial information to its external stakeholders such as banks and those who has the right to see the information. Before getting into detail on financial reporting and what that entails it is essential to understand who exactly those external stakeholders are. External stakeholders are composed of investors, lenders, supplier and customers, Government agencies, competitors and labor unions, supporters are and opponents, just to name a few. These are essentially people or companies that may have interest in what goes on with known businesses or companies. Stakeholder’s main interest are profit growth and dividends because their goal is to get a return on the money they have invested. “Investors are stakeholders that buy shares in a company.
Topic A (oligopoly) - "The ' An oligopoly is defined as "a market structure in which only a few sellers offer similar or identical products" (Gans, King and Mankiw 1999, pp.-334). Since there are only a few sellers, the actions of any one firm in an oligopolistic market can have a large impact on the profits of all the other firms. Due to this, all the firms in an oligopolistic market are interdependent on one another. This relationship between the few sellers is what differentiates oligopolies from perfect competition and monopolies.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
GAAP reporting standards (AICPA, n.d.). A private business owner can utilize the concise and familiar accounting principles and accrual income tax or cash basis method of financial reporting to assess the company’s performance and provide relatable decision-making information to stakeholders (AICPA, n.d.). Moreover, it is a cost-effective measure for business owners that do not have to comply with U.S. GAAP base financial statements. In addition, CPAs can provide value pricing by preparing meaningful and concise reporting to internal and external parties. However, a business owner should carefully consider and examine the available options before deciding on an appropriate reporting framework. In order to provide the best short-term and long-term solution, it is imperative to consider a company’s business structure and future
According to the conceptual framework, the potential users of financial statements are investors, creditors, suppliers, employees, customers, governments and agencies, and the general public (Financial Accounting Standards Board, 2006). The primary users are investors, creditors, and those who advise them. It goes on to define the criteria that make up each potential user, as well as, the limitations of financial reporting. The FASB explicitly states that financial reporting is “but one source of information needed by those who make investment, credit, and similar resource allocation decisions. Users also need to consider pertinent information from other sources, and be aware of the characteristics and limitations of the information in them” (Financial Accounting Standards Board, 2006). With this in mind, it is still particularly difficult to determine whom the financials should be catered towards and what level of prudence is necessary for quality judgment.
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
In order to get a comprehensive analysis on SIA's financial statement analysis , we compared SIA's 5 financial year ending(FYE) results with the industry's average and 2 of its main competitors Cathay Pacific Airways and Qantas Airways . Cathay has been trailing closely to SIA in terms of first class cabin service and profitability for years. Qantas has long been dominating the highly profitable Kangaroo route and is ranked 5th in the world by Skytrax's survey . Please refer to appendix for the actual figures for every analysis below.