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074600G - Business Valuation and Analysis - Case Study

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Kent Institute Australia

   

Business Valuation and Analysis (074600G)

   

Added on  2020-03-02

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This study deals with the business analysis and valuation of Qantas Airways Limited. The current segment discusses external environment analysis through the use of Porter’s five forces model. The next segment discusses internal environment analysis for Qantas Airways Limited by using SWOT analysis. The corporate strategy of Qantas Airways Limited had been discussed in the study with proper justification. The accounting policies used by Qantas Airways Limited are mentioned in the research study.

074600G - Business Valuation and Analysis - Case Study

   

Kent Institute Australia

   

Business Valuation and Analysis (074600G)

   Added on 2020-03-02

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Running head: BUSINESS VALUATION AND ANALYSISBusiness Valuation and AnalysisName of the Student:Name of the University:Author Note:
074600G - Business Valuation and Analysis - Case Study_1
2BUSINESS VALUATION AND ANALYSISTable of ContentsIntroduction......................................................................................................................................2Company overview..........................................................................................................................2Porter’s five forces model................................................................................................................2SWOT analysis................................................................................................................................5Corporate strategy............................................................................................................................6Accounting policy............................................................................................................................7Financial position of the company for the year 2013......................................................................9Financial position of the company for the year 2015 and 2016....................................................10Analysis the data of 2013, 2015 and 2016.....................................................................................12Recommendations and conclusion................................................................................................12Reference List................................................................................................................................13Appendix........................................................................................................................................15
074600G - Business Valuation and Analysis - Case Study_2
3BUSINESS VALUATION AND ANALYSISIntroduction This study deals with business analysis and valuation of Qantas Airways Limited. Thecurrent segment discusses external environment analysis through use of Porter’s five forcesmodel (Wheelen and Hunger 2017). The next segment discusses internal environment analysisfor Qantas Airways Limited by using SWOT analysis. The corporate strategy of Qantas AirwaysLimited had been discussed in the study with proper justification. The accounting policies usedby Qantas Airways Limited are mentioned in the research study. Financial ratio had beencalculated for the year 2013, 2015 and 2016 for the company named as Qantas Airways Limited. Company overview Qantas Airways Limited is one of the oldest airline industries in Australia. The marketshare of Qantas Airways Limited is higher as compared to any other firm in the aviation industry(Qantas.com. 2017). Qantas Airways Limited mainly engages in offering longest distanceairways. Qantas Airways Limited came into existence in the year 1901 in Queensland. Thecompany manages the performance of Qantas holidays and budget airlines. Porter’s five forces model Industry Rivalry- There is severe competition from rivalry firms where the operators arecompeting with each other based on price. The service levels have gone up that will decrease theoperational expenses at minimal levels for maintaining the margin of operations (Rothaermel2015). In addition, there are differentiators in the airline industry and this is the number of flightsthat are being offered where the main players have an edge but the price factors in the
074600G - Business Valuation and Analysis - Case Study_3
4BUSINESS VALUATION AND ANALYSIScalculation. Based on relationships, there are various airlines that offers loyalty programs for thecustomers so that there are low switching costs for the customers. Threat from new entrants- In case of domestic players, the entry is easier in terms of licenses.The major changes are required in the initial stages where many peripheral operations areoutsourced. The new entrants face difficulty to enter in the airline industry because of capitaloutlay as well as time to manage analysis. In case of global players, the entry barrier is high andit is needed to plan out the entry for the industry as the rivalry is high and very easy to besidelined in the marketplace (Peteraf, Gamble and Thompson 2014). Threats from substitute products- On analysis, it is noted that there are many substitutes toairline industry especially in case of short routes such as bus and train. In case of long distances,there are many other options such as video conferences, net meetings as well as video messagesthat has been a substitute but not as effective (Peppard and Ward 2016). Bargaining power of buyers- Bargaining power of buyers are high in the aviation industry formost of the routes. The buyers actually have lot of options to select from different airlinecompanies as most of the routes are being covered by more than one operator and there is hugecompetition based in prices that provide sufficient power to the customers (Morschett, Schramm-Klein and Zentes 2015). Bargaining power of suppliers- Bargaining power of suppliers are high in the aviation industry.One of the main factor that affect aviation industry is the fuel prices where the suppliers does nothave much of a control as well as decided by the political factors in and across the globe
074600G - Business Valuation and Analysis - Case Study_4

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