B01BAVA320 - Business Analysis and Valuation Assignment
16 Pages3222 Words520 Views
Added on 2019-10-30
B01BAVA320 - Business Analysis and Valuation Assignment
Added on 2019-10-30
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Running head: BUSINESS ANALYSIS AND VALUATIONBusiness Analysis and ValuationName of the Student:Name of the University:Author’s Note:Course ID:
1BUSINESS ANALYSIS AND VALUATIONExecutive Summary:The current report aims to evaluate the financial and overall business performance ofQantas Airways, the leading organisation in the airline industry of Australia. In order to evaluatethe business performance of the organisation, Porter’s five forces framework and SWOT analysisare used along with assessment of its corporate strategies. The airline sector is capital-intensiveand accounting related to aircraft assets has considerable effect on the financial outcomes ofairlines. The aircrafts have greater cost and they have long lives containing several individualcomponents. The debt burden of the organisation has remained the same in the two years andfunds raised through equity are not considerable. Hence, it is advisable to the investors to abstainfrom investing in the shares of Qantas, as it might result in significant loss in future.
2BUSINESS ANALYSIS AND VALUATIONTable of Contents1. Introduction:................................................................................................................................32a. Porter’s five forces framework of Qantas Airways:..................................................................32b. SWOT evaluation of Qantas’s competitive strategy:................................................................42c. Corporate strategy of Qantas across its domestic and international divisions since 1992 andchange in strategy in response to market changes:..........................................................................62d. Accounting policy choices that the auditors and accountants need to observe closely in caseof Qantas:.........................................................................................................................................72e. Financial performance and financial position of Qantas at the end of 2013:............................92f. Financial performance and financial position of Qantas at the end of 2016:...........................112g. Differences and similarities in findings between the above two parts and recommendations tothe investors:..................................................................................................................................133. Conclusion:................................................................................................................................13References:....................................................................................................................................14
3BUSINESS ANALYSIS AND VALUATION1. Introduction:The current report aims to evaluate the financial and overall business performance ofQantas Airways, the leading organisation in the airline industry of Australia. In order to evaluatethe business performance of the organisation, Porter’s five forces framework and SWOT analysisare used along with assessment of its corporate strategies. For dissecting the financialperformance of the organisation, the choices of accounting policy, which need close observation,are discussed in the report as well. In addition, the financial performance and financial positionof the organisation by comparing the items in the annual reports for the years 2013 and 2016have been demonstrated in the study. Finally, the report sheds light on providingrecommendations to the potential investors of whether to purchase or sell the shares of Qantas. 2a. Porter’s five forces framework of Qantas Airways:The Porter’s five forces framework influencing the Australian airline industry andespecially, the performance of Qantas is depicted as follows:Bargaining power of the buyers:The buyers have greater bargaining power in the Australian airline industry, as they havevarious alternatives to choose from like air travelling services of premium class, air travellingservices of low cost and others. However, other service providers are inherent in the market thatenhances the purchasing power of the buyers (Abhayawansa, Aleksanyan and Bahtsevanoglou2015).Bargaining power of the suppliers:
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