Business Analysis | Assignment

Business Analysis

Company Background and Mission
 Qantas Airlines is considered to be one the
largest domestic and international travel
airline which operates in Australia and the
airlines of Qantas ltd also has the
advantage of costs as they follow a low
cost model in operations of the business.
 The airlines was founded in 1920 and since
then the airlines has grown significantly
over the years. The main brands of the
business is Qantas Airlines and Jet Airways.
 The mission statement of the business is to
enhance the value of the business and also
provide the best quality of services to the
customers. The mission statement of the
business also aims to reduce the costs of
the business and enhance the profitability
of the business.

Porter’s Five Force Model
 Bargaining Power of Buyers: The bargaining power of the buyers would be high both
in case of domestic and international flights. It is for this reason that the company follows
a low cost model in managing the operations of the business.
 Bargaining power of Suppliers: The business has two major suppliers who are aircraft
manufactures and fuel supplier. The prices of oil and manufacturer are quite and
therefore, the bargaining power of the supplier is also a major factor which affects the
operations of the business.
 Threats of Substitute Products: In most of the cases, people choose airline travel due
to quick approach. However, there are still substitutes such trains. Therefore the threat of
substitute is high.
 Threat of New Entrance: Qantas ltd is engaged in the business of aviation sector and is
considered to be a global leader. The threat of New entrance in the market is negligible.
 Industry Competitors: The competition in the market is quite intense and the same
affects the operations of the business and therefore the level of competition is high in the
market.

Cost Leadership Vs Differentiation
 The business of Qantas ltd is focused on enhancing the revenue of
the business and the strategy which is followed by the management
of the company is Cost Leadership.
 Cost Differentiation strategy refers to a strategy where a business
tries to differentiate its products from the products which is offered by
the competing businesses.
 The management of the company aims to offer lowest prices for its
carrier planes so that the customers are satisfied and attracted to the
services which is offered by the business.
 Qantas ltd is business leaders in offering low costs model aircrafts
which are fuel efficient as well which helps the business to create
competitive advantage in the market.

Strategy of the Business
 The strategy of the business is to attract more and more customers
and therefore the business follows appropriate policies for reduction
of costs of the business.
 The business follows low cost model for enhancing the sales revenue
of the business and therefore also for increasing the profits.
 The analysis of the business conditions shows that the business
follows Cost Leadership model for enhancing the operations of the
business and also gaining a competitive edge over its competitors.

Financial Analysis
 The financial analysis of the
business shows that the
company is performing well.
 The total revenue which is
generated by a business is
more than last years which
shows that the business has
achieved growth.
 The number of passenger
which is served by the business
has also enhanced.

Key Accounting Policies of the
Business

Quality of Disclosures
 The quality of disclosures which is shown by the business in the annual
report of the company shows that the business is effectively. The
disclosures which are shown in the annual reports of the business are in
compliance with conceptual framework for reporting key financial
information of business.
 The business has effectively reported significant accounting policies in
the annual report of the business.