Comparative Analysis of Business Plans of Telstra Communications and Qantas Airways

This analysis evaluates the business plans of Telstra Communications and Qantas Airways, including their mission, vision, objectives, strengths, weaknesses, competitive environment, strategic orientation, available resources, and performance measures.

Compare & Analyse Business Plans
ASSIGNMENT TASK 1
STUDENT NAME:
STUDENT ID:
SUBJECT NAME:
SUBJECT CODE:
DATE DUE:
PROFESSOR NAME:
1 | P a g e

ABSTRACT
Every business is developed on the basis of a plan. The plan encompasses vision,
mission, objectives and strategic ways to achieve competitive advantage. The scope of current
analysis encompasses evaluation of business plans of Telstra Communications and Qantas
Airways. Both the businesses have separate business goals, objectives, vision to deal with their
strategic choices in order to establish competitive advantages for themselves. In this current
analysis, an evaluation of the various parameters is undertaken to arrive at the performance of the
companies.
2 | P a g e

Table of Contents
ABSTRACT....................................................................................................................................2
Table of Figures...............................................................................................................................3
1.0 INTRODUCTION.....................................................................................................................4
2.0 Mission, vision, and business objectives analysis.....................................................................4
3.0 Key Strengths of the plan..........................................................................................................5
4.0 Key Weaknesses of the plan......................................................................................................5
5.0 Competitive Environment..........................................................................................................6
6.0 Strategic Orientation..................................................................................................................9
7.0 Available Resources................................................................................................................10
8.0 Performance Measures.............................................................................................................12
9.0 CONCLUSION........................................................................................................................14
10.0 REFERENCE LISTS.............................................................................................................15
Table of Figures
Figure 1: Comparison amongst Telecommunications Network Operators...................................................6
Figure 2: Telstra Customer Growth.............................................................................................................7
Figure 3: Telstra Area wise Performance....................................................................................................8
Figure 4: Qantas Timely Performance Comparison.....................................................................................9
Figure 5: Porter's Generic Strategy............................................................................................................10
Figure 6: Telstra Increase in Operating Income.........................................................................................12
Figure 8: Qantas Financial Performance....................................................................................................13
3 | P a g e

1.0 INTRODUCTION
Business plans of companies depict the ways in which businesses progress. They
incorporate vision, mission, goals and strategic initiatives undertaken by the company. In the
current comparison of Telstra and Qantas business plans, there have been found to be various
aspects in which they differ from one another with certain similarities as well.
Telstra is a telecommunication company in Australia which provides various products
such as mobile phones, internet, accessories, and broadband facilities and so on (Johnson, 2011).
The Company occupies almost 50% market share in Australia with its varied products and
services. Qantas, on the other hand, is an airline in Australia. The airline has a large number of
fleets that caters around various destinations around the world.
2.0 Mission, vision and business objectives analysis
Company objectives, vision, and mission are integral to cater to long-term strategic goals
of the company. The corporate mission for Telstra is to become the leading brand in
telecommunication in Australia. Mission Statement for Qantas is to become the leading aircraft
carrier in Australia covering maximum possible destinations (Thornton, 2008). Analysing
mission statement for both companies leads us to understand that both the companies want to
cover extensive areas of Australia.
The corporate vision for Telstra is providing the best possible connectivity and broadband
services, providing excellent customer service, catering to quality broadband wires such that the
best possible connectivity can be reached. Corporate visions of Qantas is catering to all possible
destinations connecting to Australia, ensuring safety to passengers availing services of the
4 | P a g e

aircraft and providing excellent customer services (Lindgardt et al., 2009). Meaning that both the
companies’ visions are aimed towards excelling in their services. Hence the vision and mission
statement is similar in nature, the companies being in service sector their objectives will be
similar too. Objectives for the companies will be to cater to their individual vision and mission
such that they can easily achieve their corporate goals. The objectives are similar and they can be
compared to for attaining customer satisfaction and excelling in their services.
3.0 Key Strengths of the plan
The business plans for both the companies are extremely well formatted. Analysis of both
the business plans reveals that they are well structured and have integral or key points which
need to be present. Strengths of both the plans include the presence of appropriate financial
analysis, strategic plans, vision, mission, and goals. There is appropriate planning for the future
step of action also present.
4.0 Key Weaknesses of the plan
The business plans for both the companies have certain weaknesses as well. The major
weakness of the business plans is that they are highly technical in nature. The business plans
have been written on purely technical terms and aspects which make it rather difficult to read
easily. Any layman cannot read through the business plan easily due to the presence of a large
number of technical terms. It requires proper and comprehensive knowledge of management and
finance to be able to read the business plans.
Secondly, the business plans were cumbersome in size meaning that it required quite
some time to read through and decipher the entire business plan. Due to the length of the
5 | P a g e

business plan, it is difficult to read through it fast and then make recommendations or analysis
related to the same.
5.0 Competitive Environment
Analysis of competitive environment for both the companies reveals that Qantas and
Telstra operate in the tremendously competitive business environment. The competitive
environment for Telstra reveals that there is the presence of a large number of buyer's threat with
limited supplier threat. The Company has been able to establish a good rapport with its current
suppliers (Evans, 2010). The threat from new entrant or substitute product is low as the company
has already established itself in the competitive market. The below comparison of open network
operators in Australia reveals the benefits Telstra offers compared to others.
Figure 1: Comparison amongst Telecommunications Network Operators
Due to the multiple offerings made by Telstra, it receives continuous and positive
customer influx throughout the year and quarters. As depicted in the figure below, Telstra
customer growth. The Company aims at providing maximum possible benefits to its customer for
6 | P a g e

the lowest possible rates. Moreover, dynamic customer service provided by the Company allows
the company to attract maximum possible customers.
Figure 2: Telstra Customer Growth
The competitive offering of product, price, promotional strategies and product offering
by Telstra has led to its high growth of market penetration in rural as well as in urban areas. The
4Ps offering by the company is strategically aligned to attaining market leadership in the industry
(Li, 2012). This is reflected in its customer attainment growth ratios and market penetration as
reflected below.
7 | P a g e

Figure 3: Telstra Area wise Performance
Qantas occupies a leadership position in the Australian market across international as
well as in domestic sectors. Analysis of its industry rivalry reveals Virgin airways being it's the
only rival. There is relatively less bargaining power of buyers in the international sector;
however, there is a considerable threat in the domestic sector. Bargaining power of suppliers is
relatively less and the threat from new entrant and substitution power is low. The airways are
able to occupy competitive position due to its on-time service and capability to competitively
cater to 4Ps. The product of the company is well positioned against its prices. Moreover, the
company has a competitive distribution strategy for its tickets with stable promotions conducted.
8 | P a g e

Figure 4: Qantas Timely Performance Comparison
Both the companies are able to occupy a market leadership position with high levels of
competitiveness by extending their core competence. The companies are extremely innovative
and continually focus on designing new products or strategies for promotion for its customers.
6.0 Strategic Orientation
Strategic orientation for both the companies is focused on extensive marketing
promotions. The strategic position occupied by Telstra is cost competitiveness, which is also
adopted by Qantas. Both the companies have positioned themselves as market leaders have
rendered them the capability to adopt cost competitiveness. Cost competitive strategy has been
adopted by the companies to be able to penetrate the market.
9 | P a g e

Figure 5: Porter's Generic Strategy
According to the above-mentioned cost leadership strategy, it can be seen that it is a
broad-based competitive strategy (Nair et al., 2011). This has allowed both the companies to
penetrate in the rural market for Telstra and the domestic market for Qantas.
7.0 Available Resources
Companies, in order to operate within the corporate environment, make extensive use of
resources such as human, technological, financial and other physical resources. Qantas has a
large number of fleets with ground staff, pilots, crews and other staffs. The company's financial
resources comprise of equity, debt and loan capital. Telstra's core competency comprises its
varied resources such as human resources (Morsillo, 2011). Technical expertise and skills such
as innovative capabilities allowed the Company to become a leader in the market (Beltrán,
10 | P a g e

2013). The Company has huge financial resource capital comprising of equity, debt and cash
resources.
11 | P a g e

8.0 Performance Measures
A company’s performance can be best understood by its capability to achieve financial
outcomes. Every company tries to attain the maximum possible financial output such that it can
satisfy its shareholders and meet the interests of its varied stakeholder group within the
Company. The current scope of businesses such as Telstra, performance benchmark used by the
Company consists of EPS, Revenue, Net Profitability and various other measures to understand
its performance (Wensveen & Leick, 2009).
Figure 6: Telstra Increase in Operating Income
12 | P a g e

Revenue of the Company stood at AUD$26 billion, operating income at AUD$6.2
billion, net income at AUD$3.9 billion as of 2017 financial year period. Total assets of the
Company as of 2017 stood at AUD$42.1 billion with total equity assets AUD$14.6 billion. The
Company had operating subsidiary of 150. When benchmarking or comparing the Company’s
performance against its peers it could be understood that the Company is performing well
compared to its peers.
Qantas’ financial performance depicts that company’s profitability is increasing. The
below figure depicts the financial performance of Qantas by comparing Financial Year 2015
against 2016, which is depicted to rise.
Figure 7: Qantas Financial Performance
The Company’s revenue as of 2017 stood at AUD$16.1 billion, operating income
AUD$1.59billion, total assets at AUD$17.2 billion with equity to be at AUD$3.54billion.
13 | P a g e

Performance comparison can also be conducted by comparing the share price performance of the
company, which can reveal its demand in the market.
9.0 CONCLUSION
Analysis of both the business plans reveals that both the businesses are market leaders in
their domain. They have tremendous amounts of core competency, which have allowed them to
become market leaders and establish a position in the competitive market. Moreover, both the
businesses are continuously dynamically striving to position themselves in the market through
innovations, which is the reason the companies have sustained competitive pressures.
14 | P a g e

10.0 REFERENCE LISTS
Beltrán, F., 2013. Effectiveness and efficiency in the build-up of high-speed broadband platforms
in Australia and New Zealand.
Evans, D., 2010. Social media marketing: the next generation of business engagement. John
Wiley & Sons.
Johnson, C., 2011. The politics of broadband: Labor and new information technology from
Hawke to Gillard. Australian Journal of Political Science, 46(1), pp.3-18.
Li, G., 2012. The return of public investment in telecommunications: Assessing the early
challenges of the national broadband network policy in Australia. Computer Law & Security
Review, 28(2), pp.220-230.
Lindgardt, Z., Reeves, M., Stalk, G., and Deimler, M.S., 2009. Business model innovation. When
the Game Gets Tough, Change the Game, The Boston Consulting Group, Boston, MA.
Morsillo, R., 2011. One down, two to go: public policy in service of an available, affordable and
accessible National Broadband Network for people with disability. Telecommunications Journal
of Australia, 61(2).
Nair, S.K.S., Palacios Fernández, M. and Ruiz López, F., 2011. The analysis of airline business
models in the development of possible future business options. World Journal of
Management, 3(1), pp.48-59.
Thornton, G., 2008. An innovative, flexible and workable business continuity plan: a Case study
of the Australian Customs Service Cargo BCP. Journal of Business Continuity & Emergency
Planning, 3(1), pp.47-54.
Wensveen, J.G. and Leick, R., 2009. The long-haul low-cost carrier: A unique business
model. Journal of Air Transport Management, 15(3), pp.127-133.
15 | P a g e

16 | P a g e