Business Report Qantas

Business Report
Qantas

Economic and industry environment for the industry
Qantas make the largest contribution to the value added of Qantas group and also impact the
employment conditions by making up it 76% of the total value added to the group and 77% of
the total employment of contribution (Economic contribution of the Qantas Group to Australia
in FY17 The Qantas Group, 2017). The air transport of Australia contributes towards the
economic development. It depicts the wider economic benefit which is being underpinned by bot
the direct connections among the cities to enable the flow of goods, people, capital, technology
and so on.
Further, the ongoing economic slowdown has meant that the struggling airlines tends to
contend with declining passenger traffic, high aviation fuel prices, labour demands and operating
costs. All such factors tend to made the airlines loss making and prone to the bankruptcies as
they can no longer tends to afford to run their operations effectively.
Key factors that affect the company’s attractiveness for investment
The decision by the business to enter within the international market is quite complicated that
include few major factors that will consider the analysis of attractiveness to target the
international market.
 Economic growth and levels of disposable income: It is an essential factor of underlying
the strength of international market. For this, emerging economics tends to experience the
faster rates of economic growth than the developed economies (Zhu and et. al., 2019). It
leads to create the growth of middle class with increasing disposable incomes that have
enhance the demand for the products and services of the international and domestic
businesses.
 Political environment/exchange rates: This factor is intangible but also important in
nature in regard of its reliability as the legal system within the target country and area.
Trading within the international market tends to give great exposure of the business to
exchange their rates towards the fluctuations (Factors Influencing the Attractiveness of
International Markets, 2021). For instance, profits may be earned from the internal side
of the internal market but somehow it will also exchange their rates of volatility that
reduce the value of profits.