Qantas and Balanced Scorecard: A Management Accounting Perspective

Running Head: QANTAS AND BALANCE SCORE CARD
Qantas and balance score card

QANTAS AND BALANCE SCORE CARD
Table of Contents
Introduction................................................................................................................................2
Overview....................................................................................................................................2
Mission and Vision.................................................................................................................5
Optimal Capital Structure.......................................................................................................5
Balance score card Approach.....................................................................................................5
Details of the four perspectives of Balanced Scorecard.........................................................7
Financial Evaluation...........................................................................................................7
Customer Perspective.........................................................................................................7
Internal Business Processes................................................................................................8
Learning and Growth..........................................................................................................8
Features of Balanced Scorecard.............................................................................................8
Balance Scorecard of Qantas Airlines......................................................................................11
Difference between traditional performance measurement system and balanced scorecard
system.......................................................................................................................................12
Balance Score Card Suitability for Qantas Airways................................................................13
Coverage of Operational Activities......................................................................................13
Analysis of Performance......................................................................................................13
Refining of metrics...............................................................................................................14
Communication of mission and vision.................................................................................14
Transparent objectives..........................................................................................................14
Conclusion................................................................................................................................14
References................................................................................................................................16

QANTAS AND BALANCE SCORE CARD
Introduction
Management accounting is the procedure of creating accounts and management
reports that offer precise and timely statistical and financial information to administrator to
take long-term and short-term decisions. . It recognizes, evaluates, examines, understands and
transfers data to allow a company to follow its goals. Management accounting is also known
as cost accounting. This report is being prepared in order to highlight the importance of
management accounting in the business and how it helps in attaining the goals and strategies
of the business. The report will discuss about one of the important tools of management
accounting i.e. Balanced Scorecard and its features. Besides this, the report will discuss
whether the balanced scorecard will be feasible for the organization to implement or not. The
company that has been selected is Qantas Airlines which is one of the famous airlines of
Australia. Difference between traditional performance measurement system and balanced
scorecard will be presented. Further, the report will answer whether this tool of management
accounting i.e. balanced scorecard will be suitable for the company or not.
Overview
Qantas is the national airline and one of the largest airline by fleet size. It is third
oldest airline in the world after KLM and Avianca. Founded in 1920, and started the
international passenger flights in May 1935. Originally the name was in the form of an
acronym “Queensland and Northern Territory Aerial Services”. It is also known as “The
flying kangaroo”. The airline is based in the suburbs of Sydney. It has a subsidiary company
which namely Jetconnect provides services between Australia and New Zealand operating
under the name of Qantas brand. Jet star Airways a low cost airline (Qantas, 2017).

QANTAS AND BALANCE SCORE CARD
The fleet size is 124 with 85 destinations. The company is operating with the
employee count of about 30000. The information over the years of the revenue and the assets
of Qantas is depicted in the table below.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Turnover
(A$m)
15,62
7
14,55
2
13,77
2
14,89
4
15,72
4
15,90
2
15,35
2
15,81
6
15,68
9
15,56
6
Profits
(Statutory
profit/los
s after
tax)
(A$m)
970 123 116 249 −244 6
−2,84
3
560 985 793
Number
of
employee
s (FTE)
33,67
0
33,96
6
32,48
9
33,16
9
33,58
4
33,26
5
30,75
1
28,62
2
29,20
4
29,59
6
Number
of
passenger
38.6 38.4 41.4 44.5 46.7 48.2 48.8 49.2 52.7 53.7