Business Management 2011 Unit 3 SAC 1

Large Scale Organisations in Context

SAC 1 – Written Analysis of a case study
5 minutes reading time + 60 minutes writing time
This task contributes 20% to the total mark (100) for your Unit 3 internal score

Read the material below and answer the questions that follow:

Qantas vision statement

‘All Qantas Group businesses—from Frequent Flyer to Freight—depend upon the core strength of our
two airlines, Qantas and Jetstar.
The Qantas Group’s long-term vision is to operate both the world’s best premium airline and the world’s
best low fares carrier.
The Group’s future will be determined by its capacity to reward shareholders who provide it with the
capital to grow and invest. In February 2009, shareholders demonstrated their confidence in the Group by
providing more than $500 million to strengthen the balance sheet and support fleet renewal.
Source: Qantas Annual Report 2009

Source: Qantas Annual Report 2009

Qantas expects $50m – $150m profit

‘“As a result, Qantas expects to achieve a profit before tax in the range of $50 –150 million for the first
half of the 2009/10 financial year,” Qantas said in a statement lodged with the ASX. Qantas booked profit
after tax of $210 million for the first half of financial 2009, to December 31, 2008.The airline reported a
net profit of $117 million for the full year to June 30, 2009, down 88 per cent from the prior corresponding
period.’
Source: ‘Different, but both world beaters’, Terry McCrann, Herald Sun, 20 August 2009
Question 1
Define the following terms:

a) Government Business Enterprise

b) Tactical objectives
(1 + 1 = 2 marks)
Question 2
Identify and discuss three characteristics that indicate that Qantas is a large-scale organisation. Refer to
the case study where possible.
(1 + 1 + 1 = 3 marks)

Question 3
The Qantas Group’s long-term vision is to operate both the ‘world’s best premium airline and the world’s
best low fares carrier’. Distinguish between a mission and a vision statement. Explain why the two
need to be aligned.
(2 + 1 = 3 marks)

Question 4
Explain two contributions—one positive and one negative—that Qantas makes to the Australian
economy.
(2 marks)

Read the following information and answer the questions that follow:
QANTAS has confirmed its position as one of the world's strongest airlines, surprising the market with an
upbeat half-year profit forecast.
Despite key international routes to the US and Britain remaining in the doldrums, the airline said overall
passenger numbers have rebounded and it expects a half-year profit of up to $150 million.
The airline also cautioned investors that ‘high levels of volatility in the economic outlook, industry
capacity, passenger demand, fuel prices and exchange rates are likely to continue’.
Qantas domestic reported 2.3 per cent growth in ticket sales last month, with regional offshoot
QantasLink disclosing a 1.5 per cent improvement. Jetstar domestic sales were up 4.9 per cent.
Jetstar International reinforced its star rating, increasing its passenger numbers 129.8 per cent—from
146,000 in November last year to 335,000 last month.

Source: ‘Qantas profits, shares take off’, Geoff Easdown, Herald Sun, 22 December 2009

Question 5
Qantas has many stakeholders. Define the term “stakeholders.” Identify two potential stakeholders and
for each, explain their possible interest in Qantas.
(1+2 = 3 marks)

Question 6
Analyse one internal and one external factor that may affect Qantas’ operations. Identify the
environment—(internal, operating or macro) that each factor belongs to.
(2 + 2 = 4 marks)

Question 7
Define the term “Key Performance Indicator.” State two performance indicators that Qantas could use to
confirm its position as one of the world's strongest airlines. Justify your choice of indicators.
1+ 1 + 1= 3 marks

Total: 20 marks