In their 2014 annual report, airline Virgin Australia commented on the strategic direction of the company.26

After completing the Game Change Program, the Group commenced Virgin Vision 2017, a strategy to maximise the Group’s potential by extracting value from the business. Over the next three years, the Virgin Australia Group focused on:

• capitalising on growth business opportunities

• driving yield enhancement

• implementing a new cost program

• optimising the balance sheet

• setting a new standard in customer experience

• developing people to their full potential.

Required
(a) Using the four components of Simons’ levers of control framework, comment briefly on how the management accounting and control system could be used to monitor the performance in achieving the strategic objectives.

(b) Draw on Porter’s five forces to explain the competitive issues for Virgin Australia management.