CASE STUDY

Company Selected: QANTAS

Implement Organisational Improvements Programs

The goal of this paper is to examine Qantas Group performance in comparison to budget in order to make recommendations for the next 12 months based on present performance. Financial performance of the Qantas Group, corporate aims and goals, budget influence, and policy changes are all taken into account.

Review the variations in projected organisational outcomes including:

Financial

The company's financial projections show that it would recover from the coronavirus issue by leveraging the domestic holiday surge, allowing it to turn a profit in the current fiscal year. Domestic air traffic has grown, and revenues are likely to double.

Budget

The budget for implementing the restructuring plans calls for the elimination of $1 billion in costs and the use of $650 million in savings.

Policy changes

Qantas' policy adjustments were derived from the federal budget, which increased financial support for airlines on domestic and regional routes following the Covid-19 pandemic's impact on the airline business.

Business's Objectives

The Qantas Group's business goal is to restructure its operations during the epidemic and turn a profit once international air traffic resumes.

Key Performance Indicators

The economic integrity, customer, safety, and environmental conservation KPIs for the Qantas Group.

Discuss whether the goals of the organisation are being met

The objectives are maintained, with the air travel company continuing to operate in regional Australia, which will be bolstered by the resumption of foreign activity.

Review the following and discuss whether the goals of these documents are being met:

Financial

a.The Qantas Group FY2020 result shows that the firm had a $4 billion revenue impact, with a profit before tax of $124 million, a 91 percent drop owing to the hard pandemic period. The non-cash statutory loss before taxes was $2.7 billion, which included aircraft write-downs. Operating cash flow was $1.1 billion, with $4.5 billion in liquidity as a cushion for managing volatility and as the first step in a three-year recovery plan.

Budget Policy

The budget policy is predicated on a $2 billion restructuring programme designed to assist the company in regaining profitability once internal travel is resumed.

Business Objectives

The Qantas Group's goals include providing customers with transportation services through its JetStar and Qantas airline brands. The company's goal is to maximise shareholder value by providing systematic, dependable, and ethical transportation services.

Key Performance Indicators

The Qantas Group is able to meet important financial, social, environmental, and governance performance benchmarks.

Using standard financial analysis, review the trends in performance for the past three years and comment on any changes you have identified.

Qantas Group's financial performance over the last three years indicates that return on invested capital was 18.4 percent, exceeding 10% for the fifth year in a row. During those years, the nett debt profile fluctuated from $5.2 billion to $6.5 billion.

Review the organisations non-current liabilities

a. Has this increased/decreased over time

Non-current liabilities grew from $14.6 billion in 2018 to $17.3 billion in 2021.

b. Examine any alternative finance options that could be used to manage debt reduction in your chosen company.

To control its debts, Qantas Group can use equity financing as an alternative financial option.

Based on the information you have gathered on this organisation undertake a SWOT analysis. From this evaluation, recommend improvements to the overall financial processes in the organisation. Identify from the financial reports if the company has been impacted by environment factors? Consider the following whilst undertaking the SWOT analysis.

a. The organisations attitude to risk

b. Debt to equity ratio

c. Decision making authorities

d. Budget creation

e. Market profile

f. Resource Management

g. Information technology