BUSINESS MANAGEMENT UNIT 3
Ms Sabo
Name:
Qantas case study:
Outcome 1 assessment task
This assessment task for Outcome 1 in Unit 3 has been designed as a closedbook test to be completed in a double lesson. PRAC SAC ONLY
Task details
Assessment task
Case study and test
Unit/area of study
Unit 3: Corporate Management
Area of Study 1: ‘Large-scale organisations in context’
Outcome 1
Discuss and analyse the context in which large-scale organisations operate.
Instructions and conditions
In completing the following test you should demonstrate an understanding of the key knowledge for
Outcome 1 and your ability to plan, organise and undertake written communication.
Answer all questions in this answer book. The marks for each question are indicated after each
question.
Conditions: Closed book
Time allowed: 70 minutes
Marks allocated in SAC: 30 marks
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Published January 2010
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BUSINESS MANAGEMENT UNIT 3
Ms Sabo
Questions
Read the information 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, subject to AASB139 volatility, 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 fiscal 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
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Published January 2010
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BUSINESS MANAGEMENT UNIT 3
Ms Sabo
Question 1
Identify the two characteristics from the above information that indicate that Qantas is a large-scale
organisation and discuss how this is indicated.
2 marks
Question 2
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.
3 marks
Question 3
Discuss two strategies that Qantas could use to implement its vision statement.
2 marks
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Published January 2010
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BUSINESS MANAGEMENT UNIT 3
Ms Sabo
Question 4
Explain three contributions (positive and/or negative) that Qantas makes to the Australian economy.
3 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. Identify and describe three stakeholders mentioned in the article
above.
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Published January 2010
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BUSINESS MANAGEMENT UNIT 3
Ms Sabo
6 marks
Question 6
Distinguish between one internal and one external factor that may affect Qantas’ environments.
Identify the environment—internal or external (operating or macro)—that each factor belongs to.
3 marks
Question 7
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.
4 marks
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Published January 2010
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BUSINESS MANAGEMENT UNIT 3
Ms Sabo
Read the following information and answer the questions that follow.
In 1990 the Australian Government ended the regulation of domestic aviation through the abolition of
the long-standing ‘Two-Airlines Policy’. Prior to this, the Government had regulated capacity, service
levels, fares and routes flown on all interstate services.
The stated aims of deregulating the domestic aviation industry were to encourage:
•
increased responsiveness to consumer needs by airlines;
•
a wider range of fares and types of services to provide greater opportunities to travel;
•
increased competition and flexible pricing, leading to greater economic efficiency in the
industry; and
•
the continuation of Australia’s world-renowned safety record.
In 1992, the Government ended the separation between the domestic and international aviation
sectors. At the same time, it privatised the Government-owned airlines, allowed them to merge and
eased restrictions on foreign ownership of domestic airlines.
The objectives of deregulation have largely been met, with a more efficient industry providing greater
responsiveness to consumer needs, a greater range of services, lower fares and a high record of
safety.
Source: National Aviation Policy Green Paper: Flight Path to the Future, Department of Infrastructure, Transport,
Regional Development and Local Government, December 2008, page 121, copyright Commonwealth of
Australia, reproduced by permission
Question 8
Define the term ‘deregulation’.
1 mark
Question 9
Explain one advantage and one disadvantage of deregulating the airline industry.
2 marks
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Published January 2010
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BUSINESS MANAGEMENT UNIT 3
Ms Sabo
Question 10
Identify the type of large scale organisation Qantas is.
1 mark
Question 11
Compare two different types of LSOs, outlining the difference in their objectives and functions.
2 marks
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Published January 2010
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