...The report is done from the perspective of auditing. Multiple aspects of Virgin Blue such as strengths, weakness, opportunities and threats are analyzed in the first part. And in the second part five audit risks are identified and explained. Finally, since the appointment of new CEO, the impact of Virgin Blue is illustrated. 1. SWOT analysis * Strengths * Strong brand name and good reputation * Offering competitive fares with high quality customer service and awarded the Best Low-Cost Airline in Australia 2009 * Excellent on-time performance record * Successful loyalty program | * Weakness * Lacking experience in its new long haul business * High percentage of cancellations * Lower margin compared with competitors * Loose supervision * Unstable IT System | * Opportunities * Develop corporate travel market: market share against Qantas * International partnerships: Use Delta, Emirates partnerships to grow product offering against Qantas * Recovering global economy * Increasing immigration * Increasingly advanced technology enables airlines to provide more convenience to travelers | * Threats * Competition from domestic airlines, e.g. Qantas, etc * Upward pressure from fuel Jet fuel prices * Greater international competition: further expansion of Tiger network * Heavily reliance on internet as sales channel exposes them to risks associated with system disruption | 2. Key audit risks ...
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...Introduction It is a mandatory requirement for public companies in most countries to produce a financial report on a periodic basis for relevant regulatory bodies and shareholders. The financial report usually includes a director’s report, three financial statements and an audit report, as well as relevant notes to the accounts. This paper will look at the financial reporting practices of four companies in a comparative international context from a user’s perspective. This report was not completed to assess the performance of the selected companies. Instead the research objective of this paper is to analyze the annual reports of the four top tier companies in the global airline industry and observe which airlines disclose the most useful information, within their annual reports, for me as a user. How you read an annual report depends upon your purpose. As an investor, your purpose may be to assess: profitability, survivability, growth, stability, dividends, risks and other factors which may affect your investment in that company. This paper focuses upon five aspects of reporting within the companies’ annual reports that were the most relevant to me as a user: geographic segmentation, the auditor’s report, presentation, fuel risk, and the letter to the shareholders. Delta Airlines was chosen as the base airline to compare the other three airlines to; China Southern Air, Emirates Air, and Lufthansa Air. The analysis resulted in a very distinct successor. Emirates Air...
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...newly-emerged modern state, which is characterized by rapid industrialization and extensive urbanization (Jiboye,2011).In particular, the term “State” is defined as the politically organized people of a particular land(Antai& Moradi, 2010). When it comes to the cohesion and stability of modernized state, it refers to the condition of a system which is the condition of Nigeria as a whole. In this essay, the threats on the cohesion and stability of Nigeria induced by industrialization and urbanization are assessed in threefold: health threats, criminal threat and threat regarding food insecurity. The aforementioned threats to be analyzed are intertwined with the concept of urbanization and industrialization and the repercussions of food insecurity and the physical health threat in urbanized cities are interrelated with the criminal threat, which could be accounted by mental illness(Antai& Moradi, 2010). With this introductory overview, the essay proceeds to outline the modern situation of urbanization and industrialization in Nigeria with definitions conceptualized. The following part is an evaluation of the health threats comprised of two section, in which the overcrowding issue is explored and illustrative case study focusing on health surveillance in Niger Delta is examined. The next part dwells on the positive correlation between crime rate and urbanization. In the final part, the risk of imperative food insecurity and its negative impact on political stability are analyzed. ...
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...American Airlines Strategic Report for American Airlines Jed Cullen Kevin Yamazaki Deirdre Chew April 7, 2010 April 7, 2010 Page 1 American Airlines Table of Contents Executive Summary ............................................................................................ 3 Company History................................................................................................. 4 Financial Analysis ............................................................................................... 8 Current Financial Position.................................................................................. 8 Industry Comparable Analysis ......................................................................... 12 Stock Performance .......................................................................................... 14 Management and Analyst Outlook................................................................... 15 Competitive Analysis ........................................................................................ 16 Internal Rivalry ................................................................................................. 17 Supplier Power ................................................................................................ 18 Buyer Power .................................................................................................... 19 Entry and Exit ..............
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...much more. With fuel prices getting higher, leisurely travel on a downward spiral, and demands for higher salaries in the industry, where are the airlines to make up for costs besides higher airfares? Lets take a look into the industry and see what one company does to be extremely innovative and what another does to stay traditional, for lack of a better word. I have chosen two companies in the airline industry that I feel are complete opposites in more ways than one in their management, financial, and marketing structures. These companies have been long-time competitors in the commercial airline industry for nearly five decades competing for best quality, comfort, and convenience. Company Overviews: Southwest Airlines (LUV) and Delta Airlines (DAL) have been competitors in the same industry for over fifty years now. Both companies have been enormously successful in their own ways, but as many of us know, the world of commercial travel has seen its share of obstacles lately. The ATA (Air Transport Association of America) reported that domestic airline industry saw an 18 percent decline in revenues in fiscal year 2009 exceeding those from fiscal year 2001 by nearly four percent. This was due to a nearly six percent decline in passenger travel accompanied by a 13 percent plunge in the average price that it cost to fly one mile. Never in the airline industry’s 100-year history has it seen such a sharp decline in business. The challenge of restructuring the...
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...Peer Benchmark Report Boeing Co, February 13, 2012 Boeing Co Financial health declining, but still very strong Financial Period: Dec 31, 2011, (fiscal YE 2011) FHR: 82 Risk Level: Low Risk Annual Delta: -1 rating points Quarterly Delta: Flat Ticker: BA Table 1: Financial Health Rating (FHR) Financial Period End Financial Health Rating Annual Delta Publication Date: February 13, 2012 Sector: Aerospace and Defense (61 firms) History 2008 12/31/08 69 -14 2009 12/31/09 66 -3 2010 12/31/10 83 17 Current 2011 12/31/11 82 -1 Sector 2011 9/30/11* 59.1 2.0 Low Risk (80 – 100) Moderate Risk (60 – 79) Medium Risk (40 – 59) * 9/30/11 represents the most frequent period end date current for companies in the sector. High Risk (20 – 39) Very High Risk (0 – 19) Figure 1: FHR Trend, YE 2008 to YE 2011 Boeing Co's Financial Health Rating (FHR™) was a very impressive 82 (0=worst, 100=best) for the four quarters ending December 31, 2011, and represents a 1 point downgrade as compared to a year earlier. 100 80 60 Sector FHR Investment Grade Threshold FHR 40 20 0 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Boeing Co is currently rated higher than the sector average, at 82 compared to 59.1. The orange line in Figure 1 above represents the equal weighted average for the sector. Section 1: Boeing Co's Peer Ratio Analysis 2008 2009 17.20 1.10 2.11 1.07 0.56 5.81 6.25 19.69 109.31 45.81 32.89 n/a n/a -0.21 2010 19.38 0.94 4.82 1.15 0.46 4...
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...SkyWest, Inc. and the Regional Airline Industry in 2009 Julia Whitaker HPU: MGMT 4001 SkyWest Inc. is an independently owned airline company. They own two regional airlines, SkyWest (with focus on west coast) and Atlantic Southeast Airlines or ASA (with focus on east coast). Regional airlines usually conduct their business one of two ways: 1. Under a major network airline, using the network airlines brand name, regional airlines fly customers from smaller communities to larger airports. They also supplement the mainline market when demand doesn’t require large aircraft. 2. Regional airlines also conduct their own flights serving as commuter airlines for business travelers needing to travel between small communities and larger cities. As many other regional airlines, SkyWest Inc. earns most of its revenue by partnering up with the larger network airlines. In this type of partnership, regional airlines typically receive a contracted departure fee and are sometimes offered incentives for airline performance such as being on time. The airline industry is vulnerable in many ways. They have vulnerability to market changes, fuel costs, regulations, weather, and customer preferences. Being a smaller company also puts them at risk of being disenfranchised by the larger, network airlines. In 2006, regional airlines had some of the worst on time records in the industry. They also had six out of seven worst records for cancelled flights. My analysis has shown that...
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...EXECUTIVE SUMMARY This report aims to determine whether Qantas is suitable to be included in a diversified share portfolio aiming to maximise investor returns over the long term. Analysis began with a broad view of the airline industry, both international and domestic. Porter’s Five Forces framework is utilised to determine the strengths of buyers, sellers, potential entrants, competitors and substitutes. Overall the airline industry is characterised by high barriers to entry however these barriers are reducing and competition is increasing, particularly in the low-cost segment. Qantas was then examined utilising SWOT analysis to highlight the strengths, weaknesses, opportunities and threats particular to the airline. Qantas has a strong competitive position with a recognisable brand and loyal customer base through the use of the Frequent Flyer program. However, expansion into the Japanese domestic market could jeopardise future profitability. Other threats could arise from further technology failures, natural disasters and labour disputes. Accounting analysis of Qantas focused on the treatment of the Frequent Flyer program, hedging accounting and the adjustment of estimates relating to aircraft. It appears that management has applied prudent estimates which accurately reflect the financial position whilst allowing some flexibility. Discounted cash flow analysis was utilised to determine intrinsic equity and firm value. Key assumptions included the cost of equity, market...
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...Affairs This portion of the paper will include key information about Delta Air Lines, Inc. (Delta): (a) history; (b) culture; (c) important leaders over the years; (d) current products and service offerings: (e) target markets; and (f) methods of product and service delivery. History This section describes the history of Delta. The company was founded in Macon, Georgia, in 1924, as the world’s first crop-dusting service, Huff-Daland Dusters. The company moved to Monroe, Louisiana, in 1925. In 1928, field manager C. E. Woolman and two partners purchased the service and renamed it Delta Air Service after the Mississippi Delta region it served. Delta was the first international mail and passenger route on the west coast of South America. Delta operated its first passenger flights over route stretching from Dallas, Texas to Jackson, Mississippi, via Shreveport and Monroe, Louisiana. Also, Delta was awarded a US Postal Service contract in 1934 to fly from Fort Worth to Charleston via Atlanta (Hoover’s, 2011). In 1941, Delta relocated to Atlanta. Woolman became the president in 1945 and he managed the company until his death in 1966 (Delta, 2011). Delta offered its first night service in 1935, using the Stinson Model A; the first Delta aircraft with two pilots. Douglas DC-2 and DC-3 service was introduced and the introduction of flight attendants, called “stewardesses,” added to flight crews. Delta contributed to the war effort by modifying 1,000 plus aircraft, over-hauling...
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...years of experience, Iron Pump is today a leading manufacturer of pumps in the marine and offshore industry. Today, the pumps are supplied worldwide where almost 90 percent of the output is through Iron Pumps network of agents in more than 70 countries (Iron Pump, Company). Iron Pump’s core competence is its main focus on production and R&D in the value creation activities (Hill, 2012, p. 425). This knowledge of applications has founded the corner stone of the company. Iron Pump is situated in Herlev, near Copenhagen and has around 100 employees. Iron Pump has an annual revenue exceeding EUR 18 million (Iron Pump, Company). With an ambitious growth strategy and full capability of competing globally, Iron Pump seeks continuous global growth in the future (Iron Pump, Company). In 2003 Iron Pump entered the Chinese market by establishing a representative office in Shanghai (Interview, Iron Pump). This report will focus on expansion of Iron Pump into the Chinese market, but why China? Firstly, with an expected GDP growth exceeding 7,5 percent in 2013, the Chinese economy is steadying, showing new signs of stabilization after a 2 year period of cooling due to the global financial crisis, hindering further globalization of new markets (Reuters, 2013). Secondly, from a more market-oriented point of view for Iron Pump, it is critical that the great majority of the Chinese pump market is driven by centrifugal pumps. In 2011 it accounted for 50.56 percent of the total market revenue...
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...Human Resource Management Delta Case Study: Improving Delta’s Profit Margin Written by Filiz McNamara, Ogochukwu Udekwe and Vicki Troftgruben February 21, 2011 Table of Contents Page Introduction 3 External Environment 3 Internal Environment 18 Systems and Stakeholder Analysis 32 Conclusion 34 Problem Identification 36 Generation and Evaluation of Alternatives 37 Recommendation 38 Decision Implementation 39 References 40 Introduction Delta Airlines was founded by C.E. Woolman, an agriculture extension agent (Anthony, Kacmar, & Perrewe, 2010). C.E Woolman was not a banker, venture capitalist or war pilot, as many of the competing airlines were. He didn’t have the aggressive military style that many of the other airline founders had. What C.E. Woolman instilled within the employees at all levels of the organization is that people matter and should be treated fairly and equitably. This philosophy led Delta Airlines to be the leader in customer service from the company’s inception through the many mergers over the years. Through the difficult financial times when other airlines were laying off employees and filing for bankruptcy, Delta continued to pay their people well and keep them employed. There was an exception during the Ronald Allen CEO era of 1987 thru 1997. Human relations took a significant down turn during his tenure as CEO, especially during 1993 and 1994, but Delta decided to part ways with Allen and began repairing...
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...Delta Apparel Inc. (DLA) Corporate Overview Delta Apparel, Inc., through its subsidiaries, operates as an international design, marketing, manufacturing, and sourcing company that features a portfolio of branded and private label activewear apparel and headwear. The company primarily offers casual and athletic products for men, women, juniors, youth, and children under the Soffe, The Cotton Exchange, Intensity Athletics, Junk Food, and The Game brand names. It also markets apparel garments for the entire family under Delta Pro Weight, Delta Magnum Weight, Quail Hollow, Healthknit, and FunTees brand names. In addition, the company engages in designing, marketing, and manufacturing private label custom knit t-shirts primarily to branded sportswear companies. It sells its products to specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, screen printers, private label accounts, college bookstores, and the United States military. The company also sells its products directly to consumers on its Web sites at soffe.com, junkfoodclothing.com, saltlife.com, and deltaapparel.com. It has operations primarily in the United States, Honduras, El Salvador, and Mexico. Delta Apparel, Inc. was founded in 1999 and is headquartered in Greenville, South Carolina. Discounted Cash Flow Valuation I use the FCFF model to evaluate Delta’s price. The three-stage model assumes that the firm will have an impressive growth first, and then...
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...technological developments, economic pressures, and other factors. Most recently, economic recession and recurrent high fuel costs have challenged U.S. airlines, which have taken a number of actions to lower costs and increase revenue—including capacity reductions, fare increases, baggage fees, and mergers. Beginning in 2002, the Office of Inspector General has issued periodic reports regarding the performance of the aviation industry. This report, the 11th in the series, focuses primarily on industry performance during the 2008–2011 period and summarizes long-term trends since 2000. This report also highlights issues related to changes in airlines’ business environment, the industry’s reactions to those changes, and the impact of these actions on the traveling public. Finally, this report includes exhibits with more than 40 statistical charts (or metrics) organized in five areas: airline finances, air traffic, flight service, delays and cancellations, and customer service. 1 For a detailed discussion of our scope and methodology, see exhibit A. 1 For a list of all exhibits included in this report, see the Table of Contents on page 15. 2...
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...4 Products and services: 4 Organization: 4 Major players in the airline industry: 5 Economic impact of the airline industry: 8 Employment within the industry: 9 Key trends in the airline industry: 9 - Economic forces: 9 - Technological forces: 11 - Socio-cultural forces and political-legal forces / Government Regulations 13 Logistics and supply chain factors 14 Porter’s Five Forces Analysis: 16 Strategies used by airlines: 17 Expected Entrants: 18 Conclusion and Recommendations: 18 List of Abbreviations 20 Appendix: 20 References 21 Abstract The US airline industry is one of the key sectors of the country’s economy. Employing over ten million people, it contributes up to half a trillion dollars in annual revenues (about 5% of the US GDP). In recent years, the industry has been faced with major challenges arising from its external environment. Some of these include rising fuel prices and the global economic recession. As a result, growth in the industry has significantly slowed down with the ATA estimating that by the end of 2008 the industry had lost between $9 and $24 billion. With high intensity of industry rivalry, high supplier bargaining power, low threat from new entrants, low threat of substitution, and low buyer bargaining power; the industry’s attractiveness can be described as moderate. To be successful, players in the industry must exploit the opportunities offered by the external environment while overcoming the threats...
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...* Word count or equivalent: 1000 (500 per answer) * Assessment criteria: * To identify the nature of operations management * To analyse the processes of operations management * To analyse management approaches to operations management * To apply operations management to gaining customers and competing * To examine the operational processes and life cycles * Knowledge/understanding of concepts (40%) * Ability to collect, synthesise and apply information (20%) * Ability to generate appropriate conclusions (10%) * Logical structure (10%) * Communication of information/literacy (20%) Introduction * What the question going to be answered is about * This essay aims to answer… and will refer to… and apply examples from the… industry * Body * Begin each paragraph with the main idea/ topic sentence * This tells the reader what the paragraph will be about * Make sure your reader understands the main idea by EXPLAINING or giving a definitions How to.. * Give some EVIDENCE to support your main idea – the evidence should be a direct quotation or paraphrase and supported by a REFERENCE. * CONCLUDE your paragraph by either * linking back to your main idea * linking forward to the main idea in the next paragraph Conclusion * Conclusions are often hard to construct as you want to do more than just repeat everything you have just answered. * Ensure that you reach an overall conclusion...
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