Swot Analysis Of Qantas Company

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Executive Summary

This is an analysis report of Qantas Airways Limited (Qantas Group) basis on the 2011 annual report. For the auditing purpose, the report will mainly focus on auditing perspectives. First of all, an overview of the company and industry, it gives an idea of what the business conditions in which they face with. By using the SWOT tool, we ensure the analysis is matched with the real business situations. Moreover, the report will discuss different categories of laws which would be applicable the Qantas Group and also the potential level of the reliance that placed on the control environment of the Qantas Group. Furthermore, the report will briefly give a planning materiality bases and percentage regarding to our analysis. …show more content…
Weaknesses
 Operating two brands in the same regions at the same time bring an resource allocation issue (Qantas, 2010);
 As a result of the unstable international environment in Middle East, the fuel price becomes fluctuant which has an enormously influence on the operating cost of Qantas;
 Compare to its competitors, Qantas has higher labour and operating costs;
 An continuous conflict between Qantas management and labour union;

Opportunities
 The rapidly development of the Asian market;
 Developing the internet services which can provide an more convenient customer experience;
 The utilize of new aircraft which have more advanced equipment, more passengers capacity and more comfortable inside environment, for example, Airbus A308 and Boeing 787.

Threats
 The global economic depression impacts the demand of air transport;
 Profit margin might be decreased by the increase of fuel price;
 Profit margin might be decreased by the increasing labour cost;
 Government promulgated regulations which protect the small airway companies;
 A rat race in the domestic airline services.

1.5. The potential impact of the SWOT analysis on the Qantas Group audit
In order to audit an organisation and its environment, the SWOT analysis can be applied as an efficient method. SWOT analysis involves

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