M3 Topic 1 Role of finance - Qantas case study

Question 1

what does Qantas’s Finance function do for Marketing Function

Answer 1

Finance creates budgets for Qantas’s marketing strategies such as:

• new lounges,
• new check in facilities,
• new carriers flying into china.

Question 2

What has Qantas’s Finance function done for HR

Answer 2

invest $275 million a year on staff training

Question 3

What has Qantas’s Finance function done for Operations

Answer 3

Qantas has budgeted to spend billions over the next 10 years on fleet renewal

Question 4

How has Qantas’s Profitability performed (4)

Answer 4

2014: struggling international operations, high fuel prices and weaknesses in the domestic market
2015: $1.6 million turnaround 🡒 profit of $975 million.
2016: profit $1.53 billion
2017: profit $1.4 billion

Question 5

How has Qantas’s growth performed (2)

Answer 5

2014, control costs = retract growth plans into Asia

2015-present, expanding new routes and increase capacity in Asia

Question 6

How has Qantas’s solvency performed (4)

Answer 6

2014, increase in gearing due to falling profitability

2015, reduced debt by $1 billion

2016, reduced debt $750 million dollars

2017, reduced debt by $434 million