Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Copy of Detail 3

No description
by

Sanna Afshar

on 5 November 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Copy of Detail 3

Content of Audit
Overview
Current Statistics
Recent Headlines
5 Year Performance Outcome
- Virgin Australia Overview

- Statistics Overview

- Performance Outcomes
- Shareholder Returns
- Triple Bottom Line
- 5 Year Trend Analysis
- Virgin Vs Qantas Financial Ratios

- Balanced Scorecard

- SWOT Analysis

- Recommended Strategies

Statutory Loss After Tax of $98.1 million
In line with previous guidance of a loss of $95 to $110 million


“While the financial results clearly did not meet our initial expectations, the 2013 financial year was a pivotal year for Virgin Australia, in which we completed our major restructuring and transformation program and reshaped the competitive landscape of the Australian aviation market...”
CEO John Borghetti


- Virgin Australia aiming to be the ‘New World Carrier’
- Operate Domestically and Internationally
- Duopoly between Qantas and Virgin with 94% of Domestic market share
- Formed an alliance with various international airlines to strengthen their
market share
- In January 2011, Virgin re-branded themselves and revamped their image

Competitors:
- Compete with Qantas in every market segment within Australia through
acquisitions:
- Skywest & Tiger Airlines
- Key Domestic competitors:
- Qantas, Jetstar & Rex
- Key International competitors:
- Qantas, Emirates & Malaysia Air

Virgin Australia
Performance Outcomes
Total Shareholders Return (TSR)
Triple Bottom Line
- Use of Bio-fuel
- Fuel efficient fleet Boeing 737-800BSI
- Big Red Box initiative
- Virgin group as a whole
- Technological advancements
- New Recycling Facilities


Game Change Strategy
Weaknesses
SWOT Analysis
Opportunities
Strength
Threats
- Strong reputation
- World renowned Founder
- Advancing R&D department
- Low Budget Airline with High quality service
- Strong Domestic and International operations
- Large competitor in Australian domestic market share
- Strong Safety record with highly trained and experienced staff


- Technological advancements (more fuel efficient planes,
automated services etc.)
- Hedged fuel prices (fixed fuel prices)
- Strong International alliances
- Duopoly competitive stance domestically
- Rising economic factors in the external environment
- Vulnerable to High staff turnover
- Strong Policy and Control by the Government
- Trend for Web-based meetings creating alternatives to flying
- Tailor new brand name to suit general business population

- Government Cap on 49% market share
- Reacting to competitors strategies are slow due to
organisations hierarchy

- Matured industry with growth only likely to come from a downfall of
a competitor or through sudden diversification
- Global economic downturn

- International competitors buying into Australian airlines
- Rise in fuel costs

- Increase capital through international partnerships
- Recent expansions made to Singapore airport
(Kuala-Lumpur route)
- Capitalise on the Velocity frequent flyer initiative

- Clear monetary advantages due to predominant duopoly
- Increase flight destinations
- Business and Premium class
- Utilise the strength of the R&D Department

'Game Set Match' Strategy
"...in order for a business to be competitive for a long term they must provide products differently or offer different products. If a company can achieve this they will ensure customer satisfaction which leads to long term competitiveness.”
(Hansen, 2008)
Cost Leadership Strategy with Differentiating qualities.

Financial Growth:
- Ensuring sustainable cost advantages both domestically and
internationally

Increase on Loyalty program:
- Broad-based loyalty across all company alliances

Increase links into the global market
- Utilising the groups global alliances for international advantages

Enhancing customer experience
- Innovative on ground and inflight customer experience

-Revenue passenger kilometres (RPKs)
-Available seat kilometres (ASKs)
Balanced Scorecard
(Virgin Australia Annual Report, 2013)
(http://www.reuters.com/stakeholders/stockownership

(Virgin Australia Annual report, 2013)
- Launched cadet program Nov2012 similar to REX airways
- Proposal Acquisition of 60% of Tiger Australia
- Introduced Velocity frequent flyer card
Game Change
Game On
Game, Set, MATCH!
Financial Ratios
http://www.macroaxis.com/invest/ratio/VBA.AX--Total-Debt
http://www.reuters.com/finance/stocks/financialHighlights?rpc=66&symbol=VAH.AX

- Sanna Afshar
- Bernice Mwemye
- Sebastian Santalucia


- Karim Hussein
- Vinny Tran

2015 Goals
- $400m Revenue
- 98% Performance
- Highest Customer service rating

(Virgin Australia Annual Report, 2013)
(Sept. 2013)
SBSKV CONSULTANTS
Thank you for your valuable time.

$(m)
Time
2015
2014
2013
New business strategy, ‘Game Change Program’ announced in 2010
Aimed to ‘re-define the Virgin Airlines brand in Australia’
Aimed to shift Virgin away from low-cost carrier image
Resulted in a $90.6m improvement on previous year and growth of 12.2
Second Phase currently underway – aims to delivery productivity gains of $400m over three years and further enhancement of products and services

http://www.marketingmag.com.au/case-studies/from-blue-to-true-blue-virgin-australia-rebrand-28140/#.Umzu8vX4Jm8
http://australianaviation.com.au/2012/11/game-on-for-virgin-australia/
(Virgin Australia Annual report, 2013)
(http://airlineindustry.co/risingtimes/kd/rise.pdf)
400
Full transcript