Cost is the allotted budget required to complete the project. Cost includes material, resources, labor and any item within the project which has a cost associated with it. The three constraints are interdependent and a change to one can affect the one or both of the other constraints. If more requirements are added to the scope of the project, then it is likely for the amount of time and cost to increase as well.
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
This report will be based on British Airways and I would be illustrating the use of budgets of their financial controls and evaluating the importance of why costs need to be controlled to budget. To conclude, I would clarify how the running resources and controlling the budget can improve on the performance of B.A. Furthermore, I would evaluate the issues and problems recognised from unmonitored costs and budgets. Pass:
Introduction: Here in this assignment a management accounting report needs to be prepared for analyzing how management accounting can be useful in providing the managerial information for the purpose of decision making. The organization selected to make this analysis is Southwest Airline. It is a management accounting report in which starting from the background of the company, the management accounting system of the company has been analyzed and how its’ providing the information for the purpose of management decisions being evaluated. Background of the company: Southwest Airlines was shaped in 1978 with reason to serve voyaging service via air course. What's more, after consolidation southwest aircrafts persistently succeed regarding productivity, great worker and union connection and consumer loyalty.
The material management process can help jetBlue Airlines to provide the same services as before but at a lower cost level. As their objective is to hold on to their previous service quality but introduce new elements which will enable them to provide services to the middle income population, they have to employ new sets of strategic decisions to achieve the desired goal. The method jetBlue must use is to find a way to reduce the maintenance cost they bear for the airplane’s maintenance, crew training and salary, fuel consumption by the aircrafts. The objectives jetBlue Airlines give in their 2013 annual reports to make the implementation of cost control, improving revenue and reducing their debt and thus lowering their financial risks. So the cost control objective can be easily achieved by careful implementation of material management process of the organization.
Focusing on pricing and getting heterogeneous departments to operate in sync, companies can deliver anywhere between three-percentage-points to 10 points improvement in EBIDTA. Pricing strategies are constantly changing, even if not recognised by the industry members. Many of them are original and new in nature, while some are borrowed from other industries with modifications to suit the industry in discussion. American Airlines pioneering use of pricing to maximise its fleet’s capacity utilization was significantly instrumental in making it a strong force in the airline industry. This pricing has been borrowed by the fashion industry presently by using yield management to optimize their use of
In many businesses, overhead costs are a significant proportion of total costs, and management needs to understand the drivers of overhead costs in order to manage the business properly. Overhead costs can be controlled by managing cost drivers. It can be applied to derive realistic costs in a complex business environment. ABC can be applied to all overhead costs, not just production overheads.
External Environment Industry Analysis The goal of the industry analysis is to recognize the external environmental factors which have potential impact on the industry. The first part gives an idea about the airline industry profile. Airline industry, in the last decade, has been growing strongly at 7% per year for both through tourism and businesses divisions and is one of the most competitive, globally, contributing to economic growth, trade, investment and tourism.
Threat of New Entrants. In the airline industry, the arrival of a new airline can be disruptive, particularly since new carriers tend to focus on high-value route corridors and bill themselves as bargain carriers. On the other hand, the cost of entry into the market is fairly high, and that fact together with the industry’s reputation for lim-ited profitability makes such disruptions rather rare.
Introduction QANTAS Airlines (QA) a leading airline service provider founded in the year 1920. It was recognized as the second oldest airliner in the world. QA was operating under two brand names QANTAS Airlines and JESTER Airlines. QA airlines offered all kinds of services including domestic services and where as JESTER Airlines offered domestic services. Besides offering airline services, QANTAS Group has been offering various kinds of other services; QANTAS Freight, QANTAS Link, Q-Catering and QANTAS Loyalty.
Lufthansa Lufthansa uses transnational strategy to gain global presence and recognition (Franz 2014). This strategy has been achieved by creating alliances and partnerships with other renowned carriers globally, especially in the European region. It is the most fundamental strategy Lufthansa leveraged on, in order to maintain core leadership in the airline industry not only in the European markets, but worldwide as well. As one of the founding members of Star Alliance, Lufthansa is able to offer customers across the globe a more convenient travel experience (Franz 2014).
In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. The management believes in collecting and assigning cost data that is being shifted away from control. There is a recognition related to the repetitive exercise of planning and re-planning for creating a full time job for accountants. The assessment and evaluation of cost data in the aspects of launching new product by Marks and Spencer is about gaining insights and learning ways for achieving the goals of organisation in most effective manner.
Starting of the crisis The company reported losses, ever since it commenced operations in 2005, refer to exhibit 1. Acquiring Air Deccan in 2007 made the situation even worse. After acquiring the Air Deccan, the company suffered a loss of over Rs. 1,000 crore for three executive years. By early 2012, the airline accumulated the losses of over Rs.
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
Until today, this incident is still affecting Malaysia Airlines in different aspects. Especially, on their corporate image, reputation and finance. Not only Malaysia Airlines, but the image and reputation of our country are also being affected because Malaysia Airlines have strong bonding with the government and they as a representative role stood out to speak for Malaysia Airlines. Malaysia government had given a very bad impression to others on their crisis management and crisis communications. Experts criticized their crisis management by saying “crisis in managing crisis” and “make a crisis worst” due to their failure in crisis communications.
