ACCT3583 MANAGEMENT ACCOUNTING 2

SESSION 2, 2013
SEMINAR TOPIC 1
THE EXTERNAL ENVIRONMENT: OPPORTUNITIES, THREATS, INDUSTRY COMPETITION AND
COMPETITIVE ANALYSIS

One of the primary objectives of this course is to introduce students to the concept of
stakeholder value management. Strategic decisions are complex in nature and made in
situations of uncertainty. To cope with this complexity and uncertainty, it is wise to use
frameworks of environmental analysis. These frameworks do not provide answers or
categorical conclusions. Instead, they help us to think about the future and to challenge extant
views that we may have about organisational functioning.
Week 1 is devoted to understanding the environment of an organisation. It is important to
have the ability to sense changes in the environment because these changes may offer
opportunities to be leveraged and threats to be overcome, signalling the possible need to
change the ways in which an organisations resources are acquired and deployed. We will
learn about the general, industry, and competitor environments of an organisation.
The seminar will be hands-on. Over the next three weeks, we will apply frameworks of
environmental analysis to the Qantas Ltd. You will be required to conduct an in-depth
analysis of Qantas before the seminars.
Required Readings:
Advanced Management Accounting, 2013 Edition, Chapter 1
Desired Learning Outcomes:
As a result of satisfactorily completing this seminar, you will be able to:
1.
2.
3.
4.

Appreciate generally what strategy is

Undertake an analysis of the macro environment
Undertake industry analysis using Porters Five Forces model
Recognise opportunities and threats based on an analysis of an organisations external
environment

(Please see the next page for seminar questions)

Seminar Questions

Please attempt the following questions BEFORE class:

1) What do you understand by the concepts of: strategy, value, resources, stakeholders?
2) Use the PESTEL framework to characterise the general environment for Qantas Ltd.
a) Based on the above analysis, identify 2 major threats and opportunities.
3) Using Porters Five Forces Model to analyse the industrial environment of Qantas Ltd.
a) What are the key forces at work in the industry?
b) Given this analysis, is the domestic/ international industry attractive or unattractive?
4) Based on your analysis in questions 2 and 3, what are some of the major opportunities
and threats faced by Qantas in the domestic (Australian) market?