RAP – Part 3 Findings, Analysis + Business Models

Thank you @Hammad sir

Thank you so much for the details @trephena

Also, should I include cargo business as well in the analysis?

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@darkangel5 – if you can find the figures then yes you should cover this as a separate but important business segment. Like load factors there are usually stats that relate to kg/per kilometre flown. It is worth remembering that when looking at the capacity of a jumbo jet for example that only a small part of the available hold space is used to transport passenger baggage – most of it will be used for freight.

Cargo tends to be more important for medium to longhaul flights (rather than shorthall) this is because alternative forms of transport are available (road/rail). So anyone doing an airline that focuses on shorthaul flights (those under about 1,500 miles) can probably ignore cargo. It is not so relevant therefore for Ryanair and Easyjet as their strategies are more directed to transporting the maximum number of passengers in the most efficient way (with the quickest turnarounds possible) and therefore they tend not to use aircraft with much freight capacity

@sipo

Yes, they are concerned on description and analysis both but it is in context that you provide results and must do analysis, don’t just state results by writing that sales up by 10%, cost up by 12% etc. They want analysis, reason for changes i.e. what drives these changes.

So when you write sales up by 10% and state that it is as result of new product launched in 2016 with reference, this is analysis of result.

A good analysis example:

2010 was a good year for ABC company because its margin went up from 6.1% to 7.8%. Car market showed an improvement of 32%, while ABC company sales grown by 58%. Despite economic crisis and low GDP growth of 2.4% compared to 4.5% in last-year ABC company done well. It has been able to control its cost as its cost-of-sales were 93.8% in 2009 and 92.1% in 2010. ABC company has also done well against XYZ Company, its GPM grown by 1.7% compared to 0.2% of XYZ Company. Reason for this is poor cost control as costs are approximately same as a percentage of sales in both years of PSMC besides 63% sales increase. Increase in sales was also due to launch of 1300cc swift. (All facts were referenced).

Above para contain both analysis and results.

Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.

@darkangel5 – the basic SWOT is just a straightforward statement of the company’s strengths, weaknesses etc (with as much referencing as possible to show that the statements you are making are valid). You explore some of the SWOT and PESTLE factors when doing the financial analysis as you should be linking the strategic decisions and directions (i.e. found in the statements from press releases, company highlights, the CEO and directors’ reports ) that have produced the results and these are based on the company’s strengths and opportunites and the environmental factors found in the SWOT & PESTLE. I have tried to show this type of linkage in my article on Evaluation & Analysis and how to approach it on our homepage http://www.opentuition.com/obu

That is fine to use ratios calculated by the company in the annual report -justify this by saying they are reliable and likely to be more accurate (however as the basis of the calculation is not known the comparisons between companies may not be so valid). However as long as you acknowledge this and provide proper explanations this should be ok.

Hey hi, I was wondering on how to write the business models and the frameworks, like do i have to relate the framework or the business model with the most recent 3 years or can i relate with over all .history of the organization?