2. BUSINESS STRATEGY ANALYSIS
2.1 BUSINESS ACTIVITIES
Sydney Airport is Australia’s international gateway and primary
airport. The airport can be a significant infrastructure in Australia.
Through the airport, it connects Sydney to 47 international, 24
domestic interstate and 23 regional destinations (Sydney Airport
In terms of the division of the business, Sydney Airport (SYD)
consists of Sydney Airport Limited (SAL) and Sydney Airport Trust 1
(SAT1) (Sydney Airport 2013). To be specific, SAL is responsible for
the operation of the Sydney Kingsford-Smith Airport including the
operations of the runways, terminals, retail, car parks, check in desk
service and lounges. In addition, The Trust Company (Sydney Airport)
Limited (RE) takes the responsibility of SAT1. It is the unit where a
SAL share is stapled to. The boards and functions are independent from
each other between SAL and RE.
2.2 ANALYSIS OF THE ECONOMY
In terms of the global economy, GDP can be one of the most important
indicators for the economy situation. Based on the data of The World
Band (2013), it indicates that the global economy has a smooth growing
speed. By that it refers to a positive global economy environment as
it is important for the entities which involve international business,
such as Sydney Airport.
Figure 1 Global GDP (The World Bank 2013)
Secondly, the Australia interest rate is 2.5% (RBA 2014) and the
inflection rate is 2.9% (ASB 2014). As it is shown in the Figure 2,
the interest rate has been reduced from 2012 and the inflection rate
rises relatively. By that it means that the Government decides to
encourage the economic growth. Hence, there could be a larger market
for Sydney Airport with a positive economic policy.
Figure 2 Interest and Inflection Rate in Australia (RBA 2014; ABS
In addition, as Sydney Airport conducts its business internationally,
exchange rate can pose a significant influence. The exchange rate
between AU dollar and US dollar has been reduced from 0.96 to 0.92 in
the past year (Xrate 2014). This imply that overseas client of Sydney
Airport can have more buying power for the product and service of
Sydney Airport .
2.3 ANALYSIS OF THE INDUSTRY
The Porter’s five forces framework can be applied in the analysis
of the industry. Firstly, rivalry among existingTo read more go to: https://www.bezern.com/read.php?id=