(Will continue to add feedback as I finish it)
Aeroflot’s New Strategy?
One morning this week, I was minding my own business scrolling through Instagram and saw a post that caught my eye. At the beginning of the term I noted that “Before reading and research Aeroflot, the only things I knew about Russia was figure skaters Evgenia Medvedeva and Alina Zagitova (current world champion).”
Well, the post that caught my eye was from Alina Zagitova who, to me, appears to be in collaboration with Aeroflot doing an advertisement to get more people to travel to Russia.
https://www.instagram.com/p/B3Ex8owJWEz/
So what does this mean for Aeroflot? Despite everything happening with the company from crashes to losses, maybe this is a way for them to be seen from a different group of people since Alina is seen as an influencer to some.
I think it might be a great move for Aeroflot since advertising through influencers allows them to see a niche community engage. After all, consumers then to be trusting if they are getting their information from an influencer who is endorsing the product. So, this might be just what Aeroflot needs in their journey to further growth.
Assessment 2 Draft
Hi everyone,
I have (finally) made it to the end of this assignment and am ready to start receiving some feedback so I can improve on what I have written!
I have found this subject challenging but it made me think in ways I never had before!
Let me know if you would like feedback and I will happily do so.
Have a great day!
Draft of Steps 3-5 & 7
Hi everyone!
I am relieved that I am finished with the hardest parts of this assignment! This being said, I hope you all are tracking well with your assignments and are getting ready for a well deserved break week next week.
I have just completed step 7 and am now ready to start receiving and giving feedback! I have attached steps 3-5 and 7 below. Can’t wait to begin reading what other people’s financial statements include compared to mine.
Now to get that feedback finished before getting right back into it for assessment two!
Restating Aeroflot Airlines Financial Statements: Commentary
I found this to be a valuable learning task as I was opened up to diving deeper into my firm’s financial statements. While it may have tested my patience at times when it didn’t balance, I got there in the end after figuring out where I had gone wrong.
I started by completing my income statement and was feeling confident till I got to the end and it didn’t balance. After hours of going over all of it with the help of Maria’s checks and balances it still wasn’t balancing. I decided to delete everything I had done for the income statement and start again. Before I restarted this, I went on and did my balance sheet which, thankfully, balanced straight away.
The next day I decided to re-watch Maria’s video and start over with my income statement restating. Once again, I got to the end and it did not balance. I took a step back for a moment and went in line by line with a new perspective. I learnt that some of my classifications may have been wrong since airlines are something completely new to me. By doing this I found that one of my main issues to why it wouldn’t balance was that I had messed up the calculation for my finance income, essentially counting it twice. So once I had fixed that I thought it would be smooth sailing from here onward but no. It was still not balancing. This is when I realised, after another long period of time looking over what lines I had entered, that I had added in the Profit/(loss) for the year attributable to: shareholders of the company and non-controlling interest. These are already accounted for as a total earlier within my income statement. This made me realise that there can be things as simple as that, that are completely overlooked when classifying and then entering when it comes to restating.
For me, learning what is classified as operating and financial activities was interesting and educational when getting to know my firm better. Yes, I have looked at firm’s before and considered what is operating and financial but this was vastly different when it came to some of the accounts that a present within the income statement and balance sheet. Not every company is the same and that is important for me to remember.
My restated income statement’s total comprehensive income/(loss) for the year showed me that there has been a trend of a loss in 2015 then a profit in 2016 and 2017 but then in 2018 they have once again made a loss. I had previously identified that this loss was due to the expansion of their firm which means loans being taken out for buildings and aircraft’s.
Overall, it may have been frustrating at times but in the end it was rewarding seeing everything come together to balance successfully while giving me an insight into Aeroflot.
Step 3: Aeroflot (Russian Airlines)
Aeroflot: Sincerely Yours
When I received this company I was excited. Before reading and research Aeroflot, the only things I knew about Russia was figure skaters Evgenia Medvedeva and Alina Zagitova (current world champion). Aeroflot Group is one of Russia’s largest airline groups and is also one of the Top 20 world airline groups. They are one of the oldest airlines in the world dating back to 1923. In 2018, they carried 55.7 million passengers which accounts for 40.7% of Russia’s air-travel market.
The key people at Aeroflot is the CEO Vitaly Savelyev, he has been the CEO since December 2014. During December last year, the Russian government appointed Russia’s Minister of Transport, Evgeny Ditrich, as chairman of the board.
The Group has over 300 regular destinations to 56 countries, with Aeroflot (Russian Airlines) operating 163 routes with its main hub at Sheremetyevo International Airport and headquarters in Moscow. Aeroflot, as of January 2019, has over 30 codeshare agreements with airlines across the world.
The Group has a total revenue of 611.6 RUB billion, in Australian dollars, this is around 13 billion. They have a current stock price of 108.02. When reading their history something that did concern me is that two airlines that Aeroflot partly owned were declared bankrupt in 2017. The reason for this is unknown but the two airlines were low budget.
Another thing that was concerning when researching news articles is that in May this year one of their planes crashed killing 41 people and causing Aeroflot to cancel dozens of flights following the tragic plane crash. This incident could have easily driven consumers away from using that airline which would result in a loss in profits. When looking for videos about Aeroflot it was almost impossible for me to find anything positive since a majority was about the plane crash mentioned.
However, looking into the news for more positive things was easier as they have just added the Airbus A320 Neo to their fleet, starting operations early next year, and have also become a global partner and official airline of the 2019 International Basketball Federation (FIBA) World Championship.
It appears that from just looking at Aeroflot’s website and news articles I can get a good sense of what they are even though I was overwhelmed with the amount of information and detailed history there is. With reports that they are constantly expanding their routes and adding more aircrafts to the already large company, they have goals set that I am sure I will find out about after diving deep into their annual reports.
ACCT13017: Step 1 (Assignment #1)
Hi everyone!
Hope everyone had a great break and is now settled in for the new term.
Here is my draft for step one for assignment 1. I used my previous knowledge of KCQs to complete this so I’m hoping it is what Martin is looking for!
Hope everyone has a great day.
Hannah
Feedback to Kelly Tranberg
Feedback From: Hannah Lewis
Feedback To: Kelly Tranberg
| My Comments | |
| Step 7
Inventory |
I like how you include your previous knowledge of inventories. Maybe include the name of your company on your title page. Also consider putting WIP in brackets after your first time mentioning work in progress. Great use of questions that you asked yourself during this step. I like how instead of just giving up and saying there is no inventory you made assumptions from what you had learnt during this semester. |
| Step 8
MYOB setup MYOB training MYOB quiz |
Everything for this step has been completed and I like that your included a couple of sentences to explain what this step was. |
| Step 9
Business transactions All journals report Financial and discussion |
All of your transactions are detailed and written well. Your analysis of your transactions is detailed and educational. I feel like this step is really well completed. |
| Step 10
Depreciation |
You have successfully entered 3 journal entries for depreciation. You have included a very detailed discussion regards to depreciation which shows you’re understating for deprecation even after you mentioned that it confused. Your feedback is helpful also, so thank you! |
| Overall | Overall, you have completed a well informative and an assignment where you have definitely shown your knowledge for the steps above. Well done and good luck! |
Draft Step 7 – 10
Hi everyone! I have finished the last steps of my assignment.
Here is my step 7 – 10 draft! I hope you are all travelling well with your assignments and I am ready to give feedback! Now to prepare for the exam, good luck everyone!
Hannah
Step 3 – 5 draft
Evening everyone!
I have attached my draft for step 3 to 5 and am wanting some feedback. Also am ready to give feedback to others!
Let me know if you would be interested in some feedback.
Thanks,
Hannah
Step 3 Draft
Hi everyone,
Hope your assignments are all going well. I have completed my step 3 and have decided to post a draft so here it is. Hope you enjoy reading it. I have already posted some of this on my blog but this one goes into more detail.
Have a good day.
Hannah
Get to know my company
Afternoon everyone!
I just finished finding information on my new company and thought I would share it with you all. I am ready for this term so let’s do this!
The company I received on Friday was Automotive Holdings Group Limited (AHG).
AHG (Automotive Holdings Group Limited) is a diverse automotive retailing and logistics group with operations in every Australian mainland state and in New Zealand. This company is the Australia’s largest automotive retailer, with operations, as mention, across Australia. AHG’s operates via subsidiaries that include, Rand Transport, Harris Refrigerated Transport, Scott’s Refrigerated Freightways and JAT Refrigerated Road Services, AMCAP (motor parts and industrial supplies distribution) VSE (vehicle storage and engineering), Genuine Truck Bodies, Higer Bus, and KTM Sport motorcycles and HQVA (KTM and Husqvarna motorcycle importation). The current share price for Automotive Holdings Group Limited is $3.67, this be tracking up throughout the past couple of months.
The company was first listed on the Australian Stock Exchange on the 31st of October 2005. The Company has raised $45.7 million through the issue of 45.7 million shares and, at listing, had million shares on issue. The next year AHG acquired two Ford and Mazda dealerships in Auckland, New Zealand. Later that year, AHG acquired the McGrath Lander Group dealerships in NSW, this is one of the largest dealership groups in Sydney. This then consolidated AHG as Australia’s largest automotive retailer. In 2007, they acquired Zupps Group which is Queensland’s largest privately owned automotive retailing group. Throughout the years the company has made expansions to its subsidiaries and has had acquired many different businesses. In 2013, AHG agreed to a three year major sponsorship of the Melbourne Football Club in AFL. The company is forever acquiring and being rewarded business which are continuing to expand.
The current board of directors has seven people, one of which is a female. The CEO of AHG is John McConnell. He was appointed this role in August last year and assumed the role of Managing Director from January this year.
News articles
In the first article I found about AHG, it mentions how downgrades on May were largely blamed on the weak West Australia and Queensland economics to which AHG and AP Eagers, an auto- exposed stock listing. It is interesting to see that effects in the market effects different companies in the same category the same way.
The second article I read was posted on the 13th of June 2017 and was headlined with ‘Automotive Holdings Group: bumps in road but potential there.’ To begin with, they used an unintentional pun about roads when it is related to a car business. It goes on to talk about how the company ended the financial year on a sour note. It also talks about how the company downgraded guidance by 10 percent to $88 million, and shares hit a four year low of $2.91. The downgrade was against a backdrop of wakening industry fundamentals.
‘Two key concerns were:
- Stalling new-car sales across the country (particularly in Western Australia).
- An anticipated tighter financing ability, largely due to ASIC’s proposed ban on flex commissions for auto finance, which translates to lower revenues, and, owing to the company’s high fixed costs, lower margins.’
AHG has a long and successful history of acquiring auto dealerships and this is something that seems to be continuing over the years ahead. Acquisitions have driven about 10 per cent annual revenue and earnings growth in the past three years, well above new-car sales growth of about 1 per cent. I found this article really interesting and helped me gain further understand of the company.
To finish off here is a video of the South Melbourne dealership being built in 2013. This is just one of the many dealerships that AHG has acquired over their lifetime thus far. I am excited to get to know my company very well throughout the twelve week term.
All comments are welcome!
Hope everyone has a wonderful day!
Hannah
the start of something new 