A recent annual report of Virgin Australia contained the following statements about the strategic direction of the company.26 Now we have completed the Game Change Program, the Group has commenced Virgin Vision 2017, a strategy to maximise the Groups potential by extracting value from the business. Over the next three years, the Virgin Australia Group will focus on: Capitalising on growth business opportunities; Driving yield enhancement; Implementing a new cost program;

Optimising the balance sheet; Setting a new standard in customer experience; and

Developing our people to their full potential. Required

A. Using the four components of Simonss levers of control framework, comment briefly on how the management accounting and control system could be used to monitor the performance in achieving the strategic objectives.

B. Draw on Porters five forces to explain the competitive issues for Virgin Australia management.