Business Strategy Analysis and Models

This assignment delves into the realm of business strategy, examining various analytical frameworks and models used to formulate and evaluate strategic decisions. It covers topics such as competitive analysis using Porter's Five Forces, business intelligence success factors, demand fulfillment strategies, and dynamic capabilities for organizational growth. The assignment also touches upon different economic systems and their impact on business operations.

BUSINESS ENVIRONMENT

Table of Contents
Introduction..........................................................................................................................................3
Task 1....................................................................................................................................................3
1.1 Describing the mission vision, its short- and long-term objectives of British Airways............3
1.2 Analysing the key stakeholders and how these challenges effect stakeholders of British
Airways............................................................................................................................................4
1.3 How did BA respond to complete its responsibilities to these stakeholders.............................4
2.1 Explaining economic systems....................................................................................................5
2.2 Describing challenges due to fiscal and monetary policies on business environment suffered
by BA...............................................................................................................................................5
2.3 Analysing the effect of regulatory, competition and legal policies changes on BA.................6
Task 2....................................................................................................................................................6
3.1 Market structure of airline industry...........................................................................................6
3.2 Describing market forces which shape organisational responses with help of examples..........7
3.3 Explaining How BA has been impacted by the working practices and cultures of the
countries...........................................................................................................................................8
4.1 Describing the impact of global changes in trade regime caused by organisations such as
WTO and other firms on British airways.........................................................................................8
4.2 Describing global factors, including regulations of government players which may impact
BA....................................................................................................................................................9
4.3 Can European Union policies on travel, competition or aviation impact British Airways........9
Conclusion..........................................................................................................................................10
References...........................................................................................................................................11

INTRODUCTION
Business environment is combination of internal and external environment factors which
impact the performance of organization in the market. It is essential for the company to develop
proper strategies to manage supply and demand as well as functionality of staff members by
analysing all aspects in the industry (Borzillo Schmitt and Antino, 2012.). British Airways (BA) is a
UK based organization which provides optimistic air services to all types of consumers in the
world. The present report focuses on the organisational aims of corporation in the market. Further, it
describes the domestic environment of airline industry. In addition to this, it also emphasizes on the
importance of global factors which affect operations of British airways.
TASK 1
1.1 Describing the mission vision, its short- and long-term objectives of British Airways
Mission, vision, short and long term objectives contribute effective role in British Airways
to achieve its goals in the airline market. Further, BA is a public organisation which emphasizes on
social services and income generation in United Kingdom. It is described in below the paragraph.
Mission of British Airways
Mission of the enterprise is to offer better service for domestic as well as global consumers
in all states.
Vision of BA
Vision of the company is to achieve leading position by providing them effective air services
to all type of passengers in the world.
Short Term Objectives of BA
 To become top priority for high income class customers with the aid of vast airline network
in the world.
 To offer better air travelling experience to all types of people in the entire world (British
Airways, 2010)
Long Term Objectives of BA
 To expand its network in all important cities of the world.
 To reach top position in aviation industry of United Kingdom.
 To meet the maximum requirements of consumers (Asplund, 2013).
 To increase its profit and revenues of air tickets by using new strategies in the world.
 To improve market image and brand of BA in the mind of consumers.

1.2 Analysing the key stakeholders and how these challenges effect stakeholders of British Airways
BA has many stakeholders such as consumers, suppliers, shareholders as well as employees
who suffer with many challenges in United Kingdom. Further, associates of organisation faces
challenges due to high recession level and modification in rules and regulation of the nation.
Staff members of British Airways face many issues in recession period. For example,
corporation terminated many employees in the recession period of 2008. This thing created negative
impact on staff members of BA (Hair and et.al., 2015). Further, it generated huge unemployment
due to economic instability in the nation.
Shareholders face many complexities regarding dividend in nation. For example, sometimes,
management of BA could not return timely dividends which created bad impact on its investors in
the market.
Organisation has many types of consumers in the country. Passengers of corporation have
faced many issues due to change in rules and regulations of UK (Morecroft, 2015). For example,
increased rates of air tickets of BA created problems for passengers in the market. Due to this
reason, spending of consumers increased as compare to before.
Suppliers of BA are affected due to recession period and changes in rules and regulation
which creates many complexities for them in airline industry. For example, purchasing power of
organisation was also reduced in the year 2008 which created negative impact on suppliers due to
reduced sales in the aviation industry (Beaumont, Whitaker and Pedersen, 2013). As a result,
income of vendors also decreased as compare to previous years in the airline industry.
1.3 How did BA respond to complete its responsibilities to these stakeholders
BA had given efforts in fulfilling the responsibilities for stakeholders in UK. Corporation
spent its retained earnings to fulfil its roles and responsibilities in the market. These things provided
many benefits to the stakeholders.
Stakeholders Responsibilities
Customers Organisation accomplish its responsibilities for consumers by giving effective
efforts in the nation. For example, British Airways provides its airline service for its
customers to give air ticket in the regular prices in the situation of changed rules
and regulations in the market (Vahlne and Johanson, 2013). In addition to this,
company did not change the schedule of flights to provide its services to passengers
in various nations.
Employees Firm adopted many approaches to provide better working environment to its staff

members. For example, British Airways also implemented many activities such as
motivation theories, transfers and promotions to decrease termination ratios of staff
members for fulfilling its responsibilities in the situation of recession period.
Suppliers and Management of British Airways used many practices to fulfil the responsibilities of
suppliers in the airline market. For example, enterprise concentrated on managing
effective relationship with its vendors by arranging proper meeting with them in a
month. This process also provided effective opportunities to reduce loss of suppliers
at the time of economic instability (Chen and et.al., 2014).
2.1 Explaining economic systems
There are many types of economic systems which contribute effective role for organisation
to allocate its resources.
Command economic systems: In this economic system, government have full control to allocate
resources to organization. For example, BA has to request the authorities of UK to take permission
for utilizing appropriate facilities. In addition to this, government of United Kingdom provided
resources to the firm as per availability after maintaining ratios of conservation resources. So, this
thing created problems for British Airways to manage airline operations in the nation.
Market economic system: In this process, government does not play any role in allocating
resources. For example, BA and other organisations establish board for allocation of appropriate
facilities to all organisation in aviation industry. This firm allocates services effectively for all
corporations as per their availability in the nation. So, this process reduces challenges regarding
resource allocation as compare to command economic system in the market.
Mixed economic system: In this system, government of UK plays important role to allocate
resources for the organisations to manage their business activities in nation (Gemma, 2014). For
example, authorities of UK and other corporation establish joint firm to provide appropriate
facilities to the entire firm in the market. Government also provide resources to British Airways as
per availability in the market. Sometimes, mixed economic system creates many issues for private
and public organisations regarding allocation of resources due to involvement of the government.
2.2 Describing challenges due to fiscal and monetary policies on business environment suffered by
BA
Modification in fiscal and monetary funds also affected business environment of British
Airways in the nation.

Challenges in fiscal polices: Changes in fiscal rules and regulation produced for issues for British
Airways because these modifications increased percentage of various type of taxes such as Income
and VAT tax in the United Kingdom. These fluctuations obligates BA and other airline organisations
to increase rates of air tickets in the nation (DeFusco and et.al., 2015). In addition to this, it also
increases expenditure of organisation in the airline industry of United Kingdom.
Challenges in monetary polices: Alteration in monetary polices affect the inflation and GDP rate of
United Kingdom. Further, They created adverse impact on the airline industry due to imbalance in
supply and demand in airline services in the nation. They produce negative effect on the consumers
of Britain. In addition to this, they reduces profit and revenues of British Airways in the aviation
industry of UK (Hill Cron and Wickramasekera, 2013). They also increased rate of fuel cost due to
changes in Inflation rate which creates huge problems to manage the general operations of
organization in the nation.
2.3 Analysing the effect of regulatory, competition and legal policies changes on BA
As public limited company, Changes in Regulatory, competition and legal policies create
positive and negative impact in air industry.
Modification in rival policies compel the firm to adopt market pricing strategies which
increases revenue and sales of organisation in the aviation industry of UK. It contribute effective
role for organisation to adopt new strategies for reducing its expenditure which creates positive
impact on the British Airways in the nation (Işık, Jones and Sidorova, 2013). On the other side, it
decreases profit of per air ticket due to use of competition policy which produces negative effect
on the organisation.
Modification in legal and regulatory policies affect British in the aviation industry. These
rules and regulation compel the firm to use latest aeroplanes engines which contribute effective role
for organisation to reduce cost of fuel as comparison of before. In addition to this, they also help in
decreasing noise and environmental pollutions in the climate of United Kingdom. They provide
proper safety for consumers and its employees due to utilization of new engines in the Air industry
(Bar-Isaac and Shapiro, 2013). However, they also increase maintenance and repair expenditure of
organisation which create huge complexities to manage its operations in the airline market.
TASK 2
3.1 Market structure of airline industry
There are many type of market structures exits like perfect competition, monopoly as well as
oligopoly in the market.
Perfect competition: This market structure holds many suppliers and buyers which compel

organisations to follow market oriented or low pricing strategies to survive long time in the market.
In the perfect competition, BA has to reduce its prices of air tickets due to high frequency of
competitors which increase demand of airline seats in the aviation industry (Kilger and Meyr,
2015).
Oligopoly market structure: Oligopoly market structure contains few suppliers and many buyers in
the market. With help of this approach, BA can keep effective price of airline services to earn better
profit from consumers in the market. It maintains demand airline seat in airline industry (Zhu,
2014). In the present time, airline sector uses oligopoly market structures which contribute effective
role for BA and other airline organisations to increase its growth in the nation.
Monopoly market structure: This market structure consists one supplier and many buyers in the
nation. So, organisation can use higher pricing strategies which can help to increase higher profit
from customers in the market. In this type of competition, it reduce demand of airline tickets of BA
due to its higher cost in the market. So only premium class consumers can use airline services in the
United Kingdom.
3.2 Describing market forces which shape organisational responses with help of examples
There are many market forces which shapes organisational responses of organisation in
airline industry of United Kingdom.
Supply and demand: Supply and demand contribute effective role for organisation to manage
supply and demand by developing effective strategies in the market (Johnson and Turner, 2015). For
example, British Airways manages it supply and demand as per market situation in the nation. This
process helps in increasing profit and revenues of BA in the UK. Further, Firm also keeps low
pricing of its air tickets in the off season to increase its sales in the airline industry.
Technological forces: Organisation uses new as well as emerging technologies to manage their
business operations in a appropriate manner. In addition, this process provides huge reliability for
consumers regarding proper air facilities (Trkman, 2013). For example, management of British
Airway adopt new technologies like ERP (Enterprises resources planning) to manage its shipping
and logistic operations in the world.
Natural Resources: British Airways use many natural resources like oil, wood as well as coal in the
nation. In the present time, cost of natural resource is highly increased due to higher consumption of
these things by many corporations in the world. Hence, shortage of natural resources affect supply
and demand of airline services in the aviation market (Teece, 2012). For example, BA utilizes fuel
efficient engines as well as solar panels for energy which contribute effectively to decrease oil
consumption as possible. In addition to this, British Airways designs effective flight schedule for

passengers which aid to cover them maximum in the minimum flights.
3.3 Explaining How BA has been impacted by the working practices and cultures of the countries
There are many reasons which is created better effect on working practices and culture of
nation in the nation.
Diversified culture: Management of BA use diversified culture which contribute effectively to
manage its working practices and culture in the various countries. In addition to this, organisation
uses optimistic culture which does create complexities for other employees. Further, management of
British Airways do not discriminate its employees on the basis of religion, colour as well as sex
(Fleisher and Bensoussan, 2015). Corporation does not harm personal values of staff members
which aids in increasing its efficiency and performance in the various nations.
Better rules and regulations: Organisation uses effective polices for its employees in the various
nations. In addition to this, These policies help the staff members of British Airways to manage
their personal life and professional life in a appropriate manner.
Recruitment of young people strategy: Management of BA prefer to select young people rather
than old or middle age candidates. Further, this process contribute effective role for organisation to
increase its performance and productivity in various nations (Zdravkovic and et.al., 2013). Due to
these reasons, corporation earn better profit and revenues from consumers by providing effective
services in many nations.
4.1 Describing the impact of global changes in trade regime caused by organisations such as WTO
and other firms on British airways.
Organisation faces many global changes due to changes in trade regime. It is described
below in the paragraph.
These global aspects help the organization to expand its operations in the other countries.
Further, WTO and international civil aviation help the British Airways to enhance its business
activities in the global markets like India, china and Nepal. They contribute effectively to increase
its effective growth of organisation in many nations. They contribute effective role for British
Airways to generate effective brand value in the mind of consumers. In addition to this, they also
aid to increase its global market share of British Airways (Abushaiba and Zainuddin, 2012). This
way, organisation can gain effective profit by enhancing its sales of air tickets in the international
market.
In addition to this, rules and regulation of professional bodies of tourism give effective
flexibility to handle its business activities in the international market. Further, information and
knowledge of WTO and tourism bodies also help the British Airways to choKilger, C. and Meyr, H.,

2015ose proper market entry strategies as well as take various types of decisions for the expansion
in untouched areas.
4.2 Describing global factors, including regulations of government players which may impact BA
There are many global factors and regulations of government players which create effect for
British Airways in the nation.
Climate aspects: Environmental aspects affect the the British Airways in the world. They oblige the
firm to consider proper all rules and regulations which create positive and negative impact. These
polices contribute effective role for organisation to reduce consumption of natural resources which
decreases many expenditure in the airline sector. They also help the climate of UK to reduce air and
noise pollutions by using latest engines in the nation (Stacey, 2013). On theKilger, C. and Meyr, H.,
2015 other side, environment policies increase work pressure on the employees which create
complexities to manage their operations in the nation.
Legal polices: Global factors compel the British Airways to follow proper polices of employees like
proper insurance, accidental and medical polices. This process helps to create optimistic effect for
employees regarding safety of them during the flight. It helps effectively to enhance productivity
and efficiency of British Airways in the nation (Morecroft, 2015). However, it also increase
documentation work which increases expenditure of organisation in United Kingdom.
Minimum criteria of consumers: International rules and regulations recommend enterprise to
consider minimum criteria for customers to take off flight from airport. This thing also help the
British Airways to reduce its expenditure and fuel cost which provides huge help to manage its
global operations in the world.
4.3 Can European Union policies on travel, competition or aviation impact British Airways
European union policies create positive and negative effect on BA. It is stated below in the
paragraph.
Effective Competition polices: Competition among the other air organizations are higher in the
airline sector of UK. Due to this reason, aviation industry develops proper rivalry policies to
manage competition among air line organizations. This process is created positive impact on the BA
(Chen and et.al., 2014). In addition to this, it also increases sales of air tickets by following market
oriented pricing. It helps the firm to remain competitive by providing effective air services in
United Kingdom.
Travel policies: Management of British Airways offers various type of schemes like seasonal
discounts and special offers to passengers in order to increase its business in the UK. These efforts
contribute effective role for organisation to become more competitive in the airline sector of United

Kingdom.
Attractive Airport Policies: Airport services of Britain are managed effectively like good safety of
runways and proper queue management which aid the BA to manage its business operations in a
appropriate manner. So these type of proper services help the organisation to increase its sales of air
tickets in the nation (Kilger and Meyr, 2015). They also contribute effective role for British airways
to remain competitive in aviation industry of UK.
CONCLUSION
From the report, it is found that mission, vision, long and short term objectives help the
British Airways to achieve its goals in the world. Corporation complete its responsibilities
effectively for all type of stack-holders in United Kingdom. Further, challenges in fiscal and
monetary policies affect organisation in the air industry. Supply and demand, technological as well
as natural affect the British airways in the world. Diversified culture and effective rules regulation
aid the firm to improve its working practices and culture in various nations. It can be concluded that
effective competition, travel and airport polices contribute effective role for British Airways to earn
better profit and revenues in the United Kingdom.

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Online
British Airways, 2010. [Pdf]. Available Through:
<https://www.britishairways.com/cms/global/microsites/ba_reports0910/pdfs/Strategy.pdf>.
[Accessed on 23rd Febuary 2016].
Gemma, W., 2014. Types Of Economic Systems. [Online]. Available Through:
<https://blog.udemy.com/types-of-economic-systems/>. [Accessed on 23rd Febuary 2016].