Sustainability, Business and Responsibility: Internal and External Analysis of British Airways

This report analyzes the sustainability, business, and responsibility model of British Airways. It includes an internal analysis of the company's strengths and weaknesses, as well as an external analysis of macro-environmental factors. The report also explores aggressive and defensive strategies for establishing British Airways as a leader in corporate social responsibility and sustainability. The report highlights the challenges faced by the company due to recent market turns like COVID and recession.

SUSTAINABILITY
BUSINESS AND
RESPONSIBILITY

Summary
‘Sustainability, business and Responsibility is the model which has critical issue of recent
situations will impact the business organisation. These influences can be in many different form
government policies and international agreements to the measured the impacts of an
organisation’s practices on the community. This model is to ensure that it develops full
understating of what is sustainability and its principles with all the internal and external effects
of environment on the firm. It also reflects the aggressive and defensive strategies and challenges
faced by the company to being the leading firm in the market place and will not be replaced by
these factors and always have competitive advantage. VRIO also shows the set of resources that
provides sustainable competitive advantage of the company in being a leader in corporate social
responsibilities. Henceforth this model will also examine the current limits of the firm due to
recent market turns like covid and recession. The business practices will need to be involved to
and it shows reality of operating within the global trading system that effects sustainability
principles.
Contents
Summary..........................................................................................................................................2
INTRODUCTION ..........................................................................................................................4

MAIN BODY...................................................................................................................................4
Undertaking internal analysis of British-Airways and VRIO and pointing signifying
weaknesses and vulnerability that limits the organization's ability to in-corporate social
responsibility and sustainability. .................................................................................................4
Illustrating the external analysis of marco-environmant factorsl like political, ecocnomic,
social, technological, legal and environmental factors and identify the potential opportunities
and threats to ongoing sustainability and responsibility of the British-Airways........................6
Explanation on Aggressive strategy: Elaborating the aggressive strategy to establish the
British Airways as a leader in corporate social responsibility and sustainability........................8
Explanation of Defensive Strategy, which undertakes to identify the British-Airways weakness
and propose a Defensive strategy to avoid threats.......................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Sustainable business is the process in which profitability and concern of the environment and
social commitment are important. If business is sustainable in nature business involves using
own resources which are economically good in nature and also reduces any negative
environmental impact. British Airways (BA) is a United kingdom based national airlines. Its
headquarters are in London, England near the main hub of Heathrow Airport. This airline is the
second largest company which is UK based carrier and which is based on fleet size and
passengers carried, behind easyJet. BA was created in 1974 after a British Airways Board came
together by the British government which also managed two national airlines corporations,
British European Airways and British Overseas Airways Corporation and two region's airlines
Cambrian Airways and Northwest Airlines. The four companies were also emerged in form of
British Airways on 31 march 1974.
MAIN BODY
Undertaking internal analysis of British-Airways and VRIO and pointing signifying
weaknesses and vulnerability that limits the organization's ability to in-corporate
social responsibility and sustainability.
VRIO is an process which has internal analysis that helps businesses to identify the advantages
and resources that gives firm an competitive edge. VRIO includes value, rarity, imitability and
organisation. VRIO analysis of British Airways campaign is the process which provides British
Airways which the study. Resource-based strategic analysis is the process which is based on
assumption that strategic resources can provide BA campaign an opportunity to build a
sustainable competitive advantage over competitive industry.
Resources Value Rare Imitation Organisation
Vision of
leadership for
challenges in
future
Yes No This cannot
get imitate
by rivalry
firms.
It is not dependent on the
information provided
Pricing
Strategies
Yes No Pricing
Strategies
are regular
Yes British Airways pricing
Analytics engine

imitated in
the
industry.
Brand
Consciousnes
s
Yes Yes, British
Airways campaign
is the top company
and its leading the
airline industry.
No BA Campaign has made
useful the position of its
various segment.
Consumer
Community
Yes,
customers
can be
counted as
one of the
products.
Yes, the company
has formed a good
relationship of its
usual customers
It is hard to
imitate the
communitie
s culture
There is lot of Upside if we
go through the data
Alliance of
Activities
with British
Airways
Campaign
Corporate
Strategy
Yes No The
company
has
personal
strategy.
Yes, the firm has
organisational skills to take
out the usefulness of it.
Opportunity
in the E-
commerce
which uses
the IT ability
Yes, this
platform is
growing fast
and firm can
advantage the
opportunities.
No, almost all of
the rivalry firm
have invested in IT
to facilitate this
platform
(Utomo,Ramadanti
and et,al., 2021).
The
Artificial
Intelligence
and internal
analytics
can be
difficult to
imitate.
Starting point for the
organisation
Supply Chain
Network
Yes Yes Flexibility
in supply
Utilise Fully

Flexibility chain near
competitors
and sone of
them shares
the
suppliers.
Weakness that limits the abilities of the British Airways to be a leader in corporate social
responsibilities and sustainability are as follows:
 Effect on climate- This is an inevitable weakness for the company. This is because
emission of Co2 is just one of the factor effecting the environment there are other gases
and pollutants affecting atmosphere. Effect of all the other factors also results in global
warming.
 Lack of Measurement Systems- Measurement System benefits for implementing CSR.
This is very useful tool to evaluate and control of CSR performances. This concept is
relating to corporate governance, sustainability business ethics and corporate citizenship.
The CSR may reflect different challenges for the manager of the company to derive
concrete management actions on implementing CSR.
 High Regulatory Standards- The British Airways is highly- regulatory industry which
implies the concern of the customer- satisfaction, safety, environment and employees
well -being have been considered very important. Moreover, environmental and safety
performances are raised by additions to the regulations (D'Souza, Jayaratne and et,al.,
2022). Therefore, forcing the company British Airways to cope up with the new
standards.
Illustrating the external analysis of marco-environmant factorsl like political, ecocnomic,
social, technological, legal and environmental factors and identify the potential
opportunities and threats to ongoing sustainability and responsibility of the British-
Airways.
A PESTLE analysis is an activity which helps man organisation to establish the external factors
that can affect the working of organisation. It helps company to work with the better plan.

This tool is use to make long-term plans to for growth in future and create plans to maximise the
share of British-Airways.
 Political Factor- The change in government policies have affected British Airways.
After the recent events of Russian intrusion of Ukraine, UK flights were prohibited from
using Russian air space to retaliate to the sanction then they forced UK on Russia. The
British Airways in Russia came to a halt and all the flight operations were stopped. This
political scenario cause loss in the market of British Airways. This increased the cost of
operations since British Airways was unable to use Russian space. This made company
become more socially responsible towards environment as there will be less flights
comparably addressing one environmental problem.
 Economical Factor- British Airways phased economical loss in recent times. For
example, lower fuel prices were increased in 2016, which effected directly on the
earnings of British Airways by 65%. This loss accrued due to decrease in passenger
revenue and after 2020 fuel prices were also increased.
 Social factor- Every company like British Airways has to look close on the social
factors. The discussion of airfares is endless. Cheaper tickets attract travellers but
customer of British Airways done want to spend extra fare on air tickets although prior
bookings which are planned can be reasonable for the consumer because of this British
Airways started to reduce legroom of its planes. The advertisement to grab customer
Airways made advertisement which was loved across the globe by its customers and that
showed cross-cultural communication between passenger and flight attendant.
 Technological factor- With an increasing demand for adapting technology, British
Airways needs to remodel and execute latest technology (Sharma, 2020). In accordance
with the chosen airline uses automation technology to collect post- flight feedback from
the passengers. Technology is kind of tool which helps the business to grow enormously.
For example, British Airways has been working on program like fuel-efficiency program.
 Legal factor- Companies are abide by laws. This includes discrimination, fairness and
disability (Bellucci, Thorne and et,al., 2018). If there is any violation of law this can
result into bad brand image. The British Airways considers the guardians of their
employees and customer’s data, this company has also suffered a heavy financial loss and
earned a bad name.

 Environmental factor- It has been noticed that requirement of flights and aircraft
carriers has increased every year of British Airways. The environmental impact airline
industry has now become a main concern for regulatory authorities around the globe.
British Airways is the massive firm in terms of profitably and workers. It is the best
airlines in UK then also it has responsible attitude towards climate and society. British
Airways was one of the first airlines to use sustainable aviation fuel in their jets, reducing
carbon emissions of 80% after global warming issue.
Threats to the ongoing sustainability and responsibility of the British Airways.
 Climate Change- every time a flight fly there is carbon dioxide (CO2) is released to the
atmosphere. CO2 is greenhouse gas that is released when fossil fuels such gas, oil and
coal are burnt. Aircraft also create other effects, like methane reduction, ozone
production and cloud formation etc for which there is less scientific understanding.
 Carbon Footprints- British Airways has been working on lowering emissions since
1990 and also continued for many years. The company has fuel efficiency by 28% cutting
over 60 million tonnes of carbon dioxide emissions from the atmosphere its approx. four
times our yearly carbon emission. Although UK has reduced by 23% since 2000.
 Noise- Aircraft makes noise and its impact are local communities, mostly it effects which
are close to the London hubs at Heathrow and Gatwick. Although company is putting
continue efforts to minimise these two centred key areas, better development of better
operating procedure and investing on quieter aircraft.
Explanation on Aggressive strategy: Elaborating the aggressive strategy to establish the
British Airways as a leader in corporate social responsibility and sustainability.
An aggressive strategy is the process in which portfolio allocation is done with the
efficiency in such a manner that also gives competitive advantages in the target market by
meeting the needs of consumers, better than their competitors. Creating a business model that
encourages sustainable environment helps business take it's strength and core competencies in to
consideration in order to build long-tern plan that reaches to target market-place along with
building brand loyalty, resulting in greater profits. In context to the chosen airlines, they
published their Flightpath Net Zero in 2021 explaining about their long, short, medium term
solutions in order to achieve the sustainability goal by 2050 or sooner. Flightpath Net Zero is a
program ensuring not just least but zero emission of carbon and it is being achieved with

combination of energies, usage of SAF (sustainable aviation fuel), investment in new
technologies and lastly carbon offsets and removals. This establishes BA as a leader in corporate
social responsibility and sustainability as they took carbon emission and it's hazardous effects on
environment along with the increase in travel via aircraft in future into consideration. The further
steps taken by the brand is to reduce third of the emission with the use of SAF and other third
will be from the strong reductions and removal of carbon and other hazardous gases.
Furthermore, they invested in new aircraft and other technologies addressing environmental
issues resulting in building brand loyalty.
Explanation of Defensive Strategy, which undertakes to identify the British-Airways
weakness and propose a Defensive strategy to avoid threats.
In this strategy businesses admits that their business operations or practices are partly
responsible for depletion of economical, social and ecological systems. Realizing responsibilities
towards environment and then adjusting strategies of their business operations is referred as a
defensive strategy. The companies acts towards to decrease their increasing impact on ecosystem
without compromising their business strategies that may impact their growth. Business creates a
improves their good-will by meeting expectations of environment society, consumers and
stakeholders. Initiatives like these can cost a business in different ways, for instance if BA
introduces certain sustainable program their complete workforce might not support a particular
program. The consequences of such issues can lose their efficiency in business operations. This
is suggested to properly communicate with the employees and important people of the
organisation before implementing any programs so that they do have to compromise their
performance the marketing along with meeting expectation of the society.
CONCLUSION
This can be concluded from the above report that how British-Airways is sustainable and
the factors like political, economic, social, technological, environmental and legal effects the
firm. After that there is an elaboration of the VRIO is highlighted with the weakness and CSR
effects the company to be a competitive firm. The sustainable process how it effects the society
and market. The aggressive and defensive strategies show how the company needs to be leader in
the marketplace and can compete the rivalry firm and be competitive Advantage in the market of

same selling products. The project also depicts the environmental awareness for different
competitive firms and how the enterprise can be the profitable firm in the market place.

REFERENCES
Books and Journals:
Ashrafi, M., Magnan, G.M., Adams, M. and Walker, T.R., 2020. Understanding the conceptual
evolutionary path and theoretical underpinnings of corporate social responsibility and corporate
sustainability. Sustainability, 12(3), p.760.
Bellucci, M., Manetti, G. and Thorne, L., 2018. Stakeholder engagement and sustainability
reporting. Routledge.
D'Souza, C., Ahmed, T., Khashru, M.A., Ahmed, R., Ratten, V. and Jayaratne, M., 2022. The
complexity of stakeholder pressures and their influence on social and environmental
responsibilities. Journal of Cleaner Production, 358, p.132038.
Nobanee, H., Al Hamadi, F.Y., Abdulaziz, F.A., Abukarsh, L.S., Alqahtani, A.F., AlSubaey,
S.K., Alqahtani, S.M. and Almansoori, H.A., 2021. A bibliometric analysis of sustainability and
risk management. Sustainability, 13(6), p.3277.
Nunhes, T.V., Bernardo, M. and Oliveira, O.J.D., 2020. Rethinking the way of doing business: A
reframe of management structures for developing corporate sustainability. Sustainability, 12(3),
p.1177.
Sharma, A., 2020. Sustainability research in business-to-business markets: An agenda for
inquiry. Industrial Marketing Management, 88, pp.323-329.
Thao, V.T.T., Tien, N.H. and Anh, D.B.H., 2019. Sustainability Issues in Social Model of
Coporate Social Responsibility Theoretical Analysis and Practical Implication. Journal of
Advanced Research in Management, 10(1 (19)), pp.17-29.
Utomo, N.S., Ezra, C.T., Zhongji, G., Palamba, G. and Ramadanti, A., 2021, December. Does
the Implementation of Corporate Social Responsibilities Have a Positive Impact on the
Company’s Business Sustainability?. In Conference Towards ASEAN Chairmanship 2023 (TAC
23 2021) (pp. 205-212). Atlantis Press.
https://www.britishairways.com/cms/global/pdfs/information/sustainability-report-2021.pdf
(aggressive )