Business Analysis of British Airways (BA)
32 Pages10100 Words537 Views
Added on 2019-12-18
Business Analysis of British Airways (BA)
Added on 2019-12-18
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MARKETINGPLANNING
Table of ContentsINTRODUCTION...........................................................................................................................2Task 1...............................................................................................................................................21.1 ..........................................................................................................................................21.2...........................................................................................................................................7Task 2.............................................................................................................................................112.1.........................................................................................................................................11Task 3.............................................................................................................................................153.1.........................................................................................................................................153.2.........................................................................................................................................173.3.........................................................................................................................................183.4.........................................................................................................................................203.5.........................................................................................................................................22Task 4.............................................................................................................................................234.1.........................................................................................................................................234.2.........................................................................................................................................244.3.........................................................................................................................................24CONCLUSION..............................................................................................................................25REFERENCES..............................................................................................................................261
Index of TablesTable 1: Swot of BA......................................................................................................................10Table 2: Business analysis of BA..................................................................................................242
INTRODUCTIONBusiness organizations have to do different types of business activities to achievedifferent objectives such as financial activity to increase the profit and financial wealth of theorganization. Human resource activity is to use the employees of the organization as much aspossible to do the business activities efficiently. Technological resource management to use theraw materials, machinery and the production process to increase the productivity, improve thequality of the products and reduce the production cost of the organizations. In that way theorganizations have to do some marketing activities to provide information to the customers aboutthe products of the organizations, increase the demand of the products among the customers andincrease the market share of the products and services in the industry. The organisations have toprepare some plan to implement the marketing activities in an efficient manner to get themaximum outcome from the marketing activity. The following study will discuss about theprocess followed by different business organizations to prepare the marketing plan and thetheories related to the marketing plan. The important ethics and influencing external factors ofmarketing planning activity will be mentioned in the study. Overview of the British AirwaysBritish Airways Company is the largest airlines company based on the size of the fleet.The Company was established in London on the 31 march 1974. The Company acquire twomajor airlines company of London the first one is British Overseas Airways Corporation and thesecond one is British European Airways. In 2015, the revenue of the company was £11421billion.Task 11.1 A) Theories used in the marketing planning activityMarketing planning activity is totally a customer-oriented activity. The organisationshave to collect some information about the customers of the industry to prepare an effectivemarketing plan. The major information about the customers should be collected by theorganisations are as follows: The test, preferences and demand of the customers, geography anddemography structure of the economy, purchasing power of the customers etc. based on such3
information the organisations have to use some theories to prepare a efficient and effectivemarketing plan. The theories are as follows:I) Marketing mix: The theory of marketing mix used in the marketing plan is totally based onthe test, preference and psychology of the customers. The marketing mix is basically a mix offour P’s these are pricing, people, place and product. The organisations have to do well researchabout the test, preferences and requirements of the customers. As opined by Toledo et al. (2014,p.50), the product and services should be designed by the organisations according to therequirements of the customers. The ability of meeting the requirements of the customers create avalue of the products and services in the market. The organisations have to collect someinformation about the geographical features of the market to select a suitable market place for theproducts. The products should have the ability to meet the geographical requirements of thecustomers. The price of the products should be set by the organisations according to thepurchasing power of the customers. The organisations have to prepare the promotional strategiesto launch the product and services in the market according to the cultural preferences of thecustomers. II) Product life cycle: The organisations have to prepare the marketing plan according to thephase of life cycle of a particular products and services. Basically there are four phases includedin the product life cycle. The first one is Introduction, in the introduction phase the organisationstry to build a market for the products by promoting the product and providing importantinformation about the product to the customers. In growth phase of the product organisationstries to increase the supply of the products in the market and including some new features in theproduct to improve the quality. In the maturity phase, the organisations try to create somedifferentiation with the similar products in the industry to survive in the competitive market. Theorganisations use different promotional strategies to build the differentiation. The price of theproducts should be lower to make an opportunity to build new customers of the product. In thedecline phase of the product life cycle the organisations lose the demand for the products amongthe customers. In this situation the organisations try to shut down the production of the products. III) Alignment: The organisations must build an alignment among the benefits of the productwith the requirements of the product to customers. The organisations also try to build acommunication with the customers to provide important information to the customers and get the4
feedback from the customers about the products and services. The company also try to knowabout the new requirements of the customers and request them to provide some idea and opinionto improve the quality of the products (French, 2017, p.27). B) Changes in the perspective of the marketing planningAccording to the traditional marketing planning activities the organisations only pay theirattentions to product, price, place, people and promotions to prepare the marketing plan for thenew products. However, Due to the changes in the perspectives of the marketing planning theorganisations include some new factors in the preparation of the marketing planning activities.The factors are as follows;I) Features of the products: The organisations have to consider the features of the products toprepare the marketing plan for the product.The features should be prepared according to therequirements of the customers.II) Innovativeness: The organisations have to include some creative features in the products toincrease the innovativeness of the product.III) Build a brand: The organisations also try to build a brand for the products in the market byusing some unique promotional strategies.IV) Global network: The organisations also try to build a global network to prepare a globalmarket for the products by promoting the products globally.V) Strength and Weaknesses: The organizations also consider the strength and weakness of theproducts to survive in the industry for a long time. The organisations try to use their strength asmuch as possible and resolve the weakness the products by creating some effective solutions.VI) High prices: The organisations have to collect important information about the purchasingpower of the targeting customers. The company can build some differentiation in the market tojustify the high prices of the products. The company also try to build some competitiveadvantages to reduce the production cost for setting a low price for the products.VII) Potentiality of the market: The organisations also try to know the potentiality of themarket and the customers. The organisation can build a broad segment of the products andservices according to the future potentiality of the market. 5
VIII) Competitors: Organisations can try to know some important information about thecompetitors. According toGoretzki et al. (2013, p.50), organisation should be aware about the marketing and productionstrategies used by the competitors to increase the market share.IX) Availability of the products: Organisations also manage the distributors and the supplychannels of the products in an efficient manner to ensure the availability of the products in themarket.X) Quality of the products: Organisations try to include new features in the productscontinuously to increase the ability of meeting requirements of the customers and improve thequality of the products. Organisations have to increase the quality of the products to build loyaltyamong the customers towards the product. C) Evaluation of the ability of British airways to plan the future marketing activityAs the British Airways is an old player in the airlines industry therefore, the organisation have agreater knowledge about the demand and requirements of the customers. The Company also hasa strong base of loyal customers in the industry. For this reason, The airlines company knowabout the expectations of the customers towards the services provided by the Company. TheCompany also have some qualified employees in the marketing management department forpreparing the marketing plan. The marketing manager use the marketing mix, life cycle,alignment theories in an efficient manner to produce an effective marketing plan (Shank andLyberger, 2014, p.36). The managers also use the different factors such as Features of theproducts, Innovativeness, Build a brand, Global network, Strength and Weaknesses to design theservices provided by the British airways to the customers. The good quality of the services alsoincreases the loyalty among the customers towards the British Airways. D)BA objectivesThe objective should be SMART in the business analysis that is specific, measurable,attainable, relevant and time based. The objective should be clear and prescribe, that shows theclear meaning of the objective. The objective should be measurable that when we had made itcan be able to assess your progress. The objective should be attainable that means that theobjective should not be very hard target that an employee can able to attain it. The objective6
should be relevant that means that the objective should be related to the mission or aim.Objective should be time base that there should be particular time at which the objective shouldbe achievedSpecific: To be Global Premium Airlines.Measurable: They are having the second largest market share after the Delta airlines that is 4.85million seat Attainable: they already are able to attain this objective where in 2015 the revenue was £11333billion and in 2016 it was £11443 billionRelevant: This objective is relevant to their aim that is to be in premium segment.E) Strategy development at the basis of short term and long termShort term plans are the plans which are at ground level that is lower level of theorganization, theses are the tactical plans which are made for the quarter, half year or maximumfor the year based. Whereas the long term objective and strategy are made at the top level of theorganization. Theses are the strategies made for the five to ten years plan. According to the toplevel strategies all the medium and short term strategies are madeShort term strategy: Is to compete on the cost base with Delta airlines Long term strategy: long term business vision is to world leading global premium airlinesF) Resources required by the organizationOrganization required all the type of the resources whether it is human recourse, material,technology, database management system or fund. For initial stage when organization is startinghe requires fund that is capital for meeting day to day activities, require human recourse for theimplementation of the strategies, organization require the technology to keep the database of theorganization and analysis the data People- Crew members, air crew, air marshal, air traffic controller, aviator, caption and copilotTechnology- Airbnb and tech weekMoney- Promotes £400 million investment in lounges and food, British Airways Announces a$495 Million Investment in Premium Experience7
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