British Airways Business Model Analysis
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This assignment requires a comprehensive analysis of British Airways' business model. Students must examine the company's strategies, objectives, and competitive position within the airline industry. The analysis should utilize frameworks like SWOT, PESTLE, and Ansoff's matrix to provide a detailed understanding of British Airways' approach to success.
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
1 ORGANIZATION' AUDIT IN DIFFERENT FRAMEWORK...................................................3
2 SMART objectives........................................................................................................................8
3 Strategic Models.......................................................................................................................9
Business Canvas Model for British Airways.............................................................................12
Steps for Creating Value Proposition for gaining competitive advantage.................................14
Effectiveness of decisions..........................................................................................................16
Conclusion.....................................................................................................................................18
REFERENCES..............................................................................................................................19
2
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
1 ORGANIZATION' AUDIT IN DIFFERENT FRAMEWORK...................................................3
2 SMART objectives........................................................................................................................8
3 Strategic Models.......................................................................................................................9
Business Canvas Model for British Airways.............................................................................12
Steps for Creating Value Proposition for gaining competitive advantage.................................14
Effectiveness of decisions..........................................................................................................16
Conclusion.....................................................................................................................................18
REFERENCES..............................................................................................................................19
2
INTRODUCTION
Effective internal control on management activities alone can notcannot help the a
company to in its grow but it requires proper support of employees who will be able contribute
for the growth of the organizationgrowth. The business environment is dynamics in nature which
not only gets affected It does not only by the affect internal management but also by the external
environment as well. To set a clear strategy, a company needa company needs to ananalyzealysis
all the factors which affect the business activities. In this present report, British Airways is taken
in to consideration which is a UK based company that offers good services to its customers. In
this report, we will analyseanalyze different frameworks which helps to us find the internal and
external environment of company and their objectives.ze different frameworks to audit the
internal and external environment of the company and their SMART objectives These objectives
and models will help to identify the help to us to find correct market positions of the company in
the industry and their future futures strategystrategy upcoming challenges.and related challenges
and opportunit From thesesthese models, the report will describe about the we able to describe
company's strength, weakness, opportunities and threats in their internal and external
environment.
Assignment-1
1 ORGANIZATION' AUDIT IN DIFFERENT FRAMEWORK
Mckinsey 7s model: This model is used to analyseanalyze and monitor changes in the
internal situation of the situations in organisationsorganizations. Further, it is based on the This
model is based on the theory that enables to perform well in the company but management needs
to align with the seven elements so that situation can be analyzed. The British Airways use
Mckinsey 7s elements to increase the overall effectiveness of the business. The following are the
McKinney's 7s framework for British Airways.
Strategy: According to organization strategy, it focuses on digitalizationa Business
strategy of the company is to focus on digitisation, information technology and provideprovides
a high level of customization in their service provision. In 2016, the company is expected to
3
Effective internal control on management activities alone can notcannot help the a
company to in its grow but it requires proper support of employees who will be able contribute
for the growth of the organizationgrowth. The business environment is dynamics in nature which
not only gets affected It does not only by the affect internal management but also by the external
environment as well. To set a clear strategy, a company needa company needs to ananalyzealysis
all the factors which affect the business activities. In this present report, British Airways is taken
in to consideration which is a UK based company that offers good services to its customers. In
this report, we will analyseanalyze different frameworks which helps to us find the internal and
external environment of company and their objectives.ze different frameworks to audit the
internal and external environment of the company and their SMART objectives These objectives
and models will help to identify the help to us to find correct market positions of the company in
the industry and their future futures strategystrategy upcoming challenges.and related challenges
and opportunit From thesesthese models, the report will describe about the we able to describe
company's strength, weakness, opportunities and threats in their internal and external
environment.
Assignment-1
1 ORGANIZATION' AUDIT IN DIFFERENT FRAMEWORK
Mckinsey 7s model: This model is used to analyseanalyze and monitor changes in the
internal situation of the situations in organisationsorganizations. Further, it is based on the This
model is based on the theory that enables to perform well in the company but management needs
to align with the seven elements so that situation can be analyzed. The British Airways use
Mckinsey 7s elements to increase the overall effectiveness of the business. The following are the
McKinney's 7s framework for British Airways.
Strategy: According to organization strategy, it focuses on digitalizationa Business
strategy of the company is to focus on digitisation, information technology and provideprovides
a high level of customization in their service provision. In 2016, the company is expected to
3
make more profit from business by offers more flights on same route so that they can gain more
customers. fly to more regarding growth by using aggressive market expansion in its company.
Structure: The company structure used by BA is hierarchical which reflect the large size
of its business. Company's top level management introduces DE-layering initiatives into
organization’s company's structure as part of cost-cutting measures.
Systems: Apart from the set standard systems such as employee’s selection and
performance appraisals, (Ginglinger and et.al., 2013.). British Airways also maintains some
specific systems including baggage, handling systems; check in systems and flight entertainment
system (Ginglinger and et.al., 2013).
Shared values: Company's shared value are depended on the principles, norms, and
values. Organization offers unique premium services to every customer so they use more
company tservices and o develop this company invest in customers services maintain long term
relations with their customers. .
Style: The leadership style of the organization company focuses on the high performance
of its staff. To increase its staff performance, they provide different case study situations which
include interactive forum workshop and table or group discussion for their staff members.
Staff: British Airways gives comprehensive training and re-educative programs to their
staff (Wu, and, and Lin, 2014. ). The company emphasisesemphasizes not only on their
development but also on their staff development and move towards flexible structures.ures to
their employee
Skills: Skills refers to the capabilities of personal and organisationorganization as a
whole. The company provides the best global connectivity to their customers. Long-haul
premium customers are key skills to make profits and provide excellent services by
understanding what their customers want are.
Value chain analysis: It is a process where a firm identifies its primary and support
activities which that adds add value to its final products (Farag and et.al., 2014). British Airways
value chain analysis involves the adoption of a systematic approach in their business activities.
Primary activities: Pprimary activities include the following points. Inbound Logistics: In this, the company includes timely delivery of the fleet of planes,
catering products and other wide range of board products.
4
customers. fly to more regarding growth by using aggressive market expansion in its company.
Structure: The company structure used by BA is hierarchical which reflect the large size
of its business. Company's top level management introduces DE-layering initiatives into
organization’s company's structure as part of cost-cutting measures.
Systems: Apart from the set standard systems such as employee’s selection and
performance appraisals, (Ginglinger and et.al., 2013.). British Airways also maintains some
specific systems including baggage, handling systems; check in systems and flight entertainment
system (Ginglinger and et.al., 2013).
Shared values: Company's shared value are depended on the principles, norms, and
values. Organization offers unique premium services to every customer so they use more
company tservices and o develop this company invest in customers services maintain long term
relations with their customers. .
Style: The leadership style of the organization company focuses on the high performance
of its staff. To increase its staff performance, they provide different case study situations which
include interactive forum workshop and table or group discussion for their staff members.
Staff: British Airways gives comprehensive training and re-educative programs to their
staff (Wu, and, and Lin, 2014. ). The company emphasisesemphasizes not only on their
development but also on their staff development and move towards flexible structures.ures to
their employee
Skills: Skills refers to the capabilities of personal and organisationorganization as a
whole. The company provides the best global connectivity to their customers. Long-haul
premium customers are key skills to make profits and provide excellent services by
understanding what their customers want are.
Value chain analysis: It is a process where a firm identifies its primary and support
activities which that adds add value to its final products (Farag and et.al., 2014). British Airways
value chain analysis involves the adoption of a systematic approach in their business activities.
Primary activities: Pprimary activities include the following points. Inbound Logistics: In this, the company includes timely delivery of the fleet of planes,
catering products and other wide range of board products.
4
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Operations: In operations part of the business, the company offers thesecurity of luggage
to of their customers, provides quick check-in services and digital technologies in the
business process. Outbound logistics: The airlines derive value in outbound logistics via handling baggage
at the point of destination. Marketing and sales: Company's marketing message is communicated to the target
customers via marketing communication mixes such as media advertising, Sales
Promotions, Events and public relations. Services: The airline introduced about 136 new scanners at check-in desks across the
airport terminals. Further, the digital boarding pass is used by 28000 customers every
day. The company invests money to enhance its service provision.
Secondary activities: Firm infrastructure: In British airline, structure used is hierarchical that which help the
company to develop more knowledge company to gain competitive advantage. Human resource management: Airlines has invested in the development of customer
service training and "speak up" opinion survey to encourage employees to provide
feedback. Technology development: Organization Company introduce individual LCD screens to
make services more innovative. Procurement: Due to the large size of the company and strong business relationships
they can leverage suppliers to maintain the efficiencies in its business.
PESTEL analysis: To become more successful in the airline's industry, an awareness of
the external environment is essential (Prabavathy, 2013).2013. ). In this analysis, the
company can identify the find competitors and their capabilities to meet the current and
future challenges. Political factors: Political stability and safety have the great impact on the airlines
business. Effective illustration of this claim is terrorist attacks at Brussels airport, which
is the main cause of caused on declining shares prices of company and organization
company also had a debate with UK government of their regulations on airlines' industry
5
to of their customers, provides quick check-in services and digital technologies in the
business process. Outbound logistics: The airlines derive value in outbound logistics via handling baggage
at the point of destination. Marketing and sales: Company's marketing message is communicated to the target
customers via marketing communication mixes such as media advertising, Sales
Promotions, Events and public relations. Services: The airline introduced about 136 new scanners at check-in desks across the
airport terminals. Further, the digital boarding pass is used by 28000 customers every
day. The company invests money to enhance its service provision.
Secondary activities: Firm infrastructure: In British airline, structure used is hierarchical that which help the
company to develop more knowledge company to gain competitive advantage. Human resource management: Airlines has invested in the development of customer
service training and "speak up" opinion survey to encourage employees to provide
feedback. Technology development: Organization Company introduce individual LCD screens to
make services more innovative. Procurement: Due to the large size of the company and strong business relationships
they can leverage suppliers to maintain the efficiencies in its business.
PESTEL analysis: To become more successful in the airline's industry, an awareness of
the external environment is essential (Prabavathy, 2013).2013. ). In this analysis, the
company can identify the find competitors and their capabilities to meet the current and
future challenges. Political factors: Political stability and safety have the great impact on the airlines
business. Effective illustration of this claim is terrorist attacks at Brussels airport, which
is the main cause of caused on declining shares prices of company and organization
company also had a debate with UK government of their regulations on airlines' industry
5
(van der Veen. and de Boer, 2012). Apart from this, a lot of regulations such as like a
lesafety regulations are followed. vel of bureaucracy, corruptions, home market lobbying
proved a major factor affecting the airline. Economic factors: Certain economic factors such as inflation rate, currency rates, and
overall economic climate in the UK directly affect the has directly affected on company's
performance. The cost of fuel is another significant factor Factor for British Airways that
has negative impact over the business. Social factors: Ageing population is more in happening in the UK, it meanshere is older
generation, which they have more leisure time to go travel (Owus-Ware AndWare And
et.al., 2013). This is the opportunity for a company because travelling is increasing day
by day and people spend a lot of money on airlines for different purposes. Technology factors: Innovation of technology may affect the operations of organization
the company (Ebony. DM. and Liu 2013.). The company companies are using
technology as the tool to expand their business activities such as online internet services,
self-service check-in as it builds good image of the gives the good image of a company. Legal factors: The European Union restricts air carriers based on safety reasons. Apart,
from this, the power of union is also very strong which affect the business of that can
affect the business of airlines. The staff is important to the company, and good
employeesemployee’s relations need to avoid industrial action. Environmental factors: Flying in flight could affect a lot on the environment, as tflights
contains great amount ofhey many carbon emissionsand waste, this could affect air
quality and also increases noise pollution (Chang, and, and Liao, 2013, 2013.).
Environmental regulations may increase operational costs. However, airlines goals have
set to reducedreduce the carbon emissions.
Porter's Five AnalysisAnalyses: Porter's five analysisanalyses is the analytical
framework that distinguishes between the five individual forces which that shape the overall
strategy of a company.extent of competitions in industry.
The threat of substitute services: For an airline, there is no significant of the substitute.
But in future in development of more advance technology can affect business of company. At
6
lesafety regulations are followed. vel of bureaucracy, corruptions, home market lobbying
proved a major factor affecting the airline. Economic factors: Certain economic factors such as inflation rate, currency rates, and
overall economic climate in the UK directly affect the has directly affected on company's
performance. The cost of fuel is another significant factor Factor for British Airways that
has negative impact over the business. Social factors: Ageing population is more in happening in the UK, it meanshere is older
generation, which they have more leisure time to go travel (Owus-Ware AndWare And
et.al., 2013). This is the opportunity for a company because travelling is increasing day
by day and people spend a lot of money on airlines for different purposes. Technology factors: Innovation of technology may affect the operations of organization
the company (Ebony. DM. and Liu 2013.). The company companies are using
technology as the tool to expand their business activities such as online internet services,
self-service check-in as it builds good image of the gives the good image of a company. Legal factors: The European Union restricts air carriers based on safety reasons. Apart,
from this, the power of union is also very strong which affect the business of that can
affect the business of airlines. The staff is important to the company, and good
employeesemployee’s relations need to avoid industrial action. Environmental factors: Flying in flight could affect a lot on the environment, as tflights
contains great amount ofhey many carbon emissionsand waste, this could affect air
quality and also increases noise pollution (Chang, and, and Liao, 2013, 2013.).
Environmental regulations may increase operational costs. However, airlines goals have
set to reducedreduce the carbon emissions.
Porter's Five AnalysisAnalyses: Porter's five analysisanalyses is the analytical
framework that distinguishes between the five individual forces which that shape the overall
strategy of a company.extent of competitions in industry.
The threat of substitute services: For an airline, there is no significant of the substitute.
But in future in development of more advance technology can affect business of company. At
6
the same time, developing internet based services information and communication represent
indirect relationship on the company.
The threat of new entrance: A new entry of a competitor into the market also weakens
company powers. However, cost of running airlinesrunning airlines company is very high, so
there is no such threat of new entrance uch significant. Ofin new airlines, but the growing new
economics can affect company business by providing less low prices traveling facilities avelling
in UK market where people are facing economic the economy is facing crises which affect the
company as well.
Rivalry among existing powers: Competitions are were increasing between British
Airlines and other airlines. Low-cost airlines have reduced the market share of the company and
it has its become complicated for a company to maintain its large size operations.
Bargaining power of suppliers: Boeing and Airbus are the main suppliers of airlines
industry. Company is more by effect the oil prices. Airlines industry mainly based on oil
suppliers so it can affect profits of company due to Companion is heavily depended on the price
of oil for its profit margins which impliehigh the number power of oil suppliers (Yuan, 2013.).
Due to a limited number of air craft suppliers and continued need for fuel, it can affect
operations. if fuel market prices are increases then services of the company is also affected.
Bargaining power of consumers: Consumers have high bargaining power with the
company and it is , which is mainly based on price preferences. Consumers will select only that
airlinesthose airlines which offer them the best services value for their money. Due to widely
available of information technology, consumers have the ability to compare flight services before
making their final decisions.
SWOT analysis: This analysis helps the company to find its strengths, weakness,
opportunity, opportunity, and threats. From this analysis, the company can make find the right
strategy to meets its business operations and can predict the futures risks as well as opportunities
for their business.
Strengths: Company has an international network of its joint business agreements, code
share, and partners including more than 400 destinations. It uses modern technologies to not only
7
indirect relationship on the company.
The threat of new entrance: A new entry of a competitor into the market also weakens
company powers. However, cost of running airlinesrunning airlines company is very high, so
there is no such threat of new entrance uch significant. Ofin new airlines, but the growing new
economics can affect company business by providing less low prices traveling facilities avelling
in UK market where people are facing economic the economy is facing crises which affect the
company as well.
Rivalry among existing powers: Competitions are were increasing between British
Airlines and other airlines. Low-cost airlines have reduced the market share of the company and
it has its become complicated for a company to maintain its large size operations.
Bargaining power of suppliers: Boeing and Airbus are the main suppliers of airlines
industry. Company is more by effect the oil prices. Airlines industry mainly based on oil
suppliers so it can affect profits of company due to Companion is heavily depended on the price
of oil for its profit margins which impliehigh the number power of oil suppliers (Yuan, 2013.).
Due to a limited number of air craft suppliers and continued need for fuel, it can affect
operations. if fuel market prices are increases then services of the company is also affected.
Bargaining power of consumers: Consumers have high bargaining power with the
company and it is , which is mainly based on price preferences. Consumers will select only that
airlinesthose airlines which offer them the best services value for their money. Due to widely
available of information technology, consumers have the ability to compare flight services before
making their final decisions.
SWOT analysis: This analysis helps the company to find its strengths, weakness,
opportunity, opportunity, and threats. From this analysis, the company can make find the right
strategy to meets its business operations and can predict the futures risks as well as opportunities
for their business.
Strengths: Company has an international network of its joint business agreements, code
share, and partners including more than 400 destinations. It uses modern technologies to not only
7
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improve its performance but also to improve services and customers experiences by operating
more environmentally friendly way.
Weakness: The biggest risk in airlines industry is the high dependency on technology.
Another weakness is that airlines are highly capital intensive. The, thereforeTherefore, it the
company faces financial risks, including market risk, credit risk and liquidity risk (Machmud and
Sidharta, 2014, 2014). Fuel factors also affect the are also affected the business of the
organizationcompany.
Opportunities: High competitions in airline air lines Help Company to capture new
market company can merger with small airlines so they can attain more market growth.industry
there might be airlines consolidation which leads to opportunities for the company to capture
market share. New mergers and acquisitions help to expand company's business. Further
opportunity is to maintain can be achieved by giving alliance performs as expected by customers.
Members.
Threats: The major threats to the company isthreats to the company are from government
regulations and restrictions. The company also faces risks concerning international trade, tax
policy and terrorism. Competition Competitions in airlines industry is intense are very high
because off barriers and rules imposed by different countryside’s different.low-cost segments by
offering low prices with no frills.
Current market operations: Appropriate market strategy and attractive positions are
important factors for any business. To achieve long-term growth and enhance the enhancing
value perception in its services in present and future target market is important to develop market
in other areas too. At present, company is focusing more on domestic flights in UK, and Europe
and internationals flights. The target market of a company in the urban and rural market in in UK
and Europedomestic airlines for international lights company is focusing more on urban areas.
Raising population of the populations of aged people in a country also benefit the are also
benefited for the company because they want more luxury in air travelling (Brauers and
Zavadskas, 2014). By offering different flights in the different country by mergers and partners,
the organization can expand its company is gaining more expanding in their business. By
development of In the development of technology company has also used is also allow using
technology by online toicket booking and self-check-in facility isin increases Customers of a
8
more environmentally friendly way.
Weakness: The biggest risk in airlines industry is the high dependency on technology.
Another weakness is that airlines are highly capital intensive. The, thereforeTherefore, it the
company faces financial risks, including market risk, credit risk and liquidity risk (Machmud and
Sidharta, 2014, 2014). Fuel factors also affect the are also affected the business of the
organizationcompany.
Opportunities: High competitions in airline air lines Help Company to capture new
market company can merger with small airlines so they can attain more market growth.industry
there might be airlines consolidation which leads to opportunities for the company to capture
market share. New mergers and acquisitions help to expand company's business. Further
opportunity is to maintain can be achieved by giving alliance performs as expected by customers.
Members.
Threats: The major threats to the company isthreats to the company are from government
regulations and restrictions. The company also faces risks concerning international trade, tax
policy and terrorism. Competition Competitions in airlines industry is intense are very high
because off barriers and rules imposed by different countryside’s different.low-cost segments by
offering low prices with no frills.
Current market operations: Appropriate market strategy and attractive positions are
important factors for any business. To achieve long-term growth and enhance the enhancing
value perception in its services in present and future target market is important to develop market
in other areas too. At present, company is focusing more on domestic flights in UK, and Europe
and internationals flights. The target market of a company in the urban and rural market in in UK
and Europedomestic airlines for international lights company is focusing more on urban areas.
Raising population of the populations of aged people in a country also benefit the are also
benefited for the company because they want more luxury in air travelling (Brauers and
Zavadskas, 2014). By offering different flights in the different country by mergers and partners,
the organization can expand its company is gaining more expanding in their business. By
development of In the development of technology company has also used is also allow using
technology by online toicket booking and self-check-in facility isin increases Customers of a
8
company in domestic levehelp. to attract more customers at a domestic level, they offer some
discounts on the special occasion. The organization in the competitive market Company to
competitive in the market uses aggressive market strategy in the domestic market by offering
offers a dozen of flights in the same route in the UK.
2 SMART OBJECTIVES
SMART format: SMART format is that which help company to measure its objectives
for can be said as that help to an organisation to attend its goals and make enable to it be
successful. From SMART framework format company can identify its find its goals and make it
more specific. This format stands for specific, measurable, agreed upon, realistic, and time-
based. On the basis of SWOT analysis we can draw SMART frameworks of company. From
SWOT analysis of British Airways, we conclude the SMART formats of a company.
Specific: Company’s Company has the specific goal is to increase its services in and
expand its planning to expand its activities in another country. The company has specific goal
specifics goals to gain is gain more customers in a market oso they can expand their business. n
they can provide more services to in airlines industry.
Measurable: Company has the clear objective to introducedintroduce more new flights in
2016. The company is planning to introduce a dozen of new flight in the UK and Europe British
market for the same route. Further, And introduce LCD scanner and self-check in the facility on
the airport.
Attainable: British Airways makes their goals more attainable by using market research
Companyresearch. Company uses in-house researcher soresearcher so to make their goals more
attainable.they can their goals in which they achieve their goals in time limi (Park andPark and
et.al., 2013.) This help company to gain The attainable goals for the company are more using
information technology in their database and provide premium services to its customers.
Realistic: At the time of recession In UK recession when household incomes are
decreases at that time company make changes in their prices so they make their goals more
realistic.
Time-based: For achieving goals on time company make their goals on time basis and
set time for everyone. They also classify their goals in such manner so they can achieve in
specific time.For achieving goals in time, company sets their targets in the short term and long
9
discounts on the special occasion. The organization in the competitive market Company to
competitive in the market uses aggressive market strategy in the domestic market by offering
offers a dozen of flights in the same route in the UK.
2 SMART OBJECTIVES
SMART format: SMART format is that which help company to measure its objectives
for can be said as that help to an organisation to attend its goals and make enable to it be
successful. From SMART framework format company can identify its find its goals and make it
more specific. This format stands for specific, measurable, agreed upon, realistic, and time-
based. On the basis of SWOT analysis we can draw SMART frameworks of company. From
SWOT analysis of British Airways, we conclude the SMART formats of a company.
Specific: Company’s Company has the specific goal is to increase its services in and
expand its planning to expand its activities in another country. The company has specific goal
specifics goals to gain is gain more customers in a market oso they can expand their business. n
they can provide more services to in airlines industry.
Measurable: Company has the clear objective to introducedintroduce more new flights in
2016. The company is planning to introduce a dozen of new flight in the UK and Europe British
market for the same route. Further, And introduce LCD scanner and self-check in the facility on
the airport.
Attainable: British Airways makes their goals more attainable by using market research
Companyresearch. Company uses in-house researcher soresearcher so to make their goals more
attainable.they can their goals in which they achieve their goals in time limi (Park andPark and
et.al., 2013.) This help company to gain The attainable goals for the company are more using
information technology in their database and provide premium services to its customers.
Realistic: At the time of recession In UK recession when household incomes are
decreases at that time company make changes in their prices so they make their goals more
realistic.
Time-based: For achieving goals on time company make their goals on time basis and
set time for everyone. They also classify their goals in such manner so they can achieve in
specific time.For achieving goals in time, company sets their targets in the short term and long
9
term targets. For short term, company offers daily activities such as time-bound flights, systems
checks. For long term goals, company sets time limits such as expanding airlines activities in
Europe and another country.
3 Strategic Models
Ansoff's matrix for developing strategies
British Airways can develop a perspective on various options at the time of designing its
strategies in a particular direction and purpose. Growth and prosperity can only be achieved if
strategies are changed and effectively managed. Ansoff's matrix is one such strategic tool that
helps in developing strategies in such a way so that the risks and benefits both are evaluated for
the company (Hussain and et. al., 2013).
10
checks. For long term goals, company sets time limits such as expanding airlines activities in
Europe and another country.
3 Strategic Models
Ansoff's matrix for developing strategies
British Airways can develop a perspective on various options at the time of designing its
strategies in a particular direction and purpose. Growth and prosperity can only be achieved if
strategies are changed and effectively managed. Ansoff's matrix is one such strategic tool that
helps in developing strategies in such a way so that the risks and benefits both are evaluated for
the company (Hussain and et. al., 2013).
10
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As it is depicted, matrix consists of four quadrants scaled on relative markets and
company products. This helps in getting a vision whether a company wants to develop its market
or products or both. These four quadrants are described below:
1. Market penetration: British Airways compels its strategies in such a way that they are
applicable for the existing products and existing market. Better modes of marketing and
sales fall in this category. Developing existing market share with same products does not
involve risks and failures. For example, if the company introduces some extra benefits on
the same flight for regular customers, then people will assess this option rather than going
for another flight.
2. Market development: Evaluation is necessary for strengthening the base of a product.
Market development involves designing strategies in such a way that the existing
11
Illustration 1: Ansoff's matrix
company products. This helps in getting a vision whether a company wants to develop its market
or products or both. These four quadrants are described below:
1. Market penetration: British Airways compels its strategies in such a way that they are
applicable for the existing products and existing market. Better modes of marketing and
sales fall in this category. Developing existing market share with same products does not
involve risks and failures. For example, if the company introduces some extra benefits on
the same flight for regular customers, then people will assess this option rather than going
for another flight.
2. Market development: Evaluation is necessary for strengthening the base of a product.
Market development involves designing strategies in such a way that the existing
11
Illustration 1: Ansoff's matrix
products are introduced in the alien markets. This strategy helps in acquiring better
market share and also company gains recognition in the foreign lands. British Airways
has expertise in all its international operations. It can develop strategies for connecting
UK and Maldives or any other destination where it has not worked previously. This will
increase company's market share globally.
3. Product Development: This quadrant is a transition of the company from safe to a bit
risky zone. A new product will be matured and launched in the existing markets. Product
development comes with a wide set of advantages for the organisation. Current market
structure helps in saving resources up to a great extent. These resources can be utilized
utilised in developing the new product. Aforementioned strategy helps in refreshing
brand recognition in the minds of people. Markets changes every instance, hence
company has to adopt certain measures so that it does not lose its customer (Vignali,
2015).
4. Diversification: Involved with highest risks and efforts, this quadrant is completely new
for the British Airways. It engages the company in developing new products and
strategies for the completely new environment or market. Unproven products have a
probability of success as well as failure. They have to be examined and developed with
micro screening and proper analysis.
British Airways can use this strategic tool for developing any of the four strategies. The
objectives and strategies of British Airways are stakeholder-oriented and focused on providing
customers with maximum comfort through their services (Our strategies and objectives, 2010).
The company can adapt market development and product development strategy so that
consumers and other stakeholders will develop better links with the organisation. For British
Airways, the products are in the form of services which that are given to customers during their
transit time.
BCG matrix options for matching suggestions
From the results of growth share matrix, it was realised that British Airways could
increase its growth share by adopting market enhancement and product development strategies.
The effectiveness of proposed strategies can be visualised by using BCG (Boston Consulting
group) matrix. Similar to Ansoff, this matrix also consists of a 2*2 matrix which is categorised as
12
market share and also company gains recognition in the foreign lands. British Airways
has expertise in all its international operations. It can develop strategies for connecting
UK and Maldives or any other destination where it has not worked previously. This will
increase company's market share globally.
3. Product Development: This quadrant is a transition of the company from safe to a bit
risky zone. A new product will be matured and launched in the existing markets. Product
development comes with a wide set of advantages for the organisation. Current market
structure helps in saving resources up to a great extent. These resources can be utilized
utilised in developing the new product. Aforementioned strategy helps in refreshing
brand recognition in the minds of people. Markets changes every instance, hence
company has to adopt certain measures so that it does not lose its customer (Vignali,
2015).
4. Diversification: Involved with highest risks and efforts, this quadrant is completely new
for the British Airways. It engages the company in developing new products and
strategies for the completely new environment or market. Unproven products have a
probability of success as well as failure. They have to be examined and developed with
micro screening and proper analysis.
British Airways can use this strategic tool for developing any of the four strategies. The
objectives and strategies of British Airways are stakeholder-oriented and focused on providing
customers with maximum comfort through their services (Our strategies and objectives, 2010).
The company can adapt market development and product development strategy so that
consumers and other stakeholders will develop better links with the organisation. For British
Airways, the products are in the form of services which that are given to customers during their
transit time.
BCG matrix options for matching suggestions
From the results of growth share matrix, it was realised that British Airways could
increase its growth share by adopting market enhancement and product development strategies.
The effectiveness of proposed strategies can be visualised by using BCG (Boston Consulting
group) matrix. Similar to Ansoff, this matrix also consists of a 2*2 matrix which is categorised as
12
stars, question marks, cash cows and dogs. The scale used here is rRelative market share and
market growth rate (Kotler, Berger and Bickhoff, 2016).
Stars: Products and processes which that provide large market share and great growth are
categorised as the star. British Airways provides free delivery services for Christmas presents
and cards across the country during the festive season. This service will be termed as the star
because it is helping a company to acquire good market share as well as in this the profit margins
are also increasing. When considering internal environment or stakeholders, there are certain
employees or strategies which are assets and help in increasing growth of the company.
Successful stars turn out to be cash cows during maturity period of the company.
Cash cows: Those units that have good market share and provide slow, steady growth of
a company in a stable environment are termed as the cash cows. A few investments and efforts
will generate the relentless amount of profits and benefits which can be diverted for a betterment
of other components in the British Airways. Retrenchment policies are often used when cash
cows start losing their charm and qualities.
Question marks: While developing market and services, the company cannot afford to
invest in those resources where market share cannot be acquired. Low market share means less
revenue generation, and that will not be sufficient for maintaining services in that particular
region. Through this quadrant, British Airways can analyze its analyse its divestment and
investment. Quick decisions and strategy implementation will help in avoiding transformation of
question marks into dogs.
Dogs: These are those products and services that require high investments and efforts for
their enhancement. Organisations cannot afford them because they do not provide any market
share or indulge in in the growth. It is necessary to detect dogs, else the money and other
resources will be wasted, and company will suffer extreme losses.
British Airways need to explore markets and invest more in research and development
when considering the market development strategy. Consumer demands, suggestions and
feedbacks are sources for determining factors in the product development (Jarzabkowski and
Kaplan, 2015). With BCG matrix, it can take precautionary measures while investing in alien
markets. Star products can be used for market development strategies while question marks can
be utilised in the service development.
13
market growth rate (Kotler, Berger and Bickhoff, 2016).
Stars: Products and processes which that provide large market share and great growth are
categorised as the star. British Airways provides free delivery services for Christmas presents
and cards across the country during the festive season. This service will be termed as the star
because it is helping a company to acquire good market share as well as in this the profit margins
are also increasing. When considering internal environment or stakeholders, there are certain
employees or strategies which are assets and help in increasing growth of the company.
Successful stars turn out to be cash cows during maturity period of the company.
Cash cows: Those units that have good market share and provide slow, steady growth of
a company in a stable environment are termed as the cash cows. A few investments and efforts
will generate the relentless amount of profits and benefits which can be diverted for a betterment
of other components in the British Airways. Retrenchment policies are often used when cash
cows start losing their charm and qualities.
Question marks: While developing market and services, the company cannot afford to
invest in those resources where market share cannot be acquired. Low market share means less
revenue generation, and that will not be sufficient for maintaining services in that particular
region. Through this quadrant, British Airways can analyze its analyse its divestment and
investment. Quick decisions and strategy implementation will help in avoiding transformation of
question marks into dogs.
Dogs: These are those products and services that require high investments and efforts for
their enhancement. Organisations cannot afford them because they do not provide any market
share or indulge in in the growth. It is necessary to detect dogs, else the money and other
resources will be wasted, and company will suffer extreme losses.
British Airways need to explore markets and invest more in research and development
when considering the market development strategy. Consumer demands, suggestions and
feedbacks are sources for determining factors in the product development (Jarzabkowski and
Kaplan, 2015). With BCG matrix, it can take precautionary measures while investing in alien
markets. Star products can be used for market development strategies while question marks can
be utilised in the service development.
13
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Assignment-2
INTRODUCTION
The sustaining competition involves a use of strategies in an organised way. Statistics of
business environments keeps on keep on changing at every instance due to various internal and
external factors of an of an n organisation. This report aims to understand competitive advantage
with creative value propositions. Every organisation has to deliver certain commitments and
beliefs which will make an audience understand motives and qualities behind products.
Effectiveness and appropriateness of all strategically made decisions have to be achieved via this
report so that a competitive advantage is gathered by British Airways in this advancing world.
Business Canvas Model for British Airways
Business canvas model is used for getting a conceptual view of current strategies and
plans in a company. All nine blocks of this model help in building a better strategy and
implementation of a proposed service and product (Joyce, Paquin and Pigneur, 2015).
Complete set of information is achieved when this model is applied in analysing the to
analysing current market status and strategies of the company.
Key Partners
Air
Lingus
Air
Berlin
air
Baltic
America
n
Airlines
Bangko
k
Airways
Cathay
Key Activities
Airlines and
cargo facilities
are key activities
of BA.
About 3400
flights function
in a day
including both
domestic and
international.
Value
Proposition
The company
has been
providing good
quality services
for all people
without getting
influenced by
income level or
any other source.
Customer
Relationships
Web portals and
outsourcing
groups are
associated for
managing
customer
relations.
Customer
Segments
Almost all
customer segments
are involved with
British Airways.
People can choose
the quality of
service they want
from the company
and utilize utilised
it according to their
convenience. This
facility has helped
Key Resources
Great locations
for warehouses
Channels
The working
channels of BA
14
INTRODUCTION
The sustaining competition involves a use of strategies in an organised way. Statistics of
business environments keeps on keep on changing at every instance due to various internal and
external factors of an of an n organisation. This report aims to understand competitive advantage
with creative value propositions. Every organisation has to deliver certain commitments and
beliefs which will make an audience understand motives and qualities behind products.
Effectiveness and appropriateness of all strategically made decisions have to be achieved via this
report so that a competitive advantage is gathered by British Airways in this advancing world.
Business Canvas Model for British Airways
Business canvas model is used for getting a conceptual view of current strategies and
plans in a company. All nine blocks of this model help in building a better strategy and
implementation of a proposed service and product (Joyce, Paquin and Pigneur, 2015).
Complete set of information is achieved when this model is applied in analysing the to
analysing current market status and strategies of the company.
Key Partners
Air
Lingus
Air
Berlin
air
Baltic
America
n
Airlines
Bangko
k
Airways
Cathay
Key Activities
Airlines and
cargo facilities
are key activities
of BA.
About 3400
flights function
in a day
including both
domestic and
international.
Value
Proposition
The company
has been
providing good
quality services
for all people
without getting
influenced by
income level or
any other source.
Customer
Relationships
Web portals and
outsourcing
groups are
associated for
managing
customer
relations.
Customer
Segments
Almost all
customer segments
are involved with
British Airways.
People can choose
the quality of
service they want
from the company
and utilize utilised
it according to their
convenience. This
facility has helped
Key Resources
Great locations
for warehouses
Channels
The working
channels of BA
14
Pacific and accessible
hub points are
key resources.
All activities and
operations are
digitally
managed.
The majority of
the young
population in
human resource
is the biggest
advantage for a
company.
include both
domestic and
international
transportation
BA acquire good
market share within
the short period.
Cost Structure
Functioning of business is supported by
revenues that are generated from airlines
sector. Cargos Cargoes are also a dominant
function of BA.
Fuel cost, labour cost, landing and
navigation costs, handling, sales, marketing
and distribution costs are certain elements
of costs structure for BA.
Revenue Streams
British Airways(BA) can generate revenues from:
1. Direct sales that are the acquisition of
flights both domestic and international.
2. Categorization of services by price.
3. Cargoes and shipments are also major
contributors to revenue of BA.
Overview of all aspects of a company is obtained by using this model. Out of different
strategical models, this particular tool is very important. The reason behind this significance is an
entire structure of the corporation is achieved in single tabular form with every minute detail
covered (Jenkins and Fife, 2016). British Airways has to develop better techniques for designing
its value proposition. This will guide business operations towards attaining a position which
cannot be substituted.
15
hub points are
key resources.
All activities and
operations are
digitally
managed.
The majority of
the young
population in
human resource
is the biggest
advantage for a
company.
include both
domestic and
international
transportation
BA acquire good
market share within
the short period.
Cost Structure
Functioning of business is supported by
revenues that are generated from airlines
sector. Cargos Cargoes are also a dominant
function of BA.
Fuel cost, labour cost, landing and
navigation costs, handling, sales, marketing
and distribution costs are certain elements
of costs structure for BA.
Revenue Streams
British Airways(BA) can generate revenues from:
1. Direct sales that are the acquisition of
flights both domestic and international.
2. Categorization of services by price.
3. Cargoes and shipments are also major
contributors to revenue of BA.
Overview of all aspects of a company is obtained by using this model. Out of different
strategical models, this particular tool is very important. The reason behind this significance is an
entire structure of the corporation is achieved in single tabular form with every minute detail
covered (Jenkins and Fife, 2016). British Airways has to develop better techniques for designing
its value proposition. This will guide business operations towards attaining a position which
cannot be substituted.
15
Steps for Creating Value Proposition for gaining competitive advantage
Value propositions are promises that are made by a business organisation towards its
stakeholders and shareholders. It is very important that theses value or commitments are to be
delivered and communicated effectively. Consumers must be aware of such value ethics so that
monitoring efforts can be initiated towards a company. Strategies are designed with an insight
for the value proposition. Competitive advantage is a perspective which that gives an
organisation a sense of security with conditions in the complete favour (Osterwalder and et. al.,
2014, 2014). Both factors that are value proposition and competitive advantage are attached by a
link that is marketing mix. This principle helps in concocting a framework which is stable and
durable to fight competition from new and existing suppliers of services in airlines and cargo
sector.
Following steps can be adopted for great creating value proposition:
1. Since value propositions are a way in which company declares the nature of its services,
it has to be crystal clear. Evaluation of problems related to particular service or products
is the first step for determining values in the products (Flaherty and Rappaport, 2015).
2. These problems help in determining facts that make the product unique and competitive
in the market. Targeting of customers is based on this unique property of the product.
Above evaluated problems have to be solved with the help of services developed by
British Airways. If these problems are impossible to overcome after execution of service,
consumers experience vexation and company's reputation will get ruined.
3. Value proposition also involves developing techniques in such a manner that people or
associates who are not satisfied with earlier products of a company get curious for new
product or service. The effectiveness of proposed strategy can be determined by
increasing a number of consumers from the dis-satisfied the dis-satisfactory sector. It is
Its easy to understand needs and demands of customers but a bit tricky to evaluate which
customers are to be targeted.
4. A major part of value proposition depends on qualities of the product. In the case of BA,
new facilities for transit can be launched. These services or products must have at least
one factor that makes it unique and exclusive to the company. Sustainability can only be
16
Value propositions are promises that are made by a business organisation towards its
stakeholders and shareholders. It is very important that theses value or commitments are to be
delivered and communicated effectively. Consumers must be aware of such value ethics so that
monitoring efforts can be initiated towards a company. Strategies are designed with an insight
for the value proposition. Competitive advantage is a perspective which that gives an
organisation a sense of security with conditions in the complete favour (Osterwalder and et. al.,
2014, 2014). Both factors that are value proposition and competitive advantage are attached by a
link that is marketing mix. This principle helps in concocting a framework which is stable and
durable to fight competition from new and existing suppliers of services in airlines and cargo
sector.
Following steps can be adopted for great creating value proposition:
1. Since value propositions are a way in which company declares the nature of its services,
it has to be crystal clear. Evaluation of problems related to particular service or products
is the first step for determining values in the products (Flaherty and Rappaport, 2015).
2. These problems help in determining facts that make the product unique and competitive
in the market. Targeting of customers is based on this unique property of the product.
Above evaluated problems have to be solved with the help of services developed by
British Airways. If these problems are impossible to overcome after execution of service,
consumers experience vexation and company's reputation will get ruined.
3. Value proposition also involves developing techniques in such a manner that people or
associates who are not satisfied with earlier products of a company get curious for new
product or service. The effectiveness of proposed strategy can be determined by
increasing a number of consumers from the dis-satisfied the dis-satisfactory sector. It is
Its easy to understand needs and demands of customers but a bit tricky to evaluate which
customers are to be targeted.
4. A major part of value proposition depends on qualities of the product. In the case of BA,
new facilities for transit can be launched. These services or products must have at least
one factor that makes it unique and exclusive to the company. Sustainability can only be
16
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achieved if the product cannot be reciprocated by rivals and competitors (Stadler and
Boucaut, 2015).
5. Alternatives or substitutes for a service must always be available. Consumers may or may
not be willing to avail a particular service in the procedure designed by the company.
Alternatives will always build up a positive image of company and people will appreciate
a balance of decisions which has been taken by the companythat company can take.
6. Knowledge about competitors is crucial before determining final value proposition.
Might be BA will have the best proposal for particular service, let's say airlines. To be on
safe side and avoid consequences, it is essential that complete information regarding
competitors is gathered (Bocken and et. al., 2013). More enhancements can be procured
for services and products of British Airways.
These steps can be considered as basic building blocks for the value proposition of
company. Marketing planners are involved in designing value proposition. This factor helps the
consumers in differentiating the brand from its rivals. If similarities are achieved, people will opt
for those options which they have been choosing and company will not be won't be able to
increase its market share (Euchner and Ganguly, 2014).
Competitive advantage is a comprehensive technique which involves best value
proposition, unique marketing strategies, exemplary cost structure and extraordinary products.
Lacking any one feature will make the company take a step behind the competition (Barquet and
et. al., 2011). British Airways can cope with this competition tension by engaging in innovative
marketing strategies. For example, if company involves or sponsors social causes and events,
people will be able to recognise its brand name and preference would be obtained. The better
value proposition can also be reached by getting a human connection with consumers.
Transportation plays a major role in a travel plan. People will opt for British Airways if it
delivers its services with a human touch.
Effectiveness of decisions
Decisions made from above analysis and composing of strategies are based on better
marketing strategies and good customer relationship management. Pivotal functions of a business
organisation include decision-making process (Massa and Tucci, 2013). Scenario inside and
outside market depends on decisions made by business authorities.
17
Boucaut, 2015).
5. Alternatives or substitutes for a service must always be available. Consumers may or may
not be willing to avail a particular service in the procedure designed by the company.
Alternatives will always build up a positive image of company and people will appreciate
a balance of decisions which has been taken by the companythat company can take.
6. Knowledge about competitors is crucial before determining final value proposition.
Might be BA will have the best proposal for particular service, let's say airlines. To be on
safe side and avoid consequences, it is essential that complete information regarding
competitors is gathered (Bocken and et. al., 2013). More enhancements can be procured
for services and products of British Airways.
These steps can be considered as basic building blocks for the value proposition of
company. Marketing planners are involved in designing value proposition. This factor helps the
consumers in differentiating the brand from its rivals. If similarities are achieved, people will opt
for those options which they have been choosing and company will not be won't be able to
increase its market share (Euchner and Ganguly, 2014).
Competitive advantage is a comprehensive technique which involves best value
proposition, unique marketing strategies, exemplary cost structure and extraordinary products.
Lacking any one feature will make the company take a step behind the competition (Barquet and
et. al., 2011). British Airways can cope with this competition tension by engaging in innovative
marketing strategies. For example, if company involves or sponsors social causes and events,
people will be able to recognise its brand name and preference would be obtained. The better
value proposition can also be reached by getting a human connection with consumers.
Transportation plays a major role in a travel plan. People will opt for British Airways if it
delivers its services with a human touch.
Effectiveness of decisions
Decisions made from above analysis and composing of strategies are based on better
marketing strategies and good customer relationship management. Pivotal functions of a business
organisation include decision-making process (Massa and Tucci, 2013). Scenario inside and
outside market depends on decisions made by business authorities.
17
For checking effectiveness of a decision, it is its is very important to get a deep insight
about problem and steps which are involved in the decision making. When decisions are taken
with strategy planning and deep analysis effectiveness increases while haphazard decisions
involve risks. It is the demand of situation whether decisions are to be taken quickly or in an
organised way. Evaluating appropriateness and efficacy of a decision always help the
organisation to conquer markets (Pereira and Caetano, 2015). British Airways is at a position in
the global scenario where ineffective decisions are always dangerous.
Issues on which decisions are based have to be mainly focused. The purpose is the soul of
a strategy. During the design process, all components that are used and evolved for coming at a
particular conclusion are based on a purpose (Sempels and Hoffmann, 2013). This purpose is
issue or problem related to services or customers or profits, etc. Company's future is depended on
the way a decision is taken. Prioritising different issues help in taking effective decisions. From
above evaluations and modelling strategies, it is realised that British Airways is required to need
to develop its products and services through good marketing strategies. The company can also
indulge in exploring new markets where services were not provided till date (Hussain and et. al.,
2013).
It is very important that solutions or techniques through which decisions are taken are
authentic. Several analysis tools can be used for taking effective decisions (Vignali, 2015). These
help to get disadvantages and advantages of a particular situation. For example, British Airways
is providing high-quality services and bets in class prices for all its customerscustomers’ in-flight
operations but still sales graph of the company is not improving. The led backing factors can be
evaluated using tools like BCG(BCG (Boston Consulting group) matrix which helps in
evaluating stars and dogs of a strategy. It also helps in guiding decision-making process about
areas where investment will be beneficial and areas where investments will be just waste of
resources.
After internal evaluation, actual functioning of a decision is judged by its acceptance and
implementation. If a decision is made regarding services, consumers will be the judges while
decisions regarding internal environment or structure of the organisation will be judged by
employees and other internal stakeholders. All factors are based on methodologies involved in
the implementation of facts. Company policies, marketing strategies, changes in price structure,
18
about problem and steps which are involved in the decision making. When decisions are taken
with strategy planning and deep analysis effectiveness increases while haphazard decisions
involve risks. It is the demand of situation whether decisions are to be taken quickly or in an
organised way. Evaluating appropriateness and efficacy of a decision always help the
organisation to conquer markets (Pereira and Caetano, 2015). British Airways is at a position in
the global scenario where ineffective decisions are always dangerous.
Issues on which decisions are based have to be mainly focused. The purpose is the soul of
a strategy. During the design process, all components that are used and evolved for coming at a
particular conclusion are based on a purpose (Sempels and Hoffmann, 2013). This purpose is
issue or problem related to services or customers or profits, etc. Company's future is depended on
the way a decision is taken. Prioritising different issues help in taking effective decisions. From
above evaluations and modelling strategies, it is realised that British Airways is required to need
to develop its products and services through good marketing strategies. The company can also
indulge in exploring new markets where services were not provided till date (Hussain and et. al.,
2013).
It is very important that solutions or techniques through which decisions are taken are
authentic. Several analysis tools can be used for taking effective decisions (Vignali, 2015). These
help to get disadvantages and advantages of a particular situation. For example, British Airways
is providing high-quality services and bets in class prices for all its customerscustomers’ in-flight
operations but still sales graph of the company is not improving. The led backing factors can be
evaluated using tools like BCG(BCG (Boston Consulting group) matrix which helps in
evaluating stars and dogs of a strategy. It also helps in guiding decision-making process about
areas where investment will be beneficial and areas where investments will be just waste of
resources.
After internal evaluation, actual functioning of a decision is judged by its acceptance and
implementation. If a decision is made regarding services, consumers will be the judges while
decisions regarding internal environment or structure of the organisation will be judged by
employees and other internal stakeholders. All factors are based on methodologies involved in
the implementation of facts. Company policies, marketing strategies, changes in price structure,
18
changesand changes in investment policies are certain decisions which involve swift
implementation (Kotler, Berger and Bickhoff, 2016). It is important that justification must be
clearly transmitted. Confusion and turbulence amongst receivers can be a signal that decision
taken is not effective or correct.
Surveys, feedbacks, suggestions, ratings, questionnaire, etc. are certain measures that can
be adopted by the enterprise to evaluate the appropriateness of a decision. Documentation and
recording help not only in current processing but can also be used for future preferences. The
process does not doesn't end up just here. People will file complaints or become rebellious
towards certain decisions especially ones involving monetary fundsfund’s (Jarzabkowski and
Kaplan, 2015). These must be positively received by the company. British Airways cannot afford
to looselose its reputation in the eyes of maintained customers. If feedbacks or suggestions are
overlooked, serious consequences can occur in the functioning of the organisation.
Decisions regarding marketing strategies are evaluated by changes encountered by BA.
If market share increases and marketing strategy adopted by company starts trending in all
popular mediums, popularity will increase. Organisation will itself experience a dramatic change
in its consumer perseverance and acceptance. Social media platforms play a vital role in
marketing. Optimisation of search engines and digital marketing techniques if well utilised by a
company will reshape its brand image (Osterwalder and et. al., 2014, 2014).
Hence, effective decisions are those who are compact, transformational and developed
with a perception of complete benefit. Actions that are taken for individual benefits are never
appropriate for business as lot of o0f people are involved in the complete processing of a service.
Complications can be avoided which arise due to the involvement of emotions and personal
benefits. Every organisation like British Airways which are directly involved with consumers
must take those decisions which are customer oriented and planned in the orderly fashion.
CONCLUSION
Strategic models and tools are like equipment in the hands of business persons while
designing their strategies and products. The report encloses efficient use of modelling tools like
SWOT, PESTLE, Porter's five force modelmodels, McKinsey's 7S framework for getting a deep
understanding of British Airways and its functioning. With relevance to company's current
strategies and service, there are certain choices that are made for improving market grab of a
19
implementation (Kotler, Berger and Bickhoff, 2016). It is important that justification must be
clearly transmitted. Confusion and turbulence amongst receivers can be a signal that decision
taken is not effective or correct.
Surveys, feedbacks, suggestions, ratings, questionnaire, etc. are certain measures that can
be adopted by the enterprise to evaluate the appropriateness of a decision. Documentation and
recording help not only in current processing but can also be used for future preferences. The
process does not doesn't end up just here. People will file complaints or become rebellious
towards certain decisions especially ones involving monetary fundsfund’s (Jarzabkowski and
Kaplan, 2015). These must be positively received by the company. British Airways cannot afford
to looselose its reputation in the eyes of maintained customers. If feedbacks or suggestions are
overlooked, serious consequences can occur in the functioning of the organisation.
Decisions regarding marketing strategies are evaluated by changes encountered by BA.
If market share increases and marketing strategy adopted by company starts trending in all
popular mediums, popularity will increase. Organisation will itself experience a dramatic change
in its consumer perseverance and acceptance. Social media platforms play a vital role in
marketing. Optimisation of search engines and digital marketing techniques if well utilised by a
company will reshape its brand image (Osterwalder and et. al., 2014, 2014).
Hence, effective decisions are those who are compact, transformational and developed
with a perception of complete benefit. Actions that are taken for individual benefits are never
appropriate for business as lot of o0f people are involved in the complete processing of a service.
Complications can be avoided which arise due to the involvement of emotions and personal
benefits. Every organisation like British Airways which are directly involved with consumers
must take those decisions which are customer oriented and planned in the orderly fashion.
CONCLUSION
Strategic models and tools are like equipment in the hands of business persons while
designing their strategies and products. The report encloses efficient use of modelling tools like
SWOT, PESTLE, Porter's five force modelmodels, McKinsey's 7S framework for getting a deep
understanding of British Airways and its functioning. With relevance to company's current
strategies and service, there are certain choices that are made for improving market grab of a
19
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company. This is obtained with Ansoff's matrix. Insinuations are provided for improving market
evolution and better blooming of products through the use of BCG matrix. These modelling
instruments have to be used and applied for maintaining a sustainable competitive advantage in
the market. Ways in which British Airways can achieve great market position is through a
development of effective value proposition. It is a salient feature of any strategy which
determines validation and communication of service to the consumers. The report also contained
appropriate steps which determine an effectiveness of decisions. British Airways can incorporate
such measures for delivering services which cannot be easily substituted by any other
competitor.
20
evolution and better blooming of products through the use of BCG matrix. These modelling
instruments have to be used and applied for maintaining a sustainable competitive advantage in
the market. Ways in which British Airways can achieve great market position is through a
development of effective value proposition. It is a salient feature of any strategy which
determines validation and communication of service to the consumers. The report also contained
appropriate steps which determine an effectiveness of decisions. British Airways can incorporate
such measures for delivering services which cannot be easily substituted by any other
competitor.
20
REFERENCES
Books and Journals
Barquet, A. P. B. And et. al., 2011. Business model elements for the product-service system. In
Functional Thinking for Value Creation Springer Berlin Heidelberg. pp. 332-337.
Bocken, N. and et. al., 2013. A value mapping tool for sustainable business modelling.
Corporate Governance. 13(5). pp.482-497.
Brauer, W. K. and Zavadskas, E. K., 2014. The ordinal dominance theory as applied to the most
attractive retail cities of the Benelux area. Economic Research-Ekonomska Istraživanja. 27(1).
pp.899-915.
Chang, C. W. and Liao, C. C., 2013. Applying SWOT Analysis to Explore Taiwan Foundry
Industry Management Strategy. International Journal of Innovation, Management and
Technology. 4(1). pp.144.
Bonzo, A. D. M. and Liu, X., 2013. The use of axiomatic fuzzy set theory in AHP and TOPSIS
methodology to determine strategies priorities by SWOT analysis. Quality & Quantity. 47(5).
pp.2671-2685.
Euchner, J. and Ganguly, A., 2014. Business model innovation in practice. Research-Technology
Management. 57(6). pp.33-39.
Farag, M. A. and et.al., 2014. Metabolomics driven analysis of six Nigella species seeds via
UPLC-qTOF-MS and GC–MS coupled to chemometrics. Food chemistry. 151. pp.333-342.
Flaherty, M. and Rappaport, A., 2015. Agents of Change: Sustainability and Industry Trade
Associations--An Evolving Value Proposition. Available at SSRN 2669415.
Ginglinger, J. F. and et.al., 2013. Gene coexpression analysis reveals complex metabolism of the
monoterpene alcohol linalool in Arabidopsis flowers. The Plant Cell. 25(11). pp.4640-4657.
Hussain, S. and et. al., 2013. ANSOFF matrix, environment, and growth-an interactive triangle.
Management and Administrative Sciences Review. 2(2). pp.196-206.
Jarzabkowski, P. and Kaplan, S., 2015. Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal. 36(4). pp.537-
558.
Jenkins, J. and Fife, T., 2016. 4. Designing for disruption: strategic business model innovation.
International Perspectives on Business Innovation and Disruption in Design. 1. p.75.
21
Books and Journals
Barquet, A. P. B. And et. al., 2011. Business model elements for the product-service system. In
Functional Thinking for Value Creation Springer Berlin Heidelberg. pp. 332-337.
Bocken, N. and et. al., 2013. A value mapping tool for sustainable business modelling.
Corporate Governance. 13(5). pp.482-497.
Brauer, W. K. and Zavadskas, E. K., 2014. The ordinal dominance theory as applied to the most
attractive retail cities of the Benelux area. Economic Research-Ekonomska Istraživanja. 27(1).
pp.899-915.
Chang, C. W. and Liao, C. C., 2013. Applying SWOT Analysis to Explore Taiwan Foundry
Industry Management Strategy. International Journal of Innovation, Management and
Technology. 4(1). pp.144.
Bonzo, A. D. M. and Liu, X., 2013. The use of axiomatic fuzzy set theory in AHP and TOPSIS
methodology to determine strategies priorities by SWOT analysis. Quality & Quantity. 47(5).
pp.2671-2685.
Euchner, J. and Ganguly, A., 2014. Business model innovation in practice. Research-Technology
Management. 57(6). pp.33-39.
Farag, M. A. and et.al., 2014. Metabolomics driven analysis of six Nigella species seeds via
UPLC-qTOF-MS and GC–MS coupled to chemometrics. Food chemistry. 151. pp.333-342.
Flaherty, M. and Rappaport, A., 2015. Agents of Change: Sustainability and Industry Trade
Associations--An Evolving Value Proposition. Available at SSRN 2669415.
Ginglinger, J. F. and et.al., 2013. Gene coexpression analysis reveals complex metabolism of the
monoterpene alcohol linalool in Arabidopsis flowers. The Plant Cell. 25(11). pp.4640-4657.
Hussain, S. and et. al., 2013. ANSOFF matrix, environment, and growth-an interactive triangle.
Management and Administrative Sciences Review. 2(2). pp.196-206.
Jarzabkowski, P. and Kaplan, S., 2015. Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal. 36(4). pp.537-
558.
Jenkins, J. and Fife, T., 2016. 4. Designing for disruption: strategic business model innovation.
International Perspectives on Business Innovation and Disruption in Design. 1. p.75.
21
Joyce, A., Paquin, R. and Pigneur, Y., 2015, March. The triple layered business model canvas: A
tool to design more sustainable business models. In ARTEM Organizational Creativity
International Conference. 1. pp. 26-27.
Kotler, P., Berger, R. and Bickhoff, N., 2016. Strategic Frames of Reference: The Key Tools of
Strategy Determination, Their Principles, and How They Interact. In The Quintessence of
Strategic Management, Springer Berlin Heidelberg. 1. pp. 23-53.
Machmud, S. and Sidharta, I., 2014. Business Models For SMEs In Bandung: Swot
Analysis. Jurnal Ekonomi, Bisnis & Entrepreneurship. 8(1). pp.51-61.
Massa, L. and Tucci, C. L., 2013. Business model innovation. The Oxford Handbook of
Innovafion Management. 1. pp.420-441.
Osterwalder, A. and et. al., 2014. Value proposition design: how to create products and services
customers want. John Wiley & Sons.
Owusu-Ware, S. K. And et.al., 2013. Quantitative analysis of overlapping processes in the non-
isothermal decomposition of chlorogenic acid by peak fitting. Thermochimica Acta. 565. pp.27-
33.
Park, S. and et.al., 2013. Kinetic analysis of purified recombinant rice N‐acetylserotonin
methyltransferase and peak melatonin production in etiolated rice shoots. Journal of pineal
research. 54(2). pp.139-144.
Pereira, B. A. and Caetano, M., 2015. A conceptual business model framework applied to air
transport. Journal of Air Transport Management. 44. pp.70-76.
Prabavathy, D., 2013. Cytotoxic potential and phytochemical analysis of Justicia beddomei and
its endophytic Aspergillus sp. Asian Journal of Pharmaceutical and clinical research. 6(5).
pp.159-161.
Sempels, C. and Hoffmann, J., 2013. The Business Model—A Powerful Tool to Drive a
Strategic Shift. In Sustainable Innovation Strategy, Palgrave Macmillan UK. pp. 33-70.
Stadler, A. and Boucaut, S., 2015. Unlocking the energy productivity value proposition. AusIMM
Bulletin. p.52.
van der Veen, I. and de Boer, J., 2012. Phosphorus flame retardants: properties, production,
environmental occurrence, toxicity and analysis.Chemosphere. 88(10). pp.1119-1153.
Vignali, C., 2015. Sustainable Management; Model Building for Decision Making. CULTUR-
Revista de Cultura e Turismo. 6(3). pp.11-18.
22
tool to design more sustainable business models. In ARTEM Organizational Creativity
International Conference. 1. pp. 26-27.
Kotler, P., Berger, R. and Bickhoff, N., 2016. Strategic Frames of Reference: The Key Tools of
Strategy Determination, Their Principles, and How They Interact. In The Quintessence of
Strategic Management, Springer Berlin Heidelberg. 1. pp. 23-53.
Machmud, S. and Sidharta, I., 2014. Business Models For SMEs In Bandung: Swot
Analysis. Jurnal Ekonomi, Bisnis & Entrepreneurship. 8(1). pp.51-61.
Massa, L. and Tucci, C. L., 2013. Business model innovation. The Oxford Handbook of
Innovafion Management. 1. pp.420-441.
Osterwalder, A. and et. al., 2014. Value proposition design: how to create products and services
customers want. John Wiley & Sons.
Owusu-Ware, S. K. And et.al., 2013. Quantitative analysis of overlapping processes in the non-
isothermal decomposition of chlorogenic acid by peak fitting. Thermochimica Acta. 565. pp.27-
33.
Park, S. and et.al., 2013. Kinetic analysis of purified recombinant rice N‐acetylserotonin
methyltransferase and peak melatonin production in etiolated rice shoots. Journal of pineal
research. 54(2). pp.139-144.
Pereira, B. A. and Caetano, M., 2015. A conceptual business model framework applied to air
transport. Journal of Air Transport Management. 44. pp.70-76.
Prabavathy, D., 2013. Cytotoxic potential and phytochemical analysis of Justicia beddomei and
its endophytic Aspergillus sp. Asian Journal of Pharmaceutical and clinical research. 6(5).
pp.159-161.
Sempels, C. and Hoffmann, J., 2013. The Business Model—A Powerful Tool to Drive a
Strategic Shift. In Sustainable Innovation Strategy, Palgrave Macmillan UK. pp. 33-70.
Stadler, A. and Boucaut, S., 2015. Unlocking the energy productivity value proposition. AusIMM
Bulletin. p.52.
van der Veen, I. and de Boer, J., 2012. Phosphorus flame retardants: properties, production,
environmental occurrence, toxicity and analysis.Chemosphere. 88(10). pp.1119-1153.
Vignali, C., 2015. Sustainable Management; Model Building for Decision Making. CULTUR-
Revista de Cultura e Turismo. 6(3). pp.11-18.
22
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Wu, Y. C. and Lin, C. C., 2014. The microstructures and property analysis of aliovalent cations
(Sm 3+, Mg 2+, Ca 2+, Sr 2+, Ba 2+) co-doped ceria-base electrolytes after an aging
treatment. International Journal of Hydrogen Energy. 39(15). pp.7988-8001.
Yuan, H., 2013. A SWOT analysis of successful construction waste management. Journal of
Cleaner Production. 39. pp.1-8.
Online
Our strategies and objectives. 2010. [Online]. Available Through:
<https://www.britishairways.com/cms/global/microsites/ba_reports0910/pdfs/
Strategy.pdf>. [Accessed on 23rd December, 2016].
PESTLE analysis, 2013. [Online]. Available through:
<http://candytyysussex.blogspot.in/2013/11/pestle-analysis.html>. [Accessed on 23rd
December 2016].
SWOT Analysis of British Airways, 2015. [Online]. Available through:
<http://marketingdawn.com/swot-analysis-of-british-airways/>. [Accessed on 23rd
December2016].
23
(Sm 3+, Mg 2+, Ca 2+, Sr 2+, Ba 2+) co-doped ceria-base electrolytes after an aging
treatment. International Journal of Hydrogen Energy. 39(15). pp.7988-8001.
Yuan, H., 2013. A SWOT analysis of successful construction waste management. Journal of
Cleaner Production. 39. pp.1-8.
Online
Our strategies and objectives. 2010. [Online]. Available Through:
<https://www.britishairways.com/cms/global/microsites/ba_reports0910/pdfs/
Strategy.pdf>. [Accessed on 23rd December, 2016].
PESTLE analysis, 2013. [Online]. Available through:
<http://candytyysussex.blogspot.in/2013/11/pestle-analysis.html>. [Accessed on 23rd
December 2016].
SWOT Analysis of British Airways, 2015. [Online]. Available through:
<http://marketingdawn.com/swot-analysis-of-british-airways/>. [Accessed on 23rd
December2016].
23
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