British Airways Business Model Analysis
Added on 2020-01-28
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Strategic Modeling
TABLE OF CONTENTSTable of Contents.................................................................................................................................2Introduction..........................................................................................................................................31 ORGANIZATION' AUDIT IN DIFFERENT FRAMEWORK........................................................32 SMART objectives............................................................................................................................83 Strategic Models.......................................................................................................................9Business Canvas Model for British Airways.............................................................................12Steps for Creating Value Proposition for gaining competitive advantage.................................14Effectiveness of decisions..........................................................................................................16Conclusion..........................................................................................................................................18REFERENCES...................................................................................................................................192
INTRODUCTIONEffective internal control on management activities alone can notcannot help the acompany to in its grow but it requires proper support of employees who will be able contributefor the growth of the organizationgrowth. The business environment is dynamics in nature whichnot only gets affected It does not only by the affect internal management but also by the externalenvironment as well. To set a clear strategy, a company needa company needs to ananalyzealysisall the factors which affect the business activities. In this present report, British Airways is takenin to consideration which is a UK based company that offers good services to its customers. Inthis report, we will analyseanalyze different frameworks which helps to us find the internal andexternal environment of company and their objectives.ze different frameworks to audit theinternal and external environment of the company and their SMART objectives These objectivesand models will help to identify the help to us to find correct market positions of the company inthe industry and their future futures strategystrategy upcoming challenges.and related challengesand opportunit From thesesthese models, the report will describe about the we able to describecompany's strength, weakness, opportunities and threats in their internal and externalenvironment.Assignment-11 ORGANIZATION' AUDIT IN DIFFERENT FRAMEWORKMckinsey 7s model: This model is used to analyseanalyze and monitor changes in theinternal situation of the situations in organisationsorganizations. Further, it is based on the Thismodel is based on the theory that enables to perform well in the company but management needsto align with the seven elements so that situation can be analyzed. The British Airways useMckinsey 7s elements to increase the overall effectiveness of the business. The following are theMcKinney's 7s framework for British Airways.Strategy: According to organization strategy, it focuses on digitalizationa Businessstrategy of the company is to focus on digitisation, information technology and provideprovidesa high level of customization in their service provision. In 2016, the company is expected to3
make more profit from business by offers more flights on same route so that they can gain morecustomers. 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 sizeof its business. Company's top level management introduces DE-layering initiatives intoorganization’s company's structure as part of cost-cutting measures.Systems: Apart from the set standard systems such as employee’s selection andperformance appraisals,(Ginglinger and et.al., 2013.). British Airways also maintains somespecific systems including baggage, handling systems; check in systems and flight entertainmentsystem(Ginglinger and et.al., 2013).Shared values: Company's shared value are depended on the principles, norms, andvalues. Organization offers unique premium services to every customer so they use morecompanytservices ando develop this company invest in customers services maintain long termrelations with their customers. .Style: The leadership style of the organization company focuses on the high performanceof its staff. To increase its staff performance, they provide different case study situations whichinclude interactive forum workshop and table or group discussion for their staff members.Staff: British Airways gives comprehensive training and re-educative programs to theirstaff (Wu, and, and Lin, 2014. ). The company emphasisesemphasizes not only on theirdevelopment but also on their staff development and move towards flexible structures.ures totheir employeeSkills: Skills refers to the capabilities of personal and organisationorganization as awhole. The company provides the best global connectivity to their customers. Long-haulpremium customers are key skills to make profits and provide excellent services byunderstanding what their customers want are.Value chain analysis: It is a process where a firm identifies its primary and supportactivities which thatadds add value to its final products (Farag and et.al., 2014). British Airwaysvalue 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
Operations: In operations part of the business, the company offers thesecurity of luggageto of their customers, provides quick check-in services and digital technologies in thebusiness process. Outbound logistics: The airlines derive value in outbound logistics via handling baggageat the point of destination.Marketing and sales: Company's marketing message is communicated to the targetcustomers via marketing communication mixes such as media advertising, SalesPromotions, Events and public relations.Services: The airline introduced about 136 new scanners at check-in desks across theairport terminals. Further, the digital boarding pass is used by 28000 customers everyday. The company invests money to enhance its service provision. Secondary activities: Firm infrastructure: In British airline, structure used is hierarchical that which help thecompany to develop more knowledge company to gain competitive advantage.Human resource management: Airlines has invested in the development of customerservice training and "speak up" opinion survey to encourage employees to providefeedback.Technology development:Organization Company introduce individual LCD screens tomake services more innovative.Procurement: Due to the large size of the company and strong business relationshipsthey can leverage suppliers to maintain the efficiencies in its business.PESTEL analysis: To become more successful in the airline's industry, an awareness ofthe external environment is essential (Prabavathy, 2013).2013. ). In this analysis, thecompany can identify the find competitors and their capabilities to meet the current andfuture challenges.Political factors: Political stability and safety have the great impact on the airlinesbusiness. Effective illustration of this claim is terrorist attacks at Brussels airport, whichis the main cause of caused on declining shares prices of company and organizationcompany also had a debate with UK government of their regulations on airlines' industry5
(van der Veen. and de Boer, 2012). Apart from this, a lot of regulations such as like alesafety regulations are followed. vel ofbureaucracy, corruptions, home market lobbyingproved a major factor affecting the airline.Economic factors: Certain economic factors such as inflation rate, currency rates, andoverall economic climate in the UK directly affect the has directly affected on company'sperformance. The cost of fuel is anothersignificantfactor Factor for British Airways thathas negative impact over the business. Social factors: Ageing population is more in happening in the UK, it meanshere is oldergeneration, which they have more leisure time to go travel (Owus-Ware AndWare Andet.al., 2013). This is the opportunity for a company because travelling is increasing dayby day and people spend a lot of money on airlines for different purposes.Technology factors: Innovation of technology may affect the operations of organizationthe company (Ebony. DM. and Liu 2013.). The company companies are usingtechnology 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 canaffect the business of airlines. The staff is important to the company, and goodemployeesemployee’s relations need to avoid industrial action. Environmental factors: Flying in flight could affect a lot on the environment, as tflightscontains great amount ofhey many carbon emissionsand waste, this could affect airquality and also increases noise pollution (Chang, and, and Liao, 2013, 2013.).Environmental regulations may increase operational costs. However, airlines goals haveset to reducedreduce the carbon emissions.Porter's Five AnalysisAnalyses: Porter's five analysisanalyses is the analyticalframework that distinguishes between the five individual forces which that shape the overallstrategy of a company.extent of competitions in industry.The threat of substitute services: For an airline, there is no significant of the substitute.But infuture in development of more advance technology can affect business of company. At6
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