Unit 32 Business Strategy

This report analyzes the impact of macro environment on British Airways and its strategies using appropriate frameworks. It also evaluates the internal environment and capabilities of the organization and applies Porter's Five Forces model to evaluate the competitive forces of the market sector.

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................3
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks..................................................................................................................................6
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................8
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management is the process of planning, observing, evaluating and categorization of all
the essential requirements of the company to attain its objectives as well as goals. Fluctuations in
the business environment will need the company to consistently evaluate their techniques as well
as strategies for the growth and success(Bentley-Goode, Omer and Twedt, 2019). This process
assist firm to examine their current condition, make appropriate strategies in accordance to them,
evaluate the effectuates of the executed management techniques. These strategies consist of five
common techniques and it can be differ in execution focusing on the regarding atmosphere and
it also applies on the mobile platform as well as on premise. The following report is based on
British Airways which is a carrier airline of the UK having its headquarters in London, England.
The following report is based on proper frameworks evaluates the effect and influence of the
macro environment on a given company and its techniques. In addition, it will cover about the
internal environment and abilities of the respective company utilizing appropriate frameworks
and Porter's fiver force model to evaluate the company's competitive forces. Moreover to it, it
will cover about the range of theories, concepts and model and devise the strategic management
plan.
TASK
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
PESTLE Analysis – It is commonly refers to all the techniques which need to be executed in
every strategic management and in its external atmosphere. In context to British Airways it is
discussed below:
 Political Factor – It commonly includes the political policies and involvement of the
government in the firm as in respect of all the norms of the government following
principles and bodies. In context to the British Airways, after government raised the tax
rates, so in accordance to manage their profitability company increases its prices which
has impacted their over all sales.
 Economic Factor – It refers to the economic fluctuations, revenue changes and
fluctuations in the interest as well forign currency rates that are being affected in

accordance to manage the revenue growth and the success of the firm (CHAHWANG
and KIM, 2019) . In relation to British Airways, after the pandemic Covid 19, working
and sales of the company was being majorly impacted which lead to the crucial barrier
for the firm, As the situation of all the consumers to spend in the firm is majorly being
affected by it.
 Social Factor – It refers to the demographic fluctuations and the consumers needs that
are being attained by the firm in accordance to manage the the growth. In context to the
company British Airways, the long and short routes of the airline has increased which has
lead to the increase in sales of the firm which has helped them in gaining more revenue.
 Technological Factor – It refers to all the innovations and adaptation of the technology
that is being utilised by the firm in order to make it more manageable and sustainable. In
relation to the company British Airways, company is utilising several strategies of
marketing like utilisation of the social media and also they are providing their own
mobile application in order to make it more easy for their consumers.
 Legal Factor – It refers to all the laws and norms made by the government which a
company need to follow in order to run the company smoothly. In case of the British
Airways, company is utilising the low cost technique by which they can try to execute the
process in which they are attaining all the legal aspects . Environmental Factor – It refers to the ecological factors and the changes which the
firm can utilise in accordance to manage the working of the firm and also to execute the
advancement of the techniques that are needed for the protection of the environment.
British Airways, utilises the carbon footprints that assist the perks and the promotion as
in respect of the working being operated in the firm(Elias Mota and et. al., 2020).
Stakeholder analysis
It is an essential method that is utilised to give all the techniques in which top quality
merchandise are been given and all these techniques executed in the firm are in the respect of the
British Airways:
 High Power – High Interest – It refers to those authorities related to the company that
possess high power as well as high interest in the firm, In case of the British Airways,
their top level authorities and management belongs to this category.

 High Power – Low interest – It includes those stakeholders that gives the major capital
investments to the firm. In relation to British Airways, their investors belongs to this
category as they have high power but very low interest in the management.
 Low Power- High Interest- It refers to those stakeholder who possess low power but
have more interest in the working of the firm. In case of the British Airways, their
employees belongs to it as they have low authority in the process of decision making but
have more interest in their manageable working(Habib and Hasan, 2021).
 Low Power – Low Interest – These stakeholders have no authority and no interest in the
working of the company. In context to British Airways, airport is included in it as they
possess no power and no interest in the management of the firm.
Ansoff Matrix:
This framework tells about the several techniques in accordance to the firm which can
guide about their task and also create different latest expansion by following the orientation
provided in it.
 Market Penetration- It is the common technique that assist in making the firm scale
their firm with the support of execution of some latest techniques in the market area by
using or selling the current products or services. In case of the British Airways, they can
better their facilities and services in order for the success and development of the
company.
 Market Development – It is the main technique in which company introduce their
existing products in to the new market area. In context to the British Airways,
management can launch their airline services into the new route which can help them in
generating more revenues by gaining more consumer base(Hsieh, Ma and Novoselov,
2018).
 Product Development – It refers to the introduction of the new product into the existing
market of the company. In relation to the British Airways, management can opt to give
several innovative services in order to make the operations to be more convenient for the
consumers.
 Diversification – It is the one of the unsafe way of business planning as it refers to the
tapping into the new market area with selling new offering. In case British Airways,

company can try to concentrate on the launching of the new services in their new routes
in order to make more revenues.
Company, British Airways can try to utilise the market development techniques as they
tap into the new market area with offering their current services in order to gain more consumers.
SWOT Analysis
It is the evaluating frameworks that supports in measuring the internal capabilities threats
and opportunities of the company and also weakness and strength of the firm.
Strength
 The firm is working the operations with
around 450 flights on several major
routes and they are also making efforts
to make this number to 600 flights.
 Company is operating on the low cost
strategy in order to increase their
consumer base by attracting them with
this strategy and also giving more
tempting services.
Weakness
 The firm is not able to provide their
consumers for the refund of the ticket
cancellation in order to make the
consumers satisfied(Juliana, Gani and
Jermias, 2021).
 Company is also facing the large impact
on the goodwill of the firm as they are
not able to sustain the jobs that leads to
main lay off of the employees.
Opportunities
 Company can start various more
flights on more busy routes in order to
make more revenues which can lead
to the long term growth and success of
the firm (Kamesh and Jin, 2018).
 Company can either collaborate with
the loss making airline or even buy
them in order to expand their business
functions.
Threat
 Rising competition is the biggest threat
to the working of the firm as there are
more airline agencies which are
offering more cheaper flight tickets to
their consumers.
 Rise of covid 19 in the world has lead
to lock down in various countries and
due to this people are not travelling so it
is a threat to the company as there very
low passengers.

P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
Strategic capabilities
It gives the process in which every activity and execution of the plan which can be made
in order to increase the perks of the firm and also to enhance the revenue and competitive
progress. It includes all the essential aspects like vision, value action plan, tool etc. it has the
essential role creation of the work and the strategy being attained in the functional way.
Resource Based View
It is the process by which the firm can make the several type of the techniques which they
can manage the success and the sustainability development and the edge over its competitors. In
case of the British Airways, management can utilise all their services and resources in order to
use it in more better way(Kitsios and Kamariotou, 2019).
Mckinsey's 7S model
It usually provides the concept and the design in which the firm can operate and manage
their identification with effectual design and the techniques which will assist out to maintain the
objectives and the task.
 Structure – It commonly gives an essential tool and the sections in which the
departments are being made by the management of the firm. In context to British
Airlines, company is following the hierarchical structure in which their flow of info is
from the top to bottom which refers to the method and command by their seniors.
 Strategy – British Airways utilises to concentrate on the most essential strategy of
creating and executing those flights that will support out to manage the low cost pricing
to all the consumers by which they can select their firm as the essential source(Lim,
Chalmers and Hanlon, 2018).
 Skills -It concentrates in giving all the consumers the most effectual training in
accordance to make them more trained towards their operations and also to make them
confident in accordance to make their operations in the firm. British Airways utilises it
by concentrating on the giving several training sessions to all their workers as in
accordance to which they can manage their more success.
 System – It gives the knowledge about the operation that is being utilised by the firm as
to enhancement the revenue and the growth. In context to British Airways, utilising the

manual advancement in their operations by the usage of both in sufficient way it assist in
smooth operations of the firm.
 Staff – The people that being included in making the firm to be operate successfully are
involved in it. In context to British Airways, company utilises to have several workers
being operating in it as around 37000 people.
 Style – It is the process of operations which is being included by the firm in order to set
more clear goals as well as targets. British Airways is utilising the transformational style
of leadership in which all the employees, members are being managed by one leader and
that a individual has the power to make all the crucial decisions of the company. Shared Value – It refers to the ethical and the standards that being executed by the firm
in order to make their working more smoother and execute all the variable processes for
concentrating on the success as well as growth. British Airways, implements the low
price value in order to save their money and to get the value of their money(Maemunah
and Cuaca, 2021).
VRIO Framework
 This frameworks has four essential components in which the features and the
operations of the firm is branched.
 Valuable – The resources that are being valued by the firm in order to make it more
usable as well as advanced for all the functioning of the firms that known in it. In context
to the British Airways, financial resources that being utilised by them.
 Rareness – It includes all the specific and the essential goods that are being prefer by
them as the rate resource and support the firm (Moktadir and et, al., 2020) . In case of the
British Airways, their efficient human resource is their rare resource as they are giving
appropriate training sessions in order to make their workers capable of executing task in
an efficient as well as effective way.
 Imitable – It includes all the things made by the firm which cannot be imitable by the
competitors. In case of the British Airways, their goodwill is their imitable resource as
company is working in a broad segment having more consumers base which can lead to
more revenue and growth for the long term of the company.
 Organised – It refers to all the resources that are being framed and organised
appropriately by the firm in order to make all the offerings made in a fully organised way

by making the operation more convenient. In relation to British Airways, management of
the company is very much their organised resource.
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector
for an organisation.
This framework refers to the strategies in order to make the firm to operate by
maintaining all the advancement in the company and also to evaluate the competition of the
market areas. It is gained in order to avoid every type of problems and risk which can affect the
working of the firm.
 Bargaining power of suppliers – It refers to the power of the suppliers of the firm in
accordance to increase their prices and give more dominance in the position of the
suppliers in the firm. In context to British Airways, company's bargaining power is bit
high as company has only two areas of their attainment of the resources, those are Airbus
and Boeing (Magerakis and Tzelepis, 2020).
 Threats of new entrant- It refers to the operations of the same business positioned in the
same market area by someone else. In context to British Airways, their threat of it is bit
low as they are not more concerned about it because in this industry it requires lots of
capital as well as well experienced management in order accomplish their goals which is
not easy for all.
 Threat of Substitute- This threat is low for the British Airways, as they are already
focused on giving low cost services to their consumers and it is also very hard for the
substitutes to maintain the goodwill which company has gained.
 Bargaining power of Buyers – It includes the power of the consumers towards the firm
and their functioning. British Airways has the high threat of it because there are many
competitors in the same industry providing same services with better quality and rates.
 Rivalry in existing competition – It includes the competition with in the same market
area. In context to British Airways, they possess the high threat of it because company is
operating in the airline industry in which there are other organisations offering the same
with services.

P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given organisation.
Porter's Generic Strategy
It is one of the most essential tool that supports in giving the knowledge about the
competitive area in all the selected market. It concentrates on understanding all the essential
values and depiction as for the goods, services, enterprise that are being initiated.
 Differentiation- It includes the innovative way of the firm in accordance to which the
firm can prefer and get more consumers and it can assist in examining and making all the
adaptive techniques by which the goods can be offered. Management of the British
Airways, can apply this strategy by making the use of innovative and uniqueness method
that can make the firm to attain more consumers by tempting them with new features.
 Cost Leadership – This strategy includes services that are being available by the firm as
it is available by the firm as it makes the fluctuations and also gets the edge in the market
area. British Airways, can make the low cost strategy by which consumers can be
attained(Straková and et. al., 2020) .
 Focus – It gives the two common segment in which the firm utilises to apply to essential
target areas and segments such as cost focus that render the target area and cost of the
firm. In relation to British Airways, management can make several methods for the cost
efficiency by attaining various innovative services and methods.
Bowman's Strategic Clock:
It gives the edge in the competitive area of the offerings in the market area. In accordance
to British Airways its crucial strategies are mentioned below:
 Low Price – It is a process in which the firm can concentrate on adaptation of the low
pricing technique that can support in making all the fluctuations and the position by
which the margin of the profit can be applied. In case of British Airways, management
can try to give more services to their consumers at very low rates in order to make more
revenue.
 Low Value added and low price – It refers about the pricing to be low in order take
perks out of it. Management of the British Airways can implement it as in order to
generate more profits..

 Differentiation – It includes making the best offering for the goods and also to
accomplish the goals and objectives in order to make the particular modification in
accordance to goods and services. Management of British Airways can utilise this
strategy in order to make their offerings to be used in order to increase more consumer
base(Verbeke and Yuan, 2021).
 Hybrid – It includes the top quality good that being produced effectually with all the
techniques and the set that is being adapted. In context to British Airways, company can
execute this strategy in order to make new innovation together with by providing more
better services in low prices.
 Focused Differentiation- It refers to the needs or providing all the goods to be given in a
appropriate way in order to use the and give more modified services at the high price and
luxury. In relation British Airways, company is using the low cost techniques can try to
concentrate on creating several ways in which new services at the high price.
 Monopoly Pricing- Firm can adapt this method by which they can produce the services
or products to be unique and different from others. Management of British Airways, can
utilise it as gives no rivalry.
 Risky High Margins- It prevails the fluctuating high cost for the offerings that is being
given. In context to British Airways, management can try to apply all latest approach by
which company can change their techniques and make it on the high prices.
 Loss of Market Share – In order to minimise the loss in the firm. Company can attempt
to make all such merchandise in order to be made that will not value any type of
engagement of services.
Management of British Airways, can prefer low price technique in order to attain more loyal
consumer base and get the edge over its competitors.
Summary British Airways which is a carrier airline of the UK having its
headquarters in London, England. Firm is thinking to expand its
segment of business activity by introduction as to avoid the loss in the
organization share they can try to sort all such products and the
services (Xie and Cooke, 2019).
Vision The vision of the firm is to become the world's most responsible

airline,
Mission The mission statement to make sure that their consumers fly
confidently that together and are acting responsibly to take care of the
world all live in
Objectives  To widen the position of functions of the firm.
 To become a major organisation among the rivals.
 To earn more profits.
Tactics  Product- British Airways is going to furnish a new cover for
business class passengers in accordance to gain new consumer.
 Price- Company is focusing on low price strategy.
 Place- It is available on all major routes.
 Promotion-Marketing by digital marketing which can gain
more consumers at once.
Controlling and
Monitoring Evaluation
Benchmarking technique can be utilised by the firm. the outcomes
gained up by the new services are compared with that of the rivals of
the sector .
CONCLUSION
From the above report it is concluded that, business strategy assist in providing all the internal as
well as external analysis in order to make the techniques for the firms betterment. It gives the
internal as well as external elements such as SWOT analysis which assist out in analysing the
weaknesses and threats of the firm and evaluating the strengths and grabbing the future
opportunities of the company. PESTLE analysis tells about the over all external factors of the
firm which can might affect the working and the long term growth of the company. Respective
firm is utilising the low price strategy which refers to the maintaining of the cost in accordance
to the gaining more consumer base. Moreover to it, it is also examined that the VRIO gives the
techniques and the process which can be implemented in the working of the firm.

REFERENCES
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