British Airways Strategic Analysis

This assignment delves into a strategic analysis of British Airways, examining its strengths, weaknesses, opportunities, and threats (SWOT) within the airline industry. It employs the VRIO framework to assess the company's resources and capabilities, highlighting their value, rarity, imitability, and organization. A stakeholder analysis identifies key players and their influence on the company, while considering indirect competitors like transportation alternatives. The assignment also touches upon British Airways' corporate social responsibility initiatives.

Business Strategy

Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................4
SWOT Analysis...........................................................................................................................4
PESTLE Analysis:.......................................................................................................................5
Internal environment and capabilities of the organization:.............................................................6
SWOT analysis with Strengths and Opportunities:.....................................................................7
STAKEHOLDER Analysis:........................................................................................................7
Analysis of strategic capabilities using the VRIO framework........................................................8
References:......................................................................................................................................9

Introduction
To acquire the purpose or goal of an organization business strategy is very necessary for a
company. It helps any organization for doing long-term business. British Airways had complete
an intent that is three year will support a customer for development of the experiences, so that
compared to other airway for managing the pricing. Through this plan the economic
implementation will grow also complete the customer necessaries. In the end this plan will help
the human being also environment in positioning the aim for facilitating (Teece, 2010).
For achieving these aim a company set objective and doing work for a strategic plan. Strategic
development is all about implementing the method for reach the prepare objective. If British
Airways wanted grow their business by this flight to new destination, then when strategy
formulation is grow at the same time this decision also need to be formed. But the decision of
strategic development are like the ticket of price and the time that is needed per week.
Mission
Airways ride is very important to the customers. It is necessary to make all the ride comfortable.
So British Airways mission is make their ride very comfortable and relieve so that the customer
satisfied, feel safe whenever they journey and encourage to ride British Airways.
Vision
The statement of vision for a company focal point on the potentiality in the company’s future.
The vision of the British Airways is in the whole world they wanted to be as a renowned and
most liable company. British Airways also want to implement some objective that helps to
fulfill their desired aim.
Aim
The desired aim of British Airways is grow their company as a developed airways, in addition
the company want to decrease in opposition for the following three years.
Objectives

The objectives of British Airways is to predict their place. They will analyze the micro
environment, macro environment, stockholders expectations and capability of the company as
well as the position of the opposition of the company. Finally they also want to develop a growth
plan that is compatible and favorable for British Airways (Nicolini & Salini, 2006).
Analysis
SWOT Analysis
The major part of every business strategy is to analyze internal environment and external
environment.
Now we are going to describe the British Airways external factors analysis like opportunities and
threats by using SWOT analysis and PESTLE analysis.
Opportunities
British Airways is a traditional company. Tradition is a well power but to repose its leadership
place this company need to take favor of any opportunity for implement, so that they can
understand about how they doing better and improve the future. The market of aviation is
gradual nation, challenging and extremely competitive.
The system of the quality is increase with modern term, through huge promotion, give the
worldwide connectivity can attract new customer and younger people. Fascinating target cover
for example: to found their services in the outgoing market Asia pacific market rise in trans-
pacific cargo, some of opportunities of British Airways are give reasonable prices and best
product services as well as good quality (Gupta, 2019).
British Airway need to analyze their competitors and it is significant. Also doing SOWT
analysis of the competitors, so that they can respond in any change as early as possible, to switch
their failing into power or capacity as well as it will be a great opportunity.
Threats
British Airways can’t switch or change threats because threat is the external factors, in this
external factor no one can control it. But this threats can be avoidable as if British Airways

know and analyze more about this external factor. It is very important to modify this external
environment because it impact the global market and business. To discover a substitute way to
decrease any negative situation it has to be very difficult to each of every external variation.
British Airways large challenge is BREXIT. From EU the people will can’t journey except visas,
for this situation the company won’t keep the people, ultimately they lose customers. Then the
company develop their services, increase the product quality and deliver it with a sufficient price
for make up this company’s situation.
In the face of minor level of services the customers will always find to journey with a low budget
airlines. So the company try to handle and control this situation with an effective way like they
can decrease the ticket price and increase the level of service quality (Tan, 2019).
For the development of the company’s growth effective business strategies, analysis and proper
planning is very tight.
PESTLE Analysis:
Political
In the airlines industry, to control the management of airlines company government set some
rules and regulations which are strictly followed by the management. To have control over the
terrorist activities they increase their security system on their daily activity. Also there are some
effect on the airways company by the trade union and the joint venture.
Economic
There are some major effect on the airlines industry by the economic condition of a particular
county. International crisis also have the effect on the airline business and it reduced the business
volume. Recession has also effect on the companies and it can reduce the cost of travelling the
customer and they are now using teleconferencing to fulfil their communication. Also the fuel
price that is very much related with the economic event and the declination of this fuel price has
lots of effect on the airline business (Williams, 2017).
Social

Social factor has a huge impact on the business and the way of business is depend on the
particular society and the thinking of the people who are live in that particular society. So,
basically when the older people are increasing in a particular society, they need leisure time and
vacation. Because of this reason increasing the older population can help the British Airways to
spend their leisure time and vacation. If the unemployment of a particular country is increasing it
led to travel the people to the other big cities and countries to get a job.
Technological
In this modern business society, all companies have their online platform to sell their products.
So, because of this reason customers can visit the online sites to compare the product and prices
with the other company which can built the cognizance of that particular consumers and also
their bargaining power will be increased that can empower the customer. Now, booking services
in the airline industry are very effective and it regularly used by the customers and by this system
customers can stay up to date with their flight information (Solved, 2012).
Environmental
Environment factors are now very important for the modern business because customer are now
very concern about environment. The operational cost of the business may increase because of
the regulation of the government about the energy and noise and it can affect the airline business.
Now free land are very limited to create the airport and expand the existing airport and by this
difficulty company are now counting some loss. Weather has also effect on the airline company
and because of this sometimes they need to cancel their flights and for this reason customer may
face some interruption.
Legal
There are some legal factors which are considered by the British Airways and they had to face
numerous obstacles and problems about the merged venture with the trade union. Now,
customer’s right is very important and government have some rules and regulation about the
rights of the customers and also the rights of the employees that also have effect on the company.

Internal environment and capabilities of the organization:
In the British Airways we have some internal analysis that includes Strengths and Weaknesses of
SWOT analysis, Stakeholder analysis, strategic capabilities and VRIO framework.
SWOT analysis with Strengths and Opportunities:
Strengths
British Airways is one of the largest airline companies around the world and it is the market
leader in UK. The top 20 UK’s best airline company is British Airways according to their
customer. From their history, they have a huge organization and they also have strong brand
reputation.
They have various types of customer loyalty scheme which have a huge impact on their
customer. They have successful ‘On business’ loyalty program. Their business depends on the
flights numbers in a day. These use different types of points for different types of rewards for
example, discounts for hotels, rail tickets or another reward flights. They have partnership with
various leading airline companies around the world like Iberia, American Airlines and many
more.
Weaknesses
They have the scarcity of their investments in new technology and they need more investment.
They have some limitations to implement the new technologies in their business operations to
meet the desires of their customers. British Airways is not a competitive player in the global
market if they do not implement the new technologies for the success of their business.
Strikes of the employees are always happened for every kind of business and British Airways
also face this problems. The strike in 2017 by cabin crew have the major effect on this company.
This types of strikes have the negative impact for every business. The face of this types of
company are cabin crew and people and customers meet with them first during the flying time in
the airline.

STAKEHOLDER Analysis:
Stakeholders with High interest-High power
The key player of this industry is stakeholders with the high interest-high power. So, the
company have to engage them diligently with their business decision. The main and most
important competitors of British Airways are Virgin Atlantic, Emirates, Jet Airways and
Lufthansa. Transports for example cars, buses, trains, ferries are indirect competitors for British
Airways (Grundy & Moxon, 2013).
Stakeholders with Low interest - High power
The company like British Airways need to have them pleased and satisfied by meeting their
requirements and needs.
Stakeholders with High interest – Low power
British Airways need to keep them always informed about the decision making and show the
consideration of them.
Stakeholders with Low interest – Low power
British Airways have huge support on the cultural activities and charitable activities in all over
the world. This company is very responsible about the society and they are decent corporate
citizen.
Analysis of strategic capabilities using the VRIO framework
British Airlines benefit understand very easily with the VRIO framework. This framework
structured as stated below
Value

British Airways human resource is very important and have no experience about food. So, to
provide all the important and valuable message to all of the staff of the office so that they can
develop their efficiency with identical money.
Rareness
For overall success of the airlines British Airways provide dynamic demand for their services.
Imitability
The position of a particular business organization is very important and British Airways placed at
London which is their biggest resources. This city cannot be imitated because it is the capital city
of UK.
Organization
Decrease the costing and increase the quality of service through the collaboration into all of the
office staff and administration of British Airways (Hesterly & Barney, 2008).
References:
Grundy, M. and Moxon, R., 2013. The effectiveness of airline crisis management on brand
protection: A case study of British Airways. Journal of Air Transport Management, 28, pp.55-
61.
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws, pp.1-11.
Hesterly, W. and Barney, J., 2008. Strategic management and competitive advantage. England:
Pearson Prentice Hall.
Nicolini, G. and Salini, S., 2006. Customer satisfaction in the airline industry: the case of British
airways. Quality and Reliability Engineering International, 22(5), pp.581-589.

Solved, C.R., 2012. Company Profile.
Tan, L., 2019. Corporate Metrics Methodology Application for the Market Risk Quantification in
British Airways Company.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range
planning, 43(2-3), pp.172-194.
Williams, C., 2017. Complexity Of Modern Management.