Contemporary Developments in Business and Management Assessment

This report provides the relevance of customer relationship management to the British Airways and the impact of CRM over the business in terms of its policies and the decision-making process.

Contemporary Developments in
Business and Management
Assessment

INTRODUCTION
Current business advancement refers to the outside factors that influences the
exhibition of the organization. These factors incorporate the technological, legal, social-
economic, environmental factors that is having an influence over the performance and the
situation of the corporate in the industry as a whole. This report provides the relevance of
customer relationship management to the British Airways. Besides, it features about the
impact of CRM over the business in terms of its policies and the decision-making process.
TASK 1
Impact of external influences on the organization and the significance of each and every
external factor over it
BA is the growing airline organizations in the United Kingdom. It is possessed by the
International Airlines Group and operates in excess of across 300 airplanes. BA is
additionally among the main European global flight administrators that fly to in more than 70
distinct nations and carries over forty million users each year. 2019 can be considered as the
both a difficult and beneficial year for BA. There are several kinds of challenges that is being
faced by the British Airways in carrying its business operation effectively.
Political factors
The aviation industry is mainly impacted by the govt. regulations and the political
environment in UK and the political stability has a direct influence over its profitability. The
aviation industry in UK is mainly regulated by the European Union legislation and the areas
where most of eth regulation is required to be followed includes operator licensing, safety
regulations and other licensing like personnel licensing. Apart from this government control,
the other challenges which are of political aspect such as uncertainty in association with the
Brexit which also had a deep influence over the airline industry. Both Britain and EU is
working on the ways to figure out the things before the end of the year 2020. The major
issues include border, customs and the immigration rules (Kerridge, 2018). The aircraft
associations would require to consider a couple of things to beat the negative effects of Brexit
in both the short and a long time since quite a while ago run. The various pieces of their
business that aircraft brands must focus on for beating the challenges made by Brexit
consolidate "Monetary and Financial Regulation, corp. governance and operational strategy,
and the CRM". BA had quite recently adopted a reasonable system to manage the effects of

Brexit and answered to its customers that its flights will be running as showed by their
conventional schedule following Brexit. Therefore, all these factors had the huge influence
over the British Airways and it was important for it to take a close look over it for reducing
its negative impact over the business and work smoothly.
Economic factors
This factors also have a direct influence over the business functioning especially in
the airline industry. The economic environment in the United Kingdom is very uncertain after
the announcement of the Brexit in the year 2016 (Ozili and Arun, 2020). The economic
slowdown in UK has made the country suffer a lot mainly because of the Brexit. The Brexit
has brought economic slowdown in the country which has caused many of the headquarters
in UK to be shifted to the EU. The major factors that supported the British Airways in
sustaining its growth and profits involves high investment in the strategic areas, concentrating
on the customer satisfaction and experience, adapting in business model to the changing
economic conditions. Even under such circumstances the company has faced the British
Airways has shown a nice growth in its revenue. The total revenue of the organization in the
year 2018 grew by 6.1% in comparison to the last year’s, reaching from £12,271 in the year
2017 to £13,021 million. In the same period, the operating profit of British Airways rise to
10.3% reaching from £1,769 million to £1,952 million. Therefore, even after facing high
level of problems in the early years of Brexit, the company managed itself in a better way
which helped it in achieving its desired objectives by analysing the negative impact
associated with it.
Social factors
Social factors such as demographic variations further have a noteworthy role with
respect to the airline industry. The fundamental objective of the market of airline brands like
BA is the twenty to thirty years old whose travel propensities are unique in relation to the
past peers and who appear to spend more time in comparison to the baby boomers on their air
travel in the growing Western regions (Koch and Tritscher, 2017). While consumers, just like
the security or accommodation, have turned out to be the focal concentration for plan
operators and administrative authorities, the social picture, and the brand image of the carrier
organizations have additionally turn out to be a significant factor having an influence over the
org.’s productivity. BA other than from the CRM likewise keeps up a substantial spotlight on
the overall productivity, dependability and its image in public. In the past few years,

organization has drawn the attention on its sustainability and is putting resources into parts
where BA can limit its ecological influence. Other than this, the fear of Covid-19 has also
affected the whole industry very hard (Ozdemir and et.al, 2019). Apart from this, closure of
various airlines, airlines like British Airways also had to cancel its several flights. As per
BBC report, it had to cancel 2016 flights from 16th march to 28th March due to the spread out
of Covid-19. The fear of Covid-19 has reached in the eyes of the public prompting the people
reducing travel to foreign destinations. This has certainly hit the operation just as revenue of
flight managers like BA.
Technological factors
Innovation is a central factor driving the improvement of the carrier business and
other than from more eco-accommodating and safer plane models, the headway of better
arrangements and administration advancements has in like manner helped the faster
advancement of the airplane business around the globe. BA is placing assets into
advancement to make its fleet more eco-friendlier and to offer a superior client experience to
its explorers. Also, just as a piece of its key strategies for its future, BA has chosen to put
extra in innovation so as to guarantee greater productivity, better administrations, and higher
benefit (Taneja, 2017). The organization is additionally intending to endeavour
transformation to access the full favourable benefits of emerging advancements in its day by
day tasks around the world. Technology is the major factors driving operational productivity
and client trust in the airline business and British Airways has also stated its benefits as far as
upgraded fleet effectiveness long with client trust. Various areas where the organization
offered new advancements during its current years incorporate process automation, load
dealing with, onboarding and so on. In the year 2019, BA further included four additional
new Airbus aircrafts with high concentration on the innovation which provided support to it
in managing the challenges which arisen because of Brexit and Covid-19 with greater
efficiency.
Environmental factors
These factors are also a focal worry for the airline industry along with the aeronautics
specialists. The ecological impact of the aircraft business has become a significant purpose of
worry for authoritative specialists around the world. BA has made some decisive moves
toward this way to restrict its natural impact on making its arrangement of activity
progressively legitimate. Maintainability is by and by one of the inside zones of key

criticalness for the brand which is reliably placing assets into building up the eco-
benevolence of its armada and reducing its carbon impression (Efthymiou and et.al, 2019).
The association expects to achieve in any event 20% decline in its net CO2 surges before the
year's over 2030. BA has also intended to balance its carbon surges for its residential
excursions in the UK and make them net zero carbon toward the year's end 2020. The
association is in like manner tirelessly researching new procedures and advancement to
control carbon outflow. While there are a couple of purposes for building up its consideration
on supportability, a piece of the essential reasons consolidates better notoriety and social
picture, motivating forces from the UK government alongside improved operational
capability and buyer loyalty. Thus, this factor has influenced British Airways but also helped
it in its growing process.
Legal factors
Legal compliance is fundamental for all aviation players including the British
Airways courses since obstruction can achieve critical fines and moreover hurt the reputation
of the association. Beside customer loyalty and voyager security and ecological impact, there
are laws related to work and a couple of continuously operational domains that the BA is
required to remain consistent inside its nearby market just as abroad. Beside the laws related
to tasks, the work laws are in like manner an immense zone affecting BA (Bouoiyour and
Selmi, 2018). The association stood up to a basic test in 2019 as a pilot's strike. The
association lost its legitimate undertaking to block the masterminded strike and expected to
agree to a pay settlement later to stay away from disturbance. Cases whether related to work
or buyer rights or explorer security can discolour the association's image and can likewise
cause operational interference and misfortunes as huge fines. Therefore, it is very crucial for
BA for analysing the legal factors.
TASK 2
a. Significance of the CRM for an organization like BA
In the client-based airline industry, implementing the correct CRM system is
significant and British aviation routes has worked on it properly. BA takes 145,000
individuals to in excess of 200 destinations each day. The explanation that makes its clients
return is its effective CRM procedure. The BA Executive club is an important part of its
CRM trustworthiness plans. This plan is allowed to be joined and with no additional expense.
In this, clients procure rewards in the form of points named “Avios" which is done by buying

inn stays, flights, vehicles on rent through BA or its accomplices (Bachmann and Kantorová,
2016). The points which are earned can be reclaimed on other travel or services with BA. lt
gives its clients different choices, for example, supper and seat inclination which styles the
clients booking experience consistent. In the BA plan, as the client fly with BA, a procedure
is being carried out the degree of official club enrolment, for instance, silver or gold or blue
or bronze and afterward to then “premier” level. To monitor this, BA is utilizing Teradata
CRM arrangement from 2002 year which has supported it in making appropriate
correspondence. BA gives offers huge discounts to its existing clients which assists in client
retention. BA utilizes client requirements while giving them incredible discounts.
BA has also implemented central IS that assists it in keeping away from any cost of
information. lt examine the major patterns that helps in giving high client-oriented services.
ln low occasions, it attempts to deal with its costs by dealing with its expense and making its
value less than its rivals to snatch larger customer base (Broderick and et.al, 2017). During
slow times of year, it gives alluring arrangements to urge its clients to have another
excursion. BA has been enhancing its advertising and promotion procedure to get associated
with its clients. CRM has assisted BA in estimating the business volume & service quality
and in observing the general business performance level.
BA requires to make choices according to the different needs and requirements of its
clients. BA is additionally present via social networking platforms which makes simple for its
clients to provide their input and BA can quickly revert back to their questions. lt has
partitioned the customers subject to their profile and which provides assistance to them in
giving offers and arrangements that meeting up with their desire. To manage its customers, it
gets huge for the BA to take decisions that best suits the necessities and prerequisites. The
services given by BA is to such a degree, that it helps in dealing with a wide range of client
questions. lt incorporates giving refunds rapidly, straightforwardness of variety of services
and policy, provides desired outcome as soon as possible under the circumstances. These
activities and administrations have helped BA in having a solid customer base and expanding
customer devotion. To be productive, it requires BA ways to deal with change its procedures
and all choices are taken by considering the customer want as the base and it to upper hand
which best suits the current situation or future patterns.

b. Effectiveness of British airways response
CRM is the popular framework utilized by BA for managing its entities association
with its potential & current clients. lt carried out information examination of client’s history
with the entity to enhance the business association with the target market, explicitly centring
on customers' relationship. The Executive club (EC) of BA organization which is very viable
and useful for its corporate as it assists with holding individuals for more and increment
revenue higher than previously. With this plan, individuals set aside their cash and put
resources into further activities while heading out starting with one spot then onto the next.
With the support of EC organization will create traffic as contrast with its rivals. lt has huge
system of corporate partners including cafés and retailers where individuals will
advantageously gain on day by day spending (Rondovic, Dragasevic and Smolovic, 2017).
With simply couple of flight, shoppers effectively set aside their cash to be used later and
appreciate the EC benefits viably. In respect to the customers, there are certain extra
advantages in joining this CRM scheme which is being offered by BA, uniquely in case when
the individuals are normal flyer and for each flight they undertake with BA and procure
points. Then again, Executive Club isn't useful for those individuals who does not takes trips
for voyaging, it isn't financially savvy for them. BA has also picked the Creston unlimited
along with data analytics firm Aquila Insight for managing its CRM work.
Another reaction given by British Airways (BA) in setting of CRM, is Teradata CRM
arrangement which provided certain advantages to business. lt is considered as extraordinary
compared to other methods that assist firm with distinguishing and activity on quick new
income and benefit chances over all networks by, presenting power to upgrade customers
relationship by knowing the individual customers. Teradata CRM investigation is firmly
coordinated between activity, learning, examination and assessment, it supplies entity with
amazing tools in the tough and robust condition to delight and track shoppers buying conduct
over the specific time frame and create profile to be considered for grabbing new
opportunities dependent on new connections found between customers traits and fragments
(Taneja, 2017). This technique applies data revelation capacities to enable BA routes to
assemble refined models that decide and anticipate gainful and significant customers
interaction ways. Moreover, with this reaction, organization can figure out how often it can
get in contact every traveller and which networks or strategies would work well for explicit
content.

lt likewise assists with deciding arrangement and execute the best correspondence
procedures for each possibility that gain customers dedication. Advantages from the on-going
commercial that entity will consequently discover and contact to their purchasers that meet
out its desired criteria. Teradata CRM has made the organization ready to offer right services
and items to perfect individuals at the right time and furthermore fortify connections among
the entities and its target customers. Alongside the given above adequacy, this framework has
some bad focuses that sway on extra entity methodology, it is very costly rather than all other
frameworks that require greater outlay which legitimately sway on BA financial budget. The
way toward refreshing framework is beyond the realm of imagination at every time as it
requires a lot of time and money.
c. Areas for improvement in response of BA
Airways finds it difficult to maintain its revenue and retain its market share in the
industry because of the rapidly changing economic conditions. It should create and adopt
better approaches to deal with their customers to obtain customers trust. The main objective
of CRM is to increment operational effectiveness, customer's dependability, individual’s
retention, long run gains and profitability. Microsoft Dynamics 365 is a standout amongst
other CRM framework that BA can use to demonstrate their reaction in setting of CRM. lt is
cloud-based business frameworks that joins components of CRM and ERP alongside AI tools
and productivity application (O’Connor and et.al, 2017). This procedure produces brilliant
examination to assist firm with keeping steady over their CR, with this framework
organization will make customized and viable looking messages to pull in sceptical
customers with new and clear flight bargains and discount offers. lt is provided by Microsoft,
creating it one of the best and versatile arrangements on aircraft segment. The benefit of MS
Dynamics 365 is that it has skill engaging BA read progressively about its entity association
with other. lt states about the various highlights and bids that the entity will pick accord to the
prerequisite and circumstances. By implementing this CRM framework, company get
associated perspective on information knowledge on passenger’s records, practices,
transaction etc. alongside information about booking and stock and in addition to anticipate
insightful techniques for decision makers.
The greatest benefit of MS Dynamics 365 is it can be associated with different
business applications, for BA that depend intensely on MS-outlook along with the office 365
and run procedure on the MS Dynamic 365 furnishing more valuable reconciliation with
items than other CRM programs, which for the most part depend on 3rd party. Moreover, by

having programs such as MS Dynamics 365 that balances down and up dependent on present
market requests, improves the sales and enhances the customer engagement (Erturk and He,
2018). lt elevates security, change savvy venture framework, improve openness and
increment mobility as opposed to earlier. The straightforward and simple thoughts is that with
information assembled, laborers from plan unit to production group to those collaborating
legitimately with customers will approach in real time, it allows it to take better business
choices. At the point when organizations expand, it includes higher capabilities and which is
required to be coordinated into work process. The advantages with MS-Dynamic is that it has
built in BI & analytics that can be included into BA organizational strategies.
CONCLUSION
By summarizing the above points, it can be said that the outside investigation assists
the BA in determining the variations in the different aspects because of progress in the
pattern. lt additionally helps the organization in taking suitable measures corresponding to
adapt up to the variations in the outside issues with the goal that it will result into
accomplishing a top position in the market. Through implementation of different CRM
rehearses, BA can keep up great relationships with its clients and resulting into higher client
trust.

REFERENCES
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