Strategic Business Planning | British Airways

Running head: STRATEGIC BUSINESS PLANNING
Strategic Business Planning
Name of the Student:
Name of University:
Author Note

2
STRATEGIC BUSINESS PLANNING
Table of Contents
Introduction......................................................................................................................................3
Company Overview.....................................................................................................................3
PESTLE Framework....................................................................................................................4
Porter’s Five forces......................................................................................................................8
VRIO Analysis...........................................................................................................................10
SWOT Analysis.........................................................................................................................12
Results from the Evaluations:....................................................................................................15
Objectives..................................................................................................................................15
Recommendation.......................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................19

3
STRATEGIC BUSINESS PLANNING
Introduction
Business environment refers to the set of conditions in which a business or organization
operate in. These forces influence businesses and business conditions to a great extent. These
influences may yield to negative as well as positive outcomes, for which, it is important to pay
attention to the environment. The business environments in the fast growing, globalizing world,
change very rapidly or be subjected to rapid change, due to development and market shifts. It is
therefore, very important to have a business perspective which can affect the business in a
positive way to adjust as well as adapt to the changing scenario. The idea about the same will
help in the process of analyzing the competencies and the areas which can be worked on to be
ahead of other competing forces in the market. The business capability of a company can also be
enhanced by employing proper understanding of the macro and the micro setting in which a
company operates within (Morschett, Schramm-Klein and Zentes 2015). Based on the analyses
conducted, strategic management plan can be developed according to which the future courses of
action for the company can be devised (Itani and Mason 2014). The company which is chosen
for the analysis in this report is British Airways. The Airlines Industry is sensitive and fast
growing, in which British Airways is one of the pioneer companies.
Company Overview
British Airways is the largest carrier which is operating internationally in United
Kingdom. The company has its base located in Heathrow, which is considered to be among the
busiest international Airports in the world with over 280 aircrafts constituting of the fleet. Over
40 million passengers avail services and are provided services to, by British Airways directly.
The company is part of the parent group International Airlines Group. British Airways has flight
networks spread across the globe with the help of partnerships shared by USAir, Qantas, TAT

4
STRATEGIC BUSINESS PLANNING
and so on (Britishairways.com 2020). The Airlines Company offers services in over 441 Airports
which are located in over 86 countries across the globe, with over 1000 aircrafts. IAG, which is
the parent company of British Airways, is considered to be the world’s third largest Airlines
group as per their revenue collection annually. The company, in Europe ranks second. British
Airways was established in 1974, after the government in Britain decided to manage operations
of the two airlines corporations which were nationalized which include British European
Airways and British Overseas Airways Corporation alongside two comparatively smaller airlines
which include Northeast Airlines Newcastle and Cambrian Airways Cardiff (Britishairways.com
2020). British Airways is considered to be the most commercial Airlines in the world which
operate with the slogan ‘The World’s Favorite Airline’.
Step 1:
PESTLE Framework
The PESTLE model allows analysis of the Macro Environment in which a company
operates within (Abbott 2015). These factors directly affect and influence the company and its
operations which will the analyzed further with the help of the framework.
Political Factors  Airlines companies operate within strict regulations and
laws in a specific region of a country. Different regions
have different operating restrictions (Gupta, Gupta and
Gupta 2019). The same gets faced by British Airlines, in
the countries it operates.
 British Airways operate in many regions where there are
political tensions as well as records of terrorist attacks.
 British Airways have operated even during the political