Strategic Management: Analysis and Assessment of British Airways' Re-organization Process

STRATEGIC
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of internal and external environment used by organisations to determine their
strategy.........................................................................................................................................3
Setbacks faced by British Airways during the time of re-organization process..........................5
A critical assessment of the process used by organizations to determine their strategy.............6
evaluation of the critical models and tools used by organisations to determine their strategy....7
Analysis of the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability...........................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management can be defined as that process which includes setting of objectives,
evaluation and analysis of competitive environment, analysis of strategies, interpreting the
internal structure of organization and making sure that strategies adopted by firm is effectively
implemented. Present report will lay emphasis on British Airways. British Airways is the flag
carrier airline of the United Kingdom, headquartered at Waterside, Harmondsworth, near its
main hub at London Heathrow Airport. Report will lay emphasis on critical assessment of the
process used by organizations to determine their strategy. It will also lay focus on an evaluation
of the critical models and tools used by organizations to determine their strategy
MAIN BODY
Analysis of internal and external environment used by organisations to determine their strategy
In order to analyse the external and internal factors which can affect the working of British
Airways framework like SWOT and PESTLE can be used. It is really necessary for the company
to make use of them so that they can develop their strategies according to it.
PESTLE analysis: This model can assist British Airways in determining the external
factors affecting the company during the time of re-structuring.
Political factor: It has been analysed that airline companies needs to be engaged in
following all regulations that has been implemented by government. Brexit has highly impacted
the business of British Airways as there was stoppage of flights to certain destinations. Also the
confidence of consumers was being led to down because really strict safety laws rules were
being implemented (Hitt and Duane Ireland, 2017). Also the government is trying to keep a pace
on controlling the price aspect related to supply of raw material which has laid severe impact on
profitability of British Airways. So during the time of re-structuring company needs to lay
emphasis on it.
Economic factor: Brexit has impacted negatively on British Airways because of it they
have to face various economic turmoil (Morden, 2016). This has also depreciated the value of
pound which is the main reason that revenue which has been generated by airline company has
come down. So during the time of reorganization process, company needs to think twice while
investing on something as this can increase operational cost of British Airways. Also there has
been a rise in prices of labour which was the major reason that expenses of organization have

increases. So firm needs to be engaged in doing strategic planning in order to have proper control
over these factors during the time of re-structuring.
Social factor: In this while implementing the reorganization process, it is really necessary
for British Airways to analyse the belief, values, attitude and perception of employees so that
change can be implemented successfully. Company should make sure that no such norms are
being implemented which hampers the belief of them. This can arise difficult during the time of
implementation. It can also affect growth of British Airways. Also they can have engaged in
formulating new strategies for their target group of consumers. Company in order to enhance the
consumer service must be involved in analysing the lifestyle, taste and preferences of consumers
which can assist them in growing and achieving their goals and objectives.
Technological factor: It has bene analysed that digital revolution is also been changing
the cost structure of British Airways. When implementing the restructuring process company can
make use of advanced technology and automation. Like for example they can install various
software so that employees can be managed effectively. This can assist them in achieving goals
and objectives. They can also have engaged in promoting the services through social media
channels like Facebook, Instagram and Twitter. Thus, it can support them in reaching out large
range of consumers (Newburry, Deephouse and Gardberg, 2019). They can also provide details
about existing offers on their websites. All these changes will assist them in enhancing the
quality of consumer services during the time of re-organization process.
Legal factor: There many laws and rules which has been implemented by government and
needs to be followed by British Airways. During the time of re-structuring they must make sure
that employees are been provided with safe and secure environment according to health and
safety act. Thus, it will assist them in creating worker’s loyalty and they will be able to sustain
employees during the time of change.
Environmental factor: In this British Airways must be engaged in working towards
lowering down the carbon emissions that has been produced by them. This will assist them in
reducing the air pollution which has been created by them. They can also implement quality
operations so that it become easier for them to overcome environmental problems.
SWOT analysis: It is the framework which can be used by company so that they can
identify their internal capabilities during the time of re-organization.