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Strategic Management Analysis of British Airways

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Added on  2022-05-02

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This document is about the business analysis of British Airways, which is a national airline carrier of the United Kingdom. It is also a representative of the One World Alliance and one of Europe's largest airlines, with approximately 45,000 employees (Cooper ,2018). In addition to scheduled services, British Airways delivers domestic and international freight, postal, and auxiliary services. This document includes the business strategies used by British Airways.

Strategic Management Analysis of British Airways

   Added on 2022-05-02

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STRATEGIC MANAGEMENT
ANALYSIS OF
BRITISH AIRWAYS
Name: Thomas Eric Roshin
Subject Code:TH6ABA020
Student I.D:21516060
Date of Submission:31-03-2022
WORD COUNT:2250
Strategic Management Analysis of British Airways_1
TABLE OF
CONTENTS
1.INTRODUCTION 1
2.INTERNAL ANALYSIS
2.1 S.W.O.T ANALYSIS
2.1.1 STRENGTH
2.1.2 WEAKNESS
2.1.3 OPPORTUNITIES
2.1.4 THREATS
2.2 VALUE CHAIN ANALYSIS
2.2.1 PRIMARY ACTIVITIES
2.2.2 SECONDARY ACTIVITIES
2-5
3. EXTERNAL ANALYSIS
3.1 PESTLE ANALYSIS
3.1.1 Political Factors
3.1.2 Economical Factors
3.1.3 Social Factors
3.1.4 Technological Factors
3.1.5 Environmental Factors
3.2 PORTERS FIVE FORCE ANALYSIS
3.2.1 Threats from new entrants
3.2.2 Threats of substitute product
3.2.3 Power of Buyers
3.2.4 Bargaining Power of Suppliers
3.2.5 Industry Rivalry
5-8
4. EVALUATION
4.1 ANSOFF MATRIX ANALYSIS 9
5. RECOMMENDATION AND CONCLUSION 10
6. APPENDIX 11-12
7. REFERENCE LIST 13-14
Strategic Management Analysis of British Airways_2
ONE OF THE MOST SIGNIFICANT ASPECTS OF THE TOURISM
INDUSTRY IS TRANSPORTATION, AND WITHIN THAT CATEGORY,
AIRLINES ARE A SIGNIFICANT INDUSTRY THAT HAS A TREMENDOUS
IMPACT ON TOURISM. THE PRIMARY GOAL OF THIS PAPER IS TO
ESTABLISH A STRATEGIC PLAN FOR BRITISH AIRWAYS THAT CAN
BE EXECUTED USING STRATEGIC MANAGEMENT CONCEPTS.
SIMULTANEOUSLY, IT IS THE FRONTRUNNER IN THE UNITED
KINGDOM'S AIRLINE INDUSTRY. THROUGHOUT THE LAST TEN
YEARS, BRITISH AIRWAYS HAS ENCOUNTERED INCREASED
RIVALRY, AND AS A RESULT, IT HAS HAD TO COPE WITH AN
INCREASING PROPORTION OF ITS MARKET SHARE BEING DIVIDED
BY FAR TOO MANY COMPANIES. FURTHERMORE, THE COMPANY
MADE PROMISES SUCH AS OFFERING MODERN TECHNOLOGY AND
WORKING ON ENVIRONMENTAL SUSTAINABILITY BUT FAILED TO
DELIVER ON THEM.
THIS REPORT EXAMINES THE COMPANY'S POSITION IN THE
EUROPEAN MARKET AND USES PORTER'S FIVE FORCES AND
PESTEL TO CONDUCT AN INTERNAL AND EXTERNAL
ENVIRONMENTAL ANALYSIS. MOREOVER, A VALUE CHAIN
ANALYSIS APPROACH IS CARRIED OUT IN ORDER TO IDENTIFY
STRENGTHS, WEAKNESSES, THREATS, AND OPPORTUNITIES.
SEVERAL CRUCIAL SUGGESTIONS THAT BRITISH AIRWAYS CAN
EMPHASIZE ARE RECOMMENDED AS A RESULT OF THE STRATEGIC
EVALUATION. AS THESE TECHNIQUES ARE CRITICAL IN
SUPPORTING BRITISH AIRWAYS IN REGAINING LOST TERRITORY
INSIDE THE EXISTING AIRLINE MARKET.
ANNUAL REPORT FOR 2025
BRITISH AIRWAYS
EXECUTIVE SUMMARY
Strategic Management Analysis of British Airways_3
1
1.INTRODUCTION
British Airways is the national airline carrier of the United Kingdom. It is also a
representative of the One World Alliance and one of Europe's largest airlines, with
approximately 45,000 employees (Cooper ,2018). In addition to scheduled services,
British Airways delivers domestic and international freight, postal, and auxiliary services.
(Data monitor, 2008) British Airways offers operations across over three hundred
locations, as well as codeshare and franchise partners, carrying over thirty-three million
passengers. With 42,377 employees and a revenue of more than 8.67 billion pounds
sterling, British Airways has one of the largest employee staffing levels in the United
Kingdom. British Airways is recognised as being one of the forefront carriers in green
tech adoption and eco-sustainable strategy initiatives. British Airways is the very first
airline to embrace the European Union's scheme to reduce carbon emissions.
The objective of British Airways is to become the world's favourite airline by offering the
finest possible customer experience to its clients at an affordable price (Jeluic and Blaevic,
2006). It also has the objective of providing quite an experience to its consumers on both
the ground and in flight, making them a vital part of using the services. In addition to that,
British Airways has set the goal of being the world's most cost-effective and
environmentally beneficial carrier by implementing the concept of sustainable
development comprehensively. This vision is implemented by reducing carbon and
hazardous gas emissions, which have a detrimental effect on the country's natural
environment.
A detailed analysis of the profitability of the company reveals that it achieved well
between 2014 and 2018. (Statista,2019The company reached a milestone of £720 million
by 2014. (Good Growth Market 2016). (Appendix 1). British Airways' strong success is
bolstered even more as a result of the company's strong online search traffic from its e-
commerce system (Good Growth Market 2016). The company's dominance can also be
seen in the volume of passengers it transports. (Appendix 2). The aim of this report is to
supply practice regarding British Airways' performance, strategy plans, and development
and innovation. As British Airways is trying to support and expand its market position.
Strategic Management Analysis of British Airways_4

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