Strategic Management: Analysis of British Airways

STRATEGIC
MANAGEMENT

1
Contents
Introduction................................................................................................................................1
Background of the company......................................................................................................1
Strengths.....................................................................................................................................2
Weaknesses................................................................................................................................3
Opportunities..............................................................................................................................3
Threats........................................................................................................................................4
Strategic options.........................................................................................................................5
Value chain.............................................................................................................................5
Resources................................................................................................................................6
Strategic Recommendations.......................................................................................................6
Conclusion..................................................................................................................................7
REFERENCES...........................................................................................................................8

2
Introduction
Every organisation is dealing with their own set of challenges and it has become essential for
the firms to manage these for improving their competitiveness in the market. In this regards
the most crucial role is played by the strategic management which is again dependent on their
internal analysis. The strengths of the company help them in gaining competitive advantage
over the rivals. This gives a firm a strong position in the market that allows them to control
market variables (Rothaermel, 2015). It is essential that companies work on their strengths so
that they can create a very different space for themselves. It is also crucial in the current
business environment that a firm evaluates the weaknesses they have. This allows a firm to
reduce the chances of business failure. Along with this any company needs to evaluate the
opportunities they have in the market. This must be done on the basis of the resources and
capabilities they have to grab the opportunities. In order to achieve strategic success it is
crucial that a firm evaluates the threats they are facing and the way in which they are having
impact on the business process. In the competitive environment of Airlines Industry, firms
need to have knowledge about their strengths and weaknesses as well as the opportunities and
threats they are facing in the market. Based on this analysis company has to find the
strategies that can give them competitive advantage.
This report will analyse the strengths, weaknesses, opportunities and threats for British
Airways which is one of the biggest firms in the Airlines industry of UK. Other core strategic
concept that may be useful in the long-term has also been illustrated. Based on this analysis,
the report also illustrates the recommendation for the company
Background of the company
British Airways is one of the carrier airlines in UK and on the basis of the fleet size,
passenger carried it is just behind easy Jet. It can be termed as biggest flag as they have an
fleet size of 277 and flies to across 183 destinations. It was established in 1974 by the British
government for managing two nationalised airlines British European Airways and British
Overseas Airways Corporation as well as Cambrian Airways from Cardiff, Northeast Airlines
from Newcastle upon tine and two regional airlines. According to the 2016 report, this
company earned revenue of 11,443 million ponds.

3
Strengths
 This Company has been successful at execution of new projects and created good
returns on the capital investments by creating new revenue streams. They have been
successful in most of their projects throughout the world (Gregory, 2010). The return
has also been high which has added in their revenue base.
 They have been successful in automating the activities and they have used in different
automated technologies that helps them in scaling up and scaling down based on the
demand in the market. It brought consistency in performance and has increased
quality of their services. The use of advanced data technologies and the
implementation of automatic technologies in their inventory have helped them in
providing better services to their clients (Albers, Baum, Auerbach & Delfmann,
2017).
 Their workforce is highly skilled and is able to deal with every situation. This has
become possible due to its training programme and learning methodologies. They take
care of the motivation of the employees in an appropriate manner so that they remain
motivated towards self-development (Airline staff rates, 2019).
 British Airways have made a strong and reliable distribution network that gave them a
reach to large potential market in various parts of the world. They have been
continuously adding to their distribution network.
 Company has a strong base of dependable suppliers of raw material and hence
enabling the firm to overcome any supply chain blockage. They have large numbers
of suppliers with them and they have a good relationship with their suppliers
(Airways, 2017).
 British Airways has invested a lot of money on building a strong brand portfolio.
They have been doing it through the years. They have their brand name in different
parts of the world and this has also helped them in reaching to different parts of the
world with an ease.
 They have created a dealers and distributors chain that not only promotes the products
and services of the firm but also invest in the training of the sales team so as to
explain to the clients about the way in which they can extract the highest of benefits
from their offerings. They have incorporated it in their culture (Grundy & Moxon,
2013).
 The type of products and services that company delivers and the customer support
they give to their consumers have extended their loyal customer base. They have