Strategic Management: A Comparison of British Airways and EasyJet

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Definition and introduction of strategic management.....................................................................3
Critical evaluation of the procedure utilised by the companies to assess their strategy..................4
Critical examination of the effect of internal and external environment changes on managerial
strategy.............................................................................................................................................4
Comparison of Swot analysis of British Airways and EasyJet..............................................5
Comparison of Porter's five forces model of British Airways and EasyJet...........................6
Comparison of Pestle analysis of British Airways and EasyJet.............................................7
Review of strategic plan of companies offering an action plan on the basis of a variation in either
the external or internal surroundings...............................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Appendix........................................................................................................................................11
Strategic plan of British Airways.........................................................................................11
Strategic plan of EasyJet......................................................................................................12

INTRODUCTION
Strategic planning is utilised by enterprises to fix priorities, emphasis the resources
towards the determined objectives and examine and alter the business directions according to the
dynamic environment. Effective strategic planning not only assist in determining where the
organisation is going and the plans for growth, but also to determine if it will be successful. The
chosen companies for this report are British Airways Plc and Easy Jet (Ansoff and Ansoff,
2018). The report shows the comparison between the two companies assisted by the analysis of
swot, pestle and porter five forces models. The report is mainly divided into four parts that are
the definition and introduction of strategic management, critical examination of the procedure
utilised by companies to assess their strategy, critical examination of effect of internal and
external environmental changes on strategy of organisations and a appraisal of the strategic plan
which provides an action plan for the companies on the variation basis in either the internal or
external surroundings.
MAIN BODY
Definition and introduction of strategic management
In simple words, strategic management deals with the management of an enterprise
resources to achieve its objectives and goals. It comprises the processes of setting targets,
competitive environment and internal environment analysis, evaluation and implementation of
strategies in the enterprise. The strategic management is significant to enable enterprises to
analyse areas for functional improvement. They can follow an analytical procedure that
determine potential threats and opportunities in many cases, or can merely follow generic road
map. According to the organizational structure, organisations can prefer to adopt either a rigid or
expressive approach to strategic management (Carayannis, 2018). Approaches for improvement
and implementation are defined under the prescriptive model. Whereas, the descriptive strategy
explains how companies develop the strategies. For instance, imagine a big organisation looking
to attain more aspiring online sales rates. To achieve these goals, the company formulates a
strategy, communicates it, applies it to different units and departments within the enterprise,
integrates it with the goals of personnel and implements it accordingly (Heino and Tuunainen,

2018). Ideally, when an effective strategy is practised, it assists the organization attain its goals
through a individual, coordinated procedure (Hiriyappa, 2018).
Critical evaluation of the procedure utilised by the companies to assess their
strategy
British Airways is one of the world's largest airlines and number one in the United
Kingdom. It is established as dominated national and world-wide flights in the United Kingdom.
Over 300 destinations worldwide are covered internationally by British Airways and it carry
about 33 million passengers. Over the years, the company has run effective business units and is
recognized as one of the trailblazers in the airline industry in its pursuit of green technology and
green strategic decisions. The company has achieved success and also faced challenges,
consequence of which is a fall in the popularity of airline and repute in the target market. The
strategy plans followed and the development and innovation pursued by British Airways assist to
keep itself in market position and stay in market (Hitt, Ireland and Hoskisson, 2019).
EasyJet Airline Company was established in 1995 by a British entrepreneur. It is a low
cost company, hence, it differs from conventional airlines in that it offers very low fares. It tries
to maintain costs down by getting rid of redundant costs. The requirement to cut down costs is a
crucial strategy to attract as many clients as possible. Today, with the European borders opening
and the leisure society we live in today, travel has become more popular and the demand is
greatly increased. EasyJet took advantage of these factors to open up the market. In 2011, the
EasyJet increased total revenue by 11.5% year-over-year. This development is very positive for
the organisation and is the outcome of significant work on its strategy. However, EasyJet is not
the only one in the inexpensive airline market and has many rivals. It needs to do better than its
competitors by lowering fares as much as possible to maintain its position and become the
market leader (Karpenko and Kukhta, 2019).
Critical examination of the effect of internal and external environment
changes on managerial strategy