Strategic Management of Healthcare

This assignment delves into strategic management within the healthcare sector. It requires students to analyze various theoretical frameworks and their practical applications in healthcare organizations. The provided readings encompass topics like strategic planning, corporate real estate management, public sector strategy, and project management within healthcare. Students are encouraged to critically evaluate these concepts and apply them to real-world scenarios.

STRATEGIC
MANAGEMENT

Introduction
Strategic marketing refers to creating a distinctive image of the firm in the minds of its
targeted customers. This distinctive image should differ from its competitors and offer attractive
prospects of that British airways. It helps a venture in maximising its positive image in the market
and as a result of this gain advantage over its competitors. The present report analyses different
marketing tools with reference to a firm operating in airline industry, namely, British Airways. Cited
venture is one of the largest airlines offering its services in United Kingdom and second largest
airline group in Europe. There are numerous strategic tools available with the entrepreneurs, out of
these tools three major tools of strategic marketing are discussed in detail in this report.
Main Body
In respect of undertaking effective decision making process in an British airways to achieve
its desired objectives, it needs to utilise different marketing tools to determine the market as well as
its nature. One of the most common marketing tool that the cited firm can undertake is PESTLE
analysis. It is the best tool which determines or examines the external environmental factors of a
venture (Ginter and Swayne, 2018). Adopting this analysis would ensure the mentioned company to
create opportunities for future and be prepared for the competitions that are being generated in the
market. It analyses various factors under political. Economic, social, technical as well as legal
environment of the country which forms a part of macro environment for the cited firm. A detail
analysis of all these environments in respect of British Airways is presented as under: Political Environment: Political environment refers to the restrictions or policies made by the
government of concerned country. These policies act as a guideline or framework within
which that British airways is supposed to carry out its operational activities. Thus, the present
venture operates within the policies as well as restrictions generated on the part of UK
government. Other than the policies, other related activities that occurs in an economy, such
as terrors attacks or any natural calamities, affects the business and its venture related
activities. The terror attacks that took place in UK during the year 2005, has lead to impose a
number of restrictions and policies imposed on British airways, as terrorist enter a country
through this channel of transportation (Steinbach and Cannella, 2017). As a result of these
terror attacks, the mentioned airways has stopped its flights in certain countries or parts of the
world.
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 Economic environment: The economic factors that affects the workings of an British airway
includes Inflation as well as Deflation. Inflation refers to a situation where the individual
possesses a high amount of income available for spending, thus, increasing their expenditure,
which leads to increase in prices (Wheelen and Bamford, 2017). This hike in price leads to
inflation. Whereas, deflation emerges in an economy where individuals do not possess
required amount of income to undertake spending, which brings a situation of economic
slowdown. Both these situations affect adversely to an economy as well as operational
activities of different industries or sectors. In the year 2008, British economy faced a
slowdown, i.e. deflation, which has resulted in decrease in income level of consumers which
further led to a decrease in their private consumption expenditure. Since, airlines industry
deals with a high degree of income elasticity of demand, the demand for airlines industries by
the consumers had fallen down.
Figure 1 UK International routes
(Source: Daspit and Long, 2017)
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 Social environment: This environment deals with the individuals which consists of society of
concerned country. In other words, it considers the demographic environment of an economy
which deals with population. It is essential for every British airways, dealing with any kind of
venture related activity, to analyse its customers, as these are the people who are final
receivers of products or services that are being rendered by any firm (Lasserre, 2017). This
environment analyses the taste as well as preferences of its targeted customer. These cultural
as well as cultural influences in airline industries varies from country to country as per the
prefer-ability of customers. The cited airline group has analysed a number of changes in the
demand patterns of its customers relating to their travelling experiences with the airlines.
Providing customer oriented services leads to customer satisfaction, which is the basic
component of image or brand building for airline industries. These cultural as well as cultural
influences in airline industries varies from country to country as per the prefer-ability of
customers.
Figure 2Profit per passenger
(Source: Bryce, 2017)
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 Technological environment: Technological advancements are a necessity in the context of
airlines industries in today's scenario. These advancements are necessary to be adopted in
order to generate customer satisfaction for a business venture. The mentioned firm need to
invest a huge amount of its capital in the development of new offerings in its services relating
to travelling (Ethiraj and Helfat, 2017). The introduction of new technologies in the venture
increase its capabilities over its competitors which generates a good brand image ODF that
firm. The technical environment in the field of airline industries is highly vulnerable, which
shows a continuous need for investing as well as adopting innovative technologies on the part
of British airways.
 Legal environment: legal practices or policies adopted by the law and order of concerned
country affects organisational structure of that economy. The legal factors that affect the
operational activities of cited airline group is the activities or policies generated by trade
unions prevailing in UK. In the year 2010, the walkout of various countries from the union
has resulted in cancellation of a number of flights with the British airways and also, in
cancellation of tickets with the same (Höglund and Svärdsten, 2018).
This analysis of various external factors which affects the business of British airways
becomes an effective tool in order to undertake strategic marketing activities of the venture. These
factors are required to be considered while determining or arriving at a particular decision in the firm.
British airways are considered as one of the major group of airline industries which comprises
a number of firms operating in that group. In order to undertake effective marketing activities, the
British airways has to adopt an effective tool of strategic marketing, which can bring beneficial
results for that British airways (Apenko, 2017). An important tool of undertaking strategic
management is SWOT analysis, which derives the strengths, weaknesses, opportunities as well as
threats of an British airway. This analysis enables a firm to determine its core competencies and the
opportunities that are available with that venture. It also determines the weaknesses that lags the
venture behind its competitors and the future related threats for a business as well as its activities.
Further, porter diamond model has been used to suggest that there are different reasons
behind some nations and industries within nations are more competitive than others on global scale.
It stated that companies at home countries get special factors that potentially created their
competitive advantage on global scale. British airways is international aviation company, established
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in Europe have also got various factors which has created their competitive advantage on
competitors. Porters's model includes 4 determinants of national advantage such factor condition,
demand conditions, related and supporting industries, firm strategy, structure and rivalry etc.
Factors condition involves those factors which can be exploited British airway in Europe. It can be
considered as advantageous factors found in Europe subsequently build upon by organizations. These
are also considered as strength which are provided by Europe to British Airways such as Highly
skilled workforce, rich amount of raw materials, linguistic abilities of employee and workforce
shortage. The biggest strength that lies with British airways is its brand image that it has created in
the past years by delivering quality services to its customers. It has been able to develop brand
loyalty in the minds of customers which indicates a high degree of customer satisfaction for cited
airline group and as a result of this, it has emerged as the biggest group in the context of UK's leading
airlines brand (Daspit and Long, 2017). The mentioned group has launched its subsidiary airways
which names as Open Skies, which has le to an expansion as well as diversification of operational
activities of British airlines. The main motto behind this launch of subsidiary is to become second
largest group in the context of airlines industries. Along with this diversification, it has also
undertaken various advertisement as well as promotional activities in order to create awareness of the
services that are being offered by cited airways. This continuous expansion as well as advancements
in its technology has gained a good image for British airways, a continuation of the same will lead to
long term gaining results for mentioned firm.
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Demand conditions are main factor which states that if the local market for product is larger and
more demanding at home than in the foreign market, local organizations potentially provide more
focus on the improvements than the foreign companies (Diamond Model (Michael Porter), 1990).
This will potentially increase the global competitiveness of local exporting companies. This problem
has arisen due to the in competencies of employees, which is a result of lack of training provided to
those individuals appointed (Bryce, 2017). The mentioned venture should arrange an effective
training and developmental programme for smooth functioning of its activities at terminal 5 as well.
This programme would ensure competencies on the part of staff appointed as well as the mentioned
airlines, which will assist in rendering quality or standardised services on the arrivals and departures
of travellers. Moreover, the hike in prices for diesels has led to an increase in the ticket fares of
concerned airways group which has resulted in decrease in number of premium travellers. This
decrease in number of travellers and their booking has adversely affected the earnings of British
airways. Also, it has not gained desired or expected success in the diversification activities that it has
undertaken. This shows a major part of cited firm's weakness. These weaknesses are essentials to be
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Illustration 1: Porter diamond model
(Source:Diamond Model (Michael Porter), 1990)

overcome by the present airlines group, or else, it may face devastating results as an impact of the
same and ruin the brand image in the market that it has created in past years, which in turn would
result in customer turnover (Durand and Madsen, 2017).
Moreover, when the local supporting industries and suppliers are competitive, home countries
organisations will potentially get more cost efficient and receive more innovative parts and products.
This will potentially lead to greater competitiveness for British Airways (Diamond Model (Michael
Porter), 1990). For example: Europe aviation industry benefits from highly competent pool of
related businesses and industries which are strengthened the competitiveness of the European
aviation industry world-world wide. These major chances determine the scope or potential available
for a venture in the current given market related to its operational activities. BA can serve more
numbers of customers by attracting them towards providing travelling experiences with the venture at
reasonably low and cheaper rates. This can ensure the airways to gain a competitive advantage in the
market. In order to increase efficiencies as well as profitability, it can replace its old or existing
aircraft with newly technologically renewed aircraft. An improved as well as enhanced services
provided to the customers during their travelling experience can assist the mentioned British airways
to achieve its well defined as well as long term objectives (Haynes and Eccles, 2017). The firm also
lies with opportunities of expanding its airlines to different parts of world. Effective advertising
campaigns can be adopted in order to create awareness and recognition of the brand among the wide
range of travellers from different countries. This can lead to a good image building and an increment
in its value of goodwill, which is an intangible, but an important asset for a firm. Increase in
economic development of countries have also provided major competitive business environment
which influence the operations of British airways.
Firm strategy and rivalry is another determinant of this model which states that structure and
management systems of British airways can potentially affects competitiveness. German firms in
aviation industries are often time very hierarchical which has resulted in advantages within industries
such as engineering In comparison, Danish firms are often times more flat and organic, which leads
to advantages within industries such as biochemistry and design. These macro environmental factors
include the prices of fuels. Fuel and diesel are considered to be important resources for the conduct of
operational activities of airways, thus, an increase in the rates of fuels, has considerably increased the
rates of tickets by mentioned entity, which has adversely affected its number of customers and their
buying decisions. Also, the increasing taxation policy adopted by Britain government has compelled
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the mentioned British airways to pay more taxes, as a result of which the cost of undertaking business
activities has increased for the firm, thus minimising its profits (LÊgreid, 2017). Along with these
factors, fluctuations in the exchange rate over a particular period has resulted in creating negative
impacts on the earnings of mentioned venture.
All these together represents the SWOT analysis of British airways, which states its strengths
over competitors and weaknesses that it should overcome, the opportunities of growth that lies with
the firm in the market and the threats it has to face from its competitors . All these factors can assist
the venture to adopt an effective strategic management practice to be adopted to achieve its
organisational goals and objectives.
In order to undertake effective strategic management activities in an British airways, there is a
need to determine various factors that affects the operational activities of a venture. Along with the
above mentioned two tools of strategic management, i.e. PESTEL, SWOT analysis and five forces or
factors mentioned by Porter in its analysis can also be used to determine the various factors that
define business environment of mentioned British airways, i.e. British Airways. A detailed evaluation
of all the five forces is present as under:
Porter five force models Bargaining power of customers: The services that are provided by the mentioned airlines are
rendered directly to the customers. Thus, the bargaining power or concentration of power in
the hands of customers is strong. The suppliers are required to charge reasonable prices or
fares for its tickets and the services rendered must be in accordance with the prices that have
been charged (Gans and Ryall, 2017). In other words, such a concentration of power in the
hands of customers, required the cited business British airways to offer better deals. Thus, it is
analysed that customers have strong bargaining power and organisation needs to provide high
quality service at lowest prices to attract the customers towards business. Bargaining power of suppliers: The suppliers of BA for various requirements to undertake
operational activities are generally moderate. The major suppliers for mentioned firm are fuel
suppliers, food and beverages companies who supply their products to the airlines, etc. a
collective bargaining mechanism has been adopted by present British airways in order to deal
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with its suppliers (Mastropieri and Scruggs, 2017). In spite of adopting collective bargaining,
the power of suppliers is higher for BA as there are limited numbers of suppliers available in
the market, which reduces the availability of substitutes, thus, leading or compelling the
mentioned venture to operate as prices decided by suppliers. Thus, it is analysed that there are
large number of suppliers in Aviation industry of UK therefore power of suppliers to
negotiate with the BA is low and they cannot demand high prices for their services. Threat of new entrants: The entrants are the biggest threats that have to be managed by cited
airlines in order to gain competitive advantage. New entrant brings differentiated offerings for
customers available at cheaper or reasonable rates. This requires BA to timely introduce
innovations as well as creativity in its offerings, in order to maintain its current position over
competitors in the market. The entry of new entrants depends on various factors of a
particular industry, i.e. the scope available in the market, availability of supply as well as
distribution channels, Policies that regulates a particular market, etc. (Papke-Shields and
Boyer-Wright, 2017). Thus, entry of new form in the industry is difficult, but, the new
entrants have a long lasting impact on the operational activities of BA Competitive rivalry: The competitors are the biggest threats that can operate in an economy
ion any business venture or sector. Other competitors try to attract the customers of cited firm,
which is the only strategy that can lead to generation of earnings for a competitive venture. In
other words, stealing the customers is the ultimate objective of other organisations operating
in the context of airlines industries in UK. Thus, to avoid this competition, BA has merged
with various airlines industries to provide an enhanced range of airline services to its
customers and generate profits (Harrison and Short, 2017). BA has merged its operational
activities with Spain's Iberia airline, in the year 2011, which has resulted in expansion as well
as diversification activities of the venture. In order to compete with its rivals, the mentioned
firm is required to ring innovations in its offerings. These innovations can differentiate the
airlines and its offerings from its competitors (Aguinis and Bradley, 2017).
 Threat of substitutes: Substitutes defines the availability of options for the customers against
a particular product or service desired by them. It determines the level of ease at which the
customers can switch off from one brand to another, in respect of paying for better services or
benefits. There are numerous substitutes that are available for mentioned airlines. These
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substitutes provide a range of similar services to the customers and that too at competitive
prices. Thus, it is essential for the cited British airways to ensure customer satisfaction, which
would lead to generation of loyalty among the customers. This loyalty can be generated by
providing a high range of effective travelling experience with British Airways to the travellers
and charging reasonably for the services that are being provided (Deresky, 2017). Also, along
with quality of services provided as well as cost to be paid by customers, the time taken to
reach the desired destination of travellers is of utmost importance. Technological
advancements must be undertaken in the context of achieving this requirement, as new
technologies are less time consuming.
These forces can be analysed by British Airways in order to determine its power over its
competitors, customers and suppliers, thus, adopting a strategic management tool in accordance with
the same, in respect of generating more beneficial outcomes for the British airways. Strategic
management as well as analysis is an important concept in the context of any business British
airways. The analysis undertaken in this report through various approaches, viz. PESTLE, SWOT
and Porter's five forces, critically evaluates the nature or characteristics of British Airways, which
may assist the firm to take necessary actions or decisions regarding the operational activities carried
out overtime (Schaltegger and Petersen, 2017).
CONCLUSION
The present report critically evaluates and concludes the importance of strategic management
in a business British airways and different tools or analysis that can be used in order to undertake
effective strategic analysis. It represents the identification as well as evaluation of SWOT, PESTLE
and Porter's five forces analysis. The SWOT analysis concerns with determining the strengths as well
as weaknesses and opportunities plus threats that lies with the concerned British airways. This
analysis assists the venture to determine its strategies in a way which can bring more fruitful results.
The PESTLE and Porter's forces analysis deals with determining various macro environmental
factors or external factors that affects workings of an British airways. While, PESTLE deals with
political, economic, social, technological, legal as well as environmental factors, whereas, Porter's
deals with five forces, namely, power of suppliers, competitors, customers, new entrant and
substitutes on the workings of an entity. All these tools together lead to generation of beneficiary
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results in an British airways, thus adopting an effective strategic management activity for the British
airways.
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