Strategy Thinking of British Airways

Added on -2020-07-23

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INTRODUCTIONStrategy is a art of designing an effective plan for encouraging entire association towardsattainment of company goal in a define time period. However, aviation industry believes inmaking an appropriate schemes by considering internal and external factors which affects thesuccess or development of an enterprise. British airways is one of the famous organization due toits best qualitative products as well as on time services (Kapferer, 2012). Therefore, this report isgoing to throw lights on business environment of an association in order to understand the actualmarket positioning of an enterprise at marketplace. Moreover, conduct internal and externalanalysis of selected firm for enhancing their company performance by overcoming issues whichinfluence the success of an organization. Current strategies and its effectiveness is also outliningin this project as well as highlight relevancy of strategy in overall industry development. TASK1.) Analysis of business environment.British airways is an Airline industry with which they are serving million of people andsatisfying their needs and demands in right context. The firm is making various strategies whichis helping them to have an effective working. Although British Airways are such which is beinga first choice of people to travel and to grow in various cities as which will help in achieving topposition in London (Zahra and Nambisan, 2012). Strategies in current scenario.Therefore, they bring innovation and creativity in their services so that customers needs andimprovement in revenue can be seen. Business also looking in to have a global presence in cargoeconomy somewhere it also plays an supporting role for entity. According to current scenario ofstrategies the BA is having is related to strategies of customer friendly. Hence, with this kind of step a benefit will be there for airline business is like BAimplemented a facility to their customer as keeping them update about flights through text ormail and somewhere this facility is only for business class passengers, with this conveniencewould be seen for customer as they will reach on time (Goetsch and Davis, 2014). The cons ofthis strategy is that it is not applicable for economy passenger. Although British Airways goingto modify their planes and more comfortable. Moreover with such implementation the customerare getting attracted and using their services. 1
PESTEL analysis of British Airways.It is required to have an PESTEL analysis of company which will help in knowing theenvironment of business in which they are working. PESTLE stands for (political, economical,social, technological, environmental and legal) which help company to know that which factorsare there which is affecting British Airline to work in proper manner. These are as follows: Political: This environment is required to be analysed as because this help in gettingfamiliar with laws and regulations. There are various political issues like terrorism andsmuggling, which has to be controlled by security and make everything happening safer.Therefore, for such thing BA always make measures to prevent everything from terrorismactivity (Goldman and Casey, 2010).Economic: Economic condition of UK is not so good from past few years as because ofBrexit and Pound prices went down. Fluctuation were there in inflation which brought affect ontrading and such thing affected the oil prices for BA and there was suddenly a rise in exchangingrates. In such situation the Dollar got more stronger and affected the BA in great way. Hence, itlead to price continuously went to decline and with such scenario competition increased. Social: Although it is needed to analyse population and capability to spend money inluxurious. Because, many people not being able to spend good amount on luxurious things.Therefore, when the unemployment increased with the decline in economy it directly affect theleisure business and thus airline industry is kind of leisure industry. Bargaining power of peoplehas increase which is a social activity of customer (Brocas and et. al., 2014). Technological: Company through research come to know that people recently startedbooking tickets online which is helping them to compare the prices of industry and making themto choose the cheapest source of flight. BA is ensuring that more to more people can come toknow about this technology. Environmental: BA is aware of not making any environmental destruction and thus theykeep and control many things like noise pollution and making a energy consumption. Even theland area used by airline industry is in control and not thinking to expand because somewhere itwill affect environment as well. Legal: Relation of employees with the company should be healthy to avoid any kind ofstrike as because in case of British Airways the Cabin crew strike in the most serious trade union2

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