Business Strategy for British Airways

BUSINESS STARTEGY
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Internal and external environment analysis by using appropriate frameworks......................2
Information interpretation gathers from macro environment analysis and it’s used for strategic
decisions.................................................................................................................................9
Assessing strengths & weaknesses of British airways in context of management directions and
judgements..............................................................................................................................9
VRIO framework and value chain analysis to identify internal abilities and environment of
British Airway........................................................................................................................9
TASK 2.........................................................................................................................................12
Application of porter five force model to evaluates competitive force of given market.....12
TASK 3..........................................................................................................................................16
Range of theories, concepts and model to interpret and device strategic planning for
organisation..........................................................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21
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INTRODUCTION
Business strategy can be defined as long term plan of act that can be designed and
developed by management to achieve a specific aim and objective of ventures. It develops a
direction and clear vision for overall companies. It can prevent firms from losing sight of their
ventures goals. The current assignment will be based on British Airways, which falls under list
of well known airlines in the United Kingdom. This study will explain influence and impact of
macro environment on chosen brand and their venture tactics. It will define internal environment
and abilities of company by using appropriate models and concepts. Furthermore, this report will
assess strength and weakness of firm for strategic administration directions and decisions.
It will define application of Porter’s five forces concept in context of evaluating
competitive atmosphere and forces. This assignment will clarify right tactics in regard to British
Airways and will also justify interpretation of data collect from competitive analysis. Moreover,
this study will describe strategic management plan for selected airline with correct strategies,
objectives and tactics. It will provide further suggestions base on overall analysis either external
or internal as well as define varied forms of strategic priorities that are accessible for
organization.
TASK 1
Internal and external environment analysis by using appropriate frameworks
Visions-
British airways is one of the best flag carriers airlines in the world, it fly across the
universe for more than 90 years successfully (Efthymiou and et.al., 2019). It consider as full
service international airline who offers low fares services to passengers with wide global path
flying to and from central established airports. Firm act according to its vision and mission
statement, they want to become number one responsible brand in aviation industry.
Missions-
British Airways want to assure its passengers that he or she fly with high confident that
individual can receive better services and safe journey without facing any issues during their
journey.
Objectives-
 The main objective of British Airways as no one airline is to provide satisfactory services
to national as well as international passengers (Law and Breznik, 2018).
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 Second objective of chosen airline is to boost their brand image and grow venture
presence in key global regions or cities.
 Third one is to meet needs and preference of customers through new approaches.
 Fourth objective of company is to become a global leader by sustaining on its leadership
position in the whole world.
In order to achieve above set objectives, vision and mission, British airways can develop
effective strategies and use varied strategic planning approaches that can help to overcome
negative impact of external and internal factors. Firm can determine all elements via conduct
macro and micro environmental analysis and for that thing they can utilize varied types of
strategic frameworks, following are;
PESTLE analysis-
Macro environment is a situation that exists in economy as entire, more than in specific
industry or country. It includes different factors like inflation rate, spending, GDP etc, which can
influence current tactics and decision making, act of companies. Ranges of approaches are
accessible in the world of business that can be utilized for macro environment analysis purpose.
PESTEL is one of the best models among list of many in context of this action as it help to
chosen airline to determine and examine which factor bring benefits for its business or which one
is not. It mostly use for situational analysis process as it aid to determine key external elements
that influence overall practices of firm, either in negative or in positive manner (Shtal and et.al.,
2018).
Political factor-
Political stability & instability, changes in policies and regulations related to aviation
industry and operating restrictions from government side are included in list of political factors
that can have an effect on current plans and tactics of airlines like British Airways. Political
stability is one of the main elements that can put positive impact on success and progress of
chosen firm in term of developing business friendly atmosphere and creating rules on entire
aviation sector in a region (Łęt, 2020). This factor allows company to operate in and enter into
profitable market like US, where they can increase profits margin even better.
Economic factor-
Economic growth, education level, unemployment rate, changes in fuel prices and
exchange rate are examples of economic factors. Unemployment in one of the components that
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put positive effect on hiring and selection strategies of British Airways as well as give firm the
best chance to hire those people who have knowledge and skills require for cabin crew staffs and
in other departments (Dinçer, Hacıoğlu and Yüksel, 2017). Firm due to this factor can develop a
further plan through which they can recruit skilled applicants who can serve passengers services
according to their needs that increase customer’s satisfaction.
Figure 1PESTEL Model
(Source: What Is the PESTEL Model for Business Analysis, 2019)
Social factor-
Life style changes, demographic modifications, preferences change and income level of
individual are all social factors. Changes in dietary and eating habits of passengers influence
flight services and food distribution strategy of British Airlines in negative manner. In recent
time, due to health issues people change the way him or her eaten and purchase food items
(Reynolds and et.al., 2019). This change can impact service providing procedure of air hostess
negative because without understand and determining eating habit and likes of passengers
workers could not be able to serve right food item to individual as it can influence their physical
and mental health.
Technology factor-
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Advancement of technologies influence and impact British Airways marketing strategies
and plans positively, it help to generate brand awareness and gain attention of international
passengers towards existing offers of firm (Ziegler, Troester and Sazali, 2017). Due to this
factor, marketing team experience positive things they feel stronger and powerful in term of
developing effective & attractive tactics that lead to increase sales level even better. With
advanced technology like social media channels and platforms, firm can develop an official
website where workers can update each information about business and offers on time that allow
people to known even better about company and compare their service level with other airlines.
Legal factor-
Equality Act 2010 is one of the legal factors that can impact British Airways
administration practices and decision making process positively. It allow firm to develop a plan
and policy through which they can protect workers especially cabin crew members from
discrimination in aviation sector or at workplace where more than 42,322 applicants perform and
accomplish his or her daily duties with sweet smile on face.
Environmental factor-
According to situation of environment, customers and government are more concern
about environmental safety and they put more pressure on well known airline like British
airways to reduce their carbon footprint. It can influence existing strategies of company in
positive manner in form of building excellent brand image within overall sector and boost
productivity level more than other airlines in the London.
Stakeholder matrix-
It is the best strategic management tool that can be utilized to examine stakeholders who
can impact operations, management decision and business strategies (Balane and et.al., 2020).
This model can help British Airways to identify actions and activities conduct by individual
stakeholder that can influence set aims.
Keep satisfied-
All the stakeholders are essential for British Airways and play important role in different
decision making act of firm. But Government is special one because they able to make current
and further changes within existing practices of airline by making change in current laws as well
as regulations developed especially for aviation industry (Spasojevic, Lohmann and Scott, 2019).
Because of that reason, organizations should keep this stakeholder satisfy and inform about every
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