British Airways Strategic Planning Report: A Comprehensive Analysis

This report provides a comprehensive analysis of British Airways' strategic planning, examining how the airline formulates and implements its business strategies to achieve its vision and mission. The report delves into the importance of vision, mission, goals, and objectives in informing strategic planning, and it evaluates the factors that must be considered when developing strategic plans, including internal and external factors. The effectiveness of various techniques like SWOT, PESTLE, and Porter's Five Forces is assessed, highlighting their role in identifying strengths, weaknesses, opportunities, and threats. Furthermore, the report analyzes appropriate future strategies for British Airways, such as competitive and interactive strategies, along with alternative strategies like market entry, substantive growth, limited growth, and retrenchment. The roles and responsibilities of HR personnel in implementing these strategies are also discussed, along with the estimated resource requirements. Finally, the report includes an organizational and environmental audit of British Airways, and the significance of stakeholder analysis in strategy formulation is explored, providing a holistic view of the airline's strategic positioning and planning processes.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1 ............................................................................................................................................3
1.1 Evaluate how visions, missions, goals, objective and set competencies inform strategical
planning..................................................................................................................................3
1.2 The factors that have to be considered when formulating strategic plans .......................4
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans5
TASK 2 ...........................................................................................................................................5
3.1 Select an appropriate future strategy for British Airways PLC and evaluate the
effectiveness...........................................................................................................................5
3.2 Analyze the appropriateness of alternative strategies......................................................6
TASK 3 ...........................................................................................................................................7
4.1 The roles and responsibilities of personnel (HR) for implementing a specific strategy. .7
4.2 The estimated resource requirements for implementing a new strategy..........................8
4.3 The contribution of S.M.A.R.T targets to the achievement of strategy implementation 8
TASK4 ............................................................................................................................................9
The strategic positioning of British Airways by carrying out an organizational audit..........9
Environmental audit for British Airways.............................................................................11
The significance of stakeholder analysis when formulating new strategy...........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................15

INTRODUCTION
Strategies are formulated by the organizations so that they can attain their vision and
mission in an efficient manner. Business strategies are related to the long term plan and practices
that are used by the firm so that their overall growth can be improved. The executives have to
focused on the resources when they are implementing any plan so that competitiveness can be
achieved (Scholes, 2015). Through these strategies, company will be able to fulfil the demand of
their stakeholders so that their financial growth can be enhanced. The present report is based on
British Airways which perform their operations in aviation industry. They are formulating their
plans so that they can increase the satisfaction level of their consumers. In this context, report
explains the process of strategic plan and how some factors affect the performance of an
enterprise. Along with this, it explains the approaches that are used to evaluate the strategies.
TASK1
1.1 Evaluate how visions, missions, goals, objective and set competencies inform strategical
planning
Strategic planning is basically an activity of organisational administration which is used
to set high status, resources and energy, to strength operations and to make sure that employess
and shareholders are working to achieve common goals (Rothaermel, 2015). There are various
types of visions, missions, goals, objective and set competencies are being used to achieve
strategical planning. British Airways have five strategic goals to achieve like to be the first
choice in airline for long wait premium customers, to deliver excellent services at every point, to
grow presence in various cities, to stand on top in London, and to satisfy customers needs and
maintain margines by new stream of revenue. To achieve such goals, they have certain missions,
visions and objective:-

Missions: British Airways always make sure that their customer should fly confidently to
any destination and they ensure that together they will behave responsibly to take care in the
world they live in. This mission of them does not only represent that they are an Airlines
organization but they are a dutiful corporate company (What Is Strategy and Why Is It
Important?. 2017).
Visions: There vision is to be the dutiful airlines in the world, that is responsible for
customer needs, they want to be the indisputable ruler in the world, and be the esteem airlines in
famous cities.
Objectives: Main objective of British Airways is that they want their customers to
choose them again and again, wants to give premium and good quality services to each
customers and to be at the leading position in the airlines sector across the world (Higgins, Omer
and Phillips, 2015).
1.2 The factors that have to be considered when formulating strategic plans
Success of any organization depends on the strategic plans that is made by the company
because these plans take an organization towards a specific direction. Several factors that
determine the strategic plans of British Airways are :-
 Internal Factors:- These factors are those which are inside the organisation, they may
be culture of organisation, ethics, strategies and policies (Kourdi, 2015). These factors
must be taken into consideration to form a successful strategic plan so as to achieve long
and short term goals.
 Stakeholder:- The major stakeholders are managers, employees, customers, creditor,
supplier, community and government. Each one of them have different expectation that
that affect the business.
 External Factors:- These are those factors that are not controlled by organisation and
they are outside of it. These factors are like political, social, cultural and technological.
 Political Factors:- These are like government policies, laws that affect the organisation
in one or other way, it may include various TAX policies, VAT, that are affecting British
Airways.
 Economic Factor:- Economic factors are related to the countries wealth and the ability
of customer to buy products and services. This focuses on interest rate, consumer debt

level, unemployment level that influence customers decision of spending (Carraher and
Paridon, 2015).
 Social Factor:- These factors are related to choice, tastes, demands of customers that
vary from one customer to another. British Airways PLC improve their quality of
services, workforce to have positive impact on society and environment.
 Technological Factor:- These factors basically focus on discount and offer that is being
given by British Airways to their customers to save their time and cost. It includes all the
products and services that is being offered by company.
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans
British Airways using many techniques and models in order to develop an effective
strategic plan. Through these, manager will be able to expand their business in the market so
their growth can be improved. There are some techniques such as:
Swot analysis: This tool is used by the manager of British Airways so they will be able to
identify their internal strength, weaknesses and external opportunities, threats. When they expand
their business in another country then they can use their strength and grab the opportunities in
order to sustain their competitive advantage (Morris and et.al., 2015). Along with this, they can
control over their weaknesses so that their performance can be improved. Advantage of this
approach is that the airline industry can gain the competitive advantage in the market.
Pestle analysis: This is the another technique that is used by the organization as through
this they can analyse the factors that externally affect their performance. Through this, airline
industry will be able to identify the political, economical, social, legal, technological and
environmental factors. On the basis of this, company can manage their operations so that their
overall performance can be improved.
Porter five force: This is the tool that is used by British Airways so that they will be able
to identify the factors which may influence their activities. This model is based on some factors
such as bargaining power of seller, bargaining power of buyer, threat from new entrant, threat
from substitute and inter firm rivalry (Pisano, 2015). Through this, they will be able to make the
appropriate strategies that are helpful in improving their performance.

TASK 2
3.1 Select an appropriate future strategy for British Airways PLC and evaluate the effectiveness
The main goals of British Airways are to create a strong base customers, to provide high
quality services to their service users, to improve growth in the market and so on. There are some
other strategic objectives of the airline industry that to expand the business and offer the quality
services to the passenger as per their requirements. In order to expand the business in other
competitive market, manager of the organization has to focus on their workforce because these
are an important asset of the company.
It is the responsibility of manager to provide training and development to their staff
members so that they will be able to enhance their skills and knowledge (Torrent-Sellens, 2015).
If their core competencies get improved then they can provide quality services to their
customers. Through this, British Airways can increase the satisfaction level of their passengers.
Along with this, the airline industry can use competitive strategies in order to perform better than
their rival firm. By identifying the competitors strategies, an enterprise will be able to attract
more customers towards their services. Apart from this, they can use interactive strategy as their
future strategy. On the basis of competitive strategy and skilled workforce, the organization will
be able to increase their market share in London. Further, they can build their relations with other
organizations and their customer by implementing the interactive approach (Elements of a
Business Plan. 2017).
3.2 Analyze the appropriateness of alternative strategies
The airline industry can use other alternative strategies in order to improve their
performance in the market. These strategies are: Market entry: This is an appropriate strategy that is used by the organization in order to
expand their business in other market (Lussier and Corman, 2015). There are some
strategies that are used for entry such as joint venture, merger, acquisition, franchising,
licensing and strategic alliances. Through this, an enterprise can establish their business
in another market so their brand image can be improved. Substantive growth: This kind of strategy can be used by British Airways in order to
improve their growth. For this, the airline industry can use horizontal and vertical
integration. Along with this, they can also use diversification strategy in order offer new

services into the new market. The advantage of this theory is that they can increase their
growth in future and through this they can achieve success so their overall performance
can be improved. Limited growth: This type of alternative approach can be used by British Airways so they
their problems that they are facing in the market (Ibrahim, Dumas and McGuire, 2015).
Some of the issues are related to the financial loss, low growth. So through this approach,
the manager will be able to improve their performance and overall goals can be
accomplished. For this, they can use market penetration and product development.
 Retrenchment: This strategy is used by the airline industry when they will not be able to
increase their market share due to high competition in the market. At this time, they can
asset reduction strategy, cost minimization strategy and revenue generation approach.
TASK 3
4.1 The roles and responsibilities of personnel (HR) for implementing a specific strategy
When British Airways implement any strategy than it is the responsibility of HR manager
to effectively manage the work of all staff members. They are one who deal with all employees
so their overall performance can be improved and they will be able to achieve their goals
(Rosemann and vom Brocke, 2015). Some of the roles and responsibilities of the personnel are:
 It is the role of personnel to communicate with all the employees so they will be able to
know that what they have to do in order to achieve the goals.
 HR manager has to motivate their workers towards the strategy that is implemented by
the organization so that they can perform well.
 The personnel has to focus on the relationship among all the employees so trust can be
build and through this their performance will get enhanced.
 All the resources should be allocated and distributed in an efficient manner so they will
be able to gain high revenues.
 The Manager has to evaluate the performance on continuous basis so they will be able to
know that how goals can be achieved and what next is to be done by the company so that
they can improve their future growth.
 It is the responsibility of personnel to identify the changes that occur after
implementation of the strategy (Tarhini, Al-Dmour and Obeidat, 2015). After identifying

the changes, strategy can be implemented in an efficient manner so that overall goals can
be achieved.
4.2 The estimated resource requirements for implementing a new strategy
When British Airways implement a strategy then they need some resources such as
human, financial, raw material so that their overall performance can be improved. By using
these, company can expand their business in the market. These resources are:
Human resources: These are an important asset of the organization who help them in
attaining the goals. Manager has to retain their workers in the organization so that their overall
performance can be improved and they will be able to gain more benefits (Young and et.al.,
2015). For this, manager of British Airways has to trained their employees so that they can
perform well.
Financial resources: These resources are related to the capital, cost and investment of the
organization. Through these, British Airways will be able to purchase the material and pay the
salary to their employees on time. Along with this, manager can increase the satisfaction among
the workers.
Raw material: These are material that are required to order to provide the quality services
to the customers. The manager can offer the quality and luxuries services to their passengers
(Lai, Melloni and Stacchezzini, 2016). If company will purchase raw material in bulk than they
can minimize their cost and through this profits will be maximized.
Technological resources: These resources are related to machine, tool, energy and so on.
Through the technological advancements, firm will be able to offer more innovative and quality
services to their customer. All staff members should be trained so that they can handle all the
equipment in an efficient manner.
4.3 The contribution of S.M.A.R.T targets to the achievement of strategy implementation
British Airways can use SMART objectives in order to set their targets. Through these
goals, organization will be able to set a direction for their employees. Along with this, a business
organization can achieve success in the market. These SMART objectives are stands for specific,
measurable, achievable, realistic, time. These are:
Specific: All objectives should be clear and specific so employees will be able to
understand the goals (DeMartino and Barbato, 2015). Through this, they will be able to know

that how operations needs to be done and in what manner. For example, company can set a
objective like to increase the market by 1% at the end of the month.
Measurable: Objectives should be set by the top executives so that they can be measured
in an efficient manner. Along with this, it is related to the quality, quantity and the cost of the
services. For example, British Airways can measure their performance in every week so that
future profits can be forecast.
Achievable: The manager has to assess their employees that they are able to perform the
task in the business environment or not. Along with this, they have to examine that at the end of
year then can accomplish their task.
Realistic: When an employee set their goals then those targets should be realistic in every
manner. If an organization doesn't have sufficient resources, time then they will not be able to
improve their performance (Trevisan, 2016).
Time bound: Every objective should be set as per the time line or deadline so that their
overall performance can be improved. For example, British Airways can increase their market
share by the 10%. Here, 12 months is a time line.
(Source: SMART Objectives, 2017)
Illustration 1: SMART Objectives, 2017

TASK4
The strategic positioning of British Airways by carrying out an organizational audit
The manager of British Airways can conduct an organizational audit so they will be able
to identify their position in the market (Arena, Azzone and Bengo, 2015). For this, they can use
SWOT model in order to identify the strength, weaknesses, opportunities and threats. The
organizational audit is:
Strength: These are the characteristics of an enterprise which can lead them towards the
success. Through theses, they will be able to perform better than their competitors. These
characteristics are:
 The brand image of British Airways is strong in the market so they have a strong base of
loyal customers.
 The airline industry operate their business in many countries and along with this they
have approx 150 destination through the world. They provide quality services to their customers in the flight.
Weaknesses: These are the characteristics through which British Airways will not be able
to improve their services in the market (Levenburg, Schwarz and Motwani, 2015). Some of these
are:
 When fuel prices are get increased then due to this the ticket of flight is also get
enhanced.
 British Airways will not be able to provide training to their staff members so due to this
they will not be able to deal with their passengers in an efficient manner. Competition is there is market so due to this they will not be able to achieve the
competitiveness.
Opportunities: These are the characteristics through which an organization can sustain
their competitive advantage in the market. These opportunities are:
 British Airways can perform their operations in many other international destinations. The airline can provide services to the customer at low cost so that their demands can be
fulfilled.
Threats: There are some factors which can influence the performance of British Airways
and through this they will not be able to fulfill their goals. These are:

 When the rate of fuel is get increased then it also affect the prices of the ticket this is a
biggest threat of company.
 When global recession arise then it will affect the air transportation of the organization.
Environmental audit for British Airways
Environmental audit is a tool that is used by the organization so that they can identify
their position in the market. Through this, British Airways will be able to identify the factors
which may influence their performance. For this, manager can use PESTLE analysis. These
elements are:
Political and legal: These factors are related to the foreign exchange, trade activities and
so on. If political stability is their in country then British Airways will be able to improve their
growth in other country. Along with this, they have to follow some of the legal laws so that they
can improve their performance.
Economical: These factors are related to the economic condition of the country as these
can also affect the growth of the airline industry (Ghezzi, Cortimiglia and Frank, 2015). For
example, when oil prices get increased then the price of ticket is also get increased.
Social: These factors are related to the needs, lifestyle, preferences and demand of their
customers. So, the manager of British Airways has to identify the requirements of their service
users so their overall performance can be improved.
Technological: By using the technological advancements an organization will be able to
attract their customers towards their services. For example, the airline industry can use arrival
management and departure management system.
Environmental: These factors are related to the environmental safety and the
organizations have to follow the rules that are made by the government. Now, government limit
the radiations and their growth.
The significance of stakeholder analysis when formulating new strategy
British Airways can use stakeholder analysis in order to identify their roles in the
decision making process. For this, manager can follow a systematic process. In the first step,
manager identify the people who are associated with their operations and their demands. People
who have high power and high interest they are closely associated with British Airways. On the
other hand, if people have low interest and low power then they are highly associated with the

enterprise (Young and et.al., 2015). Through this analysis, an enterprise will be able to role of
stakeholders in the decision making process.
CONCLUSION
From the above carried out analysis it has been concluded that business strategy is an
important factor of the organization as through this they can fulfill their goals. There are many
factors which may affect these strategies such as leadership, employees and so on. British
Airways can use SWOT and pestle model in order to identify their position in the market.