British Airways: Evaluating Technology and Sustainability for Change

This report critically evaluates contemporary management issues at British Airways, focusing on the impact of technology and sustainability as key drivers for change. It provides a background of the company and analyzes the impact of these drivers on strategic decision-making, including discussions on the pressures for change and the company's current responses. The report incorporates PESTLE and SWOT analyses to determine the effects of internal and external factors. Recommendations are offered on how British Airways might enhance its response over the next decade. The report examines technology's influence, such as on-board Wi-Fi and remote-controlled devices for improved operations, and sustainability's impact, like managing environmental conditions through noise reduction and fuel efficiency initiatives. Overall, the report provides a comprehensive analysis of the challenges and opportunities facing British Airways in the context of contemporary management issues.

CONTEMPORARY
MANAGEMENT ISSUES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critically evaluating two drivers for change with reference to British Airways and their
impact upon strategic decision-making.......................................................................................1
Background to company.............................................................................................................1
Driver 1: Technology..................................................................................................................1
Driver 2: Sustainability...............................................................................................................5
PESTLE Analysis.......................................................................................................................8
SWOT Analysis..........................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Contemporary issues in management are important elements which are required to
adhered for smoother performance of company. The topic is listed with contemporary
management issues which means to examine way of thinking required for addressing issues as
they emerge. Present report deals with British Airways which is UK's largest airline corporation.
Background of company will be given. In this report, two drivers for change will be discussed
such as technology and sustainability. Critical evaluation of these drivers will provide clarity
with regards to how they have impacted company and how organisation is currently responding
to the same.
Moreover, impact of each of these drivers on airline will be explain along with nature of
pressures for change brought in by two drivers. Furthermore, critical evaluation of current
response of company will be provided in light of such drivers. Recommendations will be
provided on how British Airways might enhance its response over the next decade which will
improve upon its services. Thus, drivers for change with respect to British Airways will be
critically analysed. Furthermore, PESTLE and SWOT analysis will be conducted to determine
the impact of internal and external factors on firm.
MAIN BODY
Critically evaluating two drivers for change with reference to British Airways and their impact
upon strategic decision-making
Background to company
British Airways is the flag carrier in the UK and also the largest airline according to fleet
size carried by it. It was established in 1974 and headquartered in Waterside, UK. The employees
strength are more than 39,000 at the end of 2016. It flies to 183 destinations and main hub of
British Airways is Heathrow Airport, London. Organisation has earned £2,655 million of
operating profit in 2018 which is 18.9 % higher than 2017 (Calder. 2018). Moreover, company is
second largest airline by fleet size having 272 fleets behind Easy Jet particularly when measured
by total number of passengers carried. Airline is listed on the London Stock Exchange (LSE) and
also the constituent of FTSE 100 index.
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Driver 1: Technology
The technology is being major element which has changed the way airlines used to
operate in the past. Moreover, on-board internet facilities, departure and arrival information etc
are provided beforehand to customers. This helps passengers to track the flight status in effective
manner. The impact of technology is listed in below paragraph-
Impact of Technology
The technological advancement has been acknowledged in recent past which shows that
people are addicted to technology for easing-off their work with greater efficiency. The study
was conducted by British Airways which reveals that an average adult merely spends four hours
of each day on the internet. In relation to this, one out of every five persons admitted that they
are easily diverted towards internet-enabled device in effectual manner. British Airways has
found that 58 % of the travellers revealed that they rely on technology in which 54 % said that
being connected to Wi-Fi is the priority than travelling (British Airways survey reveals impact of
technology on everyday tasks. 2018).
For keeping customers awake, British Airways requires implementing newer
technologies so that they are attracted towards company and enlarged its share in the market.
British Airways is partnering with Visa to connect passengers on board having first Wi-Fi
enabled flights. This implies that for limited time according to scheduled time of airline to reach
destination, high-speed Wi-Fi will be provided. It will be free of cost for one hour in which
passengers can stream, browse made available by Visa. Access to Wi-Fi will be offered as soon
they have boarded to flight allowing them to gain comfort on their respective seat in effectual
manner.
Carolina Martinoli, Director of brand and customer experience of British Airways said
that impact of technology and internet have evolved up to a high extent in recent years. The tasks
that were once considered to routine activities are replaced by company on online basis. It can be
experienced that British Airways is dependent on internet and remains connected at all times
towards its passengers. It was further said by her that on-board passengers feel cut off if they
can't go online for limited time on flights. But with the advent of technology, firm can easily
meet customer demands in effectual manner.
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The study conduced by airline shows that average 40 % of British would spend one hour
of Wi-Fi for checking out posts on social media channels. While, 37 % said that they would e-
mail to their friends and family and three in ten used to read news. Remaining likes to do online
shopping, download and listen music and seek for TV. Reliance on internet has immensely
diverted people from old systems and they are addicted to it (Janic, 2017). This implies that
impact of technology has really impacted British Airways as it requires passengers to be served
with advanced technologies and they are relying heavily on making every customer satisfy
through effective services. The impact of technology on strategic decision-making is changed as
business is able to initiate changes which are the requirements of modern airlines. It provides
them to take faster decisions and as a result, better operations are possible.
Nature of Pressures for change
The pressure of change can be witnessed in the organisation as firm is required to adapt
technological advancement. For gaining an edge over competitors, change needs to be adopted
so that customer base may be enhanced by increasing productivity and efficiency of company.
The pressure for change is of great concern as British Airways was government owned airline till
1982 but was converted to private owned in 1987. It can be said that change has been adopted by
company in order to cope with increasing reliance over the technology for getting consumers
loyalty towards it. This means that technological advancement has been fairly adopted by
company.
British Airways has led change and has introduced high-tech remote controlled devices
for pushing back aircraft across its short-haul operations. The nature of this pressure for change
was to led airline modernised towards its operations by effectively improving punctuality for its
passengers. The airline is partnering with Heathrow, Eco-friendly Mototok tugs will pave British
Airways workforce for preparing aircraft for departure more easily in effectual manner (British
Airways pushes new technology in aviation first. 2017). It can be analysed that change is
significant as it will replace traditional diesel tugs which were operating and allowing single
ramp agent for pushing aircraft backwards from the gate remotely.
The airline requires adopting the technological change as it is a major driver affecting
company. It can be analysed that customers want online services right from booking their flights
to particular destination to availing on-board facilities in effective way. This means that
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technology has pressurised British Airways to make the most of it. It is done in order to derive
benefits in the form of increased profits in the best manner possible (Taneja, 2017). Furthermore,
to meet customer demands, requirement of technology-enabled services are of great concern and
putting pressure on management to adapt to changes for smoother experience.
The services such as flight departure schedules, getting SMS to passengers to be on-board
towards flights, flight assistance and delay in scheduled flights are informed to customers. These
services are providing customers with most preferred ones as they are able to track their flights'
status and as a result, they are able to attain satisfaction level. It clearly shows that nature of
various pressures for change have exerted British Airways to be in favour of adapting to change
so that it may be able to serve travellers across all flights. This will provide customers with
increased benefits and they will become loyal towards organisation.
Critical evaluation of current response of company
British Airways is heading for responding towards changed techniques which has
pressurised the airline to adapt it for remaining competitive in the market. It can be ascertained
that current response of corporate is to focus on providing Wi-Fi services to passengers when
they are in the air. For accomplishing this, it is partnering with Visa and it is introduced in the
market on selected flights (British Airways survey reveals impact of technology on everyday
tasks. 2018). The browsing, streaming of one hour and that too at no costs are provided to
customers. The main motto behind this partnership is to help guests stay connected anywhere
and everywhere on enlarged range of connected solutions (Kılkış and Kılkış, 2017). This proves
that British Airways is quite adequately responding to the hour of change.
Another current response of airline is to provide way for improving the flights' departure
in the quickest way possible. It has implemented high-tech remote controlled devices for
enhancing its short-haul operations. Mototok tugs applied which will allow staff of British
Airways to effectively prepare departure more quickly and comfortably. This is the impact of
technology which has pressurised for change in a better manner for improving customer
experience. Diesel tugs that were traditionally used has been replaced with Mototok tugs.
Currently, five Mototoks are operating at Terminal 5 at the Heathrow airport. In addition to this,
more than 100,000 passengers have attained benefits due to smoother departures quite
effectually.
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The flights can be boarded-off with punctuality particularly in short-haul operations.
Introduction of Mototok tugs have given good response to company in meeting their flights on
time without inculcating delays (James, 2017). This is the wider part of investment in new
technology which will surely enhances guests experience in future as well. Major benefit of
Mototok's electric battery is that it can hold up charge for next three days. Furthermore, charging
points are installed on each of the 25 stands at the Heathrow airport. This means that firm is
quickly responding towards technological advancement in a better manner and making better use
of the same for increased benefits.
Mototoks are crucial element of technology-driven strategy which is helpful in
minimising carbon emissions exhaled from airline activities. New electric and hybrid vehicles
along with charging points will make good impact on local environment. It can be said that
current responses by British Airways seems to be adequate and is making every possible way for
improving customer experience. It is also finding new technology-driven ways for ensuring
maximum on-board benefits are offered to them leading to make customers loyal in effective
manner.
Driver 2: Sustainability
The sustainability means how company is managing proper balance between its
operations and environmental conditions. It is required that strategic decision-making has
immense importance for firm so that it may not involve in degradation of environment in any
manner. The impact of sustainability on British Airways is listed below-
Impact of Sustainability
The sustainability is one of the key driver which has major impact on British Airways. It
can be analysed that are 92 % of British Airways' flights at the Heathrow airport, thus, it is
required that flights are managed in sound manner without involving for any degradation in
terms of sustainable terms quite effectually (Counsell. 2009). Environmental performance of
airline is of great concern which will help organisation to remain in the international aviation
market for significant long-term. The air travel has variety of environmental impact on the
company leading to raise significant issues such as noise, emissions and fuel efficiency,
congestion, waste, water and materials and tourism and conservation.
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Noise reduction of aircraft has been accomplished by British Airways over the years.
However, increase in number of passengers and aircraft movements have enlarged up to a major
extent rolling out maximising noise. It is required to make investments by airline for purchasing
quieter aircraft making lesser impact. In relation to this, Chapter 2 aircraft has been left out
leading to have louder noise. Firm has also produced new noise indicator highlighting an
estimate of total noise produced by aircraft during departures and landings. This means that noise
reduction estimate has been produced by organisation.
Emissions are another impact on environmental sustainability. It can be ascertained that
there is a forecast that aviation will be increased by 5 % year after year. Fuel efficiency has been
acknowledged and considered and it is likely that emissions are to be maximised. Main impact of
emissions are carbon dioxide production, nitrogen oxides which are emitted at cruise altitudes
and water vapour emitted at the same as well (Drosos and Skordoulis, 2018). British Airways
have developed way over it and developed more complimentary stock of carbon dioxide
emissions and making it under 18 million tonnes dominated by aircraft contribution.
Waste is another factor impacting environment from sources such as engineering office,
cargo waste etc. Per passenger waste produced will be of great concern to determine and reduce
the same. Congestion in terms of air traffic is another element in airline pertaining to problems.
Direct costs of these delays affects British Airways and cost more than £60 million. The tourism
and conservations is another environmental issue and airline understands impact created by
airline and needed to take responsibility for taking care of environment. Sustainable development
for the longer run is also to contribute towards betterment of economy and enhancing overall
efficiency.
Nature of Pressures for change
The pressure of change can be felt as for establishing sustainability in the best manner
possible manner, organisation requires minimising environmental impact. The carbon emissions
are to be controlled in a better manner leading to provide better air quality in the nature. Pressure
arises from the aviation regulators which imposes strict supervision over the functionalities in a
better manner (Charter, 2017). On the other hand, it can be ascertained that societal pressure can
also be seen in effective manner which provides clear view that sustainability terms are to be
accounted for by the company.
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In accordance to the climatic change, British Airways believes that aviation industry has
come to an end of breathing space and thus, sustainability issues will now be handled in a better
manner by it. Drive for efficiency is main sustainability motto which will signify how corporate
is adopting new techniques to continue capture good amount of share in the market. Controlling
carbon emissions and reducing noise of aircraft are one of these efficiency areas leading to
manage pressure exerted by the environment. Moreover, it is utmost important to address the
social and environmental issues in proper manner so that company may be able to attain
enhanced sustainability with ease.
Another pressure arises is that global aviation industry generates nearer to 2 % of human-
induced carbon dioxide emissions and as a result, it can be noticed that firm is required to make
commitments for reducing the same in its aircraft. British Airways has made an announcement
regarding investment in fuel efficiency and incorporating Eco-friendly technology in the best
way possible (Feng and et.al., 2018). This will provide company with better way to enhance its
airline with reduced impact on environment. This means that reducing emissions and other
environmental issues are required to be adapted by the management of British Airways which
will enhance operations of company in effective manner.
Critical evaluation of current response of company
British Airways is adapting to changes in order to remain sustainable for longer time
period. It can be critically evaluated that organisation is partnering with BAA (Baltic Aviation
Academy) for reducing variety of issues which impacts sustainability of corporate upto a major
extent. They have implemented targets for reducing impact of their operations in areas of carbon
dioxide emissions and waste. British Airways has made a target to enhance carbon efficiency up
to 25 % at the end of 2025. Longer target has also been set such as to reduce emissions by 50 %
by 2050. In this, emissions include such as buildings, ground equipment, vehicle emissions etc.
Cutting emissions and managing air quality during the operations are of immense
importance which has been effectively responded by firm (DOGAN, 2018). British Airways has
developed process for an aircraft to shut down particular engine for taxi-in after landing and
further developing process for taxi-out to runway with alleviated engines meeting safety
conditions. This consequently leads to minimise fuel burn, CO2 and nitrogen oxide emissions in
effectual manner. Moreover, as part of Terminal 5 at Heathrow airport, company has invested
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more than £25 million on fleet of 550 airport vehicles. In relation to this, new fleet has buses
specified to future Euro 5 exhaust emission standard including fleet of electric baggage tugs.
Zonal working for minimising amount of staff movements around the terminal have
significantly reduced number of vehicle movements. Remote monitoring with the help of
telematics technology is utilised for managing aircraft efficiency and automatic fuel management
system has been fitted at Heathrow for refuelling the same quite comfortably. This means that
firm is managing ground vehicle fleet for improving environmental performance at the airport.
Another measure being adopted by British Airways is that reducing noise prevalent at the
airports. Firm use the best practice for aircraft arrivals and supporting Interim Code of Practice
for departures. This new code will be helpful for minimising noise and emissions.
The sustainable fuels are used by company. British Airways have partnered with Velocys
which is renewable fuel organisation, for designing series of waste plants which will convert
waste from households to renewable jet fuel to power the fleet (Corporate Responsibility. 2018).
With the help of this project, numerous tonnes of household waste per year will be converted
into sustainable fuels. Another initiative carried out by British Airways is fuel-saving one. It
means that firm have lowered down CO2 emissions by more than 360,000 tonnes since 2014 by
minimising engines use for carrying out taxi, decreasing weight of aircraft and including printing
in-flight magazine with lighter paper. This means that organisation is constantly looking for
maintaining an edge over the fuel-saving initiative. On the other hand, it can be analysed that
business is focusing on building the way for maintaining better operations to improve services
offered to passengers. Furthermore, to reduce carbon emissions, fuel efficiency and noise
reduction are some important areas where organisation is constantly working upon to respond to
change.
PESTLE Analysis
Political (P)-
The frequent strikes from the trade unions in the UK have direct impact on airline
services and also brand image is affected negatively (BOSCH and et.al., 2017). Another political
influence is that after Brexit, UK airlines would lose influence over development of European
Aviation Safety Agency (EASA) legal framework in effective manner. These factors imply
direct political influence on the British Airways.
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Economical (E)-
Costs will be increased as third runway has been planned at Heathrow airport resulting in
shift of company's airport operational offices. On the other side, low fuel prices in the market
have resulted in rise in profits in the short-term. While, huge investments by UK carriers might
be reduced due to uncertainty posed by Brexit. Moreover, sudden collapse of sterling is another
economic factor affecting airline.
Social (S)-
The social factor is crucial one for organisation as it leads to analyse societal perspective
by the people. It can be ascertained that perception of people is changing and they are thinking
British Airways as a low-cost carrier. On the other side, economic downturn in the UK compels
travellers concerning about the prices up to a high extent (Abratt and Mingione, 2017). They also
look for value of money which would give them high quality of services at lesser costs.
Technological (T)-
Advancement in technology is a need of hour which increases customer's consciousness
as more efficient services can be availed by them. Investment in technology and warehouse
management system will definitely improve experience of passengers. Moreover, faster services
can be provided at lower costs. In relation to this, environmental mitigation technologies like
Arrival Management System, Departure Management System are implemented by British
Airways.
Legal (L)-
Legal factors such as airline regulations are progressively controlled. Choice of such
controls varies from issues related to infrastructure to routes flights and slot capacity. These are
build up in order to implement modern security and environmental needs (Park and Roome,
2017). On the other side, settlement payments are made to workers of British Airways with
regards to lawsuits. Thus, it can be said that legal factors are being imposed on airlines and strict
supervision is deployed on them.
Environmental (E)-
Environment has to be kept clean and thus, close supervision is done. It has been
mandated that airlines operating in the EU (European Region) have to purchase carbon pollution
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permits which affects British Airways as it has to purchase the same because it operates frequent
fleets in EU region. It also has to cope with climate change. Policy makers and government have
imposed limit on growth of radiations and emissions. This means that in order to continue the
services and operational activities in the market, such environmental regulations have to adhered
by airline.
SWOT Analysis
Strengths (S)-
Major strength of British Airways is its strong brand name and global identity which are
the backbone of company. It is also the market leader in the UK with large fleet size of 272. It
has economy of sales and synergy under IAG (International Airlines Group). Another strength of
airline is that it has technology integration with the services offered.
Weaknesses (W)-
The main weakness of company is that employees issues are of major concern for
because in past trade unions have alleged company of not providing pension for its employees
(Hashmi, 2017). This disruption had affected operations and customer relationships. Employees
have also resorted strikes towards low pay and allowances. While, airline has completely rolled
out old check-in systems and installed new systems causing infrastructure system issues.
Opportunities (O)-
Opportunities continue to pour in for British Airways as it can easily start its venturing
into international operations for maximising its customer base and increase in profits. It has
opportunity to implement business initiative to focus on quality of cabin crew and leading to
enhance passenger experience in the best manner possible (Blanca-Alcubilla and et.al., 2018).
Threats (T)-
The major threat to British Airways is facing intense competition from Middle East
airlines. These include Qatar Airways, Emirates, Oman Air and many other airlines affecting
firm and decline in market share. It is also facing competition from high-speed rail services being
provided to cover the distance in minimal time. This means that threats are high on British
Airways and its facing stiff rivalry.
RECOMMENDATIONS
Driver 1: Technology
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