Comprehensive Operations Management Report: British Airways Case Study

This report provides a detailed analysis of British Airways' operations management. It begins with an introduction to the company, its purpose, size, competitors, and recent performance. The report then describes the main operations in terms of inputs, transformation processes, and outputs, followed by an analysis of the four Vs of operation management (volume, variety, variation, and visibility). Furthermore, the report evaluates the five operations performance objectives (speed, quality, cost, flexibility, and dependability). The analysis extends to identifying key business processes, discussing process design objectives, pinpointing operational issues, and exploring solutions. Finally, the report considers how process control and feedback contribute to achieving company objectives. The analysis provides a comprehensive overview of British Airways' operational strategies and challenges.

Managing Business
Operations
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART ONE......................................................................................................................................3
Identifying the organisation purpose, size, competitors, target customers, target customers,
recent company performance.................................................................................................3
PART TWO.....................................................................................................................................5
Describing the main operation of the organisation in term of inputs, transformation processes
and outputs..............................................................................................................................5
Analysing the four V's of operation management..................................................................5
Evaluating the each of the five operations performance objectives which is vital for the
customers................................................................................................................................7
PART THREE.................................................................................................................................8
Identifying the key processes of business in order to meet out the company objectives.......8
Discussing the main objectives of the process design are not being achieve.........................9
Identifying the issues within operation and what solution to be implemented......................9
Describing the process of controlling and feedback helps company to full fill the company
objectives..............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
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INTRODUCTION
Operations management is an area which administrate the whole business practices to
create the highest level of efficiency possible within an organisation. The main purpose of the
operation department is that to convert material and labour into goods and services as efficiently
as possible to maximize the profit of an organisation. Present study based on operations and
management, study will be taking British Airways company into action. However, report will be
divided into three parts in which introduce the background of the operations. Further, in second
part study will be explaining the transformation processes and evaluation of the operation.
Furthermore, in the next section of the report will be presenting the process design and its
process towards the best outcomes results. Moreover, it helps to create new business opportunity
and growth.
PART ONE
Identifying the organisation purpose, size, competitors, target customers, target customers, recent
company performance.
Give a brief introduction of the organisation
Purpose: British Airways is one of the leading airline company which main purpose is to
create new luxurious services for their clients in order to clarify the brand image. BA has using
digital technology extensively to reach out the customer existing needs and requirements.
Size : British airways fleet size is 279 with 183 destinations. The main growth plan of the
company is that to makes new routes of services from London (Camisón and Villar-López,
2014).
Competitors: There are number of rival companies of BA who might affect the
functioning or operational level of the company. British Airways provides premium class of
services to their passengers in order to meet out the best outcome results and growth by
providing technology oriented services as well. It also makes the most effective and developing
designs of tools and technologies. There are number of competitors of the company such as Jet
Airline company limited which also the airline company in British which provides services at
lower cost. It has about 820 routes in about 30 countries.
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Jet 2 based on low cost airline headquartered in Leeds Bradford airport. England. It is
considered the fourth largest airline in the UK (Competitor Analysis, 2018). It gives the best
outcome or results to make the best outcome growth. The main advantage of this airline
company is the low cost through which customers get highly attracted to this airline company.
Virgin Atlantic is the another rival company of British Airways which is stable by Virgin
Group. This is a Singapore based Airline. This company is highly focused on efficiency and
effectiveness level of product or services. This airline is the seventh largest in the worlds carrier.
Thomas Airways is the another competitor of the British Airways which is also known as
the TUI airways (Dey, Bhattacharya and Clegg, 2015). TUI airways provides flights from
republic Ireland to the different other destinations like North America, Europe, Asia and Africa.
Besides, this company also more focused towards travel and tourism sector this is the reason, it is
one of the largest British Airways rival company. Moreover, it brings new great services and
growth for the new development growth.
Target customers
British airways mainly considered the high premium class services or quality to
maintained their prime standards and growth. In order to full fill their objectives, company
attracts high premium class clients towards their services.
Recent Company Performance
As per the report of IAG which is the parenting company of BA has reported a very good
full year performance. BA is the most popular and premium class company who makes the best
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Illustration 1: Competitors of British airways
(Source : Competitor Analysis, 2018)

performance which makes the best growing performance in order to meet out the customer needs
(Govindan and et.al., 2015).
PART TWO
Describing the main operation of the organisation in term of inputs, transformation processes and
outputs.
Transformation process is an activity or group of activities that takes one or more inputs,
transforms and adds value to them. The final outcomes have to be prepared for the potential
customers. Operation department required various raw material inputs to take the process
forward. British airways have come into cargo industry which provides transportation services to
the customers. Such as Heathrow and Gatwick airports are the two main operating bases of
British airways. British airways have total 5 terminal points that helps company to make better
transformation process and give customers better output results. British airways involve
operation functions, services, and procedures for its customers. Example of Inputs are human
resource, capital, raw material, land, equipment’s (Harper, 2015). Examples of transformation
are transporting innovating, developing, selling. Example of outputs are final finished services.
Input is the another transformational process which transfer resources or raw material
into finished products or services. Materials are the physical inputs to the process, customers are
the individuals who are transformed in some way, staff converting process into making services
or growth. Overall, transformation process has completing all over the raw material different o
many other activities.
Analysing the four V's of operation management.
Volume : The term volume is referred to the services which is constantly produced by
the company. Such as British Airways constantly providing the services of transportation, cabin
luggage, checked bags on the airports etc. these kinds of services company provide. The airline
carries 145,000 customers in a day and 45 million customers in a year.
Low volume process is not effective for the employees to specialise in every task they
perform in within the company (Hubka, 2015). Company needs to manage and implement high
standards training session for their employees development process on the other hand, this helps
to manage the employee working environment in proper essential manner.
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High volume process consist high opportunity to make products and services more
effective and productive. The main purpose of this organisation is to make the high profile
impact on the customer satisfaction. It also affects the better target marketing opportunity and
goals.
Variety: BA provides number of variety services as per the customer needs. British
airway is one of the premium airport in London. It has more than 280 aircraft in including A380
and 787. also, they serve 25 million cup of coffee, 1.25 million bottles of champagne and 9.9
million bottle of wine ((British Airways Factsheet, 2018). British Airways provides number of
facilities to their clients, the advantages for the clients of booking with BA are as follows:
 It provides flexibility in bookings as per the customer needs (British Airways Factsheet,
2018).
 BA provides complementary food services on all long flights.
 Customer can choose their own seat within 24 hours of departure.
 Zero percent charge on booking by credit, debit cards.
 Offering free baggage allowances on European routes.
 Day trip return fares to European destination.
BA offering different variety of services to their passengers to get their full satisfaction
results. High level of variety might be given new opportunity to get higher sales volume.
Variation : Variation is the term which refers changes after making so much planning
due to some uncertainty and unwanted situations. Such as inflation, recession, fluctuation in
demands etc. for example, BA facing recession due to changes in seasons. Variation affect the
business profit in highly manner (British Airways Factsheet, 2018). Sometimes due to bad
climatic weather company delayed the flight of passengers due to which many of the customer
switch the company that affect negatively on the company image. Sometimes, company facing
unpredictable changes which is not good for the company image. On the other hand, seasons is
the another factor of high variation in demand. In the way most of the clients are preferred to go
on holidays in summers. So that, company facing variations in their number of flights. It affects,
the overall business culture or environment within the organisation goals. Moreover. It affects
the business profit and arise business profit variation.
Visibility : Visibility is a complex process or concept to grasp. It depends on the
customers how much they satisfied with the company services (British Airways Factsheet, 2018).
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More customer satisfaction will give more profit to the company. BA has provided very safest
services to their clients which improvises the company visibility. BA has the most trusted
airways company in the world.
In other term visibility is the another measure factor of management operation which
involves the process to show the availability of the services to the customers. Such as distribution
process company track their clients through social media tools (Laudon and Laudon, 2018). It
affects the business organisation and long term goals in order to meet out the best product
outcomes. As we know, back office is an important to manage the company internal functions.
Due to improper envelopment or improper working it might get affect the company outputs.
Evaluating the each of the five operations performance objectives which is vital for the
customers.
Objectives or goals of operations performance objectives which is vital for the company
to gain the customer satisfaction results. Operation performance objectives is the vital for the
company development and brand image in the market. Objectives defines the value of the
company and the ways to evaluate the performance of a company. Operational performances are
the vital areas that company wants to or need to improve. Company need to focus on their
operational parts to measure their actual performance and the lacking point to improves. There
are briefly explains the five operation performance objectives:
Speed
The main goal of speed is to determine how fast company can provide or deliver the
services to the end consumers. BA refers to the new services to their potential customers which
is zero cancellation charges on bookings. In order to ensure needs to their availability on time to
their clients. It helps to meet the company objectives and task in order to evaluate the best
outcomes and customer satisfaction (Maier, Meyer and Steinbereithner, 2016).
Quality
It is the another objective of operation performance in which company needs to measure
their quality of the services. BA refers to the new services to their potential customers which is
zero cancellation charges on bookings. It defines how ell company producing services. It affects
the overall service targets and make the best outcome results and goals. In this objective
company also ensure about the customer needs and their required resources while travelling.
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Services must be durable, flexible, unique, or as per the other requirements of the
passengers.
Costs
It is the another significant objective of the operation performance in which company.
This objective ensure the variations in the unit of cost of a service as measured by the change in
variety of factors. The volume of the higher products are generally lower and higher costs. The
changes in this objective will definitely affect the prices of the services or the products. This also
helps to evaluate the profit earned by the company on that particular product (Saeidi and et.al.,
2015). In order to make the best and effective stuff goals in order to meet out the best outcome
results and goals.
Flexibility
It is the another kind of operation that can configure the product lines to deal with various
requirements. Moreover, it provides best and transforming. Company should needs to develop
the variety of services or products in order to meet out the customer attractions.
Dependability
This operational performance objectives is that to measure the delivery level of
transferring the services to the customers on time. BA refers to the new services to their potential
customers which is zero cancellation charges on bookings. In according to the customer’s
dependability and source will help to transferring the better services and growth.
PART THREE
Identifying the key processes of business in order to meet out the company objectives.
Moreover, company enhanced the process of making good goals and best outcome
outputs to attract the number of customer goals. Apart from that, customer is the most essential
process in order to meet out the company objectives and goals. Moreover, in order to meet out
the best goals (Slack and Brandon-Jones, 2018). Consumer interaction management process is
the effective solution process which selected to accomplish BA expansive objectives.
Customers : Customer BA are generally belongs to high level income group people.
Such as business man etc.
Material Supply chain management: Supply chain management is highly concerned
with logistic departments which main aim is to smooth functioning. The way of British airways
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of BA is high performing business we need to build an inspiring and rewarding workplace where
talented people can easily work in an appropriate manner.
Supply chain management is Airline industry which is very essential to ensure
deliverables to the output goals and objectives into more appropriate manner. Supply chain
management growth will help to identify the new effective and long lasting goal that affect the
new managing target goals. British Airways has to focused on the quality of Raw material in
order to ensure the customer safety results (Valmohammadi and Roshanzamir, 2015). More over
it growth the business best outcome results to affect the business organisations.
Present process has been based on Customer strategy and relationship in order to retain
the existing potential customers with the organisations.
Information
Information or data is must required to maintained the supply chain management in order
to ensure the great outcome results. Apart from that, flow of the information is E-mail, internet,
social media platform, mobile phones or video calling. These are the medium to getting best
source of ideas in order to meet out the results. Information is also very helpful to emerging
markets which is need to replace aged equipment. Airline company also take bookings from
different channels of agents who take bookings from clients.
Discussing the main objectives of the process design are not being achieve
Process design is the process of activity to determine the workflow, equipment’s needs
and implementation requirements for a particular process. Process design includes different
aspects in order to meet out the goals and best outcome results (Wensveen, 2018). Process design
requirements the very fast effective process in order to meet out the result outcomes.
Process requirements is the just to collect and gather information to give structure with
the end objectives. Process design includes Team building, planning and implementation, audit,
end of life. Production process has to be accurate and proper otherwise due to lack of improper
awareness company loss their potential customers.
Process design requires the broad view of the whole organisation that helps to deliver the
best product outcomes.
Reasons to not get achieved the objectives
 The reason behind of failures in process design is that to make the low impact on the
customer.
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 Due to improper employee knowledge and goals, company cannot achieve the proper
goals and objectives.
 Due to lack of resources and capital lead the failures.
Identifying the issues within operation and what solution to be implemented
Operation management is the most affected and crucial problem for the organisation.
That affect the business target and long term goals. On the other hand,. there are some issues that
British Airways is facing during their operational process.
Competing practices
Managing business within existing business environment is the big challenge for the
British Airways (Wensveen, 2018). The finance function of the business may prefer to
communicate via email, for instance. Due to ineffective communication or techniques company
might be facing hurdles in order to accomplished the objective of gaining customer satisfaction.
Sustainability
The main role of the operational management is to make plans in order to full fill the
customer objectives. In order to keep the environment sustainability company needs to adopt the
better strategy goals and target market opportunity goals.
Corporate Reporting
it is the another operation management challenge that company facing in order to full fill
the legal obligations and government instructions. Business facing issues when they fail to kept
the proper records of the business. Challenges can arise in corporate reporting when the business
has not kept current or accurate records.
Social Responsibilities
it is the most concerning issue and responsibility in which manager concerning that how
to engage business with its local community beyond trying to get consumers to buy its product.
Due to fails or give interest in corporate social responsibility, company get less response from
their clients (Wensveen, 2018).
Solutions to get rid out the issues
Increasing the use of advanced technology
BA has to adopt online services and also using large number of software in order to
develop the new emerging market growth to make the best outcome results. This solution can
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help operation manager to easily tract their passenger status and make fast process of booking,
transactions.
Growing popularity of social media
This process can also make the better operation management process by using high range
of social media marketing. On the other hand,. It also helps to determine the effective
developing; social media is the best process to developing.
Increasing the loyalty programs
It is the another method that helps company to get more customer attraction and
maintaining the operation objectives (Wensveen, 2018). British Airways can adopt the loyalty
programs in order to reduce the cost of capture customer insights. Loyalty programs gingerly
beneficial in order to reduce the capture customer insight in order to get better outcomes.
Describing the process of controlling and feedback helps company to full fill the company
objectives
Controlling and getting feedbacks from employees or customers will help to originate
new thoughts and ideas. Getting feedback from employees, company can easily get new idea of
business plan. Besides, taking feedback from customers will help to understand their needs and
wants (Wensveen, 2018). Overall, performance improvement focuses on the employee action in
order to identify the lacking points. Overall, feedback or process of controlling can help to fill
the gap between actual or desired performance.
CONCLUSION
On the basis of above section, it has been analysed that management and business
operation control the overall business activities and functional task in order to meet out the needs
and wants of the customers. Present study has been based on the management operation of
British Airways under which study explaining about the concept of transformation, inputs and
outputs that describes the best outcome goals. However, study also presents about the four V's of
operation management and how they described about the company existing position. Overall,
study also concluded the best outcome results. Study also discussed about the objectives of
process design and objectives to achieved that. Study also discussed about the five operation
performance objectives. Overall, study focused on the operation management that affect the
business overall activities. Apart from that, it also concluded the findings and solution to get
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overcome from the overall activities and goals. Operation management target get also affected by
the improper information or raw materials.
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REFERENCES
Books and Journals
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technological innovation capabilities and firm performance. Journal of business
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Dey, P. K. and et.al., 2015. Strategic supplier performance evaluation: A case-based action
research of a UK manufacturing organisation. International Journal of Production
Economics. 166. pp.192-214.
Govindan, K. and et.al., 2015. Multi criteria decision making approaches for green supplier
evaluation and selection: a literature review. Journal of Cleaner Production. 98. pp.66-83.
Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.
Hubka, V., 2015. Principles of engineering design. Elsevier.
Jeston, J., 2014. Business process management. Routledge.
Laudon, K. C. and Laudon, J. P., 2016. Management information system. Pearson Education
India.
Maier, F., Meyer, M. and Steinbereithner, M., 2016. Nonprofit organizations becoming business-
like: A systematic review. Nonprofit and Voluntary Sector Quarterly. 45(1). pp.64-86.
Saeidi, S. P. and et.al., 2015. How does corporate social responsibility contribute to firm
financial performance? The mediating role of competitive advantage, reputation, and
customer satisfaction. Journal of business research. 68(2). pp.341-350.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Valmohammadi, C. and Roshanzamir, S., 2015. The guidelines of improvement: Relations
among organizational culture, TQM and performance. International Journal of Production
Economics. 164. pp.167-178.
Wensveen, J., 2018. Air transportation: A management perspective. Routledge.
Online
British Airways Factsheet. 2018. [Online]. Available
through :<http://mediacentre.britishairways.com/factsheets/details/86/Factsheets-3/33>.
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Competitor Analysis. 2018. [Online]. Available
through :<https://slideplayer.com/slide/6263798/>.
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