British Airways: Strategic Analysis of Business Operations

This report provides a comprehensive analysis of British Airways, the flag carrier airline of the United Kingdom. It begins with an introduction to the business environment and the importance of strategic analysis. The report then delves into a SWOT analysis, identifying British Airways' strengths, weaknesses, opportunities, and threats. Following this, a PESTLE analysis is conducted, examining the political, economic, social, technological, legal, and environmental factors impacting the airline. The report also touches upon corporate social responsibility (CSR), leadership styles, and the influence of organizational culture on the company's processes. The analysis incorporates various aspects of the airline industry, including market competition, technological advancements, and the impact of external factors such as economic conditions and social trends. The report aims to provide a thorough understanding of British Airways' strategic position and its ability to navigate the complexities of the aviation industry.

Context of business

INTRODUCTION
Organisation implement it's activities within business environment which incorporates different
forms of elements that have essential influences over their functioning. Moreover, within this
firm is required to gain formal understanding of whole overcoming elements as to ensures
strategic advantages. For this report, the undertaken company is British Airways, It is the flag
carrier airline of the United Kingdom. It is headquartered in London, England, near its main hub
at Heathrow Airport. The airline is the second largest UK based carrier, based on fleet size and
passengers carried, behind easyJet. The topics which are going to be discussed in this report are
SWOT analysis, PESTLE analysis and corporate social responsibility affects of business.
Moreover, the various leadership style and effectiveness of organisational culture upon company
process is also discussed in this report.
TASK 1
1.
SWOT analysis
This is considered as the strategic framework which enables business to effectively identify
it's ability, weakness, opportunity and threats. Moreover, it would also permit them to develop
effective measures to overcome from weaknesses as well as obtain effectual advantages from
growth opportunity. So, the Swot analysis of British Airways are performed below:
Strengths
 Strong brand: Brand have essential commercial value. Moreover, British Airways had
account for around 23 years withSaatchi & Saatchi, a firm which developed various of its
known advertisements, incorporating the influential Face campaign. Since year 2007,
respective firm have utilised Bartle Bogle Hegaarty as their advertising agency.in
addition to this, they have formed themself as a brand with higher level of customers
recognition as well as trust.
 Tech-savvy company: British airlines have formed system of online order as well as is
performing for shifting completely from paper to e-tickets and for diversifying their
online operations. In respect to developing effectiveness of internet within trvel and
tourism sector. Moreover, stronger online presence is desireable for firm into premium
services.
1

Weaknesses
 Over dependence into UK market: Above 50% of revenues of British Airlines come from
United Kingdom marketplace that seems to become good but undertaking risk into
internationalisedeconomy one may undertake risk to have market myopia.
 Employee Unions: British Airways have a huge unionised personnel. In addition to this,
collective bargaining takes place on continuous basis as well as breakdown into process
of bargaining that may disrupt activities as well as adversely impacts the performance of
business. Also, its continued potential for managing employement costs that enhances
risk into particular areas.
Opportunities
 Expanding market: With growing as well as developing economies teh interconnectivity
demands, investment into travel infrastructure, middle class expansion, raising
international tourism and enhancing global business develop effectual opportunities for
major airlines for forming their routes. Additionally, with advent of new customers
groups of traveller and budget travelling segments ther would enhancement into services
demand of this industry.
 Pressure upon smaller players: Because of Government interventions by large &
impcting operations of airline firms various rivals are forced for existing market because
of higher cost of competing & struggle of international economy.
Threats
 Competition into market: Fare discounting through firms have historically had few bad
impacts on British Airways outcomes as they usually need to reacts to rivals fares for
maintain trafficking of passengers. Additionally, few competitors have structures of cost
which are lower in comparision to British Airways targeting budget travelling segment.
PESTLE Analysis
Political Factors
Political components are playing an undeniably more fundamental element in the flying industry
venture. There are various thought processes inside the again of the developing meaning of
political variables comprehensive of the component of political equilibrium in the utilization of
increment, the situation of administration rules in expressions of commercial center class and
2

growing a business endeavor acceptable environmental factors notwithstanding the impact of
government oversight and guideline on the general avionics market in an area. The aircraft
business is extraordinarily influenced to a huge degree through the utilization of specialists rules
in the significant flying business sectors of the world actually like the United Kingdom and
America. additionally, the world of politics of the United Kingdom and the degree of political
steadiness also has an immediate sway on the productivity of the carrier makers. the UK flight
association turned out to be eagerly managed through EU enactment and the locales generally
influenced by approaches included administrator permitting, site guests rights, security
guidelines, and workers authorizing. inside the UK, the primary position that directs the law of
the avionics company is the Civil Aviation Authority. aside from security necessities,
environmental factors, and wellbeing issues, the CAA additionally manages customer rights.
Economical factors:
Financial components and money-related changes likewise Orwell affect the matter of the
aircraft ventures in the assembled realm. The monetary situation in a rural or spot has an
immediate impact on the productivity of the aircraft makers working there. Regardless of
whether it's miles financial equilibrium, level of joblessness, or the GDP, the limit of those
components influence air to visit and flight administrators. financial lull gravely affects the
benefit and pay off the carrier administrators.. some of the essential components which have
helped British aircraft hold its development rate and productivity epitomize higher interest in
essential regions, developing fame on buyer appreciate and the usefulness to adjust its business
company and running model to the changing over monetary circumstance. Indeed, even during
the money-related vulnerability inferable from Brexit, the business has talented mind-blowing
development in deals. The absolute pay of British aviation routes in 2018 became 6.1%
contrasted with the past year achieving £thirteen,021 million from £12,271 million out of 2017.
sometimes of a similar length, its taking strolls pay rose through the utilization of 10.3%
endeavor £1,952 million from £1,769 million.
Social factors:
Social parts which join portion changes moreover are wagering a fundamental occupation inside
the setting of the flight association. the standard objective market of the transporter creators like
British flight courses is the twenty to thirty-year-olds whose experience lead are explicit from the
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previous ages and who appear, apparently, to spend extra than the people born after WW2 live
endeavor inside the vital Western business areas. While purchasers, similarly to their prosperity
and comfort, have created to be the essential interest in flight managers and regulatory bodies,
the social photo, and affirmation of the airplane affiliations have moreover wound up being a
crucial segment that impacts business affiliation usefulness. English flight courses isolated from
purchaser experience also keep significant care on useful execution, immovable quality, and its
social photo. In present-day years, the undertaking has fostered its accentuation on legitimacy
and is making an interest in areas where it can cut down its normal impact. Special kinds of
segments inside the public other than the social photo similarly can cause critical harm at the
aviation business. the concern of Covid has viably hit the association inconvenient. other than the
conclusion of different air terminals around the space, it truly affected different flight courses
everything considered with Flybe in the amassed domain. Flybe ended its undertakings due to
Covid. The endeavor challenges of Flybe were compounded through the scene of the
Coronavirus. specific flight heads all in all with the British transporters and RyanAir have also
dropped different flights. following BBC, British airplane is dropping 216 takeoffs from 16 to
20-8 March on account of the scene of Corona. English airplane is dropping outings to key
regions which consolidate the gigantic apple, Italy, France, Austria, Belgium, Germany, and then
some. the fear of Coronavirus has spread out in the public field inciting people to slice again on
visits to abroad regions. this makes certain to hit the errands similarly as arrangements of flight
heads like British transporters.
Technological factor:
Technology is a fundamental trouble riding the augmentation of the airplane affiliation
furthermore more gas useful and more imperative agreeable plane plans, the advancement of
higher arrangements and provider development has moreover helped the quicker impact of the
transporter attempt all throughout the planet. virtual age has in addition helped the transporter
bundles foster their purchaser base and business focus themselves more essential effectively.
English flight courses are making an interest in age to make its task force extra gas-green and to
give a significant level customer revel into its explorers. also, as a piece of its fundamental plans
for the fate, British flight courses have set out to advance hypotheses extra in development
attempting to guarantee better execution, higher organizations, and better advantage. The
undertaking is furthermore making plans to get a virtual change to get the all out advantage of
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consolidating development in its bit by bit exercises worldwide. all through a couple of years, the
association has made mechanical redesigns in different locales which involve its web site page to
streamline the saving system and to make moves up to the BA application. This has set off extra
customers booking tickets right now from the endeavor's web site. development is a key driving
squeezing component of practical execution and buyer steadfastness in the flying association and
BA has also perceived its advantages in articulations of wandered forward naval force execution
similarly as customer pride. different regions wherein the endeavor introduced new headways
somewhat in the current day years envelope system motorization, shipment managing,
onboarding, and so forth The entire IAG foundation is investing critical energy in making moves
up to how the business handles real factors and examination at the best approach to hold better to
the device and cultivate the customer base. other than introducing another and more noticeable
gas-powerful plane, the IAG association (parent business attempt of British transporters) is
examining the extra method to manage lessen its carbon impression which needs to wind up
being fundamental to utilitarian execution similarly as the endeavor office's pervasiveness. IAG
is also the usage of device perusing for sufficiently eliminating records in its cutting edge
supervisor techniques. In 2019, British airplanes passed on 4 new Airbus A 350 planes. higher
affirmation on period has helped British airplane address key troubles rising up out of Brexit and
Coronavirus with better and viability.
TASK 2
2.
Strengths
 Strong brand: Brand have essential commercial value. Moreover, British Airways had
account for around 23 years withSaatchi & Saatchi, a firm which developed various of its
known advertisements, incorporating the influential Face campaign. Since year 2007,
respective firm have utilised Bartle Bogle Hegaarty as their advertising agency.in
addition to this, they have formed themself as a brand with higher level of customers
recognition as well as trust.
 Tech-savvy company: British airlines have formed system of online order as well as is
performing for shifting completely from paper to e-tickets and for diversifying their
online operations. In respect to developing effectiveness of internet within trvel and
5

tourism sector. Moreover, stronger online presence is desireable for firm into premium
services.
Weaknesses
 Over dependence into UK market: Above 50% of revenues of British Airlines come from
United Kingdom marketplace that seems to become good but undertaking risk into
internationalisedeconomy one may undertake risk to have market myopia.
 Employee Unions: British Airways have a huge unionised personnel. In addition to this,
collective bargaining takes place on continuous basis as well as breakdown into process
of bargaining that may disrupt activities as well as adversely impacts the performance of
business. Also, its continued potential for managing employement costs that enhances
risk into particular areas.
Opportunities
 Expanding market: With growing as well as developing economies teh interconnectivity
demands, investment into travel infrastructure, middle class expansion, raising
international tourism and enhancing global business develop effectual opportunities for
major airlines for forming their routes. Additionally, with advent of new customers
groups of traveller and budget travelling segments ther would enhancement into services
demand of this industry.
 Pressure upon smaller players: Because of Government interventions by large &
impcting operations of airline firms various rivals are forced for existing market because
of higher cost of competing & struggle of international economy.
Threats
 Competition into market: Fare discounting through firms have historically had few bad
impacts on British Airways outcomes as they usually need to reacts to rivals fares for
maintain trafficking of passengers. Additionally, few competitors have structures of cost
which are lower in comparision to British Airways targeting budget travelling segment.
TASK 3
3.
Leadership style is undertaken to be as form which is used through entity to provide guidance,
executing strategies and inspire person. Within British Airways, their management may utilised
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style of leadership to facilitate direction to personnel for performing its activities effectively and
efficiently so that they may accomplish their intent in simpler way at stipulated time duration.
Moreover, there are various form of leaders style such as autocratic, democratic and many
others. In addition to this, the style of leadership may be advantegeous for choosen firm as this
perform internationally so this needs to be formulated plans and strategies in respect of
accomplishing the requirements of targeted customers. The comparison of few leadership style is
discussed below:
Basis Autocratic Democratic Strategic
Meaning It's far from an
administration shape
wherein boss requests
and gives rules and
systems just as they've
records about the
point and point that
are to be finished.
With the help of this
administration style
the pioneer give
orders and instructing
to man or lady that
somewhat asking
them for their
suggestions. The
pioneer is the solitary
person who is
responsible to take
decision. They might
think this type of the
executives off and
went with through big
It's likewise called
participative
administration design
inside it, people be
choose inconsistent as
the order benchmarks
have an ordinary
expert in strength of
will concocting
(Corallo, Lazoi and
Lezzi, 2020).
underneath this
administration shape,
the choices are upheld
to the enter of each
gathering part. it's far
one of the amazing
the executives since it
grants decline
measure of labour to
practice power to
make sure they can
likewise extent their
It shows to the idle
and adequacy of
pioneer to introduce a
reason for a key
innovative and
farsighted for the
venture association
and urge workers and
others to get the
objectives and wants.
This administration
shape alludes to
capacity of somebody
to urging them to
make commitment
that amplify the
perspectives for the
endeavour's
significant time-frame
improvement when
they oversee shirt
term financial
solidness. This
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business in couple of
conditions while they
might follow up on a
specific or
fundamental case and
they need to make a
strength of psyche.
perspectives and
psyche for
development of
business as usual.
Through considering
this structure, the
administration can
energize its labour
force by utilizing
giving the risk of
making an investment
in the assessment
building strategy all
together that they
additionally can feel
animated and
executing the mission
with more prominent
execution. With its
help, they can
likewise impart their
intricacies to their
high level and make a
proficient dispatch
with them.
structure is noticed
the administration
normal for set up
request to
configuration rules
and strategy for
incredible business
venture tasks. Key
addressing also
assume a significant
part in this unique
endeavor
environmental factors
of organizations.
Aim It coordinates to brief
decision making,
oversee over the
strategies and the
tasks of organisation.
The reason for this
authority shape is to
engage faculty to have
a solid hand in
administrating
business endeavour
The main reason for
this style of the
executives is to justify
strategies, embellish
arranged execution,
sell development and
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offices. assemble a climate
that inspires workers
to be productive,
unprejudiced and push
arrogant their non-
public thoughts.
TASK 4
4.
As per the above report, it has been recommended that for British Airways, democratic style of
leadership is advantageous forentity as this woud aids to motivates personnel of entity through
facilitating opportunity to participate into decision making procedures. With assistance of this,
they may explain its viewpoint with higher management as well as share its issues and obtain
effectual solution on specified time duration. In addition to this, it would encourage its
contribution into development and growth of respective entity. When staff would perform its
activities in well developed way, thereafter business goals of furm would accomplish in effective
manner.
TASK 5
5.
Corporate social responsibility is related to the plans which facilitates advantages to society.
Moreover these proposal lies into three groups that are often explained as triple baseline such as
environment, community and monetary. In addition to this, it is a concepts which a firm needs to
be focused with more than profit gaining. saving the atmosphere is regarded as key aspects of
social accountability as all firm develop into community. Therefore in order to run the business
activities, this is vital for entity that they have to undertake effectual social measures for societal
benefits.
CONCLUSION
As per the above report, it has been concluded that Organisation implement it's activities within
business environment which incorporates different forms of elements that have essential
9

influences over their functioning. Moreover, within this firm is required to gain formal
understanding of whole overcoming elements as to ensures strategic advantages. Moreover,
SWOT analysis would also permit them to develop effective measures to overcome from
weaknesses as well as obtain effectual advantages from growth opportunity. In addition to this,
utilised style of leadership to facilitate direction to personnel for performing its activities
effectively and efficiently so that they may accomplish their intent in simpler way at stipulated
time duration. Moreover, there are various form of leaders style such as autocratic, democratic
and many others. In addition to this, the style of leadership may be advantegeous for choosen
firm as this perform internationally so this needs to be formulated plans and strategies in respect
of accomplishing the requirements of targeted customers.
10