BA Business Studies: International Business Report on British Airways

This report provides an overview of international business, focusing on the mechanism of globalization and the role of international trade. It explores the benefits and challenges of global economic integration, emphasizing the advantages of trade in promoting productivity, competitiveness, and technological advancements. The report examines the formation of international strategic alliances, particularly within the airline industry, using British Airways as a case study. It analyzes the motivations behind these alliances, including foreign market entry and overcoming market barriers, as well as the criteria used in partner selection. The report further discusses the suitability of international strategic alliances for global expansion, the decision-making criteria involved, and the benefits and challenges associated with foreign market entry. Through analysis and discussion, the report provides insights into the application of theory within the chosen industry, offering a comprehensive understanding of international strategic alliances as a strategy for foreign market expansion.

International Business

Executive Summary
In the presented report overview of international business in being presented. The
mechanism of globalisation involves international trade. In most countries policymakers have
opened up their markets gradually to foreign trade for several years, whether through the
multilateral trading mechanism, expanded regional coordination or within the scope of
domestic reform programmes. More broadly, trade and globalisation have provided many
countries and people with huge benefits. Trade has encouraged countries and economies to
benefit from a more productive scale. It has increased competitiveness, promoted the
dissemination of expertise and emerging technology and enhanced customer preference. But
greater global economic integration did not always prove successful, nor did all parts of
society inherently prosper from trade and globalisation. The report examines a series of
interconnected questions, beginning at considering what powers the geopolitical partnership,
the advantages it offers, the issues it raises and the role played by trade in this increasingly
interdependent environment.

Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Literature Review.......................................................................................................................4
Motivation behind the formation of international strategic alliance in airlines foreign
market expansion...................................................................................................................4
Criteria that is utilised by firms in the partner selection process...........................................5
Suitability of international strategic alliance in airlines global expansion............................6
Analysis and discussion.............................................................................................................7
Decision-making criteria that determines the suitability of the use of international strategic
alliances..................................................................................................................................7
Benefits and challenges of using international strategic alliance in foreign market entry.....8
Application of theory in regards to chosen industry..............................................................9
International strategic alliances as an option to foreign market expansion.........................10
Conclusion................................................................................................................................11
References................................................................................................................................12

Introduction
There are several companies that operate in the globalized economy. International
administration refers to the term that involves proactive corporate management at various
locations in order to achieve goals efficiently. Additional skills and experience that go
beyond ordinary competence such as knowledge about various industry legislation, local
custom law, macro-environment considerations, etc. are essential for successful management
of multinational enterprises. In the chosen report, “British Airways” is been take into
consideration (Bas and Sivaprasad, 2020). The respective firm is an airline industry
established in 1974 which is headquartered in London, England, UK. In the present report
several analysis and strategic framework is being displayed in regards to chosen industry and
will highlight various operational activities of the firm conducted in the given operational
market.
Literature Review
Motivation behind the formation of international strategic alliance in airlines foreign market
expansion
According to Bachelor Thesis, 2008, while corporations' motives and intentions for
strategic alliances will vary and adapt through the years, most enterprises make alliances
because they have unique external circumstances. This is several of the most common
reasons why Strategic Alliances should be initiated and established. These are as follows;
Entering new international market: Though manufacturing, completely branches or
joint partnerships have become more convenient in past companies to reach new markets,
they are gradually using strategic alliances. A growing company has the complementary
expertise and services needed for growth, working with local businesses on the target market
or other foreign firms familiar with the political and business climate of a region. In
international markets where the challenge and uncertainty are strong, strategic alliances are
particularly useful. In regards to British Airways, ability to operate in a more secure way in
volatile waters of an unpredictable world would enable an organisation to do so. Many major
multinationals who normally choose individually operating by wholly owned subsidiaries
around the world may opt to place a partner before entering an unknown new market, since
they might need complementary expertise that only a collaborator in a strategic partnership
would offer.

Foreign market barriers: Through addition to overcoming obstacles it is impossible
for new international firms to access the market, a business will collaborate with a
corporation familiar with local political, financial, legal and regulatory risks. There are many
industry obstacles that can prevent an enterprise from growing effectively in a target market.
Trade walls are the most basic and easiest challenges to consider, but businesses often face
obstacles such as how challenging the establishment of a logistics network is or how difficult
an expanding restaurant chain finds desirable real estate places.
Defend competitive position: Foreign firms have a very general method of partnering
with another business in order to penetrate the domestic market or other countries in which a
rival has a significant market share. By entering a significant market for a rival business, the
company is trying to redirect the competing company's money to protect its domestic territory
in place of using it in increasing its share of the market.
Criteria that is utilised by firms in the partner selection process
According to Marco Carbajo, 2018, also there is a moment in the field of
entrepreneurship that makes it too difficult to manage individual’s own company for many
reasons. This may be attributed to growth requests, which involve funding by statute or too
much activity in a company requiring someone else in the mix. In other words, partnering
often becomes a must in the corporate world. A collaboration sounds, quite a concept but not
everyone will become a successful partner for company. A very vibrant appraisal is essential
for selecting a partner to prevent potential partner disputes. The organisation will not thrive
without proper research as it would eventually choose the wrong company partner. In regards
to British Airways, there are certain standards which are defined by managers of the firm to
select appropriate partners for the given firm (The Best Criteria for Selecting a Business
Partner). These are as follows;
Passion: The curiosity is one of the principal factors a business partner has to have.
Ideally, it is better to collaborate with someone who has the power to achieve the aims of
individual’s organisation than to partner with someone who has been forced to do any job. It's
nice to know that time is money in industry. In order to accomplish the objective, a certain
task should thus be accomplished with some time.
Same vision: It would be very straightforward if individuals partner with someone
with whom individual share that vision to accomplish the business goals individual set. A
mission can be achieved halfway through a well-structured vision and plan for the person

concerned. Company should take a partner with individual who has a fantastic vision of their
organisation when they start a partnership business.
Business networks: It is recommended to search for a partner whose corporate
network has broad ties depending on operational area of work for the given company doing
as a collaboration. Manager should not search for an inexperienced who knows nothing about
company. It is useful to look at someone who knows that the products can be sold at low
prices or at comparatively higher prices. This will help individual to fulfil individual’s
company's aspirations and enhance the company's growth.
Creativity: The special feature partner add to the market is one of the main aspects to
keep given company prosperous. It is nice to have a talented person by firm's side who is
unable to come up with new ideas for the enhancement of the business to deliver this
singularity. Any enterprise will benefit from an innovative business partner. They have the
ability to develop a picture of a brand. New consumers will still have a fresh idea. This is
positive because the demand for goods is growing and so the industry is growing.
Suitability of international strategic alliance in airlines global expansion
According to Michael Pitt, 2021, collaborations are popular in the aviation and facility
management (FM) industry. The use of partnerships is seen as a way to respond to shifting
legislative and economic circumstances. Alliances between airlines are especially frequent, as
more than 500 alliances between airlines have formed over the last decade alone. Strategic
partnerships, on the other hand, are least established within the broader airport sector. Recent
analysis has established knowledge gaps in the complexities of cooperation, both
academically and functionally, essential to a strategic alliance. The strong partnership is
considered an arrangement to exchange information or expertise between two or more
partners to support the parties concerned. Alternatively, the partnership between two or more
companies for the creation and commercialisation of a commodity may be seen more clearly.
The partnerships will range from resource sharing to complicated R&D alliances between
multiple partners. In the last decade, FM functions at airports have been more strategic.
Because of AFM's (Airline Functional Management’s) vital importance, many
airports outsource their FM contracts to professionals. A new construction is thus the creation
by two airports or one airport with a third party of an FM management network structure. A
network can be defined as a series of actors who pursue ongoing and permanent two-way

links while lacking organisation. Airline networks are interesting and are categorised by their
fluid structure and each airline partnership has different values (Button, 2020).
Analysis and discussion
Decision-making criteria that determines the suitability of the use of international strategic
alliances
Development in business should not come out of hopeful thinking. It need a lot of
hard work, as you know. Given company's development is not an opportunity it is necessary.
To promote a company in today's economy, it is vital to coordinate the correct combination
of market share tactics and to boost customer acquisition rates. In the process being several
criteria that determines best suitability of use of international strategic alliance followed by
British Airways are as follows:
Identifying potential partners: Financial consultants also partner with experts that
customers have previously been able to obtain external services. Expanding beyond the inner
circle and discover other companies that rely on small business people. Also
by Identifying possible partners by searching Google, using LinkedIn profiles and city
statistics, and any other available tools (Enoma, 2020).
Making first call: Each person can use extra assistance in business development in a
difficult economy in which all specialists are feeling crushing. Given company arranges
Contact your chosen prospects and arrange a close encounter to find ways to collaborate.
Telling them that they share information about their niche markets, how to market them and
how to make their company the most profitable way (Kuljanin and et. al., 2021).
Identifying opportunities: Any chance to collaborate discussion. Concentrate on the
core values and industry topics. Talking about potential future partnership goals, challenges
and aspirations and determining what the coalition is expected to do in the next 12 months
(Meersman and Van De Voorde, 2020).
Developing an agenda: By Creation of an agenda for some event or initiative that they
intend to conduct for the next 12 months for a particular strategic business partnership. The
Plan Managers shall identify the objective with each item to achieve success as the incident
takes place and who is responsible for execution (Migdadi, 2021).
Presenting plan: Company by planning its potential alliance meeting to introduce their
plan. Examine potential chances, ones tactics and the practical steps to achieve this goal

Discuss benefit and income and expenditure targets. Find any deficiencies in the original
strategy and make changes possible (Petcu, 2021).
Implementation: In this after all the theoretical plan and strategies being considered
implementation work in the business structure is being initiated. This step in an inclusion of
use of various managerial theories and models for initiating better operational work in the
organisation.
Follow ups: In this after completion of major operational work in the organisational
firm, follow ups is being taken by managers or supervisors in the given firm. This enables
them to contribute more towards better productivity of the workforce and initiate better
growth opportunities for the given firm.
Benefits and challenges of using international strategic alliance in foreign market entry
Most likely than otherwise, it would be important to find innovative means of
expanding to new markets in order to succeed and flourish as a alliance. Strategic alliances
have become more and more common and provide both sides with a way to raise awareness
of their brand and their capital, with no expenses or financial effect. The independently
owned corporation would then have a friendship with its agents established and a stable
association established after the company has found a business with which it will develop a
mutually advantageous partnership. Strategic business partnerships will help you to expand
your franchise, provide opportunities to increase your brand's visibility through partners'
platforms and the possibility to provide existing additional services. Yet alliances need to be
cautiously handled. It is human nature to be self-interest driven and both parties need to
transcend this sentiment, to build a relationship that would benefit both parties (Schosser and
Hausladen, 2020).
Benefits
Access to supplementary services: The partnership with yet another company has one
of the most appealing advantages of offering customers additional facilities which would not
otherwise be available. It is crucial to the survival of a company to rely on its key skills and
when a company becomes a jack of all businesses, it does not learn them. An partnership
enables a company, without losing emphasis on its capacity and specialised services, to give
its clients a whole new field of services.

Explore new markets: Going to enter a strategic alliance would automatically raise
awareness that the franchise company had no leverage to enter previously for a brand among
an entirely different market. In most instances of franchising partnerships, a competitor is a
company that sells a slightly different range of services for a comparable market, which
enables the company to expand the share of the franchise market with little effect.
Increases brand awareness: An external incentive to raise visibility of the brand is the
chance for the market through a collaboration. Constant, rising brand sensitivity is one of the
main elements of a company's growth. If your knowledge of your brand does not expand,
your company does not grow. Strategic partnerships allow a company without spending
additional time and money to attract a wider public.
Market customer exposure: The marketing team is continuously seeking innovative
and imaginative means of expanding its customers and reaching new potential customers,
which are an incentive to build a strategic partnership. A powerful, trustworthy relationship
would provide access to a whole new client base that the franchise would not otherwise have
access to them.
Potential challenges
Choosing right partners: In the very first stage of selecting a partner, the obstacles to
the strategic alliance start. If the wrong partner does not make a contribution to your company
development and give a degree of commitment, sincerity and loyalty to the relationship, it
can be detrimental to choose a wrong partner. It is important to bear in mind that when
investigating various firms with which your company could form a partnership, this
arrangement sometimes is exclusive, and so this might very well be the only firm in which
your brand can associate.
Trust and honesty: This is also one of the important element which needs to be
developed while operating in a strategic alliance. Avoidance of this component have the
potential to drop down efficiency of the given firm and could also initiate failure of business
plans and disputes in the workforce.
Knowing when to recesses the alliance: Each company will see steady flows, changes,
and once successful programmes will not be correct in two to three years' time. It is necessary
to know when to re-evaluate the relationship and to adjust the basis in order for a business
partnership to continue benefiting all parties. All companies must recognise that transition is

imminent and must work together over time to achieve new agreements. Corporate strategic
collaborations can be the next step in your franchise's development and promotion efforts,
offering a variety of advantages including increasing brand recognition and opportunity to
enter new markets and provide supplementary services for your customers.
Application of theory in regards to chosen industry
International strategic alliances as an option to foreign market expansion
To reach new audiences, companies that must increase their global footprint should
use strategic partnerships. In addition to enabling companies to gain access to foreign
markets, international collaborations are strengthening their sustainability by exploiting
partner capital.
Alliance options
Single Local Alliance: A business will form a partnership with a local competitor
such that a new international competition enters more quickly. The aim is that, with its
business experience and access to distribution, the new entrant will access market access to
exploit its assets, technologies or goods through the local partner. A local partnership is
perfect for late entry on an emerging market with high competition and a hard to reach
network. A form of a domestic partner may be a producer, dealer, reseller, or retailer; the
choice is based on the role the company has to take on the supply chain of the market.
Multiple Local Alliance: In order to reach specific markets, an organisation could
enter into partnerships with several local partners. This alternative is perfect in circumstances
where the target population is vast and complex. A prime example is a vertical market where
the new entrant will have many separate partnerships without competing interests (Zuidberg
and de Wit, 2020).
Single Global Alliance: A company operating in a global market would require a
globally strategic partnership. The internationalisation of the company will be accelerated
compared to a territorial partnership, since it spans a broad geographical region and enables
partners to increase the key abilities of each other.
Multiple Global Alliance: Businesses who need to speed up foreign presence seek
various international partnerships to ensure access to markets. As in the previous approach,
the company is trying to broaden its international reach through multi-country collaborations,

but in this instance, it tries to establish several, separate partnerships rather than just one.
Companies will quickly enter many international markets through several multinational
partnerships. Moreover, having various multinational allies’ means that the company takes on
a smaller risk, with the further benefit of acquiring expertise and foreign-specific
connections. These collaborations are commonly used in high-tech start-ups where business
speed and worldwide reach are crucial (Tu and et. al., 2020).
Conclusion
From the study above, a vast number of problems relating to various macro-
environmental and cultural disparities are posed by globalised market activities. It was
concluded. There is a lack of coordination or encouragement, biassed behaviour, morale and
leadership, etc., as the main problems of the organisation are demonstrated by cultural
disparities. This not only undermines organisation's strength, but also negatively affects an
employee's attitude and career. But efficient staff management offers the transition to seize
the wide variety of opportunities available on the foreign market that involve professional
workers, more innovative ideas, strong market share, positive brand value etc. This will
contribute to the organization's sustainability.

References
Books and Journals
Bas, T. and Sivaprasad, S., 2020. The impact of the COVID-19 pandemic crisis on the travel
and tourism sector: UK evidence. Available at SSRN 3623404.
Button, K., 2020. Interactions of global competition, airlines strategic alliances and air traffic
safety. In Aviation Safety (pp. 525-544). CRC Press.
Enoma, B., 2020. Data breach in the travel sector and strategies for risk mitigation. Journal of
Data Protection & Privacy, 3(4), pp.418-426.
Kuljanin, J., Kalić, M., Begović, B., Mijović, N. and Renold, M., 2021. The effect of LCC
market entry on dominant FSC's price into long haul sector: A case of Norwegian
competition on British Airways' prices on selected transatlantic routes. Journal of Air
Transport Management, 91, p.102016.
Meersman, H. and Van De Voorde, E., 2020. Privatisation and Safety in the European Airline
Business: Economic considerations on competitiveness and insecurity. In Aviation
Safety (pp. 337-356). CRC Press.
Migdadi, Y.K.A.A., 2021. The Impact of Airline Alliance Strategy on the Perceived Service
Quality: A Global Survey. Journal of Quality Assurance in Hospitality & Tourism, pp.1-32.
Petcu, C., 2021. The Role of Qatar Airways in the Economic Development of Qatar: Before
and During the Gulf Crisis. In The 2017 Gulf Crisis (pp. 325-345). Springer, Singapore.
Schosser, M. and Hausladen, I., 2020. Big Data to Improve Strategic Network Planning in
Airlines. Springer gabler.
Tu, N., Li, Z.C., Fu, X. and Lei, Z., 2020. Airline network competition in inter-continental
market. Transportation Research Part E: Logistics and Transportation Review, 143,
p.102117.
Zuidberg, J. and de Wit, J.G., 2020. The development of long-haul low-cost networks in the
North Atlantic airline market: An exploratory data approach. Transport Policy, 95, pp.103-
113.
Online
Strategic Alliances in the Aviation Industry, 2008. [Online]. Available through: <
https://www.grin.com/document/119312>
The Best Criteria for Selecting a Business Partner, 2018. [Online]. Available through:
<https://www.thebalancesmb.com/criteria-for-selecting-the-best-business-partner-4105970>