Business Strategy and Analysis Report: British Airways

This report provides a detailed analysis of the business strategy of British Airways. It begins with an executive summary and introduction, outlining the importance of strategic planning. Task 1 assesses how missions, visions, objectives, goals, and core competencies inform strategic planning, followed by an analysis of factors in strategic plan formulation and an evaluation of techniques used in developing strategic business plans. Task 2 focuses on the strategic positioning of British Airways through organizational and environmental audits, including a SWOT analysis, and stakeholder analysis. Task 3 explores alternative strategies such as market entry, growth, and retrenchment, ultimately selecting an appropriate future strategy. Task 4 assesses the roles and responsibilities in strategy implementation, analyzes resource requirements, and evaluates the use of S.M.A.R.T. targets. The report concludes with a summary of the findings and includes references.

Business Strategy

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Assess how business missions, visions, objectives, goals and core competencies inform
strategic planning........................................................................................................................4
1.2 Analyse the factors that have to be considered when formulating strategic plans................6
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans...6
TASK 2............................................................................................................................................8
2.1 Analyse the strategic positioning of a given organization by carrying out an organizational
audit.............................................................................................................................................8
2.2 Carry out an environmental audit for a given organisation...................................................9
2.3 Assess the significance of stakeholder analysis when formulating new strategy...............10
TASK 3..........................................................................................................................................11
3.1 Analyse the appropriateness of alternative strategies relating to market entry, sustentative
growth, limited growth or retrenchment for a given organisation............................................11
3.2 Select an appropriate future strategy for a given organisation ...........................................12
TASK 4..........................................................................................................................................12
4.1 Assess the roles and responsibilities of personnel who are charged with strategy
implementation..........................................................................................................................12
4.2 Analyse the estimated resource requirements for implementing a new strategy for a given
organisation...............................................................................................................................13
4.3 Evaluate the contribution of S.M.A.R.T targets to the achievement of strategy
implementation in a given organisation....................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

EXECUTIVE SUMMARY
It is essential for the British Airways to use their strategic tools and techniques in a
effective manner so that it can help to attain its long term goals and objectives. With the hwlp to
organisational and environmental audit the can knows their internal and external environment so
that they can overcome potential risk on the business operations. Apart form that they can also
use BCG matrix model which can provide a guidelines for its strategic planning and they can
provide competitive advantages over its rival companies in the airlines industry.

INTRODUCTION
Business strategy is a set of activities and plans which enable a business organisation to
attain their long and short term goals and objectives. It is a process which included identifying
the firm's vision, mission, goals and objectives and create business plans and tactics which can
help to achieve these target in a effective manner (Astrachan, 2010). It played a significant role
in provide the right direction to the business for the near future. In this such strategies the role of
higher authorities having a great significant because they formulate these strategies at the
strategic level. The present report is based on the British Airways which is one of 3rd largest
airlines services in the world in term of annual revenue. The main purpose of this report to
understand various business strategies which can help to the cited business unit (Bharadwaj and
et. al., 2010).
TASK 1
1.1 Assess how business missions, visions, objectives, goals and core competencies inform
strategic planning
A business unit can not perform well without their pre plan which can included their
mission, vision, long term goals and objectives and its core competencies in order to make their
strategic planning for the future.
Mission: Mission is the purpose which is related with
the firm's desire to meet their stakeholder
expectation. These missions helps to determine
various aspects such as how business run, its
potential customers, product classification and
the quality of service to their services. In the
context of British Airways mission statement is
given below” One destination seek to ensure
our customer fly confident that, together, we
are acting responsibly to take care of the world
we live in” (Burlton, 2010).
This statement shows that they focused on the
customer and its quality of services in a better

manner.
Vision: The vision statement is related with the future
outlook of the company which can help to
determine its potential growth and
development. The vision statement of British
Airways is that “ to be the most admired
airlines across the world key cities”. This
statement is clarifies there future development.
They wants to be the most valuable airlines in
the world. Through providing high quality
services to its potential customer and maintain
consistent growth for their business.
Objectives: The goals and objectives are the long term
target which the company desire to attain in the
future with in a period of time. The long term
goals of British Airways at the three level.
Global level: To appeal all types of passengers
at the global level.
Premium level: to ensure that they provide
highest quality of services which can help to
repeat their business (Campbell, Edgar,and
Stonehouse, 2011).
Airline: To focused on the aviation, people and
cargo and provide value to all of them.
Core competencies: Core competencies are the unique
characteristics of the business organisation
which can provide strategic advantage over its
rival companies. In the context of British
Airways their core competencies can be the
airline services are across the world with more

than 180 destination.
1.2 Analyse the factors that have to be considered when formulating strategic plans
Strategic planning is a the process in which a business unit define their strategy so that
they can make their decision regarding their resource allocation and its effective implementation.
It is essential for a company that to identify various factors which can influenced their strategic
plan (Chang, and Chuang, 2011). Airline industry one of the complex and competitive sector
which required to evaluate all factors effectively in order to attain their long term targets. These
factors involved:
Industry factor: This is one of the major factor which is related with the airline industry.
In this factor there are various elements which can included such as market size, its future
growth, new market, profitability, and the potential threats. In the context of British Airways, the
market share of the company growth rate is quite good at the domestic level. But due to large
number of airlines firms are operating their business it can slowdown their growth rate which can
leads to decrease their market share. Therefore, the cited business entity required that to focused
on the other emerging markets which can help to sustain in the competition. In the last decade
there are two most fast growing market in Asia one is India and China which can provide a good
opportunities of the company (Cinquini, and Tenucci, 2010). But there are various future threats
which can slowdowns its growth and adverse impact on their strategic plan. In the lase few years
in the EU nation financial crises can heart negatively on their business.
Global factor: This is another important factors which can affect cited business unit at
the global level. The most critical part in the airline industry is the oil prices. But in the last
decades there are uncertainty at the oil prices which can affects the strategic planning of the
company. Apart form that in the various middle east countries political and civil unrest can heart
their future plan. Therefore, British airways required that to evaluate and analyses these factors
carefully.
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans
Strategic planning is one of the challenging and complex task which required to an
appropriate and suitable tools in order to attain their targets. There are various tools and

techniques which can be used by the cited business unit. These tools are help to make their
strategic plan more effective. For British Airways manager they can use BCG matrix model as
given below:
BCG matrix is a systematic approach which can be divided in to four categories which
are stars, cash cows, dogs and question mark. The cited company can use this strategies which
can help to provide a better position in the near future (Cooke, and Saini, 2010).
Stars: This is the first component of this model which is related with the high growth and
high market share. In this situation, a firm's required to large capital to make their decision and
sustain these growth. As per the given case study, British Airways having a good growth rate in
their domestic market. According to the higher authorities, the aviation sector of UK is having a
excellent growth which can required large amount in order to expand their business operation at
the domestic market.
Cash Cows: This is another component which is related with the low growth but high
market share. In this situation a firm's there are a particular area where law growth but it having a
huge opportunities for the market share. In the context of British Airways, there are various
Asian market such as India, China, Indonesia, Vietnam and other countries which having slow
growth rate in the airline but due to their market size is large. They can provide a huge market
share which required more amount in order to invest and expanding (Klettner, Clarke, and
Boersma, 2014).
Dogs: This is the area where law growth and low market share. There are various
European countries which are facing economic crises such as Greece. Such market required to
overcome their operation so that they can save its money for the cash cows.
Question mark: This is another area which having high growth rate but low market
share. In this situation the risk involved because low market situation which can lose their
money. The cited business required that to close their operation in those areas and invest in to
another [profitable areas.

TASK 2
2.1 Analyse the strategic positioning of a given organization by carrying out an organizational
audit
British Airways is a international airlines group which having more than 250 aircraft fleet
in the various segment. They also operating cargo airlines which is also one of the leading in the
European Union. There total number of destination is approx 180 which is good enough as a
global airlines (Meskendahl, 2010). They operating their business in to three segment economic,
premium and cargo. It is essential for each and every business unit is to know their capabilities
and opportunities in the market in order to attain their long term goals and objectives.
Organizational audit can help to seek their various aspects for all three level strategic,
operational and tactical level. For the organizational audit British Airways can conduct SWOT
analyses which can provide enough information in order to make various decisions.
Strength This is a government airline group which having a full support from the
government.
They having company hub in London which can provide access to the
entire Europe and rest part of the world.
British Airways is one of the well known brand in the world due to its
global presence.
They having one of the largest fleet of aircraft with approx. 260 in different
category.
The cited business unit has approx. 180 internation destination in the
different part of the world (Montgomery, 2011).
They also spending large amount of capital on their promotional and
marketing activities.
Weakness There are various number of international airlines on the all routes.
There are tough competition in the domestic market which can reduces its
market shares.
Opportunities The Heathrow airport is central located in the globe which connected all
major airports having a great opportunities.
Expanding their presence in the other part of such as India and China.

They can also make strategic alliances with small airlines companies which
can provide golden opportunities.
Threats Uncertainty in the oil prices may affects its profitability.
The labour cost are increase which can leads to overcome their revenue.
Tough competition in the EU market which can affects its market share and
growth (Pagani, 2013).
2.2 Carry out an environmental audit for a given organisation
Business environmental having a large impact on the business operations of the company.
There are two major factors which can included internal and external factors. Internal factors can
be controllable for the company but external factors are not control by the company. In the
context of British Airways there are various external factors which can influenced it future
growth and business activities. These factors can be includes:
Political factors: These factors are related with the government stability and business
policies of the country. It is essential for a company the they analyses this factors in so that they
can overcome the potential risk on the business. British Airways required to evaluate the political
stability in the UK (Parnell,and et. al., 2012). UK is one of the oldest democracy which can
provide certainty in the business policies of the company.
Economical factors: This is another essential factors which is related with the economic
aspects such as growth rate, interest rate, inflation rate, employment situation in the economy.
UK is one of the leading economy approx. $2.4 trillion in the world. They having good economic
situtaion as comare to other European countires. These factors can help to the cited company and
its future growth.
Social factors: It involves demographic, social, population size, per capita income, social
trends and other factors. UK is a educated nation and their per capita income also quite good in
the EU nations. This can provide a opportunities of the British Airways market demand in the
near future.
Technological factors: In the present era, innovation and technology played a significant
role in the development of the company. British Airways required that to use various new

technology in the operations which can increase its competitiveness in the market. For example,
they can use social media in order to promote their products and services.
Environmental factors: Customer is more aware towards the environmental and climate
issues. Therefore, each and every business unit is focused on these issues. British Airways is also
initiate various programmes which can create awareness towards environment through their CSR
activities (Reich, and Benbasat, 2013).
Legal factors: There are various laws and legislation which should be followed by the
company. For example, in the EU there are environmental laws which having a negative impact
on the business operations of cited company.
2.3 Assess the significance of stakeholder analysis when formulating new strategy
Stakeholders are refers to those person or group of person that has involvement with the
business organisation. It can included customers, creditors, suppliers, employees, government
and society as a whole. These stakeholders played a prominent role in the success of the business
unit. Therefore, British Airways required that to identify and analyses these stakeholders so that
they can attain their long term targets. It is essential for a cited company to inform and take
support from them. There are the following stakeholder analyses stages given:
Stage1: This is the first stage where the company required to identify their key
stakeholders. These stakeholders are affects and affected by the business unit. In the context of
British Airways, they having various stakeholder like customers, employees, suppliers, financial
institutions, government and the community (Rothaermel, 2015).
Stage2: This is the next stage which is related with the determine stakeholders power,
interest and its influence in the business. For example, in the aviation industry the role of fuel
suppliers having a great significant. Because, there all business activities are depends on the fuel
supply. Therefore, British Airways required that to maintain good relationship with them. Apart
from that there are various financial institutions like banks which provide loans to the cited
company in order to expanding their business (Scholes, 2015). The manger also maintain a good
relation with them which can help in the future growth.
Stage3: This is the last stage of the stakeholders analyses. In this stage the business unit
is required to develop a good mutual understanding for their major stakeholders. For this they
marketing manager of the company can make contact with all stakeholders and communicate
with them on the regular basis. For example, in order to make their decision they can conduct

annual meeting with their shareholders and investors and provide relevant information about
their future projects and business plan. It can increase the sense of connectivity between them
which is good for the company.
TASK 3
3.1 Analyse the appropriateness of alternative strategies relating to market entry, sustentative
growth, limited growth or retrenchment for a given organisation
It is important for every business unit is to maintain its growth for the future. For this
they required various strategies such as market entry, sustentative growth and limited growth as
given below:
Market entry strategy: British Airways is required to expand their market in order to
maintain its market share and profitability. For this they required to enter in to new emerging
market which required market entry strategies as given below:
Merger:It is a process in which two or more business organizations are merge together and make
a new business unit. It is a market entry strategy which can be used by the British Airways. It can
help to maintain its market share through expanding their business operations (Schrader,
Freimann,and Seuring, 2012).
Acquisition:This is a process where one business unit can acquire to another company in order to
expanding its operation. In this strategy a large organisations having enough financial resources
which can help to buy a small developing business and increase its profits and market reach.
Sustentative growth It is important for a company to maintain its growth in to the
market. For this there are various methods which can be used by the cited business entity. These
strategies:
Related diversification:This is Sustentative growth strategy where a company can
diversify their business operations which is closely related with its product line. In this strategy
British Airways can also offer traveling products for their customers. It can help to increase their
customer base and adding new customers.
Horizontal integration:This is a process where a company expand its businesses which is
related with their same industry. In can involved strategic alliance where two ore more company
can inter linked with each other and offer the same products.

Limited growth This is another strategy which is related with the limited growth and
development of the company. It can involved:
Product development: It refers to designing, creating and developing a new product
which can satisfy its customer needs in a effective manner. British airways can produce product
in to different segment such as economic, premium and business class which can satisfy the
customer needs effectively (Teece, 2010).
3.2 Select an appropriate future strategy for a given organisation
The main objectives of British Airways is to be a global brand in the airline industry
through provide a high quality products and services to its customers. They wants to increase
their market share in the near future. But UK domestic market is limited growth which do not
satisfy their targets. Therefore, they required to expand their business through using appropriate
strategies in a effective manner. There are two important strategies which can be sued by the
British Airways as given below:
Market development: It is a process where a company can offer their existing products
in to new market. This strategy is most suitable plan for British Airways so in order to sustain in
the industry. There are various new market which can provide more opportunities for the
company and its future growth (Verbeke, 2013.). For example, according to the government data
India will be the 3rd largest aviation market in the next few years after US and China. It can
provide a opportunities for the cited company to expand their market in to India.
Divestment: This is another significant strategy which are used by various multinational
corporation for their future development. Cost saving one of the major issues in the airline
industry. British Airways having a control from the government. They required to operate their
flights in non profit area which is required to cut down. The company required to identify those
areas which are less profitable and try to close them . It can help to save their cost which can
leads to increase revenue and profitability which is a core objectives for each and every business
unit. This saved amount they can invest in to another area which can provide them to sufficient
return.

TASK 4
4.1 Assess the roles and responsibilities of personnel who are charged with strategy
implementation
Strategy implementation is required a person who can lead over the other personnel and
distributes work among their members according to their role and levels within the business
organisation. This is one of the challenging and complex task which required various
characteristics in order to perform and attain their long term goals and objectives effectively. The
major role of the CEO of the cited company is to provide a sound environment which can
support their all business activities (Verbeke, 2013). There are various roles which can be
performed by him as given below:
Provide proper resources: This is one the key role which is performed by the CEO.
They required that to implementation of their strategic plan effectively to arrange various
resources such as finance, HR, technology etc. For financial resources they can contact various
institutions which can provide finance and distributes among different functional department.
They also responsible to provide sufficient and talented human resources at the different level
such as strategic, operational and tactical level.
Build the culture: This is refers to the set of shared attitudes, goals and behaviour in the
group of people. As a CEO of the cited company required to create and develop a unique culture
which can support their strategic implementation in a appropriate manner.
Make quick Decisions: This is another role where the CEO of the business organisation
is required to make decision quickly. For this they make a appropriate system where all
information and data are stored such as historical data and support the decision making process
(Woodcock,Green, and Starkey, 2011).
4.2 Analyse the estimated resource requirements for implementing a new strategy for a given
organisation
Resources having a great significant in the strategy implementation and target attainment.
British Airways is a multinational company which have large pool of resources in order
to implement their business strategy. In order to achieve their long term goals and objectives
there are following types of resources mentioned below:

Human resources: Employees are the valuable resources for each and every business
organisation. Because it can help to attain firm's target in a specific time frame. In order to
successful strategy implementation HR have to be considered by the British Airways. The cited
company is large pool of staff in the different fields. They having specific skills and knowledge
in order to perform their task. For their business plan they required more staff which can be hired
form the various sources and provide appropriate training to them (MICHAEL PORTER'S FIVE
GENERIC STRATEGIES. 2017).
Financial resource: British Airways having large capital which can be used by their
strategic implementation. Apart from that they can take loan form international and domestic
banks which can fulfil their financial needs. For this they required excellent financial and
economic performance such as debt equity ration which is quite good for the cited business unit.
Time and material resources: For any strategy there is a specific time limit and there is
some material required for implementation the project. British Airways should use high qualified
technology, machine for fulfilled their adopted development strategy.
Information and knowledge: This is another important resources which is related with
the information and knowledge. For example if the company wants to expand their market in to
another country. For this they required market knowledge through various government and non
government organisations (PORTER’S FIVE FORCES. 2017).
4.3 Evaluate the contribution of S.M.A.R.T targets to the achievement of strategy
implementation in a given organisation
It is important for each and every business unit to set their target in a manner in which it
can be attainable for the company. For this British Airways required that to use SMART
objectives so that it can be feasible for the company. As the manger of the business organisation
they required to share their goals and objectives with their staff members and motivate them
through various methods (Meskendahl, 2010). There are the following SMART goals of the
business unit:
 If targets are not specific that what they wanted to attain. In the context of cited business
organisation there specific goals can be related with the customers and its need.
 If the target is not measurable in terms of number they can not achievable for no one.
Therefore. The main target of the company in the next five years is to increase market
share by 2.5 percent at the global level.

 If the British Airways target are not attainable in nature then how they can attain
anyway? So that they must be established their target which can be achievable.
 Time limit is one of the important aspects in the target. The cited business unit is set their
target for a specific time period such as monthly, quarterly, yearly etc. (Montgomery,
2011).
CONCLUSION
As per the above mentioned report it has been concluded that business strategy played a
important role in the success for the business organisation. The report discussed about the British
Airways mission, vision, goals and core competencies, and the various factors which can
influenced strategic planning of the company. The report description about its organisational
audit, environmental audit and shareholders analyses in order to attain their goals and objectives.
Further, this report concluded that various techniques which can help to entering in to new
market in order to maintain market share and profitability. The last part of this report is
explained about the roles and responsibilities of the person who implement all business strategies
and various resources which required to implement strategical in a effective manner.

REFERENCES
Books and Journals
Astrachan, J. H., 2010. Strategy in family business: Toward a multidimensional research agenda.
Journal of Family Business Strategy. 1(1). pp.6-14.
Bharadwaj, A., and et. al., 2013. Digital business strategy: toward a next generation of insights.
Burlton, R., 2010. Delivering business strategy through process management. In Handbook on
Business Process Management 2 (pp. 5-37). Springer Berlin Heidelberg.
Campbell, D., Edgar, D and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Chang, T. C and Chuang, S. H., 2011. Performance implications of knowledge management
processes: Examining the roles of infrastructure capability and business strategy. Expert
systems with applications. 38(5). pp.6170-6178.
Cinquini, L and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & organizational change. 6(2). pp.228-259.
Cooke, F. L and Saini, D.S., 2010. (How) does the HR strategy support an innovation oriented
business strategy? An investigation of institutional context and organizational practices
in Indian firms. Human Resource Management. 49(3). pp.377-400.
Klettner, A., Clarke, T and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project Management.
28(8). pp.807-817.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Pagani, M., 2013. Digital business strategy and value creation: Framing the dynamic cycle of
control points. Mis Quarterly. 37(2). pp.617-632.
Parnell, J. A., and et. al., 2012. How environmental uncertainty affects the link between business
strategy and performance in SMEs: Evidence from China, Turkey, and the USA.
Management Decision. 50(4). pp.546-568.
Reich, B. H and Benbasat, I., 2013. 10 Measuring the Information Systems–Business Strategy
Relationship. Strategic Information Management. p.265.
Rothaermel, F. T., 2015. Strategic management. New York, NY: McGraw-Hill.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Schrader, C., Freimann, J and Seuring, S., 2012. Business strategy at the base of the pyramid.
Business Strategy and the environment. 21(5). pp.281-298.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Woodcock, N., Green, A and Starkey, M., 2011. Social CRM as a business strategy. Journal of
Database Marketing & Customer Strategy Management. 18(1). pp.50-64.
Online

MICHAEL PORTER'S FIVE GENERIC STRATEGIES. 2017. [Online]. Available through:
<http://refreshbreeze.weebly.com/48-michael-porters-5-generic-strategies.html>.
[Accessed on 25th March 2017].
PORTER’S FIVE FORCES. 2017. [Online]. Available through:
<ANALYSIShttp://pestleanalysis.com/porters-five-forces-analysis/>. [Accessed on 25th
March 2017].