Organizational Strategy of British Airways: Business Position Report

This report provides a comprehensive analysis of British Airways' organizational strategy and business position. It begins with an overview of the airline, followed by an examination of macro-environmental factors, including political, economic, social, technological, legal, and environmental influences. The report then delves into British Airways' industry position, market share, and marketing strategies, including segmentation approaches. Internal resources, capabilities, SWOT analysis, and competitive advantages are also discussed, providing insights into the airline's strengths, weaknesses, opportunities, and threats. Finally, the report explores stakeholder perspectives and management, concluding with a summary of the key findings and implications for British Airways' strategic direction.

ORGANISATIONAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
Part one: Business position report....................................................................................................3
Overview of the organization.................................................................................................3
Macro environmental factors..................................................................................................3
Industry position.....................................................................................................................6
Market share on domestic and international markets.............................................................6
Marketing strategy..................................................................................................................7
Internal resources and capabilities..........................................................................................7
SWOT.....................................................................................................................................7
Competitive advantage...........................................................................................................7
Stakeholder perspective..........................................................................................................8
Stakeholder management........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
An organisation strategy is the accumulation of all the steps taken by the company to
reach its set objectives. Vision and mission of a company helps the analysts to determine the
strategic plans and policies to be formulated.. And it has also collaborated with a company for its
international flights which is the world's third largest airline company naming under IAG
(International Airlines Group).(Abbott , 2016)
Part one: Business position report
Overview of the organization
British airways is a UK based airline services situated near London it was started in 1974 by the
British government but was pushed in the revolution of privatization in 1987. British airways
has a revenue of 13,020 million euros in 2018. British airways is the second largest airline
services in United Kingdom and is known for its large passenger capacity and quality of services
to its passengers
Macro environmental factors
This is an external analysis of British airways this will help the company to analyze its
external factors which effects its business and also try to resolve the problems to increase the
profitability of the company and also be motivated towards its goal.
Political Factors
Political factors which impact the growth and efficiency of the company are very drastic
in nature and vary from location to location(Tasmin and Shafiq , 2017). The political reforms or
change in the law or amendment of any new law from the government can also impact the profits
of the company. British airways is an international airlines and is at much risk in terms of

political factors as any airline can not fly without the permission of destination country, if the
country changes the laws for foreign airlines in their country then that may impact severely on
airways and also decrease their market share and profitability. So the company must analyses all
these risks and formulate ts policies accordingly. An unstable political situation of any country
should always be kept out of the market until the political situation is stable. The analysts of
British airways also should determine the corruption level of the country as they might end up
removing the high level government officials. There is a high chance to demotivate the company
if the country charge high percentage of tax from the British airways which will decrease the
profits of the company. The disputes between two neighboring countries may also demotivate the
company to invest in that market as the war can be triggered In those counties which can also
harm the passengers and this will decrease the brand image of British airways and also increase
their liability. The another way British airways can earn more profits is by lowering the wages
and salary given to the employees to increase the profits of the company and increase the life
expectancy ratio of the company.
Economic Factors
The factors which decides the financial position of any economic country. British airways
must evaluate the economic position of the country before investing in it. Such as net disposable
income of the citizens of that country, gross domestic product, inflation rate , per capita income
of the country, foreign exchange rates, the rate of interest in any loans. These factors are very
important in determining the growth of the company as thee factors of a country can make
British airways to make profits and if the company doesn't make sound strategies then it can also
face a decline in their profits. British airways should also keep in mind that the country in which
they want to invest is following what kind of economic trend and gross domestic product is also
essential to analyze if the GDP of the country increases this means that country is growing
positively and is safe to invest in it as increase in GDP will also increase the net disposable
income of the citizen who are willing to spend which will give a wide opportunity to the
company to increase its profits attract more customers by doing aggressive marketing. The high
rate of unemployment can also give company an opportunity to increase its profits by employing
the low cost employees in that country.(Yakis-Douglas and et.al., 2017)
Social Factors

Social factors are the people's attitude, beliefs, culture and Morales as these factors are
very important as they constitute the bigger proportions of the population of the country and
British airways have to make the policies and marketing strategies according to these factors to
attract them. The importance of analyzing these factors will help the company to distribute the
population in different segments it will also lower the cost of the company and it will impact the
person's minds towards the marketing done by British airways. According to British airways
diving their population into class is very essential as they will also come to know the ratio of the
people who can afford what and also tries to increase the ratio of first class services so to
increase the profits of the company(Gilliland , Kotzé and van der Merwe , 2015). The airways
should also be clear in portraying the people about the safety and precautions of their health and
it is also very important aspect of the company which should be according to the standards and
rules of that country.
Technological Factors
Technology in any business organisation increases its productivity and helps the
organisation to reach to its set objectives in very short period. Hence, its is very important for
British airways to do market research and innovate its technology according to the passage of
time as new technology attracts new customers and that also increases the profitability of the
company. The company should also examine the competitors way of providing the new
technology and the impact that is created in the behavior of the customers of its revenues. That
will also help British airways to improve itself understanding competitors errors. British airways
must also evaluate the behavior of customers in change in technology and if the customers are
feeling more satisfied with new technology then British airways should invest its revenue in
research and department and ensure that they are the first one to launch that new technology to
get a competitive advantage in the market.(Furniss , Curzon and Blandford , 2018)
Legal Factors
British airways should also examine the legal aspects f the country where they are willing
to invest. Legal factors includes all the laws which are applied in the aviation rules and standards
and also treats its customers and employees very well. If British airways innovates a technology
before any other competitors then the company can protect that idea legally and it will not allow
the competitors to use that technology this will give British airways a competitive
advantage(Kwayu , Lal and Abubakre , 2018). If any competitors have used that technology

with any permission of using it then British airways can protect their rights and can sue that
company legally for stealing their idea. These laws provide a framework of standards for
aviation industry which every company has to obey the rules to be fair and ethical in its business.
Environmental Factors
There are different standards' environment conservation in different industries. In
aviation industry British airways needs to analyze the weather of the route on which the aircraft
will be moving. And the company must also analyze the weather conditions of the country where
it has to invest as the climatic conditions of that country is very bad then it will make delays in
flights and it will give a bad impact to its brand image. British airways have to examine whether
the country is a big producer of waste or not , if the country is producing huge amount of waste
then the laws of that country will also be more environment conscious and will charge penalties
if there is any action done by the company which violates the laws then the company may incur
decrease in profits.(Ragobeer , Klopper and Lubbe , 2018)
Industry position
Market share on domestic and international markets
The strategic orientation amended for British airways are Demographic segmentation
strategies and psycho graphic segmentation strategies. These strategies will help the company to
determine the essential policies and other factors which will increase the growth of the
company(Cacciolatti and Lee , 2016). The main reason British airways opted the segmentation
strategy so that the company can understand their customers in different geographical locations
and analyze the behavioral patterns of the customers to improve the services as the main motive
of British airways is to provide satisfaction to its customers. British airways target their
customers on the basis of social class as a part of their strategy. British airways also has divided
its market and customer analysis in different segments this is done to understand the data in
detailed manner with more accuracy. As the company look forward to becoming the world's
leading global premium airline. With a tagline to fly.. to Serve which means the company
promises to provide their customers the best services and experience while traveling to their
respective destination with comfort.
British airways have always moved forward in proving its services globally and is also
focusing showing their existence in the market. The company has also focused on increasing

number of aircraft and increase the efficiency of each aircraft to maximize the number of
customers and also provide them equal satisfaction.
Marketing strategy
The company targets its customer on geographic, demographic, pyschographic,
behavioral segments. The strategies in demographic market will be evaluated by region, age,
gender. The company provide its economy class services in UK and Europe , premium economy
services only to selected international flights, executive club services are give to Europe and only
international flights and first class services given to Selected international flights this distribution
is done on regional basis. On age of customers British airways provide economy services to kids,
teenagers, middle aged, old aged, premium economy services will be given to teenagers and
middle aged , executive club services will be given to middle aged and old aged passengers, and
same to first class services of the airline. And there is no gender bias and any gender can use any
service according to their willingness.(Sallos and et.al., 2019)
Internal resources and capabilities
SWOT
Strength
 Globally recognized
 Won business and consumer super
brand accolade
Weakness
 More competitive in domestic market
rather than international market.
 Huge amount of Debts
Opportunities
 Can expand more in international
market
Threats
 Other Airlines
Competitive advantage
British airways will provide their services to their customer on the basis of income of the
customer, occupation of the customer, education level, social status, family size . The company
uses the demographic marketing strategy to understand their customers and attract them to
increase the company's sales. Economy class services are offered for low income, students, high
school bachelors, low or middle class and joint family. Premium economy services for middle
income level, students, unmarried adults, low and middles class, nuclear families. Executive club
services and first class services are offered to high income level of customers. Businessman,
professional, masters in education level are being targeted for executive and first class services

of the airline. The company focuses on people who belong to high class in the society to spend
more in airline to get better services and newly married are convinced go for first class services
to start the new journey of their life.(Wressell, Rasmussen and Driscoll , 2018)
British airways have divided their customers on their personality, lifestyle and cultures
the customers who are moderately fashionable, and has an easy going attitude and travels
frequently they are offered with the economy class services. Customers who beliefs in the
cultural vacations and are medially fashioned are been given premium economy class services by
the airlines to promote their personality and also keeping in mind that they are not regular
customers so to retain those customers they are provided with higher services. The airline targets
those customers to pay more who are determined and travels on business trips with executive
class services whereas the customers who are ambitious or traveling or honeymoon are offered
with first class services
Stakeholder perspective
A person's behavior while any services have been made was analyzed by the company to
know their customers better and come up with the improvised way of offering them the services
without hurting any customers feelings. As British airways had divided the customer's behavioral
patterns in benefits given to the customers, their status of traveling in the same airlines , and the
customers' attitude. British airlines analyses that the customers who opt for economy class his
main concern is the budget of the fare charged, the person who chooses premium economy
examines the value of money paid for the fare, the customer who chose to travel in executive
economy class will look for luxury and advantage of the services received where customers will
only pay only for luxury as he is capable enough to pay the amount and only crave for satisfied
traveling experience.
Stakeholder management
The above explained market segmentation is very essential to understand the customer in
every aspect so that the company can formulate its marketing strategies according to the analysis
to grow the customer base and also achieve the company's set objectives which is to the worlds;s
largest airlines network in the world. This also enable the company to position itself in the
market and also compete with the current players in the aviation industry.

CONCLUSION
This report is a detailed information of factors affecting British airways and marketing
strategies and positioning of its strategies in the respective market. British airways is in top
leading airline company in the world so to maintaining that leadership and moving forward the
company need to do a market analysis on market frequently and British airways must also
develop a more accurate system to understand their customers better like never did before by any
other competitors as that will give a competitive edge to British airways. And the company must
also ensure the need of innovation in the market keeping in mind the rules o safety and security
of the passengers. British airways has been consistent In providing good service to its customers
and also made efforts retain its customers.
REFERENCES
Books and Journals
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