• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Strategic management of British Airways

Extracts from this document...

Introduction

Transfer-Encoding: chunked 1.0 INTRODUCTION 1.1 British Airways- Company Overview British Airways Plc is the largest scheduled airline at international level in the United Kingdom. British airways (BA) operate its services in scheduled airway transportation services, domestic and international carriage of mail and freight and miscellaneous ancillary services (Datamonitor, 2013). With more than 300 destination flights, BA works in collaboration with franchise partners and codeshare to carry around 34 million passengers in a year. The annual report suggests its yearly revenue as 8.99 billion pounds and also boosts about having largest employee count in the UK with approximately 42,655 people. BA became private in the year 1987 and since then, it continued to rise against the fierce competition in the airways industry. BA is successfully identified as the airlines who adapted to green technology and for its valuable environmental friendly strategic decisions. BA was greatly affected by the economic collapse in 2008 which affected it marginally in terms of revenue generated. Strategic analysis of BA suggests that there is lot of scope for it to grow in Europe and in the world market. Annual reports of British airways stresses that the company would strive hard strategically to become the world?s most responsible airline. In order to strive for its strategic objective, careful strategic decision will be required to be implemented. ...read more.

Middle

In addition, focus involves the need to offer a service or a product which serves the niche market, which has little competition in a distinct manner. The focus strategy is again differentiated into differentiation focus and cost focus where the companies decide either on minimisation of the costs for their services or products in the market or to differentiate a service or product in a market that is focussed to receive them. Cost leadership strategy allows BA to create the services to be cheaper than that of the competitor in order to gain advantage over its competitors in the market. Porter?s generic strategies form an important way for BA to design its strategic management exercise. It is however not a fool proof method and is realistically impossible for BA to focus only on one aspect described above. The reason for which it cannot adapt to these strategies is that when a company follows this strategy, attempts will be made to differentiate products and services, whereby competitive advantage can be gained over their competitors but as this is consumer driven industry, BA cannot focus only on differentiation strategy by ignoring cost leadership strategy. This is because the cost leadership strategies are essential to reduce costs of the services, a primary attribute which the consumers consider while considering the services, no matter how unique these products are. ...read more.

Conclusion

The main resource which the company has a successful edge of addition when compared to its rivals is the utilisation of the remodelling services, whereby BA can achieve diversification in to other forms of transport markets also, while maintaining the cost effectiveness. Weakness ? Opportunities Within BA, change is recommended to be brought about by managing people, managing employees in particular. The leaders for the company should be chosen in such a way that they are more adaptable to transformational styles of leadership and can adapt their leadership style to current fierce competition. There have been many incidents of poor relationship between employees in the past which has been witnessed by the news paper incidents and this relations history can be countered through improved people process management where people working in the company are treated at personal level. In addition, recommendations should be made to improve technological services in order to adapt more towards innovation and technological change. Use of technology will help BA to address the issues concerned to growth, customer relationships and pricing in more affective way with increased trust and reliability. Weakness ? Threats There are some strategies which can be implemented in such a way that the weaknesses of BA will not become threats nor harm the company?s growth. One such strategy is to remodel and renovate the environmental stance of the company which can help to reduce the negativity which arouse from increased environmental damage. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Qatar Airways

    Qatar Airways has made an announcement that they plan to enter the North American market in June 24, 2007 with a new aircraft A340-600 HGW. It will start daily Washington D.C. (Dulles) flights starting June 24, 2007, where as the New York (Newark Liberty)

  2. Leadership Theories - this review seeks to determine which theoretical perspectives, theories and schools ...

    as they most likely determine the employability of individuals and their promotion to leadership and management positions. Competencies that lead to superior performance, on the other hand, comprise the desirable behaviors that leadership development programs utilizing this perspective would aim to develop.

  1. ITC - diversification strategy

    4. ORGANIZATIONAL STRUCTURE ITC changed its organizational structure in mid 90's after the current Chairman Mr. Y C Deveshwar took over the Chairmanship of the company. The change was largely driven by the problems the firms faced due to its old organizational structure.

  2. sainsbury strategic management

    now a days consumers tend to eat fresh food and seem to be more health conscious. According to the health department the obesity rate in UK is increasing (department of health 2008). And because of that reason the UK government has emphasised on healthy eating (eatwell.gov.uk 2008)

  1. General Management - organisation, leadership and theories.

    A project team was created to study the steel plants and decide which ones to close. 2.3. Develop a career plan (First homework) Welcome to the guided tour of Planning a Career. On this tour, you can find out how to choose a career and how to reach your career goal.

  2. Innovation For Business Success. It is possible to be innovative in both large ...

    Each year it conducts an annual board strategy retreat, and in recent years a long term sustainable position has been pursued. 80 | P a g e Innovation has recently been driven in the company in order to achieve step change capabilities and performance improvements.

  1. Change Management

    Every writer and developer of a emergent model tends to see change from their own point of views and concerns. Hughes (2006) suggests that the emergent model of change focuses on the nature of change that is continuously developing making it unpredictable.

  2. Ryanair Holdings PLC - Strategic Audit

    Michael Horgan has been with the board since January 12, 2001. He is former Chief Pilot of Aer Lingus. This is a window of opportunity for him to sometimes act as a consultant to several different international airlines, civil aviation authorities, including the European Commission and the European Bank for Reconstruction and Development.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work