MBA 4609  Strategy: Concepts and Practices

Module Tutor: Danish Khan

Submitted by :

Faisal Omar         M00194137

Amir Shekarriz         M00189310

Abul Hassan         M00197100

Arshad Saleem         M00194171

Word Count: 3165 wordsTable of Contents

Company background

Mission Statement

Corporate Responsibilities

Internal Analysis - Resources

SWOT Analysis

External Analysis – PESTEL – C

External Analysis – Porters 5 Forces

External Analysis – Market Share and Competitive environment

Strategy – Strategic Mix


Company Background

British Airways plc (: ) is the national  and  of the  and one of the largest in . Its main  are  and . British Airways holds a  Type A Operating Licence, and is permitted to carry passengers, cargo and mail on aircraft with 20 or more seats.

The British Airways Group was formed on   consisting of  and . These two companies were dissolved on   to form British Airways (BA). The company was privatised in February 1987. It expanded with the acquisition of  in 1988 and some of the routes of Gatwick-based carrier  in 1992.

For a number of years the airline was a mainly  customer, in November 1998 it placed its first direct order for  aircraft. The company's next major order was the start of its replacement of its long haul fleet, ordering  and  in 2007.

In 2008 BA unveiled its new subsidiary  which will take advantage of the liberalization of transatlantic traffic rights, and fly non-stop between major European cities and the United States. Operations are expected to begin with a single Boeing 757 in June 2008.

Source:  Investor Relations            

Mission Statement

The British Airways mission statement in its own words is that it “is aiming to set new industry standards in customer service and innovation, deliver the best financial performance and evolve from being an airline to a world travel business with the flexibility to stretch its brand in new business areas.”  

Corporate Responsibilities

In November 2007, BA created a new corporate responsibility department, bringing together their former Community Relations and Environment teams. The CRB includes representatives of health and safety, as well as people with responsibility for emerging issues such as climate change, whistle blowing, responsible procurement and fuel management.

The CRB, which meets quarterly, is supported by the Corporate Responsibility Team and Corporate Responsibility Champions drawn from across the business. Their work is further supported by a variety of steering groups including health and safety, diversity, disability, procurement, fuel, environmental management and information technology.

BA approach to corporate responsibility has three main components – the vision, goals and programme plan. The activities are centered in four key areas:

Workplace – ensuring of providing sustainable employment for current employees and become the employer of choice for future employees;

Marketplace – working with suppliers and customers to build a more sustainable business

Environment – making sure of minimizing their impact on the environment, including their contribution to climate change, air quality, noise and waste; and

Community investment activities – supporting diverse projects that help to make communities in the UK and overseas more sustainable.

They have identified performance goals to measure the progress in each of these four areas.  Finally, they have developed a programme plan containing over 80 programme level activities and several hundred individual projects aimed at delivering their corporate responsibility strategy.

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Resources

On  , BA announced that it has placed a firm order with Airbus for eight new  aircraft. The new aircraft are due for delivery from 2008. They will be delivered to LHR displacing  to LGW which in turn will replace elderly -300/500, the leases on which expire at this time.

On  , British Airways placed a firm order for four 777-200ER aircraft with an option for four more, with the order totalling more than US$800 million at list price. The company has stated that these are for fleet expansion. BA's first batch of 777 were fitted ...

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