Similar is the case here. These days the number of low cost airlines is increasing through out the world in both domestic and international market. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. We’ve partnered with renewable fuels experts Velocys. Mr. Steve Parkhill, president of Rogers’ Chocolate, has been faced with the challenge to double or triple the size of the company within 10 years. However, growth for BA was not much and even fell in the year 2009. PositiveNegativeINTERNAlStrengthsWeakness•Strong geographical presence at international level•High employee productivity•High Service Quality•Large Airport Presence•Strong operating performance•first-rate new fleet of aircrafts•Use of High end technology•Competitive and quality customer service•Bad performance at key markets in terms of revenue growth•High Debt of the company•Highly Dependent on Fuel•Lack of effective marketing strategyEXTERNAlOpportunityThreats•Growing global tourism industry and an increase in international travellers•Growing air cargo industry•EU-US aviation agreement•Buracratic systems and management poor decision making•Drastic change in technology and customer behaviour•Intense competition from low cost airlines•Increase in fuel cost•Economic slowdown due to credit crunch2.4. Conservation projects, small individual programmes, 120 international communities and various charities were helped by BA’s support. This is the replacement for the previous agreement made between US and each European country. Leadership c. Courtesy and respectful d. Exceed customer ... All Papers Are For Research And Reference Purposes Only. Goals across these areas are:•By 2010 landfill by zero waste in the UK. Below is the table describing the relation between the strategies and core competencies of British Airways. In context of British airways, it has been found that the line managers is mainly responsible for the assessment of the planning and the strategies being developed by the authorities and convey the relevant information to the subordinates about the same. ConclusionBritish Airways role in the transportation industry is a significant aspect for many business organizations. As per the World Tourism Organization survey, approximately 898 million international tourists travelled globally in 2007 which is 6% higher than the previous year (846 million- 2006). They have a product strategy, pricing strategy, Promotion strategy. There is an intense competition in the market from Virgin Airlines, Singapore Air, KLM, Quantas and Emirates who also fly in the same route. Manipulating strengthsBritish Airways have got a very strong base in Heathrow Airport, UK. The company had also affected due to global collapse in the year 2008 in terms of revenue. Several Strategic options can also be identified with the help of the Ansoff Matrix analysis discussed below. They should also try to reach more markets through code sharing with other airlines which is a cost effective option. Providing a better quality experience to the customersIt is not only in Terminal 5 through which BA should provide better customer service but also has to concentrate on other aspects of customer service form ticketing booking to experience on BA flight. The organization needs to use low fares strategy to have larger number of customers for the organization. The key to British Airways network development programme from London airport is the operations maintenance of BA Connect’s London city, as part of British Airways regional business sale to Flybe. It is noted that the fastest means of travel is airplane only. The value chain lies in the strategies of the organization, which are considered in the table. If you need assistance with writing your essay, our professional essay writing service is here to help! This forces BA to fix different price range for different airports. 70%. Introduction British Airways is one of the International Airlines that provides its flights to 570 destinations in 133 territories. BA has kept a target of 63% customers to be in the category of “extremely likely’ or ‘very likely”. Their strategies like acquisitions and improved services would enable the company to pull additional customers and assure further enhanced services to airlines staff and many passengers. The British Airways has developed a strategy where their main concern is to establish themselves in Terminal 5 and also acquire new aircrafts depending upon their financial performance by March 2010. Threats of new entrants – LowCompetitor’s mergers and acquisitions also have the potential to effect their revenue and market position. Company would not only gain goodwill and high revenues but this will also build up harmony and quality work environment for each employee. The company operates with more then 41 thousand people, with its head office at Harmondsworth (Reportlinker, 2010). The graphical analysis of revenues, number of passengers carried in a year, and the share price is also done in the report for BA, and is compared with its competitor Easy Jet as well. In 2003, British Airways sold Dba, its German subsidiary to a German based low cost airline Verwaltungsgesellschaft. •Corporate responsibility to be used as a decision criteria by 75% of corporate customersby 2010. BA Connect is a wholly owned subsidiary of British airways which operates on regional (UK) routes. In spite of adverse economic conditions and rising fuel prices in the later half of the year, BA’s business plan BP10 has helped to achieve the set target for the year 2007/08. After reaching its pinnacle, it feel consecutively for two years to reach to 31.8m in the year 2010. Their corporate responsibility vision is to become the world’s most responsible airline and they have developed guiding principles describing what they are doing to achieve this goal. British Airways offer variety of support like cargo space, funding, fund raising events, merchandise, free flights and excess baggage. One Destination seeks to ensure our customers fly confident that, together, we are acting responsibly to take care of the world we live in.” is the vision of British Airways. BA has achieved 59% in the customer recommendation scale. From the above chart we can interpret that the number of passengers were though almost equal in the year 2006 for both Easy Jet and BA, it suddenly went up for the former company. Thus, the company had expended its services with greater focus on customer satisfaction with the expectation of higher returns from the market in long run. It can also help the organization achieve economies of scale, which would not be easy to achieve for other organizations. Thus, it is important to understand the strategic position of the organization. The cost of changing suppliers proves very high in airlines business. The difference is the key to success (JB Barney, 1986). Some of these include Boeing 737, Airbus A319/ 320 /321, Boeing 747/ 757, 767/ 777. We want all of our customers to enjoy a premium service at every point of their In 2008, BA transported 805000 tons of goods and these numbers will increase tremendously in coming years due to its operations presence in most part of the world and will be benefited by the growing trend in cargo market. This raises the concern against BA to formulate its strategies to grab this huge market segment. There is no direct replacement available for airlines for long/overseas journeys. As for the airline business, the attention should be laid onto the potential market power associated with the airport operators, as the level to which the airports can exploit the market potential is dependent on the characteristics associated with the airports (Starkie, 2002; Gilleen & Niemeier, 2008). Their focus has always been on delivering the best service to customers, with its flexible market expansion strategy for branding (Jack, 2010). Rapid development of technology can be an indirect substitute of air transportation. These include Easy Jet, Air Berlin. We're here to answer any questions you have about our services. The workforce of British Airways is a significant positive feature that strives to offer utmost advanced and pleasing service to its consumer. It is running successfully all across the world, with its major operations in US and Europe. CustomerCustomer’s feedback is an important aspect to evaluate the success of the company. Once passengers recognise cabin crew they will win the golden ticket and manager thanks cabin crew individually and personally for their contribution in delivering exceptional services. British Airways always tries to be innovative to better their services, which might cause some problems to the company. They need to establish a corporate culture of its own so as to avoid communication gap among different locations and departments. The increased use of the flights by people to travel from one place to the other has lead to an increase in scope of the airline business. BA Basics and BrillianceThe British Airways board aims to offer “Brilliance” in its activities and deliver the “BA Basics” constantly. It has 300 destinations throughout the world; this extent of operations offers customers with world-class services at various destinations. 6. British Airways too had suffered losses due to wrong decisions made by them. Current strategy”. The above discussed corporate strategies can lead British Airways to achieve competitive advantage in the global market place. It was seen that the organization does not have much control over their buyers as well as suppliers. Thus, Easy Jet seems to grab the market share at a good pace. The organization shall always make use of right valuation technique before making any decision for acquisition, alliance with the other ones. 3. Survey. This strategy results into making right decisions for merger and acquisition decisions. •Noise – Their impact on the local communities nearby airport to be reduced. London Benchmarking Group reported British Airways direct and in-kind donations of £5.7m last year. This is quite important strategic tool to determine the position of any company in this global market. Info: 3064 words (12 pages) Essay Thus, there does not seem any substitute as such at present for the airlines. CommunityProviding support to local communities in the country where British Airways operate is the main belief of the company. It is the set of strategies within the organization, which separates the successful organization from an unsuccessful one. Controlling cost on expansion plan and developing a better marketing strategy will help British Airways to generate more revenue and gain more profit margins. It maintains hangers, operates offices and other support services at Gatwick, Heathrow and other UK airports. British Airways ‘superbrand’ dominates among businesses and consumers alike Comic Relief targeting new demographics with the return of Red Nose Day Customer experience is a 5-year challenge BA’s restructure puts marketing at the forefront of its business strategy This shows that there were risks associated with investments in this company. Apart form punctuality; other factors which influence the “BA Basics” are baggage handling, Hygiene at flight, smooth transition and dependability, and constituents of entertainment systems on board. Virgin Atlantic, easy jet and other European airlines are in tough competition with British Airways as there is a free market for domestic flights operating in the whole of Europe. British Airways launched their services from Paris and Brussels to New York in January 2008 and in April, 2008 from London to New York. British Airways Strategic Plan • Improve internal 59% (2007/08) to communication. The company was re- launched during 1980; and was termed as the favourite airlines of the world. It’s among the largest scheduled international passenger airlines in the world with airline route network of 300 destinations. As part of its commitment to serving customers the highest quality meals and snacks, British Airways has invested millions to enhance its catering across all cabins. ... business and relates to its customers must be involved and driven by strategy. Strategic analysis has always been an important part of the organization. British Airways “Fit for 5” programme was set to be accomplished in the 1st year, which involved essential agreement modification and implementation on highly superior work performance all over the Heathrow terminals. It is followed by the discussion of some of the risks associated with the wrong strategic decision in airline industry. Below is the table describing the relation between the strategies and core competencies of British Airways. British Airways was privatised in 1987 and was merged with British Caledonian. Five forces have been identified for determining the intrinsic long run potential in the market or the particular segment of market, which are industry competitors, potential entrants, substitutes, buyers, and suppliers (Michael Porter, 1985). Performance Measurement CriteriaBritish Airways has set up a balanced series of financial and non-financial performance indicators in order to raise its performance standard. Here is the SWOT analysis which helps to understand their business scenario better. Easy Jet is in the continuous process of improvement in its financial health. This is going to play a very important role in process change and helps to improve the delivery of all the factors which affects the punctuality. •Air quality – Air quality for communities nearby airport to be improved. Here you can order a professional work. Their BP10 plan has tried to redefine the promise made to the customers under the headline “BA Basics and Brilliance’. British Airways aims to offer “Brilliance” to their customers in numerous vital areas such as their customer services, Terminal 5, ba.com, their premium customer experience and their network and schedule from London. The presentation attempts to analyse UK airline industry and the situation in which British Airways, the flagship national carrier, is in, and suggest strategic direction for the brand. BOAC’s main operation was long haul services and British European Airways was established to serve continental European and domestic market. BP10 enablersThe vital aspect behind implementation of BP10 is constant engagement and participation of British Airways’ people. Additionally, BA shall also increasingly make use of economies of scale technique too for attracting customers with low purchase capacity. Market DevelopmentMarket development strategy focuses on finding new segments, territories, new uses of existing market with existing product/services. Learn more about Velocys Explore our Altalto project However, as the company already operates in more than 300 destinations therefore we would recommend them to concentrate on maintaining the quality of services at the existing markets thereby further build up its position. This shows that there were some problems faced by the airline company. BA is the first airline to introduce a unique technological system called “Microwave Landing Technology”, which increases the rate of safe landing during low visibility by 20%. Their main concerns for support are Sustainable Tourism and Heritage, Education and Youth Development, Environment and Supporting employees. Power of Trade Union is an important legal factor affecting British Airways. However, it is crucial for the organization to make right use of its core competencies to stay well in this competitive market, before its competitors make a greater control over the market. These had earned profits due to low cost travel services provided by them. The fall in revenue as noted in chart 2, might be due to the fall in number of passengers as noted in chart 3. This strategy can be used to increase sales without losing focus on their existing product/services. They also need to reduce the cost of high aircraft utilization so as to minimize environmental risks. From the above table, we can interpret that for BA to be successful, it needs to incorporate several strategies there within. are important for the success of any airplane. BA has to make clear orientation of its routine business operations. (Value Chain). Listen and communicate b. Impacts of social factors vary from country to country. Our academic experts are ready and waiting to assist with any writing project you may have. In 1939, UK government merged British Airways and Imperial Airways to form British Overseas Airways, which became a state owned company. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. These would overall result in the success of BA. Making the most of global variations and technological trends serves as a potential opportunity to work with. The organization’s performance was quite mixed in all. British airways have already invested a huge amount in setting up its infrastructure especially in Terminal 5. To attain success, an organization has to work towards the following described corporate strategies for decision- making process:-. •Every year British Airways 50% employees donate time to communities and charities. These strategies play an important role in assisting the British Airways to regain lost ground in the current airlines market. Potential Strategic optionsAfter going through BA’s vision, goal and their current strategy, we are of the opinion that BA’s current strategy is very competitive and will definitely help British Airways to achieve their goals. This is mainly due to the recent credit crises and thereby economic slowdown. In May 2007, British Airways placed an order for eight airbus A320 family aircraft which were scheduled to be delivered between 2008 and 2010. Cargo operations, main scheduled passengers and revenue from ancillary services comprises airlines business. The Corporate strategy is also discussed to understand the strategic position of the organization followed by the SWOT analysis for BA, followed by the conclusion of report. The company operates carrying around 32 million passengers all across the world. Thus, the overall characteristics such as the connectivity of airports with the city, the infrastructure facilities, the mode of transport between the city and the airports etc. Registered Data Controller No: Z1821391. The company has 240 aircrafts in total. You must cite our web site as your source. actively choose British Airways. Competitive advantage in the Marketing strategy of British Airways –. They should rather emphasise on maintaining and upgrading the quality of present services. The organization shall make optimal use of its brand value as core competency in the value chain of the organization. During the financial year ended March 2008, £8,753 million (approximately $17,572.3 million) revenue was recorded which was 3.1% increase over 2007, £8,75 million (approximately $1,756.6 million) was the operating profit which was 57.4% increase over 2007, £680 million (approximately $1,365.2 million) was the net profit in comparison to £290 million (approximately $582 million) net profit in 2007. However, it fell in recent years, which has resulted in reduced revenues for the organization. The low-cost airlines holding about 9 percent of the European airlines market, is expected to increase due to the huge potential still in the market. However, there are some uncontrollable factors that impact the airlines industry occasionally. Marketing Strategies of British Airways: Marketing is nothing but a mix of Place, Product, Price and promotion. References•http://www.britishairways.com/travel/csr-corporate-responsibility/public/en_gb•http://ivythesis.typepad.com/term_paper_topics/2008/07/sample-swot-ana.html•http://www.bashares.com/phoenix.zhtml?c=69499&p=IROL-index•http://www.lotsofessays.com/viewpaper/1712804.html•Gomm (2005) – http://www.lotsofessays.com/viewpaper/1696214.html•http://www.coursework.biz/Essays/University/Business_Studies/115/•http://www.coursework.biz/Essays/University/Business_Studies/115/•http://www.iata.org/pressroom/pr/2002-11-15-37.htm•http://www.themanager.org/Models/p5f.htm•Datamonitor 2008•British Airways Annual Report (2007-2008)•http://university-essays.tripod.com/ansoff_analysis.html•http://bapress.custhelp.com•http://www.britishairways.com/travel/bapress/public/en_gb. At the same time, British Airways launched its new subsidiary, BA CityFlyer in Lodon city Airport. “Service captured the interest and imagination of operations management (OM) academics in the 1980s.” (Johnston, 1998, p. 104). In 2004, to clear their debt, British Airways sold their 18.6% of stake in Australian airline Qantas for £1.1billion and also sold their London Eye to Tussauds £95 million. Our colleagues are central to our ambitions to be the world’s leading global premium airline. There are several marketing strategies like product/service innovation, marketing investment, customer … A few main By developing better e-ticketing facilities, British Airways can reduce its cost by reducing the number of outlets for customer service. In aviation industry, to expand the market, the company needs to make huge investment and it is not realistic to expect return in short term. History of British AirwaysBritish Airways which originated as Aircraft Transport and Travel started its maiden daily international scheduled air services between London and Paris after World War 1. Company showed an operating profit of £89 million as on 31st December’2008, which is 88% down compared to 2007. Approximately 22.17 million tons of freight was carried throughout the world and it is expected to grow up to 60million in 2017. Currently, we would advise BA to control its expenditure on buying new fleets and expanding to new destinations. In this strategy British Airways provides two tickets to its valuable passengers if they can remember the flight attendant service and name (British Airways innovations and strategies 2011,2012) . •75% of employees committed to delivering our corporate responsibility goals by 2010British Airways have recognized performance objectives to evaluate their development in each of these four sections. This aims to attain the long lasting stand in the organization, with the purpose of organizations’ stakeholders. BA shall consider this as well. ValidityBritish Airways should make sure that there is a consistency in implementing the strategy with changing market environment. The premium strategy gives high quality in high prices for executive and business users. For instance, like British Airways have Boeing and Airbus aircrafts, therefore they need to avail the services and maintenance of aircrafts from them. Suppliers play an important role for the organization. British Airways have invested a huge amount on infrastructure, computers and online services. customers remains central to our strategy of transforming British Airways into the world’s leading global premium airline. A major segment of British Airways broader communication strategy was local face-to-face communication as it was accepted to be the most effectual engagement. British Airways is among the top ranking international airline companies in the world. This will help to boost up their revenues and offer superior services to the customers. If we see the figure of year 2001, the traditional player, British Airways in the concerned regions was in loss, but the Easy Jet and Ryanair reported operation margins of 9.5% and 26% respectively (The McKinsey Quarterly, 2002 Number 4, Published: 09 October 2002). The airlines have the market power in addition to the airport management (Brueckner, 2002; Borenstein and Rose, 2007), thus the low cost carrier may sometimes increase the prices too. In addition to the above strategy, we also have identified few more potential strategic options which could be helpful for BA’s further growth. Strategic change: The corporate strategy establishes that how firms; develop, evolve and change over time (Stacey, 1995). Thus, BA has to work makes itself unique from rest of the market by providing reliable and consistent services to its customers. Benefits of strategies: It is the set of corporate strategies, which explores the organization’s work pattern, acting as USP for them, thus creating benefits for the stakeholders (D’Aveni, 2001; Porter, 1980). The strategic decision of alliance with KLM proved wrong for British Airways due to increased feeder role, overlap of strategies, lack of cooperation among managers, and burden of financials (Kleymann & Seristo, 2004). Issues covered by their workplace pillar comprise:•How they fly – Responsible colleague•What they buy – Tools to do the job•What they fly – Invest in peopleOur goals across these areas are:•Every year British Airways 50% employees donate money to charity through ‘Pay Roll Giving’. ... clear view about airlines’ services. Its major business is commercial flight. Corporate CultureAs British Airways operations are spread all over the world, they have work force coming from variety of cultures. Very high cost is required by new entrants to start. This factor is measured by calculating how many flights of BA are all set to depart 3 minutes in advance to the scheduled time. In order to meet their explicit growth plans they intended to secure first of these aircrafts in 2009, whilst the replacement of fleet will be started by 2011 with the second batch. Though there are many factors which affects the punctuality, this measure helps to concentrate all aspects of departure process which can be controlled. This survey is been conducted twice a year, one in September, and its shorter version in March. ... be exchanged for free flights across the world on British Airways, KLM and Northwest Airlines.Community Services - Annexure 2 o Flight of fantasy o ... Asian subcontinent by a single, modern, and efficient airline. The organization has to work towards low cost career as well as luxury ones. The price-cap and the rate of return regulation are not much differentiated due to the reason that the prices are decided based on the historical costs of the airport management company (Starkie, 2004). Passenger aircrafts carries the majority of cargo, while the remaining is carried on part-chartered freighter aircraft or leased. To have a better understanding of the customers, BA has a very effective system in place. Main Body1. It is comparatively cheaper to retain existing customers than finding new ones. Mainly it runs its business in United States and Europe. Not only in the academia but also many organisational managers try to improve the quality and structure of their businesses by implementing ... Airlines business and Non-Airlines business are the two segments in which the company has divided its business. BA is investing on giving better facilities to the customers by trying to raise the customer recommendation indicator. “Ready to Go” success averaged at 34% 2007/08 and 36% during 2006/07.
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