British Airways
British Airways
Business
Report
Executive Summary:
This report is focused on reviewing the existing strategic plan of British Airways Plc (BA) and proposing a new strategic plan to be implemented over the next five years. BA is the leading global premium airline that has recently singed a joint business agreement with Iberia Airlines forming a new holding company-IAG. However, increasing competition due to consolidation and low cost carriers, its market share has eroded in the UK, the EU and North America.
First of all we analyses the current external environment of British Airways. Then we conduct strategic evaluation to propose BA a new strategic plan of focusing on their fundamental services delivery. BA can restore their competitive advantage in the current increasingly consolidating environment of airline industry by implementation of a combination of two strategies. A people processes and technological advancement are the strategies that can be successfully implemented in the current scenario.
The people processes strategy has been recommended after reviewing the BA’s declining customer satisfaction, and technological advancement goes parallel with the continuous addition of BA’s new aircraft to their fleet and enhanced services at Terminal 5 to improve the overall customer experience.
Table of Contents
1 Company Overview 4
2 External Analysis 5 2.1 External Environment 5 2.2 Customer Analysis 5 2.3 Competitors’ Analysis 6
3 Review of Existing business plan and strategies 6
4 Proposed Strategic Options and Plan 7
5 Factors affecting the proposed Strategic Plan 9 5.1 People 9 5.2 Legal 9 5.3 Consolidation and Deregulation: 10
6 Implementation of proposed Plan 10
7 Evaluation of proposed plan 11
8 References 11
9 Appendix : 12
Company Overview
BA has emerged as the UK’s largest international scheduled airline. BA places huge importance to its premium services by flying its customers at convenient
Business
Report
Executive Summary:
This report is focused on reviewing the existing strategic plan of British Airways Plc (BA) and proposing a new strategic plan to be implemented over the next five years. BA is the leading global premium airline that has recently singed a joint business agreement with Iberia Airlines forming a new holding company-IAG. However, increasing competition due to consolidation and low cost carriers, its market share has eroded in the UK, the EU and North America.
First of all we analyses the current external environment of British Airways. Then we conduct strategic evaluation to propose BA a new strategic plan of focusing on their fundamental services delivery. BA can restore their competitive advantage in the current increasingly consolidating environment of airline industry by implementation of a combination of two strategies. A people processes and technological advancement are the strategies that can be successfully implemented in the current scenario.
The people processes strategy has been recommended after reviewing the BA’s declining customer satisfaction, and technological advancement goes parallel with the continuous addition of BA’s new aircraft to their fleet and enhanced services at Terminal 5 to improve the overall customer experience.
Table of Contents
1 Company Overview 4
2 External Analysis 5 2.1 External Environment 5 2.2 Customer Analysis 5 2.3 Competitors’ Analysis 6
3 Review of Existing business plan and strategies 6
4 Proposed Strategic Options and Plan 7
5 Factors affecting the proposed Strategic Plan 9 5.1 People 9 5.2 Legal 9 5.3 Consolidation and Deregulation: 10
6 Implementation of proposed Plan 10
7 Evaluation of proposed plan 11
8 References 11
9 Appendix : 12
Company Overview
BA has emerged as the UK’s largest international scheduled airline. BA places huge importance to its premium services by flying its customers at convenient
References: 1. Porter, M.E. (1980). “Competitive strategy” Techniques for analyzing industries and competitors. New York: The Free Press. 2. Porter, M.E. (1997). “Competitive Strategy”, Measuring Business Excellence 1 (2), pp.12 – 17 3 4. IAG (2011), [online] Available at: http://www.iairgroup.com/phoenix.zhtml?c=240949&p=aboutoverview 5 6. BA, (2011), [online] Available at: http://www.iairgroup.com/phoenix.zhtml?c=240949&p=aboutoverview 7 10. Baltagi, B.H., Griffin, J.M., Rich, D.P. (1995), "Airline deregulation: the cost pieces of the puzzle", International Economic Review, Vol. 36 pp.245-59. 11. Audrey D ' A., (2011), iol, Business Reports, [online], Available at: http://www.iol.co.za/business/international/ba-iberia-ups-airline-consolidation-1.1012165 12