British Airways Analysis

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Stakeholder is a person having direct or indirect interest in the firm’s objective, which include customer, board of directors, employees, shareholders, suppliers etc. They track the satisfaction of various constituencies who have critical interest in and impact on the company’s performance (Kotler Keller,2012). Take gate gourmet as an example it is the supplier of British airways, as a stakeholder it plays an important role in the development of the firm whereas it is also crucial to assess the stakeholder for maintaining the long-term relationships. There are three main connection features, which drives the value of the stakeholders. This essay will map British Airways stakeholders as well as the ethical concerns it has
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In the year 2005 Gate gourmet a food supplier for BA disputed with workers over restructuring its plans, which resulted in an unofficial strike. The food supplier terminated over hundreds of its workers prior to that British Airways staff took action, the trade union disapproved of it. Actions taken by British Airways workers resulted in cancellation of over 700 flights during a vigorous time of the year. Around a thousand Heathrow staff expressed their support for the terminated gate gourmet workers, both BA and gate gourmet staff belonged to the same union and community who were mostly Asian British. The incident led to a thousand passengers being stuck and resulted in the costing the company an estimated amount of £40 million. Furthermore it outlaid a bad reputation for the airline. This was the third sequential summer that BA passengers have faced severe interferences due to industrial action.
Without delay, BA was constrained to interfere openly in the Gate Gourmet clash, because it remains reliant on the company to source the heavy quantity of meals it demands at its Heathrow hub. BA decided to renegotiate its contract on the condition that Gate Gourmet fixed its own labor dispute. BA proposed an addition of two years to its existing contract, moving it to 2010, with some progress in terms to assist cover the anticipated £7 million cost of a dismissal
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