British Airways Strategic Management

With regards to competition within the industry, British Airways' position is strong, even though competition if very strong in the short route sector due to a larger number of smaller competitors and the consolidation of certain competitors. Over time, in the long route sector there is very little difference in prices between the company and its competitors.

As for BA, their vision is being ‘the world’s most responsible airline’, their value is centred on putting people first.

British Airways also try to balance between short-term benefits and long-term opportunities. In the short term, British Airways plan to cooperate with reliable travel agents to offer special services to meet customer and agents’ needs and wants to achieve to win-win-win situation. In the Long term, British Airways try to establish a flexible and innovative platform, and to create a cooperative environment in the airline industry.

Scope of competitive rivalry: primarily major carriers (revenue more than $1 billion). Legacy carriers developing low-cost offshoots

At the present time, the airline industry faces many cost pressures. The industry has made remarkable achievements in improving its efficiency. But cost pressures continue, from record high fuel prices to unjustified increases in charges from monopolistic airports, to further taxes imposed by governments (industryspotlight.org.uk). Higher costs inevitably lead to higher prices for airline passengers. Aviation is vital part of the United Kingdom. It is not only crucial in sponsoring almost 1 million jobs and £50 billion of GDP, providing around £8.7 billion in taxes to the Treasury of the country, but aviation is also fundamental to the success of economic benefits from air transport in the United Kingdom (Roberts-Hughes, 2014). Aviation supports exports, services, manufacturing, foreign direct investment and of course tourism. This sector gives us opportunity for the holidays and visits of family and friend in different parts of a country and also around the world.

Aviation industry got hit real hard as a result of global financial crisis. Nov ’08 IATA’ traffic data showed a 4.6% drop in international passenger traffic and 13.5% drop in international cargo and stated that the worldwide aviation industry “shrinking by all measures”. During this hard time, Qantas made a

British Airways, being the market leader in the given market scenario can take the following steps to protect its market share

British Airways (BA) is a company that encountered several difficulties back in the 1970’s and 1980’s. The poor performances of the organization, was leading the company to failure. BA was offering a service that even though it accomplished the mission of the company, was not providing customer satisfaction. The organization was not taking into consideration the needs of the costumer and was not providing an acceptable customer service experience. “Productivity at BA in the 1970s was strikingly bad, especially in contrast to other leading foreign airlines” (Jick, Peiperl, 2010, p.28). Due to numerous changes, the company increased their revenues and became a respectful and well know organization.

At the present time, the airline industry faces many cost pressures. The industry has made remarkable achievements in improving its efficiency. But cost pressures continue, from record high fuel prices to unjustified increases in charges from monopolistic airports, to further taxes imposed by governments (industryspotlight.org.uk). Higher costs inevitably lead to higher prices for airline passengers. Aviation is vital part of the United Kingdom. It is not only crucial in sponsoring almost 1 million jobs and £50 billion of GDP, providing around £8.7 billion in taxes to the Treasury of the country, but aviation is also fundamental to the success of economic benefits from air transport in the United Kingdom (Roberts-Hughes, 2014). Aviation supports exports, services, manufacturing, foreign direct investment and of course tourism. This sector gives us opportunity for the holidays and visits of family and friend in different parts of a country and also around the world.

In this individual assignment, a video presentation and reading material, including the different ways companies innovate, re-energize a mature organization, and change corporate culture, provide the basis for analyzing British Airways’ (BA) transformation and the challenges encountered in making an organizational change. Identification of critical factors leading to their successful transformation as well as the steps, sequence, and risks taken to transform the organization and personal assessment of what could have been done differently is provided in this case study.

Aim The aim of this report is to provide recommendation for how Ryanair can keep its continues growth and market in pursuing price cut and aggressive expansion in light of crippling fuel cost ,faltering demand of customer and global credit crisis challenging the airline industry in the European market.

Along with the passenger flights British Airways engaged in the operation of domestic and international carriage of mail and shipment. Regardless of the global economic downturn, British Airways’ future seems promising. According to latest yearly report (British Airways, 2008) which stated that British Airways’ objective is to become world’s most dependable airline.

Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the

Create a SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis on one of the following companies (20 marks);

Recognition that not everyone is geared for the electronic world, leading the proposed airline to provide a high level of non-electronic service as well, particularly to the many newer, less-experienced travelers, but future loyal customers, found in the region.