strategic management

1. BRITISH AIRWAYS
GLOBAL PREMIUM AIRLINE
Prepared By
kunal solanki

2. SUBJECT MATTER
 Brief about assignment
 Introduction about British airways
 The organization.
 Product range of British airways
 Main competitors
 Values and measure of British airways
 Objective of British airways
 Environment scanning
 British airways strategic choice
 Performance and Long-term Goals
 Conclusion
 References

3. ASSIGNMENT BRIEF
• This assignment has prepared for extensive strategic understanding of coalignment model , SWOT and its application with different product and
services offered by British airways.

4. INTRODUCTION BRITISH AIRWAYS
 Full service global airline , offering year round low fares
 Flag carrier of United Kingdom.
 Founded in 1924 as Imperial airways and operated under that name until
1935.
 1939, the airline was nationalized to form the british overseas airways
corporation (BOAC).
 In 1972 BOAC and BEA were combined under British Airways board.
 Fleet size – 274
 Subsidiaries – 4
 Destination -169 Global excluding local in U.K
• Company slogan - To Fly. To Serve.
•

5. THE ORGANIZATION

6. PRODUCT AND SERVICES
•
Short-haul UK Domestic is British Airways' economic class
•
Business UK operates the same cabin as UK Domestic.
•
Euro Traveler is British Airways' economy class from UK to Europe.
•
Club Europe is the short-haul business class
•
Mid-haul 'Club World' business class.
•
Long-haul premium with different facility in aircraft.
•
Club World easy with cabin features fully flat beds.
•
Next Generation New Club World, featuring larger seats.
•
World Traveler is the long-haul economy class offered on international flights to destinations
outside Europe.
•
World Traveler Plus is the premium economy offering provided on all long-haul aircraft.

7. COMPETITORS
British Airways has a lot of competitors but the competitors also depend on what
route is being flown. A popular route flown is London Heathrow to New York JFK. Many
airlines fly that route including following
Main international competitor.
•
Virgin Atlantic,
•
American Airlines
•
Delta Airlines.
 On the long-haul route to individual countries - The national carrier of that country.
 On ultra-short haul and short-haul routes - EasyJet and Ryan Air.
 On some long-haul routes - Virgin Atlantic.

8. SWOT ANALYSIS
•
Strength
• Strong brand image
• Open sky agreement
• International operation
• Sole access to Heathrow terminal
5.
• Skilled staffs
• Expansion of aircraft fleet
• Economies of scale by using
• Spare space of aircraft for
cargo services
• official airline for 2012 Olympic
and Paralympics.
Weakness
• Cost of management
• Decline profitability
• £358 M loss after tax in 2009
• £425 M loss after tax in
2010.
• Labor strike
• Powerful employee union
• Christmas strike in 2009

9. • Opportunities
• Emergence of new market
• Asia pacific
• Threats
• Raising fuel prices
• Tight competition from low cost airline
• Changes in consumer behavior
• Unstable political issues and global economic crisis.

10. ENVIRONMENTAL SCANNING
• Consumer choice and switching cost is very identical
• Expectation from british airways :- High quality service
• Environmental effect , Global warming and waste management.
• Buyer ‘s purchasing power and expectation.
• Fuel price hike and change in economy in U.K.
• Industry competition and change.
• Customer demand more than basic product.
• Customer enjoying enhanced product.

11. FIRM „S STRUCTURE
•
Reduce climate change emission in aviation with cap on net emission by 2020 and 50% cut
by 2050 ,it will guarantee the environmental target are met minimize cost to passenger
•
Huge Investment in product ,Aircraft, technology and service by 2020.
•
Market penetration and maintain pricing policy
•
Targeting Long haul aviation market in different country like UAE .
•
Reducing carbon emission, waste , noise and improve in local air quality.
•
Support international communities, conversation projects and charities in country we fly to .
•
Encourage our customer and supplier to act responsibly.
•
Provide and great place to work and encourage every one to embrace one destination.
•
Listen to customer feedback and giving quality service to customer at every touch.
•
Open skies alliance
•
Partner with UNICEF promote “change for good”
•
Investing in short haul market to attract and gain new customers by 2020.

12. LONG-TERM GOAL.
•
Deliver outstanding services to customers and build relationship with
them.
•
Grow our presence in global cities by 2025.
•
Build our leading position in Landon.
•
Meet our customer ‘s needs and improve margin through new revenue
streams.
•
Using modern technology , self service check in ,e.g. IBM ‘s KIOSK
By 2025.
•
Launching most advance freight processing facility service.
•
Setting the priority and be more sensitive for human aspect and job cuts.
•
By end of 2014 british airways will be reducing 10% of its waste on
future flights.

13. PERFORMANCE.
• By the end of 2013 BA would be competitor in the long haul market
from London to U.S.A. specifically business class.
• Successfully manage and pleased the economy class and customers
with outstanding customer service and win global award for its
service in 2012.
• Reduced the carbon & other waste by 6% in 2012 and planning to
increase this percentage.
• Manage staff and human resources that was problematic earlier due to
crisis with union and management ,seriously thinking about job cuts.
• Increase number of seats for short haul and long haul travel from
different rage of product offer to different customers.

14. CONCLUSION
After searching detail information about british airways we can
conclude that british airways objective is to being global premium airline
with approving ethical practices and creating positive image in society
by minimizing environmental effect. Moreover BA focus on customer
service and satisfaction by creating valuable traveling experience.

15. REFERENCES
•
(Britishairways.com, 2014)Bibliography: Britishairways.com. 2014. British Airways | Book
Worldwide Flights & Holidays. [online] Available at: http://www.britishairways.com
[Accessed: 3 Mar 2014].
•
British Airways in 2013: Investing In Products, Aircraft and TechnologyIntext: (modernghana.com, 2014)Bibliography: modernghana.com. 2014. British Airways
in 2013: Investing In Products, Aircraft and Technology. [online] Available at:
http://www.modernghana.com/news/449022/1/british-airways-in-2013-investing-inproducts-airc.html [Accessed: 3 Mar 2014].
•
British AirwaysIn-text: (Wikipedia, 2014)Bibliography: Wikipedia. 2014. British Airways.
[online] Available at: http://en.wikipedia.org/wiki/British_Airways#cite_ref-14 [Accessed: 3
Mar 2014].
•
Scribd.com.Market mix of British AirwaysIn-text: (Scribd.com,
2014)Bibliography: Scribd.com. 2014. Market mix of British Airways. [online] Available at:
http://www.scribd.com/doc/50773223/Market-mix-of-British-Airways [Accessed: 3 Mar
2014].

16. •
Wall, Robert. "British Airways to Fly First A380s to Los Angeles, Hong Kong". Bloomberg.
Retrieved 2 March 2014.
•
"United Kingdom Civil Aircraft Register". United Kingdom Civil Aviation Authority. 8 January
2014. Retrieved 2 March 2014.
•
"British Airways Fleet Facts". British Airways. Retrieved 13 October 2013.
•
Airbus (September 2013). "Airbus - Orders and Deleveries Sept 2013". Toulouse: Airbus.
Retrieved 2 March 2014.
•
Rohit T.K. (17 January 2014). "Atlas Air loses contract with British Airways, shares dive".
Reuters. Retrieved 2 March 2014.
•
"IAG Cargo signs freight deal with Qatar Airways". IAG Cargo. 17 January 2014. Retrieved 2
March 2014.
•
"BA Cargo Vickers 963C". Airliners.net. 9 October 2011. Retrieved 2 March 2014.
•
"BA Cargo 707-330C". Airliners.net. 6 May 1980. Retrieved 2 March 2014.
•
Howard Mustoe, Steve Rothwell. "British Airways Picks Troubled Rolls Engine for A380s".
Bloomberg. Retrieved 2 March 2014..
•
"BA opts for A380 and Dreamliner". BBC News. 27 September 2007. Retrieved 2 March 2014.