Executive Summary
帮写英语硕士毕业论文The report aims to assessing the internal and external environment, identifying the stakeholders; strategy development and SM model assessment. As one
of the leading airliners in the world, British Airways has suffered a turbulent internal and external business environment in recent years. However it is still one of the leading and competitive airliners in the world. Its business can be carried out based on its core competences: brand reputation and the dominating flight slots in Heathrow Airport
In recent five years, the business environment of international civil aviation industry is turbulent and changeable. The recent economy downturn has forced BA to be sensitive and cautious about cost and the passengers’ volume has been cut down in terms of business and tour travellers. The industry competition is getting fiercer as by the joining of the lower cost airliners which indicates BA has to master the value creation process, or the value chain, with business perspective and cautious. In addition, the cares on the stakeholders in each stage of the business should be paid attention to, or it may leads to the negative impact to BA such as the staff strike took place in January 2007, which gives BA’s brand image a big shock.
To maintain the market share and competitive advantage in this industry, BA should focus on the resource optimization based on the changing demand; in addition the diversification is optional for BA which may allow it to compete with the lower cost airliners in the short hauls. In the long term prospective, the cost leadership can be applied in this market of high price elasticity, fierce competition and high innovative difficulty. Those recommendations are based on the former analysis.
1.0 Corporate Information
British Airways (BA) is ‘engaged in the operation of international and domestic scheduled air services for the carriage of passengers, freight, mail, and the provision of ancillary services’ (Datamonitor, 2007). Its mission statement of ‘To be the undisputed leader in world travel’ indicates that BA is aiming to beat other rivals in the world wide context. BA has the 245 aircrafts at the end of March 2008 connecting 300 destinations worldwide with total passenger volume of 33 million (British-Airways, 2008). However, BA has to compete with some major competitors such as KLM-Air France or Lufthansa.
BA’s objectives are to maximize the profit and minimize risks by providing decent quality of airline service. Security issue is increasingly important in this industry after the ‘9-11 attack. To achieve this goal, BA has adopted the functional structure based on Combined Code on Corporate Governance (British-Airways, 2008). The benefits of the structure are that it allows the expertise to be fully utilized as well as the enough control of economy of scale. The responsibilities are clearly assigned and the strategies mainly come from the top. However, with this structure the strategic change might be slow and the coordination is difficult (Lynch R, 2005). The structure is shown in following contents.
The products of BA can be categorized into 2 groups in terms of the routine distance: long-haul and short-haul. The main hubs are London Heathrow and Gatwick airport. Additionally BA has two main subsidiaries: the Opensky and Cityflyer. Opensky own one Boeing 757 linking Amsterdam, London and New York together. Cityflyer serve in domestic and European cities. Market share review is in appendix one.
Graph: The Organizational structure
Chairman
Martin Broughton
LOW
HIGH
Andrew Crawley
Director Sales and Marketing
Andy Lord
Director of Operations
Robert Boyle
Director of Strategy and Business Units
Garry Copeland
Director of Engineering
Silla Maizey
Acting Customer Director
Tony McCarthy
Director People & Organizational Effectiveness
Roger Maynard
Director of Inve
