TABLE OF CONTENTS PAGE 1. British Airways: Overview 4 2. Key stakeholders 4 3. Mission and objectives 5 4. Market structure 6 5. Managing diverse cultures 7 6. Economic changes, fiscal and monetary policy 8 7. Regulation 11 8. Conclusion and Recommendations 12 9. References 14 Executive Summary British Airways has focused its mission and objectives towards satisfying its key stakeholders that include employees, customers, Government and the British public. The company has been successful in dealing with cultural differences that arise between the UK and foreign countries, adopting a geocentric approach to hiring workers. The airline has also created a flexible organisation that responds quickly to the changing needs of its consumers. However, poor industrial relations and crisis management imply that there is a greater need to focus on building strong relations with employees, enabling them to internalise the vision of the company. Given intense competition in the industry and continuous changes in regulations from the EU and international regulatory bodies, British Airways needs to introduce cost-effective methods of complying with regulatory standards. The firm should also avoid illegal practices that can harm its corporate image. 1. British Airways: Overview British Airways commenced business in 1935 as a small airline that was privately owned, offering services restricted to the United Kingdom. Due to poor performance, the company was nationalised in 1939 with the state providing the required investment and resources necessary for growth (Brooks & Cullinane, 2007). The emergence of neo-classical economists claiming government ownership to be unproductive and inefficient, paved the way for privatisa... ... middle of paper ... ...om http://www.theguardian.com/business/2012/apr/19/ba-fuel-surcharge-fine-oft# Murphy, E. King, E. (2014). Environmental noise pollution. California: Elsevier. Sitkin, A. Bowen, N. (2010). International business 2nd edition. Oxford: Oxford University Press. Stabler, M.J. Papatheodorou, A. Sinclair, M.T. (2010). The economics of tourism 2nd edition. New York: Routledge. The Telegraph. (2010). EU clears British Airways’ trans-Atlantic alliance, merger with Iberia. Telegraph. Retrieved on 15th May, 2014 from http://www.telegraph.co.uk/finance/newsbysector/transport/7889982/EU-clears-British-Airways-trans-Atlantic-alliance-merger-with-Iberia.html Winfield, P. Bishop, R. Porter, P. (2013). Core management for HR students and practitioners. Oxford: Elsevier. Yahoo Finance. (2014). British Airways. Retrieved on 14th May, 2014 from https://uk.finance.yahoo.com/q/ks?s=BA
The future of BA and that of many other airlines is going to depend on
FOX News, (2013), “Airline profits tipped to soar in 2014, the International Air Transport Association says”http://www.news.com.au/finance/business/airline-profits-tipped-to-soar-international-air-transport-association-says/story-fnkgde2y-1226782047497
No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares.
Robbins, S. P., & Coulter. M. (2014). Management (12th ed.). Retrieved from: Colorado Technical University eBook Collection database.
In the Travel Pulse article "Airlines Leaving Us Little Choice – Like A Monopoly," posted by Rich Thomaselli, the practice of monopolization is observed in the airline industry. The author criticizes large airlines on their growth that has led to at “93 of the top 100 [airports], one or two airlines controlling a majority of the seats” (Thomaselli). The scornful article was written after recent events that have caused the Department of Justice and five States to sue two of the biggest U.S.
As aviation matured, airlines, aircraft manufacturers and airport operators merged into giant corporations. When cries of "monopoly" arose, the conglomerates dismantled.
Ryanair an Irish airline founded in 1985 has seen huge growth with workforce of just 25 to now over 9000 skilled professionals, branding themselves as Europe’s only ultra-low cost airline they are always looking for new ways too save on costs and increase on profits. This essay will draw upon, at what point they become ‘un-ethical’ i.e. the extra charges they add to the total bill e.g. a £160 charge for a name change in high season (Ryanair.com 2014,a), They have even been accused of carrying less emergency fuel to improve both fuel efficiency and competiveness (The Economist, 2013). Then justify what is morally right and wrong from the views of different ethical theories and stakeholders, in particular egoism and utilitarianism because these two theories will exhibit totally different views. Which will show different perspectives of a single action can be both ethical and un-ethical at the same time depending how you look at it.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
Air travel is no longer just an idea that was developed to get people from point A to point B in a shorter amount of time or give a military force air superiority. Today, flying on an airplane is as common as driving a car or riding a bicycle. In fact, some airlines have made air travel an extravagant event and others have made it affordable to those who never dreamed they’d be able to see the skies. These different types of airlines open all over the world to provide services to different regions, countries and even classes. One such airlines, Ryanair, has a brief but exciting history in Europe. The purpose of this paper is to discuss Ryanair’s history.
Key stakeholders of British Airways include customers, employees, those who have invested in BA by buying shares of the business as well as corporate organizations. To analyze the stake holders in BA the power/interest matrix (Gardner et al, 1986) can be applied in terms of its power and matrix. Brand reputation, economy of scale and cost control are some the key success factors of BA. In addition to Boston Matrix can position BA’s business in terms of short haul (cash cow business) and long haul (star business).
To apply and the all ‘ rules of game‘of an business we taking an aviation company known as “Jet Airways” before we get into, here are some intro points about this company.
Air travel is a huge and tremendously flourishing industry. Globalization can be defined as the integration of national and local economics, culture and societies through a web of communication, transportation and trade. The current era considers globalization as the dominant driver of almost all business due to the influence or the international market. The emerging prosperity of the global aviation industry plays a substantial role in economic growth, tourism, global investment and world trade, which are the impacts of globalization. This essay portrays the negative and positive effects of this globalization on the airline industry.
Product Strategy of the British Airways 1.1 Introduction to product strategy Product is the most important component in an organization. Without a product there is no place, no price, no promotion, and no business. Product is anything that can be offered to a market to satisfy a want or a need. It is the core ingredient of the marketing mix and is everything favorable and unfavorable, tangible and intangible received in the exchange of an idea, service or good (Kotler 11th edition, 2003). British Airways is a business offering service products, flights across destinations, in the transportation industry.
Robbins, S.P., & Coulter, M. (2009). Management (10th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
The fact that British Airways uses their resources such as the internet (through cookies, and customers filling in forms) suggests the large amount of data available to them. This data includes a large amount of information about many individuals and could hold a huge competitive advantage over other airline companies as they can refine their service offering for each individual’s preferences. The customer enters in personal information and it is at the disposal of British Airways to gain insight into the customers’ preferences.