British Airways Report

Published: June 2016
7847 Words
34 Pages

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British Airways (BA) is the largest airline company in the UK and it flies globally to more than 400 destinations to airports in nearly 80 countries. British Airways is a part of International Airline Group (IAG) that also owns three other airline brands – Aer Lingus, Iberia and Vueling. The Group also owns 13.55 per cent of the equity of IB OpCo Holding S.L. (“Iberia”) and 86.26 per cent of the equity of Avios Group (AGL) Limited (“AGL”). IAG made a record profit of GBP 1,264 million in 2015. By the end of 2015, British Airways had 39,304 employees globally (Annual Report, 2015).

British Airways pursues service differentiation business strategy and differentiates its services via an extensive reliance on digitalization and information technology and high level of customization of service provision. These points represent solid sources of British Airways’ competitive advantage.

Major weaknesses related to British Airways include an overdependence on the UK market and low profitability of business operations. At the same time, the airline is presented with the opportunities of forming strategic cooperation with other businesses in airline and catering industries, further engaging in international market expansion and benefiting from synergy via closer integration between IAG’s operating airlines.

British Airways Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on British Airways. Moreover, the report contains analyses of British Airways’ business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.

1. Introduction
2. Business Strategy
3. Leadership
4. Organizational Structure
5. SWOT Analysis
5.1 Strengths
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
6. PESTEL Analysis
6.1 Political Factors
6.2 Economic Factors
6.3 Social Factors
6.4 Technological Factors
6.5 Environmental Factors
6.6 Legal Factors
7. Marketing Strategy
7.1 7Ps of Marketing
7.2 Segmentation, Targeting & Positioning
7.3 Marketing Communication Mix
7.3.1 Advertising
7.3.2 Sales Promotion
7.3.3 Events & Experiences
7.3.4 Public Relations
7.3.5 Direct Marketing
7.3.6 Personal Selling
8. Porter’s Five Forces Analysis
9. Value-Chain Analysis
9.1 Primary Activities
9.2 Support Activities
10. McKinsey 7S Framework
11. Corporate Social Responsibility (CSR)
11.1 CSR Programs and Initiatives
11.2 CSR Criticism
12. Recommendations

List of Figures

Figure 1 IAG management structure
Figure 2 British Airways organizational structure
Figure 3 British Airways revenues by geographical segment (in GBP millions)
Figure 4 British Airways Porter’s Five Forces
Figure 5 Average prices for Boeing aircraft in 2015, by type (in million U.S. dollars)
Figure 6 British Airways value chain analysis
Figure 7 British Airways McKinsey 7S Framework
Figure 8 Structure of British Airways Corporate Responsibility Committee

List of Tables

Table 1 British Airways SWOT analysis
Table 2 British Airways Segmentation, Targeting and Positioning
Table 3 British Airways CSR performance

Aer Lingus

Airbus

Avios Group Limited

Boeing

Bombardier Aerospace

Cessna

Clickair

Deutsche Lufthansa AG

EasyJet

Embraer

FlyBe Limited

Iberia

International Airline Group

Monarch Airlines

Japan Airlines Co. Ltd.

Jet2.com Limited

Ryanair

Thomson Airways Limited

Virgin Atlantic Airways Limited

Vueling

United Airlines Inc.

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