Business about British Airline Essay

I choose British Air shipway plc. The hit the books of British Airways plc is easy to understand. With regard to effect of the British Airways plc, there atomic number 18 v points. First, the British Airways has a broad geographical presence. It has approximately 150 external destinations crossways 6 countries. Second, the British Airways is sole air duct moving in occupant of Heathrow Terminal 5 after(prenominal) March 2008, beca spend it is signifi natestly boosting the service it offers customers in the UK. Third, the British Airways has muscular alliances. In former(a) words, it is center that the British Airways is a yield member of the one gentleman alliance, on with a nonher(prenominal) study players such(prenominal)(prenominal) as AMR Corp and Cathay Pacific, boosting its competitive position at the global level (MahaSagar, 2013).Next, the British Airways established online presence.It is means that the follow has true the online aubergeing arranging and is working to reassign completely from paper to e-tickets, as head as advance the development of website and cause order tickets easy and efficient. finally the British Airways has high levels of consumer recognition and trust. The weakness has four points. First, the UK airways are reliant on airlines. For example, British Airways is heavily reliant on the airline effort, which accounted for 99.7% of its total operate profit in fiscal 2007 (MahaSagar, 2013). Actually the g everywherenment expect focus on rising evoke prices and increase determine competition. Second, the BAs regard is exposure by problem.During 2007 the image of British Airways eponymous shuffling suffered from factors such as consumer concerns about carbon emissions and, to a greater extent(prenominal) specifically, the scandal surrounding enkindle pilfer price-fixing (MahaSagar, 2013).Third, the British Airways is bias towards the UK. In other words, although the British Airways has a broad geogr aphic presence, the company rely on UK market, such as in 2007 the airways accounted foral around fractional of its total revenue. As a result, British Airways will get low- terms carries in the incoming. Finally, British Airways are laggards in nation of employee management.The opportunities of British Airways are the most pregnant things. First, the Heathrow Airport is the most hubs across the world. Second, the British Airways has strong growth in emergent markets. For example, China and India is emerging markets. In these countries, the enthronization in the lead infrastructure, rising international tourism, the expansion of the middle class and increasing international business opportunities. Third, in modern countries, internet is the most popular ways to know somewhatthing. So the British Airways should increases door to the internet. The internet is not only to a greater extent(prenominal) efficient and safer, plainly also more convenient payment online.Finally , British Airways has powerful alliances. In other words, British Airways has positive partnerships with other airlines and realizes sure competitive and international development. The threats with which British Airways is faced with are pricing competition. Some low- toll airline, such as Ryanair is ongoing expansion. Then the threat is top fuel prices. Fuel price increases would show a significant threat to British Airways, particularly in the highly price-competitive conditions of its totality markets. Indeed, fuel price rises were hulkingly trusty for the companys fall in operating profit in fiscal 2007 (MahaSagar, 2013). In attachment also, the airline has some unpredictable external factors such as terrorist attacks which happened on 11/09/2001 and 07/07/2005.b) Write an probe analysing and evaluating the factors that have made this company a winner. Word count between 1500-2200 words. (25 marks).In fact, the British Airways has two main points to make success. One of the major points is external. The external shared out six parts, receptively political, economic, social, technological, surroundingsal and legal. In parts of Political, the BA has complied with administration formula to continue its operations. Due to war on terror the security has to beef up with advanced measures so as to h one-time(a) in the consumers safe and confident in parity to their continued travel with British Airways as a preferredairline (Rodrigo, 2012). In parts of economic, the world going by dint of a big trouble, so the BA has to reduce consumer happening to a intumescent extent. For example, due to global economic crisis, world growth is projected to just over 2 percent in 2009. The harbor of Pound has begun to slide especially against the Euro. achievable reduction in the amount of business travel as companies are smashing costs and using alternative means of communication such as teleconferencing. thus British Airways is vulnerable as an UK operatin g airline to a poor diversify rate. Oil prices have been declining by 50 % since their peak retreating to 2007 levels. Decline in fuel price will obviously alter of the dollar changeability in vegetable oil prices and exchange rates will nowadays affect BAs cost base. UKs consumer spending had its sharpest decline for 13 years between July and September 2008. because there is an expectancy of more penetrating competition in the near future (UKESSAY, 2014).In parts of social, the UK has an aging world in the past decades, so the old people has more time to spend on their like activities such as international travel. In parts of technological, most young people would like to order or betrothal tickets, hotels, restaurants and so on. therefor it is very convenient and easy to use it. Additionally, other conveniences provided for ease of look into in including telephone check-in that consists of some features allowing passengers to check flight schedules, check ad hominem boo kings, travel advice, information on British Airways destinations and even perform online flight bookings. In fact, they have even implemented an e-ticketing system which provides passengers with the flexibility of checking in without the need of a physical ticket.Only passenger elaborate including proof of identification are take to be produced during check-ins, as all booking information has already been stored in their ready reckoner systems. In fact, through this system, flights can be changed even up to 30 legal proceeding before departure time (Stephen, 2008). In addition also, in British Airways adit is not only offer lodge ticket, but also provide hotel booking, travel insurance purchase, car rentals, holiday purchases and so on. In parts of environmental, British Airways is certified of both Noise pollution controls, and dynamism consumption controls. In parts of legal, the British Airways will offer a nigh employee relation in anytime.Another major point is intern al. The internal of British Airways is divided by two parts, called resources and cell nucleus competences. The company runs 245 aircrafts covering over 550 destinations. In addition the Heathrow Terminal 5 is a big boon to the companys brand image. As a result, British Airways is notable globally as a time-honored brand. And then the BAs competences are realizable. The company has its own reading of ground school, flight simulators, and cabin safety training which holds the favourable part in its core competences. The company holds the capability to fly and look at passengers safely on different routes (Open Skies). Their appurtenants aircraft never have more than 64 passengers per flight, with one flight attendant per twelve customers. They also hold the soma as the first UK airline cognize as a training oculus by the City & Guilds, educating all cabin crew with NVQ Level 2 (UKESSAY, 2014).Moreover, the success of British Airways could mostly be providence of eggshe ll, cost control and brand reputation. The economy of scale is a high-threshold work with large initial funds. The economy of scale can turn away the overhead cost and improve the individual unit consummation and efficiency. For example, British Airways should get a based on achieving and maintaining the wide customer recognition. Then the cost control is crucial to the financial performance and firm survival. For instance, by constant expanding and purchasing, British Airways can enlarge its fleet scale and make effective of each by resource optimization. It also helps British Airways to lower average unit cost (UKESSAY, 2014). Finally the brand reputation is crucial to this industry as it indicates the quality, accessibility and safety. It helps British Airways to hit a better financial spot and lower down the threat of sassy player in the long-run.To sum up, it is out-of-doors that the British Airways is very successful company. It is not only British Airways has good stren gths, weaknesses, opportunities and threats, but also British Airways has external environment and internal environment. In addition, it also has governments ideas and supports.BibliographyMahaSagar Publications (2013) Dissertation on British Airways Plc- AirlinesIndustry analytic thinking Weblog Online usable from http//mbaprojectreportindia.blogspot.co.uk/2013/05/british-airways-plc-swot-analysis.html Accessed 25/6/2014 rodrigo (2012) Strategic and SWOT Analysis of British Airways Online Available from http//writepass.com/journal/2012/11/british-airways/ Accessed 16/11/2012 UK essay (2014) military rank Of The Business Environment Of British Airways focussing Essay Online Available from http//www.ukessays.com/essays/management/evaluation-of-the-business-environment-of-british-airways-management-essay.phpixzz385lJPz7p Accessed 2014 UKESSAY (2014) Stakeholders Online Available from http//www.ukessays.co.uk/essays/business-stakeholders-shareholders/stakeholders.php Accessed 2014 Stephen G(2008) The Success of British Airways Online Available from http//www.sgbphotography.com/Travel_Articles/the-success-of-british-airways.htm Accessed 2006