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British Airways Strategic Plan

British Airways Strategic Plan

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Published by Vu Ngoc Quy
Strategic Management assignment of Aston University,
Strategic Management assignment of Aston University,

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Categories:Types, School Work
Published by: Vu Ngoc Quy on Nov 29, 2009
Copyright:Attribution Non-commercial

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08/12/2015

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Strategic Report 2009Group 10A
Candidates: 706523, 412805, 802050, 464929
 
Executive Summary
This report was produced for the purpose of providing British Airways Plc (British Airways) with astrategic plan to implement over the next three years. British Airways is the UK market leader inairline operations, however has faced increasing competition over the last decade resulting in erosionin their market share.The report begins by analysing the current internal and external environment of BA. Through strategicevaluation we have recommended that BA focus on their fundamental service delivery to restore theircompetitive advantage within the industry. This will require implementing a combination of twostrategies; a people processes strategy and a strategy focused on technological advancement.The people processes strategy was derived from a number of industry sources outlining BA’s declinein customer satisfaction. The technological advancement strategy coincides with the renewal of BA’saircraft fleet and will further improve the overall customer experience.
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Table of Contents
Table of Contents ...........................................................................................................................................31.1 Report Objectives .....................................................................................................................................41.2 Company Overview ..................................................................................................................................41.3 Current Strategies .....................................................................................................................................4Figure 1 - Business Map (T-O £8.32bn) ........................................................................................................5........................................................................................................................................................................62.0 External Analysis .....................................................................................................................................72.1 PESTEL Analysis ................................................................................................................................72.2 Porter’s Five Forces ............................................................................................................................92.3 GE Matrix ..........................................................................................................................................103.0 Customer Analysis ................................................................................................................................. 114.0 Competitor Analysis ..............................................................................................................................124.1 Strategic Groups ................................................................................................................................. 124.2 Airline Quality Review (AQR) .......................................................................................................... 135.0 Internal Analysis .................................................................................................................................... 145.1 Value Chain Analysis (VCA) .............................................................................................................145.2 Resource Based View (RBV) .............................................................................................................165.3 Financial Analysis (Source: British Airways, 2008)..........................................................................176.0 Summary ............................................................................................................................................... 186.1 SWOT Analysis .................................................................................................................................196.2 Key Strategic Issues .......................................................................................................................... 19...................................................................................................................................................................... 217.0 Strategy Formulation .............................................................................................................................227.1 TOWs Matrix .................................................................................................................................... 22Figure 11 - Preliminary Comparison of Strategies ...................................................................................238.0 Analysis of Strategic Options .................................................................................................................248.1 Strategic Option 1 - Improvement to People Processes ..................................................................... 248.2 Strategic Option 2 - Improved Environmental Stance. ..................................................................... 258.3 Strategic Option 3 - Improved Technological Stance. ...................................................................... 268.4 Strategic Option 4 - Segment Focus ...................................................................................................278.5 Strategic Option 5 - Broader Service Offering ...................................................................................28...................................................................................................................................................................... 309.0 Implementation .......................................................................................................................................319.1 Company Structure .............................................................................................................................329.2 Service Quality Gaps Model .............................................................................................................. 349.3 Managing the Change .........................................................................................................................359.4 Gantt Chart ......................................................................................................................................... 379.5 Stakeholder Map ................................................................................................................................ 389.6 Control Systems ................................................................................................................................. 399.7 Balance Scorecard .............................................................................................................................. 4010.0 Critique .................................................................................................................................................41
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