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Corporate Strategy Assessment: British Airways - Essay Example

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Corporate Strategy Assessment: British Airways Products, Services, Geographic Scope of British Airways British Airways (BA) is reportedly a full-service global organization that focuses on serving the needs of diverse clientele who travel through air. The organization boasts of offering competitively low airline fares and having access to strategic parts of the world…
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Corporate Strategy Assessment: British Airways

Download file to see previous pages... In addition, the organization offers travel packages that include hotel accommodations, car rentals and choiced options to avail of popular or unique travel experiences. The full service business model was explained as part of the airline business model in an article published by the Air Transport and Airport Research (2008) headed by Prof. Dr. Johannes Reichmuth. As disclosed, BA, being classified as a “full service network carrier” (FSNC) is “an airline that focuses on providing a wide range of pre-flight and onboard services, including different service classes, and connecting flights” (Air Transport and Airport Research, 2008, p. 5). From a strategy standpoint, BA could actually afford offering lowest airfares, as compaired to other airlines due to their application of the full-service business model. As explained, “as the number of origins and destinations offered rises, load factors do the same, yielding lower unit costs per passenger (economies of density). If higher demand justifies the use of larger equipment, unit costs per seat decline (economies of scale)” (Air Transport and Airport Research, 2008, p. 7). Thus, BA could capture the cost-conscious target market, as well as families who include their children in travelling to tourist spots or vacation destinations. Critical Internal Analysis of British Airways Micro (internal) analysis The internal strengths of BA include: (1) ability to offer low-fare due to its application of the full service business model; (2) its fly route that reaches more than 400 destinations (British Airways 2011) and therefore, could cater to a larger number and diversity of clientele across the globe; (3) its home base is in UK, regarded as “one of the largest premium travel market” (British Airways, 2011, p. 2) and therefore ably caters to a predominantly large percentage of clientele who could afford airline fares; (4) validated customer satisfaction as a result of improvements made in terms of punctuality and allegedly attaining baggage targets (British Airways 2009); (5) ability and resources to invest in more efficient and flexible fleet of new aircrafts (British Airways 2009); and (6) ability to adapt and adjust to the demands of the external environment through re-designing strategies and re-aligning organizational SMART goals. On the other hand, there were weaknesses noted in BA’s previously implemented strategies regarding identity branding (Balmer, Stuart and Greyser 2009) where, through the course of its history, BA’s identity misalignments have been perceived by various stakeholders as evolving from being explicitly categorized as “appalling, adjusting, appealing, adoring, astonishing, and affirming” (Balmer, Stuart and Greyser, 2009, p. 9) depending on the its historical timeline. These identity misalignments significantly influenced the organization’s performance, including the exemplified behavior of various stakeholders and how the public acknowledged the different images that they ultimately projected. Structure of the company In 2009, BA revealed in its annual report that the organization was then restructuring its personnel and management portfolio through streamlining. It was disclosed that in 2008, there were managers who voluntarily left under a severance scheme that slashed the management workforce by a third of the total managerial team. As such the organizational structure of the restructured ...Download file to see next pagesRead More
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