British Airways: Strategic Plan

Topics: British Airways, London Heathrow Airport, Airline Pages: 21 (6338 words) Published: January 8, 2010
Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the current strategic situation of the company is discussed through Internal Analysis, External Analysis which involves PESTEL and Porters five forces and SWOT analysis. Further, Potential Strategic options are discussed for British Airways using Ansoff Analysis followed by recommendations for strategic direction with rationale. The report also identifies the critical success factors and determines the principal performance measurement criteria for British Airways.

I. IntroductionBritish Airways plc provides air services operations both at international and domestic level. Its major business is commercial flight. It also caters to various services like cargo freight, mail services and other auxiliary services all over the world. Mainly it runs its business in United States and Europe. It is situated in Harmondsworth, Middlesex, employing 42,755 people all over. It is emerging to be competitive and sustain its integrity as the best airlines which stress superior customer service. It has 300 destinations throughout the world; this extent of operations offers customers with world-class services at various destinations. Its customers range from explorers to executive. The aim of this report is to enable readers to comprehend strategic review and analysis of British Airways by explaining:•History of British Airways•Current strategic situation•Potential Strategic options•Recommended strategic direction with rationale•Identification of critical success factors•Performance measurement criteriaThe procedure used to compile this report is mainly extensive reading of various text books on corporate strategy, online journal articles and company's website. All the information, surveys and experimentations included are taken through proper referencing from standard sources.

II. Main Body1. History of British AirwaysBritish Airways which originated as Aircraft Transport and Travel started its maiden daily international scheduled air services between London and Paris after World War 1. In 1939, UK government merged British Airways and Imperial Airways to form British Overseas Airways, which became a state owned company. BOAC's main operation was long haul services and British European Airways was established to serve continental European and domestic market.

Both BOAC and BEA expanded their business geographically over a period of time and BOAC started its flights to New York (1946), Japan (1948), Chicago (1954) and west coast of the US (1957).

At the same time BEA expanded its network to Belfast, Edinburgh, Glasgow and Manchester. In 1970, BEA started its charter airline services, BEA air tours. BAOC and BEA were merged together in 1972 under British Airways Board and in 1974 British Airways was formed.

In 1976, British Airways started its first supersonic passenger service jointly with Air France. British Airways was privatised in 1987 and was merged with British Caledonian. In 2002, British Airways CitiExpress was formed by merging British Regional Airlines and Brymon Airways which were wholly owned subsidiaries. Other two wholly owned subsidiaries of British Airways, British Airways Regional and Manx Airlines were also merged with British Airways CitiExpress making it a single entirely...

References:••••Gomm (2005) -•••••Datamonitor 2008•British Airways Annual Report (2007-2008)•••
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