British Airways Strategic Management
Table of Contents
1.0 INTRODUCTION 4
1.1 Company Overview 4
1.2 Current Strategies 5
1.3 The Basis for Strategic Management Process 6
1.4 Stages of Strategic Management Process 7
2.0 EXTERNAL ANALYSIS 8
2.1 PESTEL Analysis 8
2.1.1 Political 8
2.1.2 Economic 8
2.1.3 Social 9
2.1.4 Technological 9
2.1.5 Environmental / Ethical 9
2.1.6 Legal 10
2.2 Porter’s Five Forces 10
3.0 SWOT ANALYSIS 12
3.1 Strength 12
3.2 Weakness 12
3.3 Opportunities 12
3.4 Threats 13
4.0 Strategy Formulation 14
4.1 Difference between Corporate and Business Strategy 14
5.0 Porter’s Generic Strategies 14
6.0 Advantages and Disadvantages of Related and Unrelated Diversification 16
6.1 Advantages 16
6.2 Disadvantages 16
7.0 Portfolio Analysis 17
8.0 STRATEGY FORMULATION THROUGH TOWS MATRIX 18
8.1 Strengths – Opportunities 18
8.2 Strengths – Threats 19
8.3 Weakness – Opportunities 19
8.4 Weakness – Threats 19
9.0 ANSoff PRODUCT MARKET MATRIX 20
9.1 ANSoff Matrix on British Airways Strategies 22
10.0 BCG GROWTH-SHARE MATRIX 23
10.1 Strategy Implementation on British Airways 24
11.0 Strategic leadership 25
11.1 Corporate governance: 25
EXECUTIVE SUMMARY
The main aim of this report was for the purpose of producing s strategic plan using theories of strategic management for British Airways that can be implemented over the next three year period. At the same time, being the United Kingdom’s leader in airline operations, British Airways has faced an increase in competition over the last 10 years and thus has had to contend with an increasing amount of the market share being shared by more and more firms.
The report is carried out by first and foremost; analysing the current internal and external environment of British Airways. Through strategic evaluation several important recommendations that the British Airways can focus upon are suggested. These strategies play an important role in assisting the British Airways to regain lost ground in the current airlines market. There will an
1.0 INTRODUCTION 4
1.1 Company Overview 4
1.2 Current Strategies 5
1.3 The Basis for Strategic Management Process 6
1.4 Stages of Strategic Management Process 7
2.0 EXTERNAL ANALYSIS 8
2.1 PESTEL Analysis 8
2.1.1 Political 8
2.1.2 Economic 8
2.1.3 Social 9
2.1.4 Technological 9
2.1.5 Environmental / Ethical 9
2.1.6 Legal 10
2.2 Porter’s Five Forces 10
3.0 SWOT ANALYSIS 12
3.1 Strength 12
3.2 Weakness 12
3.3 Opportunities 12
3.4 Threats 13
4.0 Strategy Formulation 14
4.1 Difference between Corporate and Business Strategy 14
5.0 Porter’s Generic Strategies 14
6.0 Advantages and Disadvantages of Related and Unrelated Diversification 16
6.1 Advantages 16
6.2 Disadvantages 16
7.0 Portfolio Analysis 17
8.0 STRATEGY FORMULATION THROUGH TOWS MATRIX 18
8.1 Strengths – Opportunities 18
8.2 Strengths – Threats 19
8.3 Weakness – Opportunities 19
8.4 Weakness – Threats 19
9.0 ANSoff PRODUCT MARKET MATRIX 20
9.1 ANSoff Matrix on British Airways Strategies 22
10.0 BCG GROWTH-SHARE MATRIX 23
10.1 Strategy Implementation on British Airways 24
11.0 Strategic leadership 25
11.1 Corporate governance: 25
EXECUTIVE SUMMARY
The main aim of this report was for the purpose of producing s strategic plan using theories of strategic management for British Airways that can be implemented over the next three year period. At the same time, being the United Kingdom’s leader in airline operations, British Airways has faced an increase in competition over the last 10 years and thus has had to contend with an increasing amount of the market share being shared by more and more firms.
The report is carried out by first and foremost; analysing the current internal and external environment of British Airways. Through strategic evaluation several important recommendations that the British Airways can focus upon are suggested. These strategies play an important role in assisting the British Airways to regain lost ground in the current airlines market. There will an