TABLE OF CONTENTS PAGE
1. British Airways: Overview 4
2. Key stakeholders 4
3. Mission and objectives 5
4. Market structure 6
5. Managing diverse cultures 7
6. Economic changes, fiscal and monetary policy 8
7. Regulation 11
8. Conclusion and Recommendations 12
9. References 14
British Airways has focused its mission and objectives towards satisfying its key stakeholders that include employees, customers, Government and the British public. The company has been successful in dealing with cultural differences that arise between the UK and foreign countries, adopting a geocentric approach to hiring workers. The airline has also created a flexible organisation that responds quickly to the changing needs of its consumers.
However, poor industrial relations and crisis management imply that there is a greater need to focus on building strong relations with employees, enabling them to internalise the vision of the company. Given intense competition in the industry and continuous changes in regulations from the EU and international regulatory bodies, British Airways needs to introduce cost-effective methods of complying with regulatory standards. The firm should also avoid illegal practices that can harm its corporate image.
1. British Airways: Overview
British Airways commenced business in 1935 as a small airline that was privately owned, offering services restricted to the United Kingdom. Due to poor performance, the company was nationalised in 1939 with the state providing the required investment and resources necessary for growth (Brooks & Cullinane, 2007). The emergence of neo-classical economists claiming government ownership to be unproductive and inefficient, paved the way for privatisation of British Airways in 1987.
Currently, the airline employs over 168,000 people, generating annual revenue of US $88.2 billion as of March 2014. It is the fourth largest international carrier worldwide, operating in over 90 countries with its core business activity in London (Yahoo Finance, 2014).
This essay examines the environment in which British Airways operates, identifying the company’s key stakeholders, mission and structure of the UK airline industry. The effect of regulation, economic changes and fiscal and monetary policy on corporate strategy will also be assessed, providing suitable recommendations on the measures that the company can take to remain competitive.
2. Key stakeholders
After its privatisation, the company made rapid changes to its Human Resource policies with the aim of converting a loss-making corporation into a leading international carrier. One of the fundamental changes was to focus attention towards the interests of the company’s key stakeholders that included; customers, shareholders, and employees. Being a public limited company, British Airways is owned by the British public, making them an additional key stakeholder of the company.
Special customer services were...