British Airways; Individual and Client's Report

[Name of Student]
 Table of Contents
Introduction................................................................................................................................3
External Environment Analysis.................................................................................................3
Red Ocean Strategy................................................................................................................3
Internal Environmental Analysis................................................................................................4
VRIO Framework...................................................................................................................4
The Impact and Influence of Change And Culture....................................................................5
Change Management – Kubler-Ross Model..........................................................................5
Operational Management – Six Sigma..................................................................................6
Stakeholder Analysis..................................................................................................................8
Stakeholder Mapping – Power Influence Grid.......................................................................8
Client's Report..........................................................................................................................10
Summary from Section A.........................................................................................................10
Strategic Recommendation – PDCA Model............................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
Introduction

This report aims to provide an overall analysis of the business environment and competency
of British Airways, one of the leading airlines in the world. The company has faced
significant challenges recently, primarily due to the Covid-19 pandemic, which resulted in
decreased sales and revenue (Amankwah-Amoah, 2020). The report will first analyse the
industry trends and identify the critical issues faced by British Airways. The external and
internal environment of the company will be evaluated to understand the impact of change
and culture on its operations (Vellas, 2016). Furthermore, stakeholder analysis will be
performed to identify the individuals or groups with power and influence over decision-
making. The report will then focus on developing a strategic recommendation using one of
the selected models, which will aim to improve the performance and competitiveness of
British Airways in the highly competitive airline industry (Grant, 2021). An overall
conclusion will be provided to summarise the findings and recommendations of this report.

External Environment Analysis

External environmental analysis examines the factors outside of an organisation that can
impact its performance and operations (Vellas, 2016). These factors include economic
conditions, technological advancements, consumer behaviour changes, and industry
competition. The external environment analysis is critical because it helps organisations to
identify trends, opportunities, and threats that can affect their business and to develop
strategies to respond to these factors (Amankwah-Amoah, 2020). For British Airways,
conducting a regular external environmental analysis is essential to remain competitive and
respond to the market's changing demands.

Red Ocean Strategy

An external analysis of British Airways using the Red Ocean Strategy would involve
examining current industry trends to identify untapped market segments and opportunities for
growth (Iruthayasamy and Iruthayasamy, 2021). Here are three trends in the external
environment that have emerged in the past three years:

 Growing focus on sustainability: Consumers and governments increasingly demand

that airlines reduce their environmental impact, leading to a growing focus on
sustainability in the industry (Wang 2021). British Airways can respond to this trend
 by adopting more sustainable practices and technologies and positioning itself as a
leader.
 The emergence of low-cost long-haul carriers: In recent years, there has been a
growing trend of low-cost carriers entering the long-haul market, offering consumers
more affordable options for international travel (Bauer et al., 2020). British Airways
must offer competitive pricing and innovative services to compete in this market to
differentiate itself from these new entrants.
 Increasing demand for personalised travel experiences: Consumers seek unique and
personalised travel experiences rather than just a standard flight (Bulhalis and
Amaranggana, 2015). British Airways can respond to this trend by offering
customised travel packages and unique in-flight experiences and leveraging its
reputation for high-quality customer service (Capon, 2004).

Internal Environmental Analysis

Internal environmental analysis examines an organisation's strengths and weaknesses to

identify improvement opportunities and competitive advantage areas (Grant, 2021). This
analysis comprehensively evaluates the organisation's resources, capabilities, processes, and
structure. The internal environmental analysis is essential for organisations as it provides a
clear understanding of their current state and the internal factors that can impact their
performance and competitiveness.

VRIO Framework

The VRIO framework helps to evaluate the internal resources and capabilities of an
organization and determine if they are valuable, rare, inimitable, and well-organized (David
and Burns, 2019).

For British Airways, the VRIO framework can be applied as follows:

 Valuable: British Airways has a valuable brand reputation, large customer base,
strong network of routes and partnerships, and a fleet of over 280 aircraft (Evans,
2015). These resources contribute to its competitiveness and ability to generate
revenue.
 Rare: The airline's expertise in managing a large fleet, offering a wide range of
services, and having a strong brand image are considered to be rare in the industry.
 These resources provide British Airways with a competitive advantage over its
competitors.
 Inimitable: British Airways has a strong brand reputation, experienced workforce,
and valuable assets such as aircraft and customer information that are difficult to
imitate. The cost and time required to duplicate these resources make them difficult to
imitate.
 Well-organized: British Airways has a well-structured organizational structure,
strong management processes, and effective operational systems that enable it to
leverage its valuable and rare resources (Amankwah-Amoah, 2020). This results in a
competitive advantage for the organization.

The Impact and Influence of Change And Culture

Change Management – Kubler-Ross Model

The Kubler-Ross model can be used to analyse the impact of change on British Airways and
its employees (Blank, 2019). The model outlines five stages of grief that individuals may
experience in response to change: denial, anger, bargaining, depression, and acceptance. By
understanding these stages and their emotions, British Airways can better prepare for and
manage the transition (Alaimo, 2022).

Figure 1: Kubler-Ross Change Model

 Denial: British Airways may implement new technology to improve efficiency;

however, some employees may initially be in denial about the need for change and
resist the idea of it. This can result in reluctance and resistance to adopt the new
 technology (Worthington et al., 2018). To address this, British Airways can provide
employees with training and support to help them understand the benefits of the new
technology and how it will positively impact their work.
 Anger: If British Airways decides to restructure its organisation, employees may
experience anger and frustration as their routine and comfort are disrupted. To address
this, British Airways can provide regular updates about the restructuring process and
ensure that employees are informed about how the changes will impact their work.
British Airways can also provide opportunities for employees to provide feedback and
address any concerns they may have.
 Bargaining: During the restructuring, some employees may try to negotiate and make
deals to maintain control or stability. For example, they may seek reassurance that
their job security will not be impacted or try to preserve elements of their previous
work routine. To address this, British Airways can provide clear and transparent
communication about the restructuring process and ensure that employees understand
the benefits of the changes. British Airways can also provide support and training to
help employees adjust to the new working methods.
 Depression: As the restructuring process becomes more ingrained, some employees
may experience sadness, loss, and depression. They may feel overwhelmed by the
changes and uncertain about their future. To address this, British Airways can provide
counselling services or other forms of support to help employees cope with the
emotional impact of change. British Airways can also provide opportunities for
employees to connect and share their experiences.
 Acceptance: In the final stage of the Kubler-Ross model, employees begin to accept
the changes and adjust to the new ways of working. They may develop a positive
attitude towards the changes and see their benefits. To support this stage, British
Airways can provide recognition and reward for employees who successfully adopt
the changes and showcase positive results. Additionally, British Airways can continue
to provide training and support to help employees improve and excel in their roles.

Operational Management – Six Sigma

Six Sigma is a data-driven methodology aiming to improve business processes' quality and
minimise defects by reducing variability (Gupta, 2015). Implementing Six Sigma at British
Airways could improve operational performance and increase efficiency. Six Sigma helps
identify and eliminate inefficiencies in business processes, resulting in increased productivity,
reduced costs, and improved customer satisfaction (Tampubolon and Purba, 2021).
Additionally, Six Sigma provides a framework for data-driven decision-making, which can
help British Airways to make more informed decisions about process improvements and
investments in technology (Zaini and Saad, 2019).

Figure 2: Six Sigma Model

Here is how British Airways could implement six Sigma to achieve improved operational
management:

 Define the problem: Identify the operational issues that Six Sigma will address, such
as flight delays, baggage handling problems, or customer complaints.
 Measure the process: Gather data on the identified problem, such as the frequency
and causes of flight delays or customer complaints.
 Analyse the data: Use statistical tools to analyse the data and identify the root cause
of the problem.
 Improve the process: Based on the root cause analysis, implement changes to
improve the process, such as streamlining baggage handling procedures or increasing
staffing levels to reduce flight delays.
 Control the process: Monitor the improved process to ensure it remains effective and
make further improvements as needed.
 Continuously monitor and improve: Continuously monitor the process and use
data-driven analysis to make ongoing improvements, making Six Sigma a long-term
approach to operational management.
Stakeholder Analysis

Stakeholder Mapping – Power Influence Grid

The stakeholder landscape is an essential aspect of a company's operations, as it identifies the

individuals or groups with a vested interest in the company and can impact its decision-
making processes (Andriof and Waddock, 2017). The stakeholders of British Airways can be
classified as internal and external.

Internal stakeholders include employees, management, shareholders, and suppliers. These

stakeholders directly impact the company's operations and decision-making processes
(Baumfield, 2016).

External stakeholders include customers, regulators, competitors, and communities. These

stakeholders indirectly impact the company and its operations, but their opinions and actions
can still impact the company's decision-making processes (Riahi, 2017).

Stakeholder analysis Power and Influence Grid is a visual representation of the stakeholders
and their level of power and influence over the company (Aragones-Beltran et al., 2017). The
grid classifies stakeholders into four categories: High Power, High Influence, Low Power,
and Low Influence. The High Power, High Influence category represents the stakeholders
with the most power and influence, while the Low Power, Low Influence category represents
the stakeholders with the least power and influence.

The process of stakeholder mapping involves mapping out the stakeholders based on their
level of power and influence. This process involves identifying the key stakeholders,
assessing their power and influence, and classifying them into the abovementioned four
categories. This information can then be used to prioritise the stakeholders and determine
which ones to engage with first.
Figure 3: Stakeholder mapping for British Airways
Client's Report

Summary from Section A

The industry report on British Airways highlights the external and internal factors affecting
the airline's performance and competitiveness. In the external environment, the industry
trends include increased competition, the growth of low-cost carriers, and changing customer
preferences. On the internal front, the VRIO framework analysis suggests that British
Airways has valuable, rare, inimitable, and well-organised resources and capabilities,
providing a competitive advantage.

Regarding stakeholder analysis, British Airways stakeholders can be divided into internal and
external groups, including employees, shareholders, customers, suppliers, regulators, and the
wider community. A power and influence grid can visually represent the stakeholders' power
and impact on decision-making. Stakeholder mapping analyses and organises stakeholders
based on their influence, interests, and power.

In conclusion, the analysis of British Airways and the industry provides a comprehensive
understanding of the airline's current state and the factors affecting its performance. To stay
competitive and achieve improved performance, the airline should focus on leveraging its
valuable, rare, inimitable, and well-organised resources and managing its relationships with
stakeholders effectively.

Strategic Recommendation – PDCA Model

The Plan, Do Check, Act (PDCA) approach is a continuous improvement model that British
Airways can utilise to improve its business strategy. The process involves the following
steps:

 Plan: In this stage, British Airways would need to identify the areas for improvement
and set specific and measurable goals for their business strategy. This could include
improving customer satisfaction, reducing operational costs, and expanding the
company's reach.
 Do: In this stage, British Airways would need to implement the plan and implement
the new strategies. This would involve making necessary changes to processes,
systems, and operations.
  Check: In this stage, British Airways would need to monitor the results of their new
strategies and evaluate the success of their efforts. This could be done through
customer feedback, data analysis, and performance metrics.
 Act: In the final stage, British Airways would need to make necessary adjustments to
its strategies based on the results of its evaluation. This could include making changes
to processes, systems, or even goal setting to ensure that they continue to progress and
achieve their desired outcomes.

Following the PDCA approach, British Airways could continuously improve its business
strategy and achieve its desired outcomes in a systematic and organised manner.

Conclusion

In conclusion, implementing a comprehensive business strategy is crucial for the success of

any organisation. Among the three models proposed, the Plan, Do Check, Act (PDCA) cycle
can be a practical approach for British Airways to achieve its goals and improve its
performance. The PDCA cycle provides a structured and systematic approach to
implementing and continuously improving a strategic plan. By starting with a well-defined
plan, British Airways can effectively execute and monitor the plan to ensure its success.
Based on the outcomes, the continuous review and improvement of the plan will help the
organisation stay on track and continuously adapt to the changing market and customer
demands. Following the PDCA cycle, British Airways can achieve its goals, remain
competitive, and maintain its position as a leading player in the aviation industry.
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