BUSINESS PLAN

Business Plan for a Company Marketing Management



Business Plan for a Company Marketing Management

Introduction

British Airline is the national flag carrier in the UK. In terms of international destinations, fleet size and the number of destination, it is the largest airline in the UK. British Airways is the merger of Cambrian Airways, BOAC, Northeast Airlines, and BEA. This merger took place in the year 1974. The company got sold as a part of the privatization policy after thirteen years of remaining a public company. The major carriers of British Airways come from Boeing. It is planning to merge with Iberia which is the Spanish flag carrier airline. The merger of the two will make the airline the second largest in the region and third largest in the world in terms of revenue. British Airways is involved in the business of air freight, air mail, carriage of passengers, and other ancillary services. The company also has a very large marine network. The company covers 41 destinations in America, 9 destinations in UK, 67 in Europe and over 16 in Africa. The company is one of the leading airlines in the UK. The financial highlights of the company are given hereunder (Passport 2011, p. 1).

British Airways (BA) is the UK's largest international scheduled airline, operating international and domestic scheduled and charter air services for the carriage of passengers, freight and mail and the provision of ancillary services. The airline flies to over 550 destinations globally.

PESTLE Analysis

Political Factors

British Airways is faced with many risks and uncertainties. To begin with, its merger with Iberia poses many planning and delivery risks. To mitigate this risk, the airline has devised Joint Business Agreement programme which addresses the issues. Another major risk faced by the company is a high level of debt. The financial position of the company is at risk as many of the future commitments of the company are asset based. Moreover, the economic conditions also pose a challenge for the company (Zacks Research 2011, p. 1).

Environmental Factors

The decline in the airline demand has been rapid and posed a challenge for the airline industry to match the capacity with the decrease in demand. The first change in the level of demand occurred in the year 2010, in the month of February. This is the first time in the long 18 months that the demand has raised, though only slightly. In this context, it is important to state that the demands for the premium airlines are still at the lower end. This recovery was a positive sign for the industry as a whole and for British Airlines in particular. However, whether this recovery will continue or not is still a question mark. Societal Factors

Despite the fact that the demand for air travel has slightly picked up, the confidence in the airline industry is still shaky. Recovery, if at all, will remain slow. Comparing the UK and the US, we can see that the recovery in the US market was faster than the recovery of the ...