The British Airway

The British Airway

Name of the writer

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The British Airway

Introduction

British Airways is considered to be as the UK largest airline industry. It operates in both international and domestic scheduled flights all over the world. It was created in the early 1974s and later on began dealing in the world cargo centres in the late 1990s, even with its far reaching goals and being the best Air line in the UK, British Airways also face many threats from its environment both at macro and micro level. Furthermore, British Airways is growing year by year but with its differentiated strengths, it also has its own weaknesses, and because of these weaknesses, the opportunities ahead for British Airways are far reaching, and the threats are notably risky (Balmer, 2008).

However, the following papers will discuss on the micro environmental analysis of the British Airways, and how this environment leads to strategic uncertainties for the British Airways. Furthermore, the strategic position of the British Airways with in the air line industry will also be discussed by using relevant strategic models, and with the help of SWOT analysis, the British Airways strengths, weaknesses, opportunities, and threats will be identified while also commenting on the changes necessary.

Discussion

Any company that operates in an open system communicates and coordinates with its external environment regularly. For these companies, interacting with its environment is the key to their business success. Interaction with the stake holders is very crucial for these companies to survive. Not only share holders and customers are the key stake holders for them, but also the supplier and distributers can create massive threats for their operation.

In order to make sure that a company is appropriately interacting with its external environment both Macro (Broader level) and Micro (Less broader level) accordingly, an external analysis over the company's operations is very crucial. Same goes for the British Airways as its operations are wide spread and is the best air line in the UK, British Airways faces many threats from its operating environment. The following discussion will focus on the Macro Level environmental analysis of the British Airways.

Micro Environmental Analysis:

A micro environment is the immediate area in which an organization operates. In order analyse the micro environment of British Airways, The Porters Five Forces model will be used. This model can be used for identifying the key performance management issues as well as for strategic analysis of British Airways. According to this model, all businesses in a particular industry are likely to be subject to similar pressures that determine how attractive the sector is.

The five forces that impact the organization's strategy the most are;

• Competitive Rivalry

• Customers Bargaining Power

• Suppliers Bargaining Power

• Threat from potential entrants

• Threat from substitute

How these 5 forces, impacts the British Airways well be discussed in the following paragraphs.

Porters 5 Forces

The Competitive Rivalry: It is really simple to understand that, if there are many competitors in the industry or a particular sector, the environment is tougher, and if there is a monopoly or less competition, the environment ...