British Airways Organisational Structure Analysis Assignment

Introduction Of Business Environment At British Airways Assignment Sample

According to the business atmosphere, elements which have an immediate consequence on the everyday process of the corporation are specified as inner environmental variables. Clients, vendors, rivals, investors, financial organizations, and workers compose the bulk of the inner workings. Further, microenvironments implies for the factors which have greater and more significant impact on the performance as well as decision-making of an organization. It refers to a group of variables that reside near the company and might have an impact on both its efficiency and regular operations. In accordance with a macroeconomic setting is a set of situations that are put into the entirety economy as contrasting to now one business or geographic region.

The macroenvironment mainly comprises advancement in the GDP, economic activity, price increases, expenditure, and economic as well as financial plans. The current case focuses on Brexit and the COVID-19 pandemic, the administration of the UK's recovery strategy. Along with the effects they have on the airways' small, inner, and external settings. It seeks to analyse the effects of key incidents and circumstances on British Airways' business. The study analyses whether these aspects influence airways activities and offers recommendations for strengthening its insider and outsider strategy. There are also suggestions that British airlines might profit through the government strategy to boost tourists.

Section 1: British Airways Company Overview & Business Profile

Organisation and Business Overview

British Airways is a famous airline located in UK. It offers an extensive variety of amenities to meet different traveling demands, including flights that are domestic as well as international (Taylor, 2019). An all-encompassing airline, it provides business travelers as well as tourists with first-rate facilities such as plush seats, plane entertainment, as well as individualized attention. Being a public corporation (PLC), British Airways has the required authorization to seek money from ordinary people and conduct trading in stocks.

Size

British Airways operates with a significant operational footprint and serves over 42 thousand individuals globally, including pilots, crew members, base employees, and managerial employees. In the form of income each year, it produced around 1.87 billion British pounds in the year 2020 (Annual revenue of British Airways plc, 2023). The Airway competes against additional well-known airplanes for a sizeable portion of the airline industry in the UK as well as the European continent. Its broad route connects thousands of people per year and offers service to nearly 180 locations throughout the world.

Sector and industry operations

British Airline is a performer in the air base of the travel market. It operates as a flight company, offering freight as well as passenger aviation facilities. Flight activities, repair and technology, consumer care, sales and promotions, and logistical support are only a few of the aviation-related activities that are covered by the field's operation (Klophaus, 2023). The airways prioritize local as well as global travel, linking significant cities across the globe. It works to keep its spot as a top aircraft by providing outstanding amenities, growing its routes infrastructure and responding to customer expectations in an extremely competitive field.

Direct and indirect competitors

Several major global airways that involve Emirates, Lufthansa,Air France-KLM as well as Delta directly compete with British Airways. These airlines have an international reach and provide comparable amenities and itineraries. Cheap airline operators such as Ryanair airline as well as easyJet airline, who cater to price-conscious passengers using basic facilities, are indirect competitors (Whittle, 2022). For both local and short-term pathways, British Airlines also engages in implicit rivalry with other types of travel including railways and boats. The aviation sector is a fierce rival, with players always fighting for revenue through affordable prices, high-quality services, and new routes.

British Airways Organizational Structure And Leadership Team

A hierarchical organizational design with distinct divisions of power and accountability is used by British Airlines (Smith, 2022). The Chief Executive Officer (CEO), which occupies the highest level of the hierarchy, is in charge of managing all aspects of aviation. Senior managers in charge of several divisions of the company, including the Chief Financial, Commercial and Operating Officer (COO), make up a leadership group. Every CEO oversees a certain division, such as financing, marketing and selling, procedures, or HR, assuring efficient administration and wise choice-making throughout the company. For gaining success in the competitive business arena, firm lays more focus on undertaking situational leadership style. On the basis of situation, leader adopts varied style with the motive to encourage personnel towards the best performance.

Section 2: Internal Business Environment Analysis

Brexit and Covid-19 Pandemic on British Airways' internal environment.

British Airlines experienced problems as legislative adjustments and business complexity brought on by Brexit. It has to follow updated immigration and trade regulations as well as novel aircraft contracts. This necessitated changes to the business's inner procedures and operations when it came to regulation, paperwork, and supplies. British Airlines needed to keep an eye on exchange rate changes and probable Brexit monetary repercussions, having featured a consequence on its fiscal strategy as well as risk mitigation tactics. British Airlines and the entire airline sector, the COVID-19 outbreak caused a dramatic and unexpected effect (Hamawandy, et.al, 2021). Travel limitations, shutdowns, as well as clients' ill health all contributed to a dramatic drop in appetite for traveling by air, which Airways suffered. Flights, a limit, and income were all greatly reduced as a result. The airline required it to undertake cuts to costs, such as personnel cutbacks and staff layoffs, which caused an effect on in-house worker relations and satisfaction.

Brexit as well as the epidemic both have a big effect on British airlines. To safeguard the security of the staff and passengers, the company has put in place medical and security procedures. Both occurrences introduced unpredictability and delayed tactical objectives, necessitating inner procedure modifications and relocated resources on the component of the aircraft (Brezonakova, 2021). To overcome the obstacles and secure the company's subsequent years, adaptability, quickness, and good interaction became essential.

UK government's recovery plan on British Airways' internal environment.

The government's rehabilitation tactic includes monetary help in the shape of financing, grants, as well as salary increases which are all of its main components. Similar to various air carriers, British Airlines might have used such funds to keep running throughout the difficult time of low tourism (Saini, 2023). The company was able to continue its staff and operations because of this cash injection, which probably mitigated many of the initial monetary difficulties.

It is possible that industry-specific regulations and activities to promote tourism, as well as aviation, were part of the government rehabilitation strategy. Initiatives boosting domestic flights or loosening travel regulations, for instance, perhaps affected British airlines' choices regarding operations as well as marketing plans. The company possibly modified its path connection, flying timetables, and cost regulations to comply with governmental goals and seize rescue plan-related possibilities. The strategy for reconstruction could have additionally incorporated legislative adjustments or carbon-reduction-related rewards. The government's ecological initiatives probably affected British airlines' inner workings. By encouraging expenditures in greater energy-efficient planes, using healthy practices, and putting greenhouse gas mitigation measures into place (Kassem, 2023). The airline sector is under greater strain to lessen its negative ecological effects.

Section 3: Micro-Environmental Impact Assessment

UK government's recovery plan on British Airways' micro-environment.

Government funding is extremely important in stabilizing the tiny environment at British Airlines. The business became able to continue procedures, keep its personnel, and get through a time of lower demand due to monetary support through the form of subsidies and mortgages (Islamkulov, 2022). The connection between the company, as well as its staff, was significantly impacted by this assistance, which has increased job stability also decreased unpredictability.

Efforts to promote tourist activity, that affectsBritish airlines' microhabitat, could be considered part of its recovery strategy (Ji, 2022). Marketing efforts for traveling domestically, rewards for foreign tourists, or loosened travel limitations may boost interest in airlines and boost consumer reservations. Through the help of such efforts, British Airways will have the chance to increase its client base, increase income, and draw in further travelers. The government of UK's rehabilitation strategy's emphasis on environmentalism has affected the airline's small-scale environment by influencing client demands regarding green practices. The restructuring strategy's effects on British Airways reach the market as a whole, which may lead to aviation rivalry.

Brexit and Covid-19 Pandemic on British Airways' micro-environment.

The small-scale environment of British airlines was majorly affected by equally Brexit as well as covid19 epidemic, which has had an effect upon its direct all parties involved, rivals, and clients. The microcosm of the airline was influenced by the uncertainty and alterations to regulations brought on by Brexit (Gupta, 2019). The airline's interactions with dealers, logistical companies, and governmental agencies were impacted by modifications to immigration processes, travel bans, and aircraft contracts. The airways' direct shareholders were impacted by these shifts, which necessitated modifications of operating procedures, paperwork, and regulation (Arokodare, 2021). These problems made it difficult to sustain effective procedures. The epidemic has a significant effect on the small-scale environment at the airline. Visitor desire was dramatically decreased as a result of travel bans, closures, and wellness issues, which affected the airways' connection with its consumers. Client happiness and reliability were impacted by airline cancellations and postponements, changes in trip schedules, and sanitation and security regulations.

Connections between the airline, its staff as well as groups,were impacted by the epidemic. Firing, job cuts, and decreased time at work were among thelowexpenses the carrier must adopt. All these actions havea negative influence on employment relationships, staff satisfaction, and stability at work (Ranasinghe, et.al, 2019). The competition tiny-environment of the company was impacted by the global crisis as well as Brexit, which changed the climate of competition and altered how markets operate.

Section 4: External Business Environment Factors

PESTLE factors on British Airways' operations.

Pestle variables, which include political, economical, social, technical, legal, as well as ecological concerns, having an effect on the airline's entire atmosphere.

• Political- Governmental security, rules, and strategies are all political considerations. Airlines, security, privacy, as well as global agreements-related laws and rules are all applicable to British airlines (Mattioli, 2020). The daily activities of the aircraft may be impacted by political peace and federal backing, including getting into flight paths and urgent financing from the authorities.
• Economical- British airline activities are impacted by economic trends such as GDP expansion, rising inflation, changes in currency, and how much people spend. Although an upturn in the economy may enhance consumer trust as well as travelingexpenditure, financial crises can result in lower requests for traveling. The income and expenditures of a carrier are also impacted by exchange rate changes (British Airways PESTEL Analysis, 2023).
• Social- Social mindsets, population growth, and societal effects are all societal elements. Customers' interests, travel habits, as well as shifting social standards should all be taken into account by British Airlines (Moore, 2021). The Airways' promotional methods as well as amenities are influenced by things including travel tastes, the increase in ecologically concerned clients, and the need for personalizedencounters.
• Technological- The aviation sector has been significantly impacted by advances in technology. To increase productivity, increase client expertise and maintain its competitiveness, British airline needs to integrate modern technology. Some instances are integrating plane entertainment platforms, self-registration machines,and online booking options. Safety online and records safeguarding strategies are influenced by technical issues as well.
• Legal- It includes legislation and rule that have some effect on the airline activities, including the ones governing jobs, protecting customers, and rivalry. This is crucial to abide by the rules governing security, safeguarding information, and labor (British Airways PESTEL Analysis, 2023). The airline's activities, especially immigration and hiring demands, may be impacted by shifts in legislative structures, for instance,those relating to Brexit.
• Environmental- Sustainable Development, global warming, and eco-awareness are all impacted by ecological problems. Through cutting carbon footprints, implementing green practices, and adhering to ecological laws, British airline needs to tackle ecological problems (Grantham, 2022). This involves making purchases of energy-efficient planes, putting reusing initiatives in place, and investigating other sources of oil.

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Conclusion

Due to the pandemic outbreak and Brexit along with broad both inside as well as outside obstacles, British airlines work in an uncertain atmosphere. This requires flexibility and deliberate choices since these effects affect rivals, consumers, workers, and investors. British Airways needs to concentrate on a few ideas to enhance its business. To keep staff engaged and successfully manage employment issues, it is essential to improve worker involvement and interaction. Furthermore, putting money into customer-centred methods and individualized interactions could boost client happiness and commitment. The airway is also going to be complying with shifting consumer expectations and legal obligations if it prioritises environmental activities including using sustainable practices and smarter technology.

In modern times, it is crucial to use technology to increase the effectiveness of operations and optimize procedures, while enhancing client satisfaction. British Airlines may take advantage of the authority of the UK's intention to boost tourists by matching its advertising techniques and business practices to its goals. This entails proactively taking up marketing activities to promote local travel and utilising benefits for foreign tourists. British Airways must additionally interact regularly with the authorities to promote laws and initiatives that will cater to the particular requirements of the aerospace sector, like removing travel bans as well as permitting more efficient immigration procedures.

References

Books and Journals

• Arokodare, M.A. and Falana, B.R., 2021. Strategic agility and the global pandemic: The agile organizational structure, a theoretical review.Information Management and Business Review,13(1 (I)), pp.16-27.
• Brezonakova, A., Badanik, B. and Davies, R., 2021. Brexit in air transport after 2020. InSHS Web of Conferences(Vol. 92, p. 09001). EDP Sciences.
• Grantham, A., 2022.Sustainable Business Strategy: Analysis, Choice and Implementation. Walter de Gruyter GmbH & Co KG.
• Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The impact of Europe 2020 policy.NOLEGEIN-Journal of Corporate & Business Laws,1(1), pp.1-11.
• Hamawandy, N.M., Ali, R., Bewani, H.A.W.A., bdulmajeed Jamil, D., Rahman, S.K. and Othman, B.J., 2021. The financial Impacts of (COVID-19) on financial reporting quality Airlines Companies: British Airlines.Journal of Contemporary Issues in Business and Government Vol,27(2).
• Islamkulov, A.K., 2022. ECONOMIC DEVELOPMENT, GOVERNMENT SPENDING AND POLITICAL FACTORS.Thematics Journal of Economics,8(2).
• Ji, R., Li, X., Lv, C. and Dong, Y., 2022. Energy performance optimization of phase change materials considering the building micro?environment.International Journal of Energy Research,46(13), pp.18067-18078.
• Kassem, R., Salama, A. and Ganepola, C.N., 2023. CSR, credibility, employees' rights and legitimacy during a crisis: a critical analysis of British Airways, WizAir and EasyJet cases.Employee Relations: The International Journal,45(1), pp.1-20.
• Klophaus, R. and Yu, C., 2023. Short-haul airline services in Europe and North America cross-business model and cross-continental analysis.Journal of Air Transport Management,109, p.102400.
• Mattioli, G., Roberts, C., Steinberger, J.K. and Brown, A., 2020. The political economy of car dependence: A systems of provision approach.Energy Research & Social Science,66, p.101486.
• Moore, S. and Taylor, P., 2021. Class reimagined? Intersectionality and industrial action–The British Airways dispute of 2009–2011.Sociology,55(3), pp.582-599.
• Ranasinghe, K., Guan, K., Gardi, A. and Sabatini, R., 2019. Review of advanced low-emission technologies for sustainable aviation.Energy,188, p.115945.
• Saini, A., Truong, D. and Pan, J.Y., 2023. Airline efficiency and environmental impacts–Data envelopment analysis.International Journal of Transportation Science and Technology,12(2), pp.335-353.
• Smith, L.C., 2022.Midwife at Britain's Rebirth: The British Overseas Airways Corporation and the Projection of British Power.
• Taylor, P., Moore, S. and Byford, R., 2019.Cabin Crew Conflict: The British Airways Dispute 2009-11.
• Whittle, A., Schweitzer, J., Pitelis, C. and Clegg, S.R., 2022. Strategy: Theory and Practice.Strategy, pp.1-100.

Online

• Annual revenue of British Airways plc from 2012 to 2020, by country. 2023. Online. Available through: https://www.statista.com/statistics/1131702/revenue-british-airways-plc-country/
• British Airways PESTEL Analysis. 2023. Online. Available through: <https://thestrategystory.com/blog/british-airways-pestel-analysis/>.