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Study on british airways operations management essay

British Airways is the UK's largest international scheduled airline, flying to 148 destinations at convenient times, to the best located airports. Its principal place of business is Heathrow, one of the world's premier airport locations, which serves a large geographical area with a comparatively high proportion of point-to-point business.

  • With record oil and commodity prices, sterling collapse and an unprecedented financial crisis all striking at once, even those emerging economies that had been expected to go untouched by recession saw sharp declines in growth;
  • A leading global premium airline must be bold and highly effective in developing present and potential leaders.

It also operates a worldwide air cargo business, largely in conjunction with its scheduled passenger services. It carried 777,000 tonnes of cargo to destinations in Europe, the America and throughout the world. At the end of March 2009 it had 245 aircraft in service.

Business Strategy of British Airways. A Case Study

British Airways won numbers of awards including the Skytrax Best Transatlantic Airline in 2008 and study on british airways operations management essay.

British Airways is a full service global airline, offering a year round low fares with extensive global route network flying to and from centrally located airports. British Airways has launched Face to Facea multi phased program that aims to keep entrepreneurship alive and kick up fresh potential for economic growth in the U.

Market volume of 2. There are two bodies responsible for civil aviation in the United Kingdom. British Airways is involved with the aviation regulatory bodies, aircraft manufacturers and system designers to develop minimum performance standards for aircraft protection.

The key areas are: The organisational structure of a company reflects its culture, its management style and its leader attitude in addition to the environment in which it has to operate. British Airways has a more formalised structure with precise rules and procedures, due to its size and the global scope of its activity.

A major change in the last years has been the reduction of its management layers, between the chief executive and the front line who interface with customers, from nine to five.

It now has small ad hoc groups working in parallel with the formal structure, with responsibilities that cut across different functions, or in some case duplicated these functions. British Airways could be easily defined as a role culture reflecting functional differentiation in its structure, but it's not that easy. One organisation often harbours two or more contrasting cultures, posing more difficulties in order to remain successful.

There are two cultures in British Airways, one high in the sky at 30,000 feet which is highly co-operative, service oriented focused on passengers and the other one on the ground highly competitive, politicised head-to-head with the external world, where it seems that fiercely adversarial values reigned.

Middle management, which is key to the implementation of any strategy and the outcome of cultural change, is still ruled by separate functions and at the top all the weight still goes on the individualist functions of high finance and take-over. There is still some job to be done. It has changed to a style where coaching, training and supporting are key to employees empowerment.

Manager learn how to trust employees developing a vision and then letting employees use judgement and discretion while responsibility remains with them. Managers are shown how to build a support system, so that they can get help from one another outside the formal structure and across functions.

Strategic Management: British Airways

Subordinates need to be shown how their job contribute to the larger whole. People are asked to make decisions, they are provide with a vision or framework in which they are then empowered to take action to respond to non standard situations. Mistakes are forgivable provided one tries. Compete 2012 is a long-term change programme, current market conditions have made it imperative to move fast to create a leaner, more agile structure starting at the very top of its business.

In December 2008, a third of its managers left the business under a voluntary severance scheme.

  1. It is hoped that these steps will kick-start the US and UK economies which will provide some economic growth in 2010. Another issue in strategic planning is the individuals who should be involved.
  2. BA presented the new uniforms, which will gradually replace those previously used.
  3. The current economic environment presents a new challenge.

At the same time ba redesigned the organisation to promote greater customer focus and better governance and leadership. BA needs great leaders to help the company contend with current trading conditions and achieve its long-term vision.

A leading global premium airline must be bold and highly effective in developing present and potential leaders. This is an integrated system, linking business strategy, objective setting, performance assessment, development and reward.

Focused initially on the senior leaders, HPL has rigorous assessment mechanisms to identify talented leaders and to provide with the right tools and support to continue developing. BA have also defined, communicated and begun to measure individual performance against three capabilitiesthink need in its leaders, in addition to operational excellence: Communicating a common vision; Agreeing accountabilities; and Motivating and inspiring others.

For each capability, specific behaviours have been developed so that leaders understand exactly what is expected of them and supporting them with a range of development programmes, including executive coaching, networks, forums and external courses. BA is also using new techniques to measure performance. These will allow management to monitor individual progress and track its own overall success at managing talent.

Among the other leadership initiatives BA launched were: Behaviours for Success - a leadership development programme for the HPL community, focusing on understanding and developing personal leadership performance; Leadership Matters - a scheme to identify and develop leaders who have pivotal roles in the Customer and Operations areas of our business; and A Leadership Development Portfolio that will be introduced with the aim of supporting current and potential leaders at every level of the business, including emerging leaders, those on a fast track to senior positions and those with strategic roles at the very top of BA's organisation.

British Airways business Process: The global airline industry is fiercely competitive, heavily regulated and highly exposed to changes in customer behaviour and consumer confidence. The current economic environment presents a new challenge. BA is concentrateing efforts to seize long-term opportunities for growth. The pace of economic slowdown study on british airways operations management essay the year was faster than most had predicted. What had first been expected to be a downturn in key developed economies turned into a global recession in the autumn of 2008.

With record oil and commodity prices, sterling collapse and an unprecedented financial crisis all striking at once, even those emerging economies that had been expected to go untouched by recession saw sharp declines in growth. Government attempts - nationally and internationally - to halt the financial crisis through bank bailouts and credit guarantees staved off what might have been an even more serious collapse.

Subsequent efforts to stimulate economic activity are expected by most economists to take longer to take effect. It is hoped that these steps will kick-start the US and UK economies which will provide some economic growth in 2010. This should, in turn, provide some basis for a recovery in BA's business. This Code of Business Ethics applies to all employees, officers and directors of British Airways Plc and its subsidiary companies. As a matter of Company policy, employees must not leave conflicts of interest unresolved unless approved by the Company.

In particular, employees must never use or attempt to use their position at the Company to obtain any improper personal benefit for themselves, for their families, or for any other person.

Employees are prohibited from taking or directing to a third party a business opportunity that is discovered through the use of corporate property, information or position, unless the Company has already been offered the opportunity and turned it down. More generally, employees are prohibited from using corporate property, information or position for personal gain and from competing with the Company.

Employees must maintain the confidentiality of all information so entrusted to them, except when disclosure is authorised or legally mandated.

Each employee should endeavour to deal fairly with the Company's customers, service providers, suppliers, competitors and employees. No employee should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any unfair dealing practice. All Company assets should be used only for legitimate business purposes.

It is the personal responsibility of each employee to adhere to the standards and restrictions imposed by those laws, rules and regulations. Securities Laws and Insider Dealing. Generally, it is both illegal and against Company policy for any individual to profit from undisclosed information relating to the Company or any other company.

It is against Company policy for any employee, officer or director, who may have inside or unpublished knowledge about any of its customers or any other company, to purchase or sell the securities of those companies. Any questions relating to how these study on british airways operations management essay should be interpreted or applied should be addressed to the Company Secretary.

An employee who is unsure of whether a situation violates this Code should discuss the situation with the Company Secretary to prevent possible misunderstandings and embarrassment at a later date.

Any employee who becomes aware of any existing or potential violation of laws, rules, regulations or this Code is required to notify the matter in accordance with the procedure set out in British Airways Standing Instruction No.

Any employee, officer or director who believes that a waiver may be called for should contact the Company Secretary. British Airways's Strategy and Objectives: Its main aims were to build on Terminal 5's strengths to upgrade the customer experience, continue to make the business more cost effective, grow its operations and make corporate responsibility a prominent part of BA's business.

Record fuel prices and the global downturn meant it needed to revise its plans and reset priorities. Nevertheless, BA have still made significant progress against its original goals, laying the foundations for future success. We have exceeded punctuality and baggage targets across the network, achieving record customer satisfaction scores. Terminal 5 has allowed to cut the cost of its Heathrow operations by more than expected. By the end of March 2009, our overall Heathrow manpower levels had reduced by 1,074 MPE, 14 per cent lower than the peak resource level during the first month of Terminal 5 operations.

We launched new routes from London to Hyderabad and St Kitts. It is clear from research that those companies with clear and open commitment to behave responsibly and to manage their environmental impact have a far greater chance of building a trusted relationship with their customer. BA vision is to become the world's most responsible airline, and we have brought all our corporate responsibility activities together under the banner 'One Destination'.

We have set challenging goals for further reductions in our carbon emissions, reducing and recycling waste and minimising air and noise pollution. We have continued to invest significantly in our community relations programme and are proud of our record of raising money for charities, both as a business and through the incredible energy and commitment of our people.

Be the airline of choice for longhaul premium customers Deliver an outstanding service for customers at every touch point. Grow our presence in key global cities.

  • The global airline industry is fiercely competitive, heavily regulated and highly exposed to changes in customer behaviour and consumer confidence;
  • For each capability, specific behaviours have been developed so that leaders understand exactly what is expected of them and supporting them with a range of development programmes, including executive coaching, networks, forums and external courses;
  • In 1935, a number of smaller lines joined together - were British Airways Ltd.

Build on our leading position in London Meet our customers' needs and improve margins through new revenue streams. BA performance through the year 2008 to 2009 is reflected in its Key Performance Indicators. BA failed to meet its financial target because of the unprecedented downturn in trading conditions. However, the move to Terminal 5 saw a step-change in its operational performance and it achieved record-breaking punctuality and customer recommendation scores. Customer Customer recommendation is a key measure of company success.

BA Global Performance Monitor GPM survey, an onboard customer survey, together with a follow-up online survey on the arrivals process, provides monthly insights into customers' views.

The move to Terminal 5 and the brilliant operational performance that company has delivered across our network as a result of this, drove a recommendation score of 65 per cent. Performance over time BA expect great things of everyone who works for British Airways. To achieve this study on british airways operations management essay is: BA must achieve a consistently strong financial performance if it is to continue investing in the future success of the business and provide adequate shareholder returns.

Operating margin is the main way for measuring financial performance. The rapid decline in the global economic situation led BA to revise its forecasts through the year.

British Airways Financial Performance.