Internal And External Factors Influencing British Airways Marketing Essay

✅ Paper Type: Free Essay	✅ Subject: Marketing
✅ Wordcount: 3593 words	✅ Published: 1st Jan 2015

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British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. It is the largest airline in the UK based on fleet size, international flights and international destinations and second largest measured by passengers carried, behind easy Jet.

Mission Statement – The mission statement of British Airways is “To be the undisputed leader in world travel for the next millennium”.

Values of British Airways

Honesty

Reliability

On time

Excellent service

Objectives of British Airways

General objectives of British Airways – With an purpose of becoming the world’s major leader in global premium airline, British Airways will persist to focus on customer check at every level of passenger’s journey. The in general Objectives are separated into three areas:-

Global (appeal to all passenger’s, whether for spare time or business travel in order to create duplicate customer’s).

Premium (ensure that passenger’s obtain the highest quality of check where ever they come across the airlines).

Strategic objectives of British Airways – British Airways supply four planned objectives:-

Airline of option (remain the top alternative for International flights for premium customers as well as cargo, financial scheme and shorter flights).

specially selected services (provides the best customer repair for passengers on all routes and program of travel and get better online service).

Goals of British Airways

Be the airline of choice for long haul best customers

Deliver an exceptional service for customers at every touch point

Grow our attendance in key global cities

Build on our foremost position in London

Meet our customers’ requirements and get better margins through new revenue stream

Core Competencies – British airways has some significant resources and capability such as fleet of about 250 airplanes and more than 300 route. It has an international customer record. It has financial property, according to data check 2009 report, the company has increased its revenues since 2005 and in 2008 the company had 10% of in service profit margin. The company has slots in the major airports; the company has shaped two subsidiaries: Open Skies and BA City Flyer; It has also well-known some significant alliances (One World alliances) and it has franchised some routes. These resources and capabilities are expensive and can help the company to react against some pressure and capitalize on opportunities.

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There are so many issues involved in strategic planning, two of them stand out clearly namely: The internal and external environment of the organization and the organistaion’s stakeholders. Using British Airways, explain how the internal and external environments affect the daily operations of the organization.

Internal and External Factors influencing BA

Political Factors – Like any airlines BA is govern or subjective by fixed regulatory controls. This varies from the route companies can fly, the trade partners they can cooperate with, the airport slot they can use, the fares they set and the transportation costs they pay.

Economic Factors – BA was exaggerated by economic recession in 2008. The global recession has exaggerated passengers and business people in air travel. Social Factors – Ageing fastest enhance in the “oldest old” Population by age, UK, 1984, 2009 and 2034. The graphic above explain how the UK trend populations are going, over the last 25 year the people aged 65 has improved from 15% in 1984 to 16% in 2009, increase of 1.7% million people, in other language, UK population is ageing. On the same period the youthful population has decreased from 21% to 19%.

Technological Factors – The skill has created a lot of benefits for consumers. In the case of airline industry, now they can use contrast websites, which has contributed for their bargaining control.

Environment Factors

One of the British Airway strategic is reduce issue that affect the environment, in order to this, British Airways chose to engage in CSR (Corporate Social Responsibility) to help achieve the company strategic, CSR also can help British Airways to identify risks to health, safety and environment, this strategic also can attract more investors and grow the company.

case of BA this has represent a lot of problems due to the strike conduct by the employees. Beside the impact on image, the company has incur important losses. Other legislation which can crash its strategy is the limitations on mergers and acquisitions.

There are different planning techniques in business and one of them is the marketing mix, practically demonstrate how the four major marketing mixes is reflected in British Airways.

The marketing mix is a business tool used in marketing. The marketing mix is often crucial when determining a product or brand’s offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing.

Marketing mix of British Air ways

The merger of two major company British Overseas Airways Corporation and BEA gave rise to privatize and set up the British Airways. It offer the best armed forces to the passengers receiving into premium cabin and the people with the high-profile status. The passenger of the airlines are typically business tourist. British Airways is the only airlines which serve the goal in over six major continents.

Pricing Mix of British Airways – Pricing is a very important subject for the marketing administration because it affect the command sales support, competitive power of the business unit and eventually the profit. Sometimes, It happens that competence of other functional areas is emotionally involved by faulty value decisions.

Promotional mix of British Airways – Promotion way a set of efforts complete by the company for motivating the demand for its product without making any change in product mix, price and channels of sharing. It is any communicative activity whose main objective is to move ahead a product service or an idea in a canal of distribution.

Placing – Placing means sharing of the products and services and also how they move from the producer to the customer. There is an addition of retailers, wholesale, factory, and warehouse, head office to the end user of the manufactured goods or repair. Almost the goods are sold through intermediaries so it is the duty of the marketers to identify the type, size and location of the retailers. Market is not possible without the distribution. The Organization should choose such a channel of distribution, place for storage space and mode of transport which can be facilitate the customers to get the manufactured goods rapidly with minimum cost. Generally channel of sharing should be selected taking into account the put of customers, type of product, volume, Cost of allocation etc. retailers and therefore the world of manufacturers and the clientele has become a little village as they are pending closer.

Product Mix of BA. British airlines first used to sell their products via retailers but however they switched on to sell their products on their well published and well furnished website which includes all the details and features of the service products. The flip side of this reason would result into heavy burden upon the organization to launch payment and service systems which was previously done by the retailers the direct selling might also bring conflicts between the organizations and the retailers

Task 2

Using Amazon as an example organization, describe the major types of external audits it has and demonstrate the various parts of a financial audit.

An audit is a systematic procedure of objectively obtaining and evaluating the accounts or financial proceedings of a governmental, business, or other person. Whereas some businesses rely on audits conduct by employees-these are call interior audits-others utilize external or sovereign auditors to handle this task (some businesses rely on both types of audits in some mixture).

Major Types of External Audits – Amazon

Major types of audits conduct by outside auditors of Amazon include the financial statements audit, the prepared audit, and the compliance audit.

A financial declaration audit (or attest audit) examines financial statements, records, and related operations to ascertain adherence to usually accepted accounting principles. Operational audits examine and assess performances and expand recommendations for improvements, or further action. Auditors execute statutory audits which are performed to comply with the requirements of a governing body, such as a federal, state, or city government or organization. A compliance audit has as its objective the determination of whether an association is following established procedures or rules.

A financial audit, or more precisely, an audit of financial statements, is the confirmation of the financial statements of a legal entity, with a view to express an audit opinion. The audit opinion is intended to provide sensible assurance, but not absolute assurance, that the financial statements are obtainable fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. The purpose of an audit is provide and objective self-governing examination of the financial statements, which increases the value and trustworthiness of the financial statements produced by organization.

Conduct an environmental audit of Amazon, displaying how it is ahead of other organisations that deal with online book transactions.

Environmental audit of Amazon – Environmental audit is a universal term that can reflect various types or evaluations intended to recognize environmental compliance and management system implementation gaps, along with connected corrective actions. In this way they do an analogous (similar) function to financial audits. There are usually two dissimilar types of environmental audits: compliance audits and organization systems audits. Compliance audits be inclined to be the primary type in the Amazon.

c) Stakeholders are part and parcel of every organization and key to smooth operation of the machinery of every organization; explain the significance of stakeholders analysis and demonstrate using a tree map of the stakeholders of Amazon.

Stakeholder analysis is dangerous to the success of each project in every organization. By attractive the right people in the right way can make a large difference to success.

The reimbursement of using a stakeholder-based approach are that:

You can use the opinion of the most influential stakeholders to shape your projects at an early phase. Not only does this make it more likely that they will support you, their input can also get better the quality of your project

Gaining support from influential stakeholders can help you to win more resources – this makes it more likely that your project will be winning

By communicate with stakeholders early and often, you can make sure that they fully appreciate what you are doing and understand the benefits of your project – this means they can hold up you actively when necessary

You can expect what people’s reaction to your project may be, and build into your plan the actions that will win people’s maintain.

Stakeholders Tree – Amazon

Task 3

Analyse what substantive growth is, and practically demonstrate its applicability to Argos and M&S respectively.

In any commerce strategy, growth is a key goal. This may appear like an obvious fact, but the benefits of enlargement are worth explore to understand precisely how businesses work. achieve truly substantive enlargement in business plan can make up for many other deficiency. While there is such a thing as too much enlargement in too small of an amount of time, substantive enlargement does have key advantages:-

Exponential growth is achieved

Competition is met successfully

Wealth is created

Goals are prioritized

Substantive growth strategy of Argos and M&S

Argos’ and M&S strategy today is one of substantial growth growth. It is being achieved in a number of ways such as opening new stores, increasing the product range, expanding the website or increasing the value and volume of sales. Argos’ and M&S strategy involves driving frequency and maintaining the loyalty of existing customers.

There is a important amount of customers who buy rarely from Argos and M&S. Argos and M&S classifies this collection as the ‘Don’t quite get its’. Advertising on television and through other media is an significant way of attract this audience. Through advertising the ‘Don’t quite get its’ are able to be grateful for the range that Argos and M&S offers, and the value for money of the present. For example, at Christmas time Argos and M&S adverts exemplify the way that a shopper can buy all of their present from side to side the catalogues.

In comparison big numbers of people frequently shop at Argos and M&S – these are the ‘Get its’. Argos’ and M&S move toward with this segment of the market is to increase the amount they spend in each purchase.

Argos and M&S has introduce an ever-expanding manufactured goods range especially since its Home Delivery Service was introduce.

Argos and M&S has listening carefully on convenience for customers. Research showed that customers look upon speed to be the top criterion when choosing to shop as of Argos and M&S.

Growth therefore comes from heavy frequency of purchase, and increasing the spending per customer on Argos and M&S products.

b) Since Argos and M&S have changed their former strategies and adopted new ones as already mentioned above, suggest a future strategy the above two organisations should adopt to continue being on top of their business game.

A strategy is a universal plan which an organisation puts into do to achieve particular end purpose (also known as objectives). There are all sorts of universal strategies that a company might employ such as increasing into new countries or novel markets.

Strategy for Argos and M&S to remain on top of their business game – Future strategies of these organisations should encompass the following

Harnessing technology to gather customer needs -Many customers today are cash-rich but time-poor. luckily most people (particularly the young) have high levels of capability when it comes to using contemporary technologies such as mobile phones and computers. Argos and M&S therefore must use a diversity of modern channels to converse with customers and to give them with avenues for enquiring about availability of stock, and for creation purchases.

Provide more product choice, obtainable to customers faster

Hub and spoke distribution replica will make the most of Argos’ and M&S stores network and infrastructure “to offer market most important immediacy of fulfilment on a wider variety of products”.

Argos and M&S must “build on capabilities in large item home delivery with express delivery option”.

Develop a customer offer that has universal appeal

Argos and M&S should aim to get bigger its customer reach with “a more universally appealing offer”.

Product ranges to be extended to appeal to the broader groups by, for instance, inclusion of branded products “where a broad range is necessary to build category authority”.

The retailers should aim to double penetration of exclusive brands to represent a third of total sales by the 2018 financial year.

Operate a leaner and more flexible cost base – Shift investment towards digital marketing as the digital offer grows.

Involving customers to participate in its activities

Endeavoring to do business in sustainable manner

Task 4

Using HMV as an example, compare the roles and responsibilities of the Strategic Manager for strategy implementation and give a practical demonstration of that.

Roles and responsibilities of strategic managers for strategy implementation

A strategic scheme director handles projects that put in to the company’s success. These projects stand for opportunities for the organization to expand new products, troubleshoot evils or open initiatives designed to reduce operational costs, defects or waste. As a strategic system manager, you collaborate with other managers, such as finance professionals, to carry out projects. You also examine the project portfolio to ensure that work aligns to strategic decision. By assess project flow, publishing reports and conduct review meetings to keep projects on path, the planned project manager enable the organization to prioritize its work. This results in tangible business value to the total company.

Resource Portfolio Management

By managing an organization’s resources successfully, a strategic scheme manager ensure that the company has the best personnel to total job tasks. You make easy the efficient use of resources across multiple projects and monitor trend to make sure use aligns with strategic goals. effectual strategic managers allow cost savings by reducing delays due to be short of of resources.

Project Management Mentoring

Experienced strategic project managers characteristically have responsibility for mentoring less knowledgeable project managers. By sharing tips, techniques and template, they help others learn how to carry out this role.

Since HMV closed many of its shops, evaluate resource requirements to implement a new strategy that will bounce them back into the market.

“The future of HMV lies in the hand of its suppliers and Hilco after the reform specialist bought the bank debt at the back the retailer.” Deloitte, the manager to HMV, was apparently “locked in talks with suppliers on Tuesday about hold up for the company. It is unspoken that suppliers, led by Universal Music, could take a bet in HMV if the entertainment retailer emerge from management.”

The support of film studios, record labels and other strategic suppliers is essential to the firm’s ability to survive and compete. In a show of support and proof of the value of Supplier Relationship Management, prior to Christmas “suppliers offered HMV greater access to back catalogues, new promotions and to buy stock on consignment – meaning the retailer only paid for products if it sold them.”

Looking back to January 2012, HMV established an alliance with Universal Music, EMI, Warner Brothers, Sony Music, Universal Pictures and Disney – aimed to help to restore the business to profitability ‘within 3 years’. It was reported that “major suppliers” were to acquire 2.5% of equity in HMV in the form of warrants. Other terms included a plan to “formalise a switch of risks to suppliers at the store chain”. In December 2012, apparently HMV secured £40m in funding from these ‘major suppliers’ who, with a tangible vested interest in seeing the firm survive, are reportedly now engaged in talks with Hilco to provide further improved terms to a HMV that comes out of administration. The relationship evolving between the suppliers and Hilco is now a critical link to survival – however, in this case the key suppliers are also investors and hence relationship management extends beyond SRM.

For HMV to compete favourably with other organisations, there is need for concrete targets and timescales for achievement in order to monitor whether the given strategy is working or not, demonstrate these targets and timelines using a Gantt chart.

HMV and future targets / goals

As one of the world’s the majority recognised names HMV realises the significance of adapting to meet the supplies of customer demands. Brand inheritance and reputation are key factors in giving an organisation rank and competitive benefit but these strengths must be build on incessantly in a market place characterised by ever-changing developments in technology and rising customer prospect. HMV has been winning in rising to this challenge by developing a range of thrilling and innovative novel ideas designed to improve the brand and its standing into the future.