Monday, November 18, 2019
Business Environment Analysis of British Airways Essay - 1
Business Environment Analysis of British Airways - Essay Example The assessment of the external environment is conducted in reference to its impact on British Airways. For the purpose, the range of strategic management tools has been employed. British Airways (BA) is a private limited company is renowned airline that has recently celebrated 90 years of existence in the year 2009. It is one the leading premium airlines of the world and the largest airline of UK and covers around 400 destinations across the world (British Airways, 2013). The business model of BA is based on the revenue generation from the passenger as well as cargo delivery services. With the long rich history and experience, BA has become one of the leading airlines that have extensive scheduled flights and network of airline. Additionally, it is a comprehensive list of joint agreements, franchise partners and other defined codes that enables it to service wide network of stations (airports). Importantly, in the year 2010, BA merged into Iberia which is the largest airline of Spain (British Airways, n.d.). British Airways generate its revenue from the two basic sources including passenger revenue and the cargo revenue. For the year 2013, BA generated revenue of around Ã £ 10,129 million from the passenger revenue with the growth of 6.6% while the cargo revenue declined by 6.5% and generated Ã £ 689 million in 2013 as compared to 2012. The year 2013 was driven by considerable investment in the airline with constant focus on expanding customer base along with the cost reduction measure at effect (British Airways, 2013). This section of the report will produce the information related to the British Airways. The information will be specific to the business direction and future vision of the business along with impact of the external environment on BA and its response. The mission of British Airways, as reported in the marketing in magazine, is Ã¢â¬Å"to serveÃ¢â¬ (Eleftheriou-Smith, 2011).