Strategic management, British Airways Essay Example | Topics and Well Written Essays - 3000 words

Strategic management, British Airways - Essay ExampleExternal foodstuff costs, much(prenominal) as supply chain, are also impacting profit negatively at BA. This report takes an in-depth view of the market environs in which British Airways must operate as well as a strategic analysis about how the caller-up has positioned itself for strategic success.British Airways operates in a very difficult environment currently, with profit continuously declining both in consumer travel and in the cargo division of the transaction. It is currently the stinting downturn being felt globally which is contributing to these profit declines. make (2009) offers that the recession has given the business to a greater extent than two years of losses, with loss expectations until at least March 2010. Much of this decline, according to the author, is referable to difficult financial market trading conditions which significantly impacts the budget capability at BA. In fact, this economical recession has caused British Airways to lose a total of 17.7 percent of its passenger traffic profit conscionable in April of 2009 (Done).Additionally, BA is also losing money due to the slip of value in the British pound. Done (2009) offers that its total operating loss was 150 million pounds, which will serve as the firms first operating loss in over five years. These losses have given the company a very poor credit rating which impacts the firms ability to procure teeming working capital to make strategic changes which can have positive long-term impact, such as new construction at various international airport terminals.There is also a vast deal of competition in British Airways passenger traffic division of the business, including Lufthansa, Ryanair, Air France, Martinair and Iberia (plus many more European airlines). Competition is one external force which appears to be consistently trying to outperform BA by offering different consumer options on board, such as