British Airways - Business Plan Example

BRITISH AIRWAYS BUSINESS PLAN BRITISH AIRWAYS BUSINESS PLAN Introduction The British Airways A business plan involves a focus of events and strategies that a corporation, company or business wishes to achieve within a given time period. This is a two years – 24 months business plan for the British Airways company, and sets the goals and targets that the airline wants to achieve from April 2014 to March 2016. British Airways is a London based Airline and among the largest airlines in the United Kingdom. It is in fact the flag carrier of the United Kingdom, and as such, enjoys a massive home base to boost its operations. The airline provides daily flights to over 400 cities across the world. Consequently, like most large corporations, the airline has to focus on a variety of goals and objectives in order to guarantee both its long-term, as well as, short-term survival within the global competitive market. As such, this two years business plan curves out the expectations of the company that would map out its position, in the global field as a leading airline carrier in Europe1. Key Objective The main goal of the airline is to become the leading global premium airline in the world, and this it seeks to achieve through a continued focus on customer service implemented through every level of the journey of a passenger. This overall goal breaks down into three main areas, which are global, premium, and airline. Global seeks to appeal to all types of passengers whether for business or leisure travel in order to create repeat customers. Premium ensures that all passengers using the airline receive the highest quality of service wherever they encounter the airline. Airline seeks to maintain focus on aviation with the latest services, products and equipment. In order to achieve this, the airline developed five major strategic goals, which are Airline of Choice, Top Quality Service, Key Global City Growth, Meet Customer’s Needs, and Expand the Leading Position in London. These key strategic goals enable the airline to achieve its goals and mandate of being the leading premium airline of choice in the world. Strategic Goals The company wants to be an Airline of Choice by remaining at the top choice for international flights for premium customers, as well as, economy, cargo, and shorter flights. The airline seeks to offer top quality service by providing the best customer service for its passengers across all its routes and classes of travel, as well as, improve its online services with a key focus on Terminal 5 at the Heathrow Airport. The Key Global City Growth strategy outlines its plans to continue to expand the list of its top-tier cities through airline partnerships2. The airline also plans to expand the leading position in London by maintaining Heathrow Airport as an excellent hub, as well as, influence the government policy and airport owners in a continued support. Finally, the airport meets customers’ needs by exploring the latest options and products to enhance customer loyalty. Business Plan This business plan revolves around the operational goals, financial goals, customer goals, as well as, the human resource management goals of the company. It develops around the Global Premium Airline strategy structured with five primary themes of colleagues, customer, performance, excellence and partnerships. It incorporates its colleagues in working together to create the best customer-service management team, increasing performance related compensation, and training front-line leaders. It attends to its customers by upgrading its first class cabins and in-flight entertainment systems in order to include these on the latest Boeing and Airbus aircrafts, as well as, enhancing the features of ba.com. The airline enhances its performance by controlling costs through monitoring and adjusting it capacities outside of Peak-Flying periods, enhance revenue from third party engineering and development, as well as, improving environmental performance and fuel efficiency3. The airline strives on excellence by extending its Terminal 5 at the Heathrow Airport into a second satellite Terminal 5C, improving the North Terminal at Gatwick Airport, and initiating the Airmanship Programme that educates the baggage and ramp employees about ground safety. Finally, the airline prides on partnerships through implementation of a Joint Business Agreement with Iberia and American Airlines to extend connections, enhance frequent-flyer benefits and improve schedules, as well as, initiate new partnerships. Operational Goals Operational goals are short-term objectives whose attainment moves the organization towards achievement of a strategic or long-term goal. As such, these operational goals in business define clear and measurable outcomes of business within a fiscal year of single calendar. The British airways has a set of operational goals that will enable it achieve its strategic goals within the two year period of the business plan. One of the main operational goals of the airline is to maintain punctuality in its flights, as well as, the staff and airline attendants. This enables the company to keep a good rapport with its clients and customers who mainly prefer the airline for its strictness with its flight schedules. For instance, it has to ensure its flights take off and land at the scheduled times, thereby giving its passengers ample time to plan their travel. Furthermore, in case of emergency or other unforeseen conditions that disrupt it from meeting its commitment to time and punctuality, the airline should engage some of its strategic partners to ensure that its passengers do not overly delay at the airport or in flights before reaching their destinations. The company managed to maneuver through the ferocious conditions of trade owing to the recent global economic crisis to put forward a new record of high operating performance during the year. as such, it is imperative for the company to maintain these stands, and improve on them where possible considering the fantastic progress that the company is recording as the recovery takes hold, especially at its major hubs such as Terminals 3 and 5 at Heathrow, to Gatwick, and London City Airport4. This is evident through the massive growth in punctuality scores, which rose above the highest levels, recorded ever. Another major operational goal of the company is the online presence, which enables the company to undertake a number of features and operational milestones in the airline industry. With an online platform, the company introduces convenience and efficiency within its operations, thereby creating a system that allows its customers to book or cancel their flights, or conduct other business related to the airline. The online platform also enables the company to develop competitive advantages against other airline operators in the market, with a consistent review of its features and class to attract new customers, as well as retain existing ones for repeat flights through development of confidence and brand loyalty. The official website of the company is www.britishairways.com Financial Goals The finances of a company form the core basis of the business. This business plan advocates for the achievement of two major financial goals by the British Airways, which are profit target and cost savings. The company has had a very impressive financial year during the past fiscal year, with the profit revenue adding up to £10.827. As such, the new financial goals of the company during the set period of the business plan are to increase its profit revenue. Even though the company suffered dismal losses from the recent global financial crisis of 2008, it is still in the recovery process and the new financial results are not the best that the company should boast about. Consequently, it is imperative for the company to increase its profitability through enhancement of efficiencies in operations, as well as, quality service delivery to its customers and clients5. This will increase the volume of its flight passengers, cargo and freight, and in turn boost the sales and profits of the company. The new profit target for the company during the enshrined business period within the business plan is to hit a profit margin of £15.500 by March 2016. In order to achieve this, the company will introduce various cost saving measures that will enable it cut on its operational costs, and at the same time boost its profit revenue. By introducing cost efficiencies such as e-ticketing instead of paper ticketing, online booking instead of office bookings, the company increases tremendously the level of its customer base, while at the same time reduces the cost inefficiencies resulting from conducting these practices in the same manner. Human Resource Management Goals The human resource of the company always plays a very critical role in the success and development of the company. British airways had had various crises involving workers and other members of staff. In fact, there was one period when all the workers went on strike and paralyzed completely all the activities of the company. The airline could not make flights for about two days completely, and then it took about another seven days before adjusting appropriately to its former performance levels. As a result, the airline suffered numerous losses during this period, running into millions of pounds. Furthermore, it suffered having a tarnished name owing t the manner in which it disappointed its customers and clients after it had to cancel all previous bookings and refund the money back to the customers. Recovering from this financial pitfall, as well as, rebranding its image once more, as a premium flight of choice was a little difficult for the airline to achieve again6. Therefore, the main goal during the set financial period is to ensure that all the workers of the company, from ground to flight attendants, have full satisfaction in what they do, enjoy their jobs, and as such, offer their services freely to the best of their ability. As a result, the company will enjoy more productivity and enhanced revenue returns owing to the high performance rates of its employees. The airline can engage a number of motivation theories to encourage and motivate its employees to work harder, and remain committed to the company. These motivational theories include Gestalts Theory of Motivation, and Abraham Maslow’s Hierarchy of needs theory, which provides a number of channels through which the airline can use in motivating its employees to improve and enhance their performance. Customer Goals Customers are the backbone of every airline company. As such, the British Airline has to pay particular attention to its customers to ensure that they provide them with quality service, before, during and after using their contact with the company. As a result, quality service delivery to the customers ensures that they get the best of service, develop confidence in the company and the brand, and make repeat flights as loyal customers. In addition, customers getting quality service from the airline also do a “word-of-mouth” advertisement for the company, which in turn attracts new customers to use the airline for their flight and cargo transport. In order to achieve these goals, the company has to reduce the number of complaints from its customers by meeting all their needs in all forms, considering the level of convenience and efficiency they provide to the customer7. The company has to develop a “customer is king” attitude whereby the customer comes first and above all the other needs of the company. As such, by treating the customer well, and providing them with all their needs, the company becomes a preferred alternative for flight and cargo services, and this in turn increases the airlines sales volume and profits, bearing in mind the more customers and cargo it carries the higher profits it makes. Conclusion The company will record an improved profile if it manages to implement all of the above-mentioned goals and objectives religiously. For instance, it will be able to achieve its strategic goals of being the Airline of Choice, offering Top Quality Services to its customers, Key Global City Growth, Meet the needs of its customers, and expand the Leading Position in London. This will enable it become the leading global premium airline in the world with executive services for both passengers and cargo. The company will also be able to improve its performance in the market through strict punctuality measures, as well as, record quality-service delivery and attendance to its customers. This will increase the efficiencies of the airline, and as such, boost its profit margins and enhance its brand image across the globe. Bibliography C. 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