London Eye, Capacity Management - Coursework Example

The recommendations include the use of advanced technology and people process strategies. The people process strategy explores the factors that lead to the customer decline in the company, while the technological strategy focus on the renewal of the company’s aircraft fleet, thus improving the customers’ experience (Johnson, 2006). British Airways London eye is the largest airline in the UK; the company offers scheduled services together with domestic and international freight and mail carriage, as well as ancillary services.

The airline operates in 300 destinations and more with 33 million passengers; it earns more than 8.7 billion pounds, and in 2008, the employees were 42,377 people The (Economic Times, 2008). The company has continued to expand because of the increasing competition in the market, the company I also involved in the reduction of greenhouse gas emissions. The company has gown down following the global economic downturn, however, the company still has a future, and its future depends on the company’s strategic plan to achieve the company’s goal.

Current position Currently BA London eye has focused on upgrading customer experience through text and mobile phone services; this is meant for business class customer. The air craft has also being modernized; the air craft services and other offers are being modernized. The company is also working hard to manage its cost base and increasing its corporate responsibility; the company plans to achieve this through partnership and engaging in environmental performance. External analysis of BA London eye Like any other company, London eye should understand its external environment, which include political environment, the company is under heavy regulations, and there is also a problem of security following terrorist threats in the past.

London eye has to comply to heavy regulations for it to continue operating in the airline industry, and to take care of the issue of security, the company should put sufficient security measures to ensure competitiveness and earn consumer confidence. The global economic crisis also affects the growth of the company, and this makes the pound be weaker against the Euro. The company should respond to this crisis by reducing business travel and using other means of communication, which include teleconferencing; this is because UK has a poor exchange rate.

The company has also been affected by oil prices; fluctuations in the prices affect the exchange rate, which directly affect the company’s cost base. There has been intense competition, which has affected the demand for London eye; before 2008, the company experienced a decline in consumer spending, which affected its revenues. Social factors also contributed to the decline of the British Airways London Eye, UK’s population consists mostly of aging people, and this group of people does not travel for leisure especially internationally.

Another social factor is unemployment, the employer increased the bargaining power, and this left many people unemployed; people who are unemployed are not able to travel for leisure. Technology has also contributed to the decline in the British Airways London eye, according to the recently conducted survey, 34% of online consumers are planning to use more of price comparison sites, this means that they have stepped up their awareness. Therefore, it is up to London eye to step up its bargaining power to avoid losing its