The Mission And Vision Of British Airways Business Essay

The Mission And Vision Of British Air tracks bank line EssayBritish Airways is mavin of the oldest and the most reputed flight paths functioning in the world. It was started on 1st September in the year 1974. It is the official aerateline of the United Kingdom. It is professed by the presidency of the United Kingdom but it is run by private firms. It is in all case known as BA. It was formed by the gor of four air ducts they atomic number 18 The British Overseas Airlines Corporation (BOAC), The British atomic number 63an airways (BEA), Cambrian Airways and in the long run the Northeast Airlines this took place on 31st march 1974. Thus BA was formed. It was one of the few p rilievoigious airline to fly the Concorde the supersonic rider plane. It has a fully grown travel by of 239 aircrafts. It flies to ccc destinations. It employees 42,755 employ . It is a creation extra comp each excessively listed on the London transport convert. The main headquarters of BA be Heathrow airport and Gatwick airport both(prenominal) argon situated in London. It is in like manner a star confederation member. The amount of money r in time outue earned by BA in the year 2010 was 7,994 million.Mission And Vision-Visi digit1.1 Mission, Vision, goals, mark cycleIt is defined as A direction describes the shaping basic function in society , in terms of the production and emolument for its customer-MintzbergThe above definition explains how authorised a mission is for a organization as it helps in edifice its own image in front of the customer that it wishes to give services to. It maybe a just a sentence but it stimulates a image in the mind of the reader what the organization is make up of. It alike helps to give the brand a combative edge as the mission verbalisement energise out help in showing the singularity of the brand. The mission statement of British Airways is as follows unrivalled Destination seeks to get a line our customers fly conf ident that, together, we atomic number 18 acting responsibly to bring forth palm of the world we live in. BA mission statement on information creates a mindset that they ever more(prenominal)(prenominal) be right on grime or in air and they want the customer to feel safe and confident when they fly British airways. They throw also maintained their mission statement as they have least accident history and they always have new fleets and always updated with latest technology.Values- Organizational determine define the acceptable warnings which goern the behaviour of individuals within the organization. Without much(prenominal) valuates, individuals result pursue behaviours that argon in line with their own individual value systems, which may lead to behaviours that the organization doesnt wish to encourage. Thus values are very important for the physical composition for achieving the vision that it aims for(Value of Organizational value)(http//www.teal.org.uk/mat/page6. htm)(accsed on 22ndApril 2011) The values of BA are as follows-OBJECTIVE-Objectives are usu altogethery quantified statements of what the organisation actu all in ally intends to achieve over a period of time. harmonize to Mintzberg (1997), Business Enviourment Viva hold ups. He says that objective help the organisation to direct activities that testament help in acquiring the mission of the organisation. He also says while forming a the objective the organisation must use the pain technique.The objective should contain these points.Fig 1.2 SMART ObjectiveThe objective of BA is as follows-Fig 1.3 Objective of BA1.b) Evaluate the extent to which an organization achieves the objectives of three stakeh senior(a)s.The individual or groups who have involvement in how a organisation performs because they have roughly stake in it and thus it simulates them in round(a)way. In the modern world they are generally of cardinal types which intromit primary and supplemental stakehold ers (Stokes D., (2002) Small Business Management (4th edition) Thomson Publications UK.) The primary and secondary stakeholder of BA have a resultant role on the airline as they are somehow related to the organization. Thus in the table beneath the author has shown how both of these plenty affect the airlineStakeholders familiar stakesInfluenceShareholders.A Steady flow of revenue.Should be good conscious intimately the risk and plans.Continuation of Business-Exercising ones right to vote-Checking the annual book as well as the statements.-To defend against wrong issuesManagers.Pay and Status.Job certificate.Job joy-Growth of the organisation-Participating to improve the organisation with recommendationsEmployees.Job tribute.Pay and Condition.Job Satisfaction-The union may go on strike-ExposureCustomers.Receiving goods and services of a flat coatable quality.Receive optimum level of services.Great value for specie paid-Choosing different airline over BA-Bad impression abo ut the airline-Not utilize it servicesSuppliers.Being paid promptly for the goods and services delivered.Receiving perpetual repayment of the capital provided-Not delivery the Services on time.-Serving competitors judicature and General Public.The organisation is attaining the relevant legal requirements. cordial welfare of national is protected.Helping the nation and earthly concern to put across-Licenses, right and permits-Strict laws against them-Social activist-Boycott or appreciate the company.Fig 1.4 Shareholders their kindle and influenceAll the organisation in the world to run smooth outly and efficiently desexualize to satisfy its stakeholders as they have a stake in the organisation which can affect the organisation in both good and bad ways as shown in the table above. Thus British airways is no exception even they have tried to meet the satisfaction of the stakeholders so as to progress more and achieve their targets. Below are given the instances where Britis h airways have satisfied its stakeholdersEmployees they are the most important part of the organisation for the smooth and progressive functioning of the organisation. As BA is a large organisation hence it employs a large no of employees whos need and wants he need to caters. Thus BA has through umpteen changes like improving the workplace where they function reasonable working hours were allotted to them thus they have also introduced unhomogeneous combination programme which help them improve the precaution of themselves as well as the customer. BA has also started recruiting people from all over the globe so as to maintain a equality among the employees. Their wage are also improved compared to what they were paid earlier some changes were done by BA for some the union had fought to get it done inn are a major concern for organisation like BA because if society is not benefited from them they wont allow smooth functioning of the airline for the same reason BA has contribu ted a lot towards society by giving them employment in the firm also setting up various NGOs to help the underprivileged society also contributing some enumerate towards charity. They have even started cutting down their co2 gases by exploitation much more fuel efficient engines as well as machines used at the airport thus contributing o save the enviourment.Customers are the important part for the organisation to progress because e if customers arent in that location then who will the airline serve and earn money from. As BA is in the service industry they need to take good care of their customers so as to improve their image as well as their barter standings. For the same they have improved their miserliness class cabin by improving the quality of service provided also they have introduced the programme known as CUSTOMER KING which is for the graduation exercise and ancestry class travellers. They have also plusd their aegis type so to increase the safety of their pass engers.Q.1c) Explain the responsibilities of an organisation and strategies employed to meet them?Social Responsibility of an organisation may be defined as the obligations that the organisation has towards the people and the enviourment in which the line of merchandise functions. In other lecture the embodied companionable responsibility is a process where the organisation can improve its functioning in outdoor as well as indoor processes so as to increase the vision, improvement and add competitive advantage to the company.BA has to maintain the business ethical criterion responsibly they also known the importance of their stakeholders and hence they follow the regulation so as to protect the social, environmental, financial, and stintingal of the stakeholders. In order to complete these aspects BA follows all the legislation laws and curbs laid down for safety, employment and other such stakeholder related aspects. By following these laws and jurisdiction BA shows loyalty tow ards the corporate social responsibility as a business should show.Below are given few social responsibility that British airways follows and tries to do the inevitable for it (Corporate responsibilities (2007) one destination online (updated on 2010) Available at http//www.britishairways.com/travel/csr-corporate-responsibility/public/en_gb?link=main_nav Accessed 15th may 2011.Environmental Protection Act- BA has started to contribute a lot towards helping in saving the enviourment the reason being that thither have been more strict rules by the establishment in recent years so to implement those and also create a healthy enviourment they have taken various steps in help protecting the enviourment The steps taken are as follows-Fig 1.5 Enviourment Protection ActSafety and Security Act- British airways are known for their stringent security measure that they follow. The safety of the passenger and crew are their spunkyest priority. BA also follows the most advanced and sophisticat ed machinery in their services so as to assure the passenger that they are in safe hands. They also have a outstanding record in safety and security flied.Fig 1.5 Safety and Security MeasuresEmployees Act- The rung of a company are those people who work for a ill-tempered organisation or a industry, but apart from that they are a part of a large society where the organisation functions. The first undertaking law in Britain was made in 1974 for the people or employees of and organisation. The law consisted of various aspect that would help the employee to feel secured and satisfied in the workplace. almost of the laws were Self Organisation, Collective Bargains, To work what is suitable to employee, and job security. Thus BA follows these rules laid down by the government and also supports it. So as to keep the employees happy and smooth running of the organisation.2.)Using PESTLE and any counsel tool you are familiar with evaluate the impact of macroeconomic form _or_ system o f government measures and the influence of the global parsimony on British Airways and its stakeholders?PESTLE constitutionImplications On BAPoliticalHeavy Regulation (AEA,2009)Increased Security due to past terrorist attacks(DFT,2009).Compliance is necessary if BA wants to continue operations.Enough security measure should be undertaken to maintain the competitive advantage and beliefs in consumers sparing-Economic Crisis the growth projected at only 2%in 2009(IMF,2008)-Pounds weakens against Euro Fluctuations of cover prices.Possible decline in the business travel as companies are using alternate methods like telephone conferencing..BA will face poor supercede rate as well as due to the fluctuation it will affect their cost base as the rate they might get for the currency might get lowSocialThe population in UK is ageing given by national statistics.Due to recession there is increased unemployment.This a great opportunity for BA as older generations have more money and time to spend.TechnologicalNew technologies regarding the fleet and improvement and addition to the fleetThe number of people using e-check in has increased a lot.As there are new aircrafts approach shot in the market BA should keep its fleet updated with these machines.BA should keep itself updated so as to remain in the competitionEnvironmental/ Ethical expanding upon of its main terminal is difficult because it comes under Londons green belt vault of heavenConsumer are aware of what are the effects of air travel as they are increasingly becoming more green.BA has to convert hold in space into full utilisation of the capacity that it hasBA has to adopt to all its environmental strategies to keep the consumer with themLegalCollusion and Fixed Pricing render skies Agreement(AEA,2009)Restriction on having mergers will affect their alliance with American airlines.BA has a great opportunity of transferring aircrafts amid him and AmericaFig 2 legal tender on BA (www.scibd.com)The other mac roeconomic insurance insurance policy that can effect BA are as follows--Monetary form _or_ system of government in the UK is concerned with the ratiocination of rate of interest and the supply of money in the economy. The one who controls the interest rate in the UK are the Bank of England Monetary constitution committee. The true rate decided by the bank of England is around 2.0% . If they decide to increase the rate then it wont be feasible for BA to take loans from them as they will have to pay very lavishly interest rate thus they wont benefit from it. only if if they lower the pass judgment then BA can borrow from the bank and achieve their objective much quickly.-Exchange Rate Policy is handled by the government. The exchange rate is controlled by how much amount of gold and foreign exchange currency do they have in reserve in the central bank. The rate is even altered when the interest rates go higher or lower. If the exchange rate is high then BA will benefit as t he goods it will buy will be cheaper as the currency they using will be higher and thus they can make profits. But if it goes down then BA will face losses as the things that were cheap will became expensive and they will have to increase the air fares which will see a decline in their sales.These are some policy that the author think can BA . All the organisations in the world are affected by the social economic and enviourment factors globally. As BA is a large organisation operating in more than 300 countries hence it has to fulfil and satisfy all its stakeholder. Britains economy policy affects a lot of organisation below is given their policies that influence themGovernmentOrganisationsOverall Economic Policy-Market Demand-Cost of Finance-TaxationIndustry Policy-Protection vs Free trade grants,-Incentives, SponsorshipRegulation eg- Investor protection, company law, entry barrier, capacitySocial Policy-Work Place regulation,-Employment Law-Labour Supply-Skills, EducationForeign Policy-Trade promotion-Export CreditsEU and WTO obligations-Export promotion to alliesEnvironmental and base of operations Policy-DistributionFig 2.2 Economic Policies of UKSocial Welfare policy which BA follows are it has introduced work place regulation which enables its employees to work throw inly in the workplace as they have been given high level of educate which helps them to do their work with much ease and perfection as well. The safety standard used by BA is also very high and the crew are also given sufficient amount of rest and training to function effectively. BA also has normal working standard and all the aspect that are included in the employment law. The employees are also given a lot benefits which include perks, pension, maternity allowance, social fund as well as other benefits which help make their private life better as well. These are some of the policy that BA follows towards its employees3.) Explain whether the problems facing the British airways can be build in a planned economic system and discuss whether the economic system in which the BA operates allocates resources better.Different nations of the world use unlike approaches or types of economic system. The core of the economic problem is infinite desires versus limited assets. The study of economics is basically how nations allocate their resources in the best way so as to maximize the productility and services to fulfil the satisfaction of wants. In modern economies there are various ways of dealing with scarcity. The various kinds of economy are as follows-Fig3.1The different types of economic systems (BPP, Learning media, (2007) Business essentials Business environment (3rd edition) viva books Pvt ltd London)The economy followed by Britain is a merge economy because there is a balance among the market forces and the state interventions. The advantages of immix economies are any one can set up a business and choose what to produce and even set their own cost. Even though they pay taxes they reap benefits through social programmes. The disadvantages of tangled economy are many business ascend it difficult to find a market for their products also they cant control the taxes they pay, merchants always kick back that they are very high.(http//www.blurtit.com/q917361.html) accessed on 14th may 2011)In abstruse economy the decisions of resources provision would somewhat depend upon the forces of supply and demand slew and it might also depends on the aims and the objectives of the firm. BA after privatization faced a lot of changes as after the merger BA had changed some of its rule and original a few of the other airlines rule. It even started to fly to more international destination once the demand for that increased. Because of this reason their whole apportioning shifted from one firm to anther and from domestic to international.Because BA is in a mixed economy there is always a chance of growth as the private firms will help them, Also BA has to complete all the requirements that are jotted down by the stakeholders or even the government. But as of now BA is fulfilling all the criteria that are laid down by the government as well as also helping the airline to grow as much as it can. Thus Mixed economy helps BA to allocate its resources better than any other economy would have.4.) land the market in which the British Airways operate and discuss whether it is easy to merge in that type of market (regulatory environment implication etc)? The level and amount of competition faced by the firms varies a great deal. There are many types of market and no market is similar to for each one other in some single firms dominate in other there might be a lot of competition for the same product or service. The market structures that the firms operate are different from each other. examine 4.1 The Different market structures.Perfect competition- When there are many people in the market, and other condition are such , that no one can influence the price, all other things being equal.This occurs when there are lots of sellers and lots of buyers and nobody can have any effect on the total quantity for sale or the total amount that the buyers want. There is a freedom in the entry and expire of the industry.Monopoly- When there is only one supplier for a product or service in a market we call that as monopoly market. The business owns a key source for which substitute is very hard to find. The set of the product is decided by the firm itself.Duopoly- It is a market were two sellers compete with each other for a homogenous good . The take of the firm is believed to be fixed. The example can be If BA lowers its transatlantic fares then how will virgin react to it? It is a case between competition ad monopoly.Oligopoly- When there are a few large suppliers, whose business decisions affect each other they are said to be in oligopoly market. The example that author has chosen is from the airline industry as he can li nk it to BA. Suppose if BA was to lower their airfare for a particular sector on which even virgin flies then to be in the competitive race even virgin will have to lower its prices. Thus in oligopoly market if one makes a decision then it has to effect the other. New firms cant enter this market as it requires huge amount of investment. This lowering of prices of both the companies is known as price wars.Competition Commission-The competition commission is an self-governing public body established by competition Act 1998. It replaced the monopolies and Mergers Commission with a superior power to take authoritarian actions or measures in the plosive of the company. BPP, Learning media, (2007) Business essentials Business environment (3rd edition) viva books Pvt ltd London).This body mainly makes sure that no organisation should form merger or cartels with each other to convert the market from oligopoly to monopoly market.5.)Explain whether the British airways have benefited from in ternational business/trade and the European Union. What will be the business implication to the BA, if the UK, joins the European Monetary Union (EMU).International trade is the exchange of goods and services between countries. An import is the UK purchase of a good or service made overseas. An export is the sale of a UK made good or service overseas.BA is a international airline which operates in more than 300 destination. It operates in continents Asia, Europe, America etc. As BA being a British company it has chosen Europe as its global market. One of the reason being that it is the member of the European union. BA has benefited from international trade good-looking time for many of the events like given below--There is free trade of aircraft between BA and American airlines hence they can pass on their fleet without paying the duties-The land cost in Britain is very high compared to rest of Europe hence they use to set up big factories which they need at places where the land is cheap.-The labour in many separate of Europe is also very cheap compared to Britain.-The currency they use is accepted all over Europe and hence they dont even lose any money on exchange rate.-The raw material which is needed by BA is obtained at much cheaper rate from European countriesThese are some of the benefits that BA has by doing intenational trade with the European union members.Fig5.1 Trading benefits with Europe