Strategy Change Management (Research Paper Sample)

Strategy and change management
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Overview
This analytical report is intended to identify the strategic position of British Airways and its role in establishing strategies according to the European Air Force industry. The company makes plans as per external and internal market forces, organizational competency and cultural attitude. The report will also include concluding recommendations and how the recommendations can be adapted by British Airways for future growth.
The airline industry has experienced tremendous global economic traffic and economic growth (Gelman and Adler 2012). The growth in the demand of air traffic and capacity had resulted in perceived damage on the environment that is particularly caused by the airline industry. Though air transport has many social and economic advantages, European airline industry saw that it was more important to sustain and preserve the external environment by the introduction of initiatives that reduced the percentage of harmful gasses.
External analysis
The airline industry has high restrictions on entry as well as a high capital outlay. Restrictions on entry make the well-established companies such as British Airways have a high competitive edge regarding the market share. With the growing demand of air transport due to the need for speed and convenience, it has become increasingly vital for the companies in the industry to formulate strategies to cater for the market. The need for high-tech resources that are also scarce by the airline industry places British Airways at an advantage since it has a highest fleet size in the United Kingdom (Barr 2012).
Internal analysis
The company keeps in touch with customers and satisfies them by giving them the opportunity to choose the price they want for service with relation to the quality of the service. Pricing strategy is a major tool used by companies in the Airline industry to outrun each other (Ireland et al 2011). However, British Airways maintains its market share by using the premium pricing strategy, medium pricing strategy, and low price strategy. The introduction of new star quality systems is a strategy that was introduced by the company to improve its quality and increase its competitive market advantage over other companies such as Thompson and Titan Airways.
BA strategies for competitive advantage
British Airways has had to strategize its operations to adapt to changes both in the internal and external environment. The company applies internal strategies to improve on its weaknesses and take advantage of market opportunities for change. Change is a term that is constant in the Airline industry making all the firms to be on the look to continue in the market. Being the largest regarding fleet size is one of the key competitive advantages of British Airways. The company has an alliance with Oneworld and also has more than five subsidiaries that assist in its growth that in return improves its competitive advantage.
Another important aspect of the British Airways change and strategy is the expansion of its airports such as the introduction of terminal 5 which has improved the performance of the company. Also, the company is endowed with a large pool of financial resources due to a large number of shareholders as well as high market capitalization (BBC 2010). Financial strength is important in the growth of any company, and proper financial management helps in the integration of all products and services to the market leading to an increase in the competitive advantage. The firm attracts highly qualified staff that helps in the development of innovative technological ideas that lead to improvement in its competitiveness. Management and employees ensure there is sustainable quality control through wide market research.
The company is faced with stiff competition from other firms in the industry that are offering more attractive prices to customers. Smaller firms tend to lure customers by offering very low prices to increase their market share. British Airways overcomes the threat by offering subsidized prices and having different classes of service for its customers so that all the customers are accommodated as per their price ranges. A recent strategic change done by British Airways was its merger with Iberia Airlines and the formation of one of the largest airline group worldwide (British Airways 2012). The merger led to overtaking of Air France, which was Europe’s largest merger. The merger also led to a reduction in the market value of Lufthansa Airline group. As a result of the merger, the company has experienced high revenue growth and market share. High revenue generation and a corresponding high market share increase the competitive advantage of an organization.
Current strategies by British Airways include motivation, engagement, and development of employees. Another major strategy is an improvement in the handling of baggage as well as look into delays experienced in its home town airports. The company has achieved its high competitive advantage by having the thorough training of its staff both on the ground and in the air. With increased presence in most of the cities in the European market, British Airways has continually thrived against its competitors.
Recommendations
To implement new changes for improvement requires willingness and flexibility by every person in the company. Budget structure and development programs are some of the items to be updated for recommended changes. Since British Airways has a high-profit margin, changes in cost structure required to implement the strategies is negligible. Some of the recommended changes include:
1. Improving customer service. The company has had to deal with critics in the form of delays and poor handling of customers by some of its staff. The strategy can be improvised through the people process strategy to improve the image of the firm to retain customers and increase their confidence level. More training on public relations to its employees is essential in improving its image since the company has had a bad record as far as public relations is concerned. Involving external analysts ensure the people process strategy is well implemented.
2. Having more improved environmental forecasting tools. Environmental changes are critical for any firm in the airline industry. The company should have advanced strategies that can forecast changes in the climate. Ability to forecast changes in the climate improve the confidence level of customers since they are assured of safe transportation....