Report into modifying the management strategies of three international flight providers

ABSTRACT

This report is about how Companies should implement and modify their Management Strategies. I also investigate three companies which include British Airways, Air France and Air Canada. This report is divided in separated Tasks.

Task 1 is designed to select three (3) organizations/companies, perform detail investigation of each of these organizations Investigate participation of stakeholders, to produce a presentation for the selected companies and a suitable structure for the company and involving the stakeholders.

Task 2 is to analyze the feedback of the stakeholders, make suitable plans (solutions) to involve the stakeholders in the process. Also to consider the resources needed for the company plan. Construct strategies to satisfy these requirements and write a report to present the outcomes.

Task 3 is designed to identify the Core Values of British Airways, SWOT and PESTEL Analysis of British Airways, Ethical Cultural Social and Environmental Background of British Airways and to write short Report on Company Values.

Task 4 is scheduled to develop a Mission Statement and to create a new Vision Statement.

Task 5 is to define objectives and set the Objectives for British Airways Evaluating the new Objectives created for British Airways.

Lastly, Task 6 is designed to analyse issues around the implementation strategy. To produce a realistic timetable for the strategy implementation and to create appropriate dissemination processes to gain commitment of all the stakeholders.

Noteworthy is the great work of management professors used in this project work. They include Stiglitz, Michael Porters and Drucker. These are great management authors whose work of art has done a tremendous work and has a great impact on the various management around the world for strategic placement.

TASK 1SELECTED ORGANIZATIONFOR A RECOMMENDATION ON THEIR MANAGEMENT STRATEGYBRITISH AIRWAYSVision Statement

To become the world's most responsible airline

INTRODUCTION

www.Investorworld .com and www.businessdictionary.com broadly defined target that an organization must achieve to make its strategy succeed. Strategic objectives are, in general, externally focused according to the management guru Peter Drucker, fall into eight major sections. These are Market standing: share of the present and new markets; Innovation: development of new goods and services, and of skills and methods needed to supply these resources; Human resources: selection and development of members of staff; Financial resources: knowledge of the sources of capital and their use; Physical resources: equipments and their use; Productivity: good use of the resources relative to the output; Social responsibility: knowledge and responsiveness to the effects on the wider community of the stakeholders; Profit requirements: achievement of good financial well being and development.

Principal activities

The main activities of British Airways Plc and its subsidiaries are the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services.

OBJECTIVES

Select three well-known organizations in any industry.

Provide a detailed investigating of their organization and management strategies.

Investigate the Participation of their Stakeholders - identifying each type of stakeholder.

Produce a presentation of the Company you select that you think is struggling.

Propose a suitable structure and solution for the problem for the company selected. The Presentation should involve feedback from all the Stakeholders

BACKGROUND AND OVERVIEW OF BRITISH AIRWAYS

From the company website, www.britishairways.com 'British Airways plc (BA) is the flag carrier airline of the United Kingdom. BA has its headquarters in Waterside near its main hub at London Heathrow Airport and based on fleet size, international flights and international destinations is the largest airline in the UK. Its second hub is London Gatwick Airport. British Airways has discontinued all direct overseas flights from UK airports other than Heathrow, Gatwick and London City Airport. BA's UK passengers originating at non-London airports must now connect via London or use other airlines with direct services'.

From ('British Airways' 2006a company website)

STAKEHOLDERS OF BRITISH AIRWAYS

The stakeholders in British Airways include:

Passengers - customers

The shareholders and management

The members of staff

The Government

The larger community

Creditors and debtors as well

The aviation industry

Various competitors

MISSION

The mission statement of British Airways is 'To be the undisputed leader in world travel for the next millennium'.

(www.britishairways.com)

VISION

The vision statement reads 'To become the world's most responsible airline'.

(www.britishairways.com)

OBJECTIVES OF BRITISH AIRWAYS

British Airways maintain a very good objective which states that 'Be the airline of choice for long haul premium customer so that people will want to fly with us whenever they can'. We will continue to introduce great products such as the new business class seat on long haul and a restyled First cabin. It also plan to complement its Heathrow home - Terminal 5 by redeveloping premium facilities in New York JFK and further to invest in lounges in other key cities. The above objective remains the objective of the British airways.

It also includes delivering a clear standing service for customers at every touch point by training its colleagues, on the ground and in the air, in world-class care and customer service. Customers can already check-in from their mobile or PDA, and we will continue to enhance ba.com. A new in-flight entertainment system will be launched later this year.

Grow our presence in key global cities to provide the best global connectivity for our customers. In addition to our new long haul service from London City to New York JFK, our network depth will be strengthened with more flights to Dubai and Johannesburg and a return to Saudi Arabia.

(Source:http://www.britishairways.com)

MANAGEMENT STRATEGIES OF BRITISH AIRWAYS

According to http://www.tutor2u.net/business/strategy/objectives.htm 'Strategic or institutional management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives'. It is the channel of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects which are designed to come accross these objectives and then allocating resources to implement the policies, and plans, projects and programs. A balanced scorecard is well used to evaluate the general performance of the business and its progress towards objectives.

According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context."

British Airways have a lot of strategies which it is looking up to make changes to the level of the company. Below are some of the strategies;

MERGER AND ACQUISITION - ALLIANCE

From a strategic perspective, airline alliances have become an inherent part of the task environment of airlines (cited in Vaara, Kleymann and Seristo 2004). Alliances are beneficial for airlines in its control and maintenance on the business.

Similarly, this strategy became an issue for this airline and it was adopted by the British Airways for better service.

IMPROVING THE AMENITIES OF THE AIRLINES AND DEVELOPING NEW INFORMATION SYSTEMS AS ADDED SERVICES

'In addition, another way for the British Airways to cope with serious competition from other airlines is to provide amenities and/or facilities which would help improve the services of the airline. This change is done by improving the amenities of the airlines and developing new information systems as added services. It remains to be the world's international airline and the first airline to offer jet passenger services, the first to operate weather-beating auto landings, the first to offer supersonic passenger services, and the first in the modern era to offer fully-flat beds' (British Airways, 2006).

STRATEGIC CHANGES- IMPROVED AMENITIES, INCLUDING SLEEPER SEATS, IN AN ATTEMPT TO LURE BUSINESS TRAVELERS

The facilities in the airline became issues of concern for the British Airline and this affected the company as regards customers satisfaction and patronage. To this effect, the facilities were changed to changed to allow for improvement in the services it renders to its customers

Global Cultural Awareness

Global Awareness is a general understanding categorised upon an applicable knowledge of global and cultural incites. The understanding of concepts that touch the world includes, but is not limited to, environmental, social, cultural, political, and economic matters.

Diversity is the recognition of differences and associations among people from which they can begin to understand each other. These differences and associations include, but are not reduced to, ethnicity, religion, age, gender, culture, cognitive ability, life experiences, family situations, and sexual orientation. British Airways is the biggest airline industry in London and one of the best in the world. Its strategy also is to be known globally by all sorts of passengers in the world.

THE MENDALOW MATRIX FOR (BRITISH AIRWAYS) STAKEHOLDERSSTAKEHOLDERS ANALYSIS

According to Peter Drucker, 'Stakeholder analysis is the identification of the key stakeholders in the analysis and planning stage of a change process, and an assessment of their interests and the way in which these interests are likely to affect this process. It results in deciding whom to involve in which way in the analysis and planning (and tentatively in the change implementation) process'.

Using the Mendalow Matrix, stakeholders' participation in British Airways is described below:

The power and influence of stakeholders:

The level to which stakeholders affect the activities of an organization lies on the relationship between the stakeholder and the organization.

STAKEHOLDERS PARTICIPATION

This explains how each of the afore-mentioned parties to the existence i.e. stakeholders of British Airways get involved in the activities of the airline company.

Passengers - customers:

Customers of British Airways are one of the primary stakeholders of the industry that should be reckoned with. Without the customers there would not be business and as such, there would not be need to get into the aviation industry. The quest of these people includes satisfaction and comfort which is known as value for money. Every customer desires the best service for what was paid for. Their loyalty counts a lot. These fall under the high: high level as their decision can affect the airline industry.

The shareholders and management:

These are the major investors into the business. They design the company's vision, mission and objectives with which the company is being operated. The shareholders appoint set of people who form the management of the company so as to carry out the activities of the company. The directors/management work towards achieving desired result i.e. maximizing the wealth of the shareholders. These are also the high: high level as their investment in the business determines the existence of the business.

The members of staff:

These are employees of the company. The decision of the management is carried out by these set of people so as to achieve the desired aim of the organization. They are also concerned about the realisation of the vision, mission and objectives of the organization.

The Government:

The interest of the government lies in the benefit that will accrue to the public. This will be achieved when the company pays tax on the profit made. the government is also concerned about regulations which will help maintain environmental conditions to avert environmental disaster.

The larger community:

The community represents the host of the company. They are concerned about how the company will carry out its social responsibility to the community. Any non effective decision taken by the company which could affect the community adversely will be challenged by the community and this could affect the company.

Creditors and debtors as well: these are people that lend the company money and other forms of finance to carry out their business and those who are owing the company some forms of finance respectively. There decision to either pay or not to pay definitely would affect the company. They can also pose a problem to the organization.

The aviation industry:

These include the aviation industry authority and other participators in the industry. There decision can also affect how far British Airways can operate in the industry.

Various competitors:

Examples of such are Canada Airways, Lufthansa airline, Belview Airline, Alitalia Airline and a host of others. These are strong stakeholders who are ready partners to share the industry profit. Their presence makes the industry competitive and can as well pull down the operations of others who are not strong by taking away all their customers.

Low + Low: Small customers, Small Shareholders

High + Low: Major Customers, Central Government, Media

Low + High: Employees, Environmental Groups, Local Community

High + High: Institutional Investors, Local Planning Authority

TASK 1AIR CANADAAIR CANADA

According to the company website www.canadianairline.com, "Air Canada is Canada's largest airline and flag carrier. The airline, founded in 1936, provides scheduled and charter air transportation for passengers and cargo to 178 destinations worldwide. Its largest hub is Toronto Pearson International Airport in Ontario. Its main base is Montreal-Pierre Elliott Trudeau International Airport in Quebec. Air Canada is the world's 7th largest passenger airline by fleet size, and the airline is a founding member of Star Alliance, an alliance of 26 member airlines formed in 1997.

MISSION

The mission statement of this airline is 'We're not happy if you're not happy'

VISION

The vision statement of this airline is 'To make Air Canada Canada's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada'.

GOALS

The goal of this airline is 'Our business strategy remains focused on being a leading innovator in the airline industry in order to become the world's largest airline company'.

TASK 1AIR FRANCE GROUPAIR FRANCE GROUP

The company website reveals that 'Air France (formally Société Air France), stylised as AirFrance is the French flag carrier headquartered in Tremblay-en-France, France (near Paris), and is one of the world's largest airlines. It is a sub of the Air France-KLM Group and a initiating member of the SkyTeam global airline alliance. Air France serves 32 destinations in France and operates worldwide scheduled passenger and cargo services to 185 destinations in 87 countries (including overseas departments and territories of France). The airline's global hub is at Paris Charles de Gaulle Airport, with Paris Orly Airport, Lyon-Saint Exupéry Airport, and Nice Côte d'Azur Airport serving as secondary hubs. Air France's corporate headquarters, previously in Montparnasse, Paris, are located on the grounds of Paris-Charles de Gaulle Airport, north of Paris.

MANAGEMENT STRATEGY OF AIR FRANCEJet age re-organization

The kind of carrier airlines that the airline uses are old and require to be changed to the current dispensation aircraft.

Acquisitions and privatization

On 12 January 1990, the operations of government-owned Air France, semi-public Air Inter and wholly private Air France's acquisition of UTA and Air Inter was part of an early 1990s government plan to create a unified, national air carrier which will work in alliance with some other airline companies to form a private company.

Air France-KLM merger

To further improve on the services of the airline, on 30 September 2003, Air France and Netherlands-based KLM Royal Dutch Airlines merged to form a new company to be known as Air France-KLM. The merger became reality on 5 May 2004.

MISSION

The mission statement of Air France is 'By striving to attain excellence as an airline and by participating in the world's most successful airline alliance, to generate value for its customers, employees and shareholders'.

VISION

The vision statement is 'Achieve best in class service for our customers'.

PRESENTATION ON BRITISH AIRWAYS PROBLEMWITH RECOMMEDATION ON THEMANAGEMENT STRATEGY / STRUCTURECONSIDERING ALL STAKEHOLDERS PARTICIPATION

TASK 2

TASK 2INTRODUCTION

Strategic management looks at achieving and maintaining a strong competitive advantage. It includes the application of corporate strategy to all parts of the organization, and especially to decision making aspects of the organization. Strategic management came up in the 1970s, but it has yielded in response to changes in organization structure and corporate culture. With greater strength, strategy has become the concern of directors and that of employees at all levels of the organization.

OBJECTIVES

Identification of the Stakeholders for the Company and Challenge.

List and Identify the Resources required making the Strategy Successful.

Extend the Strategy Presented in the Presentation.

Report the Outcome to the Management.

STAKEHOLDERS FEEDBACKS AND PARTICIPATION IN STRATEGY.

The following are the stakeholders for British Airways:

The stakeholders in British Airways include:

Passengers - customers

The shareholders and management

The members of staff

The Government

The larger community

Creditors and debtors as well

The aviation industry

Various competitors

Each of the afore-mentioned stakeholders is involved in solving the challenge to British Airways as follows:

Passengers - customers:

Customers of British Airways are one of the primary stakeholders of the industry that should be reckoned with. Without the customers there would not be business and as such, there would not be need to get into the aviation industry. Patronizing the airline and involving friends and family in the use of the airline will go a long way to help British Airways.

The shareholders and management:

These are the major investors into the business. The only or major way the shareholders can be of great help is by investing more money into the company either by right issue or buy buying additional shares inform of IPO of the company. The management team should be ready to stop all these super bonuses they receive and face the challenges that are facing the company.

The members of staff:

These are employees of the company. The decision of the management is carried out by these set of people so as to achieve the desired aim of the organization. They are also concerned about the realisation of the vision, mission and objectives of the organization. They can call off various strike actions as planned to put forward their request, they can also agree on half pay in order to salvage the company.

The Government:

The government can also help in bail out. This was the kind of system or assistance rendered to the banking sector because of what the recession had done to the sector.

The larger community:

The community represents the host of the company. They are concerned about how the company will carry out its social responsibility to the community. Any non effective decision taken by the company which could affect the community adversely will be challenged by the community and this could affect the company.

Creditors and debtors as well:

These are people that lend the company money and other forms of finance to carryout their businesses and those who owe the company some forms of finance respectively. Extension of due date to collect Owings from the company by creditors and or debt forgiveness can also help in bailing BA out of the problems which would spread across the entire company.

The aviation industry:

These include the aviation industry authority and other participators in the industry. There decision can also affect how far British Airways can operate in the industry. They can put up laws which would help in salvaging aviation companies who are on the edge of failing out of business.

POSSIBLE OPTIONS AND OUTCOME FROM THE STRATEGYThe following two options would be looked into:PEST Analysis

PEST Analysis is a simple and useful tool that helps to understand the issues that surrounds the company like Political, Economic, Socio-Cultural and Technological environment. This is one of the options that British Airways can adopt to handle its strategic management issues.

Political:

This could be social and employment laws, tax issues from the government, inter-government issues and regulation and de-regulation issues.

Economic:

This extends to the state of business development. It also includes issues around economic growth, labor cost, impact of globalization and disposable income with changes in economic changes.

Socio-Cultural:

In this phrase, population growth, employment issues, health, education and social mobility are dealt with in cognizance of the effect on the public.

Technological Environment:

Impact of emerging technologies, impact of Internet, reduction in communications costs and increased remote working, research and development activity, impact of technology transfer are all issues attended to under the technological environment.

Human resources Management

The use of the term 'human resources' by organizations to explain the workforce level and capability available to concentrate on the achievement of its strategies has drawn upon concepts developed in organizational Psychology and System Theory. Human resources have at least two related interpretations depending on how you view it.

The options here include:

Structured and regulated pay.

Pay rise should be strategic and not based on annual review regardless of the pace of the business.

Staff benefits should be reviewed.

Right set of people should be recruited.

Training of staffers is very important.

RESOURCES THAT WOULD BE NEEDED TO ENSURE A SUCCESSFUL STRATEGYHuman Resources:

Human resource management is the strategic and simple approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. Includes all processes required to coordinate and effectively manage the project team. The project team consists all the people assigned roles and responsibilities for completing the project in British Airways.

Market segmentation:

A market segment is a division of a market made up of people or organizations sharing one or more characteristics that cause them to demand same product and/or services based on qualities of those products such as price or function. It is the process of dividing markets comprising the heterogeneous needs of many consumers into smaller parts comprising the homogeneous needs of smaller groups of consumers.

The division of a market into distinct groups of buyers or decision makers. This BA can achieve when the merger terms with the American Airline, Canadian airline and other airlines that they are planning to bring in are settled.

Additional capital Investment:

Capital Investment refers to money used by a business to purchase assets for the use of the business in other to make an existence or expansionary growth.

Merger:

The combining of two or more companies, generally by offering the stockholders of one company shares in the acquiring company in exchange for the surrender of their stock. British Airways is in talk with the American airline, Canadian airline and some other airlines. Though talks are very slow, however, if achieved would help in saving the company.

Cost reduction

This has to do with making a frame work of activities of the organization and checking on all areas where costs incurred by the company can be reduced so as to cut cost.

Mendelow's matrix describes four types of stakeholder. It should be noted that the classifications are context specific and dynamic, for example, stakeholders in Group C may move in to Group D if their interest in a particular project increases. Additionally, those in Group B may become empowered by access to key players, media attention, etc.

Source: adapted from Johnson and Scholes (1999) ©

Figure 4: Stakeholder mapping: The power/interest matrix (Mendelow)

The above matrix would be used to explain the power/interest of the British Airways stakeholders as chosen in this task.

Passengers - customers.

These are crucial set of people whose presence in the aviation business means a lot. The product British Airways is selling i.e. lifting of people via plane requires human being that makes up the customers. If a great number of these set of people refuse to patronize the company, no doubt about it BA shall have a lot of problems and so customers are seen as high level of interest and high power. Therefore, they are called key players.

The shareholders and management.

Shareholders are key players in every organization as they own the finance with which the business is running and so they are key players.

The members of staff.

These are employees of the organization. Though there presence is very important to the organization and their interest is high, they relatively have a low power. They may be sacked at anytime except for some major staff whose impact and presence in the organization is so high and can dictate the pace of the company.

The Government

Impact of the government is so crucial to the organization's existence in any country and/or community. Government plays a key role in the existence of any organization. Therefore, they are categorized as key players.

The larger community.

Corporate responsibility to the host community makes the community an interest holder in the activities of an organization. This therefore makes them high power low interest as they can affect the citing and existence of an organization in a community but has relative interest in the company's profit and other daily activities.

Creditors and debtors as well

These are suppliers and buyers respectively. There influence over the organization is crucial as good amount of funds used to run companies and goods used in the production departments are on credit. So, these people determine so much how far an organization can go.

The aviation industry.

These are classified as key players as rules and regulations of the industry guide the activities of British Airways.

TASK 3

REPORT

ON

CORE VALUES THAT BRITISH AIRWAYS

NEEDS TO POSSESS

INTRODUCTION

The main values of an organization are those values which consist of the bedrock on which we carryout work and conduct ourselves.  We have an entire circle of values, but some of them are so material, so important to us that through out the changes in society, government, politics, and technology they are still the main values we will abide by.  In an ever-changing world, main values remain the same.  Main values are not descriptions of the work we do or the strategies we employ to achieve our mission.  The core values are the basic elements of how we pursue our work. 

OBJECTIVES

Identify the Core Values of British Airways

SWOT and PESTEL Analysis of British Airways

Ethical Cultural Social and Environmental Background of British Airways

Short Report on Company Values.

BRITISH AIRWAYS CORE VALUES

The core values as detailed below are from the corporate report of British Airways which shows directly the core values of the company.

Safety, Security, Community & Environment

Safety and Security are vital to any business in the world, especially one operating in the aviation industry. The level of professionals working in this area determine the reputation enjoyed by the company. It also enjoy a reputation as one of the world's safest airlines. In addition to safety, one of our core values is to be a good neighbour. Since 1990 we have had an environmental policy in place, and every year we compile an environmental audit.

Community and Environment.

Since the company first adopted its environmental policy in 1990, it has registered a number of program designed to check and reduce the impact it has on the environment and its host. Due to investment in a new generation of aircraft, British Airways fleets are quieter and more fuel efficient than ever before. As well as addressing options to reduce aviation's input to major areas such as neighborhood noise and climate change, it has taken active steps to reduce waste, especially in areas such as catering, and offer a number of training opportunities designed to raise awareness of environmental issues.

British Airways Assisting Conservation - Since 1984 it has given travel assistance to individuals involved in conservation works around the world. It has assisted studies into everything from habitat management and animal husbandry to research into the impact of tourism on fragile environments.

GENERAL CORE VALUES OF ORGANIZATIONS

Govern personal relationships

Guide business processes

Clarify who we are

Articulate what we stand for

Help explain why we do business the way we do

Guide us on how to teach

Inform us on how to reward

Guide us in making decisions

Underpin the whole organization

Require no external justification

Essential tenets

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT).

SWOT analysis is a tool for checking an organization and its environment. It is the first stage of planning and helps the organization to focus on major issues. SWOT stands for strengths, weaknesses, opportunities, and threats. To this effect weaknesses and strengths are regarded as internal issues to be resolved. However, threats and opportunities remain external issues.

In SWOT, strengths and weaknesses are internal factors.

The Strengths of British Airways includes

The location of the business.

The caliber of staffers the recruitments.

The kind of services they offer using the new model airplanes.

The price model adopted which is a penetrating price strategy.

The support from the government.

Weakness could be:

Marketing strategy deformity.

Unstructured product and services to the customers

Quality of services to the customers.

In SWOT, opportunities and threats are external factors.

An opportunity could be:

Buying over some of the competitors

Market advantage

New marketing strategy.

Use of expert hands who are good in the aviation industry.

British Airways threat include

Power of competition in the industry.

Differences on price with competitors.

Inability to have access to good distribution network.

Competitors' advantage over the customers in the industry.

High taxation over the services rendered by the airline.

REPORT ON COMPANY'S VALUE

The company website explain that a recent work was carried out on a culture change programme that will transform British Airways into an organization where innovation, growth and clear customer focus are the defining qualities.

The programme has five main themes:

• Colleagues - engaging our people to make British Airways a high performance workplace;

• Customers - focusing all our people to deliver consistent customer service;

• Partnerships - developing and maintaining world-class partnerships with all key stakeholders, both internal and external;

• Performance - creating a performance-based culture; and

• Operational efficiency - driving continuous improvement, short and long-term.

This work, led by the Leadership team, involves and engages employees right across our business.

TASK 4

REPORT

ON

NEW VISION STATEMENT

And

NEW MISSION STATEMENT

INTRODUCTION

Every organization's success and individual success depend on how well they define and live by each of the important concepts the organization has outlined for itself.. A vision is a statement about what the organization wants to become and achieve. It should agree with all members of the organization and help them comfortable and part of something much bigger than them. A vision should stretch the organization's capabilities and image. It gives shape and direction to the organization's future. Visions range in length from a couple of words to several pages. Companies whose employees understand the mission and goals enjoy a greater return than other firms (Watson Wyatt Work Study).

OBJECTIVES:

The objective of this task is to:

Develop a Mission Statement

Create a new Vision Statement

VISION STATEMENT

Vision entails the category of intentions that are broad, and reflector of the mind. The corporate success depends on the vision frame he leadership of the company.

CURRENT VISION STATEMENT OF BRITISH AIRWAYS

'To be the world's best responsible airline'

NEW VISION STATEMENT FOR BRITISH AIRWAYS

'To become the world's most responsible airline with the utmost customer and stakeholders' satisfaction'

MISSION STATEMENT

A mission statement is a company's mind brought out in a written form.

A mission statement should be a precise and exact statement of goals and priorities. In turn, goals are specific objectives that relate to specific time periods and are stated in terms of facts.

CURRENT MISSION STATEMENT OF BRITISH AIRWAYS

The new existing mission of British Airways is to be the undisputed leader in world travel for the next millennium.

NEW MISSION STATEMENT FOR BRITISH AIRWAYS

BA believes that redesigning its vision, and ensuring that this cut across the organization, are important for it to succeed. Therefore, it came up with a new and vision focus mission which will help in redefining the strategies of the airline.

Therefore, the new Mission Statement of British Airways reads:

'British Airways is aiming to set new industry standards in customer service and innovation, deliver the best financial performance and evolve from being an airline to a world travel business with the flexibility to stretch its brand in new business areas.'

(www.britishairways.com)

BENEFITS OF VISSION AND MISSION STATEMENT

Vision and mission making work can serve you in carrying out your leadership role, building your efforts and building alignment and loyalty among employees. However, far more important than having mission and vision statements is having a clear mission and vision!

The benefits of clear vision and mission statements will be realized if they

speak to the organization's present condition (including a "healthy stretch" toward a desired future),

are written clearly in plain English, and

Are accompanied by grounded action that brings the intentions to life, and makes the work as the statements are put to use.

TASK 5REPORTONNEW OBJECTIVESAndEVALUATIONINTRODUCTION

A specific objective increases the opportunities which lead to a specific outcome. Objectives are not measurable and should not be vague. Objectives is expected to prove how successful a project has been, while there may be one major project objective, in achieving it there may be temporary project objectives. For example, British Airways staffs are saddled with the responsibility of achieving a series of objectives in pursuit of the latest objective. In many instances, teams can only proceed in a stair step fashion to achieve the expected outcome.

OBJECTIVE

The objectives of this task include:

Definition of objectives

Set the Objectives for British Airways

Evaluate the New Objectives created for British Airways

DEFINITION OF OBJECTIVE

Objective is defined as the needed expectation to be achieved at a specific time. An objective is broader than a goal, and one objective can be divided into a number of specific goals.

Setting Objectives

Objectives setting is an all round issue that has to do with putting together lines of focus to be achieved at a given time and with a defined purpose.

To set up objectives we can use the SMART formula to achieve this.

Every criteria in an organization requires the SMART form to achieve its desired goals.

These are:

To be specific - the objective should exact on what is to be achieved.

Measurement level - Objectives should be measurable in other to ensure it meet its capability as expected.

Worth achieving- the objective should be realistic given the instances in which it is set and the resources that the business have.

Relevance- there should be relevance to those who will use it.

Time consciousness- it requires a time frame in mind.

OBJECTIVES OF BRITISH AIRWAYS

Like every other businesses one of their objectives were to maximize profits however after September 11th they had to change their aim to having an increase in security as this was the main issue globally and they needed to keep their customers safe after the horrific terrorism attacks in the U.S.A.

Objective:   To increase security to fight terrorism that faces the industry.

Specific - To increase security for the safety of passengers and staff and the community at large.

Measurable - Hand luggage of passengers was reduced to a 'plastic bag', 'stop and search' was also introduced and metal detectors as well as a regular 'anti-terrorism drills'

Achievable - Finance is made available to more staffs to regulate security checks.

Realistic - This objective is a must to be realistic as terrorism is a threat to the entire community and the nation at large.

Time-bound - This was registered straight away and used, but over the years its usage has been relaxed as the threat of terrorism has reduced.

(http://www.oppapers.com/essays/Objectives-British-Airways/174072)

EVALUATION OF THE NEW OBJECTIVES CREATED FOR BRITISH AIRWAYS

Evaluation is the gathering of information about a program in order to enable stakeholders know the performance of the business and:

To better understand the program,

To improve upon program effectiveness, and

To make decisions about future programming.

Balances Score Card Model

"The balanced scorecard uses the traditional financial measures. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance. This can be used to measure or to evaluate company objectives.

(Source:http://www.balancedscorecard.org/bscresources/aboutthebalancedscorecard/tabid/55/default.aspx)

TASK 6REPORTONIMPLEMENTATION STRATEGY, TIME TABLE & DISSEMINATION PROCESSES.INTRODUCTION

To pass on information to the workforce and the people who are regarded as stakeholders is such a valuable act which requires every concentration and involvement of the management team so as to ensure that the whole essence of the project is achieved.

OBJECTIVE

To analyse issues around the implementation strategy.

To produce a realistic timetable for the strategy implementation.

And to create appropriate dissemination processes to gain commitment of all the stakeholders.

STRATEGY IMPLEMENTATION

Strategy is about difficult choices and differences. It's about actual choosing to be different. When companies forsake strategy, they pay the price which might not be in the short term, but definitely in the long run. A lot of companies that does not have strategy are now facing the consequencies.

Implementing Strategy

However, for British Airways strategy is not the only thing to keep. Strategies at the initiation stage is just the first step in business structure, implementing the strategies is the main issue in business success and using the right structures put in place.

IMPLEMENTATION STRATEGY TIME TABLE

To effectively carry out a good implementation strategy, a good time table which would involve all the concerned stakeholders like the members of staff, the shareholders and others would be constructed to enable the strategy implementation to be effective and well communicated.

Principles/IssuesTiming

Mobilize change through managerial leadership

This is the first task to be performed by the management of British Airways as change to be effective in any organization; it has to start from the top i.e. the management.

Put the strategy into operational terms

This is the second task which is translation of the decided strategy into operational terms for effective change in the company's mode of operation.

Put the organization to the strategy

As soon as the strategy has been communicated to the operational staffs and changes have begun to be seen in the organization, the management should align the strategy with the whole company.

Make strategy everyone's job

Every members of British Airways should be made involved in the realization of the strategic plan and its success and so a good system of communication should be brought to all members of staff.

Make strategy a continual process

The final stage of achieving the desired goal using the principles is to make the strategy a continual process. The management of British Airways should make the strategy a continual process.

This can also be represented or explained using a Gantt Chart as given below:

      ISSUESSTAGE 1STAGE 2STAGE 3STAGE 4STAGE 5

Mobilize change through executive leadership

                 

Translate the strategy into operational terms

                 

Align the organization to the strategy

                 

Make strategy everyone's job

                 

Make strategy a continual process

                 DISSEMINATION PROCESSES TO GAIN COMMITMENT OF ALL STAKEHOLDERS

Most importantly in the success of any organization and its perfect continuity is the perfect or free flow of information in the heart of the organization. To make a success in any organization, there should exist amongst all staff and the management a free flow of communication which would allow for smooth relationship.

The management of British Airways has taken on the following ways to ensure the implementation of the strategies to be adopted is communicated to all the stakeholders.

1. Meetings - This is one of the most common ways of passing information in any organization. There exists weekly, monthly, bi-annually or yearly meetings at which issues concerning the growth of the organization and welfare of the members of staff are discussed. This is also a way of disseminating information.

2. Conference Calls- Due to technological advancement, conference calling has now taking over a lot of other systems of communication which are regarded as slow or outdated systems of communication. Conference calling is usually from different places. Each participant in the call stays in their respective offices or places and via phone calls make a meeting where everyone is involved. This British Airways too can imbibe to pass information to its staff.

3. Newsletters/ Email/ Posters - A simple and well known system of passing information to a great number of people is through the use of newsletters, emails through the internet and posters. The electronic system is usually the fastest in this line as it allows for swift and easy way of passing information. British Airways has always been using this form to pass information to its staff either through intranet and/or internet.

Informal Methods - Formal system is not the only way to pass information to people. There also exists the informal system. These include launch meetings, sport outings and many more.

CONCLUSION

It is better to know that the management of British Airways just like every other existing organization will work towards achieving a success in business. To achieve these required success in business life, it expected that British Airways put in all the viable strategies to achieve the desired results for its financial pursuit.

Article name: Report into modifying the management strategies of three international flight providers essay, research paper, dissertation