Report on Organizational Structure and finance of British Airways - Free Essay Example

Sample details Pages: 9 Words: 2583 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? This report aims to give an analysis of the organisation of the British Airways Airline. It will discuss the organisational structure of British Airways and its sources of finance; that is where it gets its money from, how it is used and whether a profit or a loss is being made. The market the organisation operates in and its management type will also be discussed. Don’t waste time! Our writers will create an original "Report on Organizational Structure and finance of British Airways" essay for you Create order The quality of the good or service provided will also be highlighted and an analysis of the supply chain that is showing the forms of distribution will be given. In conclusion, the report will summarise the information on the organisation and a view of its trading in the last five years followed by recommendations on how I feel the business may proceed in the current economic climate. The report was compiled by drawing literature from the British Airways website, lecture notes and relevant Business Organisation books. History: The British Airways, an organisation that operates in the Travel Market is the largest operating airline in the United Kingdom. It has its base at Heathrow Airport in London. Although the airline has been operational since 1919, developments over the years saw the merging of the British Airways Corp. (BOAC) and British European Airways (BEA) in 1974 leading to the establishment of the current British Airways,(Corke, 1986). The organisation operates both domestic and international flights to about 600 destinations around the world. This is the reason why it is one of the worlds leading airlines. The British Airline is a Public Limited Company (PLC). It was listed on the London Stock Exchange in 1987. Following its privatisation, the airline expanded its operations and managed to take over some competitors such as British Caledonian within the same year and Dan-Air in 1992. During the late 1990s, British Airlines established the One World alliance as it became more competitive to win more customers and had themselves high profit margins during the millennium labelling the airline a major full-service carrier, (Corke 1986). Organisational Structure: Mintzeberg et al, (1979) defines a business as an organisational entity that is legally set up to provide goods and services to customers in a country. He further states that an organisation consists of a large number of people bringing together ideas to achieve common goals using a variety of tactics to come up with short-term and long-term strategies for a businesss future success. Since British Airways is a public limited company (PLC), its type of business organisation is the private sector. Being a Public Limited Company, British Airways is owned by shareholders who buy shares from the stock exchange market and have separate legal identity from the business. If the business goes into debt each shareholder will only lose the amount of share capital they invested and not their personal possessions. Due to the airline being a private limited company, the government is not involved in its running. Its aims and objectives are to maximise profit in the long-term by focusing on impro ving and maintaining outstanding customer service and becoming the worlds leading premium airline. An organisational structure is important because it determines how the organisation will be run in order to meet its aims and objectives, (Cunnee, 2008). He defines an organisational structure as the number of ways used in a business to set up division and specialization of labour focusing on maintaining co-ordination to achieve the same targets. British Airways has a flat structure meaning it has a small number of management levels but a wide span of control. The airline has adopted a divisional structure mainly because of the nature of its business which is customer focused. The advantages of this method are that it gives clear identification of job roles, less time consumed in decision making and easy supervision for managers between departments. This increases efficiency as different people are given the opportunities to effectively utilise their different skills, but it can als o be in efficient because the managers have a large number of subordinates reporting to them therefore increasing their workload. On the other hand, employees may not feel secure about their jobs as they are being strictly watched over and may be de-motivated to work effectively. Another shortfall of this method is that each department may focus on its own objectives which may conflict with other departments, (Martin, 2010). Sources of Finance: British Airways is financed by issuing shares to the general public on the stock exchange market and from convertible bond issues. The bonds which have low interest rates could be used as a long-term fund which can be changed into share capital of the company during times of bankruptcy, (Rutterford, 2007). In 2009, the Market Watch reported that British Airways got a boost of pound;600 million through the issuance of convertible bond and an agreement with its pension fund to release bank guarantees back to the airline. Of this amount pound;300 million worth of convertible bonds due to mature in 2014 and will be convertible into 15% to 20% of its share capital. The other pound;300 million which will only be accessible in the case of bankruptcy will allow British Airways access to bank funding of pound;3330 million up June 2012, (Market Watch, 2009). Like most public companies, British Airways aims and objectives are to maximise profit. In 2008, British Airways made a profit of po und;726m while its 2009 Income Statement shows a loss of pound;358m. Part of the loss is due to the effects of the recession that affected a large number of United Kingdoms businesses and the whole world. Because of the recession, there was a high increase in fuel prices due to limited resources. This left British Airways with no choice but to buy the fuel regardless of the price as it is important for its business. Fewer consumers were able to afford travelling expenses due to high costs. The wage bill of the company also had a great impact during such hard times. The employees demanded high wages for them to be able to afford their own personal needs as well. The differences between the airlines management and the employees led to strikes that also contributed to the loss of profits by the company. The strikes led to a destruction of many consumers travel plans that has also led to bad public image causing a negative influence on the airlines market. The conflict of objectives bet ween the airlines management and its employees still remains unresolved. In 2009, most of the expenditure expenses were made up of fuel and oil costs and employee costs of pound;2969(m) and pound;2139 (m) respectively. The loss made in 2009 was carried forward through to 2010 of which a loss of pound;425(m) was made. Marketing Management Marketing is the identification and provision of customers needs at the same time ensuring that the organisation makes a profit. Marketing management is essential for a business such as British Airways as it allows for flexibility to adapt to the changing needs of the market. In this strategy, the organisation is always assessing the needs of its customers in order to design products of better value. There are many different strategies a business could adopt for better marketing management and this could be done through the marketing mix. Marketing mix is the identification of the 4/7Ps. In this report I am only going to talk about the four main Ps. The 4Ps are the product being made, the place it is going to be provided, promotional strategies put in place and the price to be paid by consumers, (Kotler et al, 2009). The nature of the business of British Airways is to provide flight services to consumers across various places around the world. The airlines product strategy includes flight services that are offered in various packages for example, the differentiation between the business, first and economic classes. This is done to satisfy each consumer as the airline has considered and provided for different classes of the economy. Promotion is the extra cost of a business to differentiate itself from competitors and try to win consumers attention by persuading them to choose them over their competitors. British Airways has branded itself as an airline that provides a luxury, safety, reliable and convenient service that transfers people to different destinations which is why one would want to go out and travel with them. Price is the value placed on the exchange of goods or services during the marketing process. Customers pay up money in return to satisfy their needs, (Smith, 2007). The price should be based on the quality of the product, taking into account customers expectations. However, charging a low price to a product worth more may not be beneficial to the company as that would lead to a loss in potential profit (Kotler et al 2009) while on the other hand; charging a high price for a product not worth it will cause a reduction in demand and bad public image. British Airways pricing policy entitles one to get what they paid for with the freedom of choice in the payment package for the type of flight service they would like. The airlines pricing strategy is based on three class seats provided by the airline. These are premium, medium-value and economy strategies. With the premium strategy, business and executive consumers are given a high quality service being charged a high price for it. British Airways competitors in this service are other giant airlines such as Virgin and American Airlines. The medium-value strategy consists of a standard charge with quality less than the premium strategy but more than of the economy strategy. The economy strategy provides just the basic services with extra benefits like entertainment and free food and drinks adding to the quality and advantage of British Airways brand image, (Kotler et al, 2007). However, the airline has revised its pricing policy to competitive based pricing meaning it charges fares at the same level as competitors or lower. The airline wants to compete with rival low-cost airlines on short-haul European flights. Free food will still be offered although a fuel surcharge of pound;8 per single journey (pound;16 return) has to be paid by customers on top of their regular payments, (British Airways,). Another advantage of British Airways pricing strategy is that low-cost airline ticket prices a cheap when you book them well in advance but as it gets towards travelling dates they become very expensive, even much more expensive than British Airways. With British Airways the price will relatively still be the same until the week one travels. Quality Quality is a word which is defined differently by different people. From the different meanings, quality is the sum of all the features of a product or service that ensure that the customers needs are met appropriately. The products or services should be at least worth the price charged on them likewise, the quality of employees could be based on their performance with regards to the given tasks, (Mauch, 2010). British Airways adopted a high quality service approach although it eventually came to conflict with cost-cutting measurements that had to be put in place due to increased competition. The service provided by British Airways is flights from one destination to another and its brand core is Quality flights for all people meaning it tries to satisfy and accommodate all different kinds of consumers. As a consumer you get the feel of being a business man and executive traveller and the airline has the glamour any traveller would dream of. Being a fast mode of transport, less time is consumed for people in a hurry, you are assured of being at your destination at the estimated time shown when purchasing you ticket. Most people who fly with British Airways are the business man as suggested by its brand, although all different cultures are welcome on board. Marketing wise, the airline offers luxury travel with safety and comfort whilst flying. Despite increased competition and cost-cutting, the airline still remains one of the best airlines because low-cost airlines such as Easy-Jet and Raynair do not offer extras or as much comfort and security like British Airways. This is for example, Low-cost airlines only provide cheaper fares but they do not offer luxury comfort like TV entertainment or free food and drinks on flights and business seats compared to British Airways. Supply Chain A supply chain consists of a link between different channels of distribution that is, from the raw materials to the final customer. Supply Chain Management includes five key areas that are transportation, suppliers, warehousing, meeting orders and retailers; (Chopra et al, 2010). British Airways operates in the final product that is providing the service to customers. This makes the supply chain shorter and more effective due to the provision of direct services and saves time on any occurring problems as they can be dealt with quickly. The airline operates from many different locations with its major base at Londons Heathrow Airport. The customers have the strength of buying that can be divided into two main parts that are price sensitivity and relative bargaining power. The price sensitive buyers will look at an alternative option and compare prices charged to similar products and choose the one which is more beneficial. Therefore holiday packages have been introduced to overcome big volume products and for the airline to gain control over its supply chain and strengthen its brand. British Airways tries to satisfy all its customers with various needs from the different classes it provides for. Value is added in its supply chain process by providing different lounges and on board food and wine menus for the first class seats. Also the regular customers of the business class seats get blue, silver or gold cards and executive lounge at all main airports. Overall, the airline provides a good service for all fliers that is giving them free food and drinks, different types of entertainment including two in flight magazines, movie collections, radio channels and TV programs, British Airways target market is both domestic and global. Although the airline welcomes customers from all walks of life, it has made a lot of effort in maintaining its business and first class sections where it maximises its profits and increases its competitiveness at the same time cus tomers who use these two sections get real value for their money. Conclusion Due to increasing competition in the flying industry, consumers expect a reduction in the prices charged which would cause the companies to reduce the quality service provided. Although Easy-Jet and Raynair seem to have succeeded, they have had to compromise the quality of the service by making it basic with nothing much to offer apart from the reduced fare. Because of its outstanding service the British Airways has remained competitive in the current economic climate. In the three of the last five years that are 2006, 2007 and 2008 British Airways made profits of pound;451(m), pound;304(m) and pound;726(m) respectively, however in the other two years, 2009 and 2010 it made losses of pound;358(m) and pound;425(m). This is mainly due to the effects of the recession that started towards the end of 2008. The airline has managed to survive the recession despite having made profit losses. I believe it has the potential to recover from its financial crisis and maintain its position as one of the leading airlines worldwide. The management and employee issues need to be addressed sooner than later in order to avoid strikes that will further increase the financial crisis of the company and also negatively affect its image in the market.

Essay on Huckleberry Finn A Freudian Perspective

nbsp;nbsp;nbsp;nbsp;nbsp;In Mark Twain’s American classic Adventures of Huckleberry Finn, we are told of the undertakings of the main character, Huck Finn. He is young, mischievous boy who distances himself from the torment of his home life by escaping with Jim, a runaway slave who is his only friend. As the novel continues, we find that the structure of Mr. Twain’s writing is redolent of certain aspects of Freudian psychology. More specifically, Adventures of Huckleberry Finn can be interpreted using the Oedipus complex ,which is one the defining works of Dr. Sigmund Freud. It basically states that a young male has an irrepressible subconscious desire to do away with his father so that he may be more intimate with his mother. Three†¦show more content†¦To make the scene even more convincing, he takes a few of his own hairs and sticks them to the blade of a nearby axe and also drags the pig carcass out to the river, creating the drag marks in the dirt of a chil d sized body, adding to the perfect crime scene. As Huck is hiding in the woods, he learns that everyone believes that he is deceased, which then allows him to escape from Pap, effectively â€Å"murdering† Huck’s fatherly figure. nbsp;nbsp;nbsp;nbsp;nbsp;The Mississippi River is a symbol for Huck’s maternal figure. According to the guidelines set down by the Oedipus complex, a male is subconsciously willed to become more intimate with his mother once his father is eliminated. This does not have to interpreted solely as physical intimacy, but as a need for closeness between the male and his maternal figure. The moment that Huck leaves his father, he needs a person or thing to guide him along. In this particular circumstance, it is the mighty Mississippi itself. For the first few days of his â€Å"life after death†, Huck is entirely dependent on the river for everything that he needs. In a sense, it is a pathway to a new life of freedom and clarity for Huck. Throughout the novel, Huckleberry seems to become closer with the river itself. This is accomplished by constantly being led to new and different places and opportunities that are available to Huck as the river moves him onward, which is one o f the many roles of a maternal figure.Show MoreRelatedAnalysis : Enter Through The Narrow Gate 1289 Words   |  6 Pagesexample of such an upstream battle. Writer and rhetoric master Mark Twain sheds light on the topic of conflicting human principles in his work The Adventures of Huckleberry Finn, what many call â€Å"the Great American Novel†.Twain uses the decisions Huck makes when the values of his society clash with his own morals in The Adventures of Huckleberry Finn to argue that it is paramount that we not only refuse to give in to societal pressures, but to also stand up for what we believe in. In the novel, Twain uses

What Is Personality free essay sample

What is personality? Everyday people meet new people and sometimes they try to figure them out in order to see what kind of personality they have. People do this subconsciously or unconsciously. Personality isnt easily defined because its a broad topic that is still being researched. A brief definition of personality would be that personality is made up of characteristic patterns of thoughts, feelings and behaviours that make a person unique that means that the personality of an individual rarely changes and someones personality will not completely be the same as the person next to him/her ecause they are individuals and they are unique in their own way. The purpose of this review is to determine whether a persons personality traits can be a factor in an employees productivity in the workplace. Personality as stated above is a broad topic and to try explaining the whole topic in this literature review in its entirety would be impossible. We will write a custom essay sample on What Is Personality? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Personality has fundamental characteristics that in the end form the personality of one person, some scientists believe that the personality an individual posses can be attributed to the genes that they are born with but there are some hat dispute that theory because they believe that your personality is developed with time and life experience. What are personality traits? Personality traits are distinguishing characteristics that make a person who they are they are unique to that person alone. Even though a lot of people might have similar personality traits each person combines these traits on a different way to create one unique irreplaceable assortment of traits that make up their individual personality. The Big Five trait theory is the most commonly used theory to determine a persons personality. They are also referred to as the Five Factor Model or FFM (Costa McCrae, 1992), and as the Global Factors of personality (Russell Karol, 1994). Openness is the first personality trait that forms the base of the big five theory, basically it refers to how open a person is to new things. This trait differentiates creative people from people that arent creative. People that tend to have a high score in openness are more in tune with their feelings on the other hand people that have low scores in openness are less open to trying new things, they are more traditional and they are straight forward. Conscientious is the second trait that forms part of the big five theory, this basically refers to the dedication and discipline the person shows in terms of the things that they are passionate about and whether they actually finish what they start. This specific trait refers to people that shy away from spontaneous behaviour and impulsive behaviour i. e. they prefer to have a plan and be in control. Extraversion is the third trait, it refers to whether the person is comfortable being in the company of others whether they are strangers or acquaintances. If the person has a high score then they can be considered an xtrovert because they can easily adapt to any situation and they can be the life of the party whereas if the person has a low score then the person can be considered an introvert meaning that they tend to be more shy amongst people that they know or dont know they are not very social and most times prefer to be by themselves. Agreeableness is the forth trait, it refers to how a person gets along with the people around them whether they are strangers or not- i. . the person is controntational or not. If a person has a high score on this trait then they tend to be more generous, riendly, and compassionate and their willingness to compromise with others they tend to shy away from confrontation. However if a person has a low score then they are deemed to be highly confrontational and unfriendly they are the complete opposite of agreeable individuals. Neuroticism is the final and fifth trait and it refers to how emotionally s table a person is. This trait determines the how emotionally stable a person is therefore people with a high score in neuroticism are emotionally reactive and they are more vulnerable to stress because they view minor stresses as ery difficult to deal with. People that have a low score are less emotionally reactive meaning that they are calmer and emotionally stable. There is an abbreviation for all five traits OCEAN. Work performance isnt easily defined because its still being researched till today, what it basically is, is how a person does their Job and whether they do it well or not. Personality traits cant be completely attributed to a persons work performance i. e. their productivity it is dependent on the type of Job. An example of this would be a sales person, a person that would have a low score on rait extraversion would have a low performance in terms of them achieving their sales targets because they are considered introverts and being a salesperson would require them to be more social then what they are comfortable with. Job absence is also a part of Job performance because if an employee isnt at work that reflects negatively on their productivity at the workplace.