Task 2-Group 12 - Strategic Analysis Week 1 and Week 2 Work PDF

Preview

Summary

Strategic Analysis Week 1 and Week 2 Work...

Description

Task 2: Strategy Mapping Group 12 – Chansa and Zautini Strategy and Strategy Levels Johnson, Scholes & Whittington (2008) defined strategy as the direction and scope of an organization over a long time which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. Johnson et.al. (2008) also highlighted different levels of strategy and these included corporate, business and functional, however this paper will only focus on corporate and business levels. The top level is corporate-level strategy, concerned with the overall scope of an organisation and how value will be added to the different parts (business units) of the organisation. It can include issues of geographical coverage, diversity of products/services or business units, and how resources are to be allocated between the different parts of the organisation. The second level is business-level strategy, which is about how the various businesses included in the corporate strategy should compete in their particular markets (for this reason, business-level strategy is sometimes called ‘competitive strategy’).This typically concerns issues such as pricing strategy, innovation or differentiation, for instance by better quality or a distinctive distribution channel. Johnson et.al. (2008) concluded that whereas corporate-level strategy involves decisions about the organisation as a whole, the strategic decisions relate to particular strategic business units (SBUs) within the overall organisation. A strategic business unit is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU. Some organisations with only one business, the corporate strategy and the business-level strategy are almost the same (Johnson et.al. (2008). Strategy Mapping Strategy mapping is a principle method of aligning, planning and communicating the overall business direction and strategy. It results into clearly defined objectives with measurable results (Jones, 2011). Jones (2011) further illustrated that the strategy map is built from the top down, so it is important to understand the ultimate objective of the organisation before identifying the supporting objectives needed to achieve it. British Airways is the flagship airline of UK. It operates from main hub at London Heathrow and has the most modern fleet of any airline in the world. It was founded in 1924 as Imperial Airways, and operated under that name until 1935, when several smaller UK air transport companies merged to form British Airways, Ltd. In 1939, the airline was nationalized to form the British Overseas Airways Corporation (BOAC). In 1972, BOAC and BEA were combined under the British Airways Board, and came together as British Airways in 1974 (British Airways, 2019). Being one of the one of the leading Airlines in UK and considering the size of the organization, one must assume that there will be a strong strategic planning in place to operate and deliver good services.

In the figure below, a strategy map of British Airways (BA) on the Corporate and Business Level Strategies has been developed;

References

British Airways (2019) ‘ History and Heritage’ [Online]. Available at: https://www.britishairways.com/en-gb/information/about-ba/history-and-heritage (Accessed on 19 September 2019 Johnson, G., Scholes, K. and Whittington, R. (2008) Exploring Corporate Strategy 8th Edn. Prentice Hall, Financial Times. Phil Jones (2011) Strategy maps 101: Why measures in perspective always fails. Available at: https://www.youtube.com/watch?v=9-e5CNR1tXI (Accessed: 19 September 2019). Worthington, J. (2013) 'Executive summary: Airlines,’ Mintel,UK Worthington, J. ( 2013) 'Issues in the market: Airline,’ Mintel, UK....