BUSINESS STRATEGY Essay Example | Topics and Well Written Essays - 2250 words

BUSINESS STRATEGY - Essay Example Based on this analysis, the company’s strengths, weaknesses, opportunities and threats are determined. The next step in business strategy is to make a customer analysis. This would reveal the changes and tastes and preferences of customers. It would also reveal the changing demographics which would consequently determine the company’s strategies. It would also reveal the customer’s perceptions regarding the services of the company. The customer analysis would determine the price strategies for the company. The competitive analysis would provide insight into the competitors’ weaknesses and strengths. Firms practicing an advanced and systematic competitive profiling remain at an advantage of knowing the competitor’s background, products, finances, facilities, products, markets and strategies. This would give an idea of the expected moves that the competitors would take. Based on this, the company would design its own strategies to have an extra edge o ver its customers. An internal analysis makes an analysis of the internal environment for the formulation of appropriate strategies. In this regard, the value chain analysis gives highlights on the main and the supportive activities which would add value to the company. The resource based view analyses the competencies and resources of the firm. The firm’s performance would depend on the distinctive capabilities. The company must also make a thorough analysis of its financial position. This allows proper management and reduction of costs associated. It is seen that the operating costs of British Airlines have increased steadily with the rise in fuel prices (BBC News-a, 2011). Financial assessments would also allow the company to undertake other cost cutting strategies like employee downsizing, compensation structure of employees, or other operations costs. The financial position would determine whether the company would be to withstand sudden shocks and the measures to be tak en during such times. Answer to question 2: The British Airways considers the importance of working closely with stakeholders. It is important to make the stakeholder’s analysis to ensure their interests are met. More so because the organisation’ policies and actions affect the people who have direct stake in the company. It is also important that they provide their views, opinions and suggestions which would allow giving shape to the organisation fight from the stage of infancy. The existence of powerful stakeholders provides support for the company. This allows greater possibility of attainment of success for the company. The first step in stakeholder’s analysis would be to identify the key stakeholders as well as the business interest associated with them. For example, the British Airways’ approach towards the implementation of corporate social responsibility is influenced by the fact that the airline generates major economic and social benefits. At th e same time it also has significant environmental impacts and on the communities surrounding the airport (CBI, 2006, p.1). Following this, the company would