MAN133 Assignment Sample – International Business Issues and Practice 2022

1. Introduction

The business report has the following aim of providing an analysis of project management of British Airways. The planning and risk management as well as the stakeholder engagement of the company has been provided in this report. Critical evaluation of the chosen project management approach of British airways along with comparison with existing methodologies has been discussed.

The business report further aimed to appraise the way British Airways manages and mitigates the risks. The risks impacting the success and failures are also analysed in this study. Furthermore, a recommendation has been provided in this study on the alternative future directions of business practice of British Airways.

2. Approach to Project Management

The way an organisation carries out the management of a project is referred to as its approach and methodology towards the project management. Overall project management methodologies are discussed below.

Previous research studies have identified project management is crucial in saving time as well as financial resources through improved communication among employees, and improved decision making of the company. As per the studies done by Thesing et al. (2021), project management carefully studies all the aspects in order to make effective changes in budgets, timing and resources management as well.

Project management approaches allows the employees to work in a systematic manner and restricts the distractions. From previous research studies it can be observed that projects are better planned which guides it towards a better outcome.

Agile Project Management

Project management approach through agile method is basically an iterative approach that delivers a project throughout the lifetime of the project. Principle of Agile software is applied into several management processes managing projects. Projects guided through the agile method always show flexibility, behaviour of trusts, central values, collaboration and empowerment.

Agile project management has a longer vision that helps the organisations in making decisions which would help them in longer run. The project management looks for multiple aspects of the project and it enables the project in adapting to different conditions.

According to the study of Barbosa et al. (2021), agile project management methodologies encourage versatile ideas from the employees and builds accountability over the project. Consistent level of support towards the project throughout its lifecycle makes this approach more popular.

MAN133 Assignment Sample - International Business Issues and Practice

Figure 1: Agile Project Management

(Source: Barbosa et al. 2021)

The agile method is used in order to gain agility in the processes involved in the management of a project. It helps in giving priority to the work processes in British Airways project management and the major task in the project is planning (Moore et al. 2017). Breaking of the planning steps involves identification of the activities that are essential for preceding with the project. British Airways project mainly relates to the aviation and technology sector however data security is a major concern involved during the project management (Alkhouri et al. 2021). The Agile model increases the efficiency of a task and the members involved in the process of the project management process.

The Agile model involves various steps that help in the management of a project and the steps are explained below.

Evaluation of the process

Evaluation involves the identification of the activities essential for the smooth conduction of the project in British Airways. It is essential to analyze the Artificial Intelligence technology that is necessary for designing a project (Alkhouri et al. 2021).

Optimization process

Optimization involves the idea of increasing the efficiency of the project with a low cost and British Airways uses it as an important factor for managing the project.

Designing of the project along with client

Requirements of customers change frequently and communication is an essential tool for efficient project designing with clients. Proper communication is an effective tool used by British Airways that helps in the effective management of projects related to aviation and technology (Moore et al. 2017).

Implementation

Implementation involves the officials who are responsible for taking actions to make the project or develop the model. British Airways projects include designing aircraft or projects related to the implementation of advanced Artificial Intelligence technology (Alkhouri et al. 2021).

 Waterfall Project Management

Waterfall project management is a linear processed project management which follows a sequential method. The following stages of projects managed through waterfall methodology initiated only after the previous method is completely completed. As per the view of Fernandes et al. (2021), waterfall project management strictly prohibits the managers from returning to previous stages as reverse methodology is prohibited. Waterfall project management can be flexible as it allows it to sustain within a certain stage for a longer time for complete development of the phase. Furthermore, documentation is required for each stage of project management in order to make progress towards completion through saving efforts, time and resources.

MAN133 Assignment Sample - International Business Issues and Practice

Figure 2: Waterfall Project Management

(Source: Fernandes et al. 2021)

The waterfall project management model helps in communicating the ideas of customers with the project team as this helps in understanding the requirements. Changes in customers’ decisions lead to poor understanding of the problem definition (Moore et al. 2017).

It helps in breaking the activities of a project and provides efficiency in managing the project. British Airways makes efficient use of Artificial Intelligence technology in managing the project and evaluating the changes in the project (Alkhouri et al. 2021).

3. Planning and management

British Airways management is small however the control over the task is wide as it follows a flat structure in the project planning and management. The structure that is adopted by these airways is divisional that helps in understanding the customers and keeping them in the central position (Rumeser and Emsley, 2019).

The business of British Airways is focused on the costumes as this helps in fulfilling their needs and understanding the measures essential for improvements. Efficient planning and management of the business of British Airways have led to a profit margin of 15 percent (Britishairways.com, 2021). Planning in projects of British airways involves innovation and technology and this helps in effective management.

Planning involves various steps that help British Airways in managing their project activities and they are explained below.

Initiation

Initiation involves the activities that are essential before the beginning of a project as this helps in managing the project efficiently. Meetings and the making of the blueprint are major activities in the initiation phase for project management (Chassoux et al. 2018). British Airways use the process of making a blueprint in order to identify the important areas of the project.

Meetings help the business of British Airways to have transparency in business by communicating the ideas to the whole hierarchy involved in the project (Rumeser and Emsley, 2019). It is essential to provide information about the project to the whole team involved in the project in order to make a project efficient.

MAN133 Assignment Sample - International Business Issues and Practice

Figure 3: Management and planning

(Source: Rumeser and Emsley, 2019)

Panning

Planning in the project of British Airways includes the ways in which the business promotes its services to audiences. An essential step in planning involves the plan of a budget as this leads to effective projects (Rumeser and Emsley, 2019). Cost reduction is the major focus in the business of British airways that helps in reducing the operation cost of the processes in business (Baró et al. 2017).

The operation cost of Boeing is high as it has more capacity however there is a loss of passenger interaction as the rise in cost makes a negative impact on the business (Britishairways.com, 2021). Planning needs to be made for making optimization in the processing cost of the services (Ahmad and Zhang, 2020).

Execution

Execution involves the developments that are made by the business of British Airways in making the services efficient. Reducing the cost of operating the Boeing aircraft is an effective measure that may bring developments in business (Ahmad and Zhang, 2020). A new decision is taken by the business of British Airways to dismiss 13 percent of their pilots as they are not working due to the lockdown (Baró et al. 2017).

This strategy helps in optimizing the cost and prevent loss of money. Use of technologies like IoT (Internet of Things) and artificial intelligence for marketing their services and identifying loyal customers (Chassoux et al. 2018).

Monitoring

Monitoring involves the analysis of the processes in project development and management in British Airways. Evaluating the budget is the beginning step in the business of British Airways as it helps in smooth project conduction (Zheng et al. 2019). Analysis of technologies like Artificial Intelligence and the Internet of Things helps in identifying customer’s demands.

Evaluating all the processes starting from initiation to execution is the major role of the monitoring step (Chassoux et al. 2018). British Airways monitors all its action plans in order to make an effective customer experience.

Closure

Closure involves the steps that signify the end of a project and one important step is distributing money among the officials involved in the project. This step is performed after the successful execution of a project and this helps in identifying the tasks performed by officials in the management of the project (Chassoux et al. 2018). Closure of the project helps in the evaluation of all the necessary actions of project management in the business of British Airways.

4. Risk Management and the way British Airways Manages and Mitigates Risks

During pandemic situations, due to declaration of lockdown and government restriction. In this aviation industry, British Airways has faced economical losses along with reduced return on investment. Besides that, technological issues, supply chain issues, technological issues, competition are some of the major issues, which have been faced by the company in a negative manner.

Risk identification

  • Volatility in a financial position

British airlines are recognized as a popular airline company in the UK and during the pandemic situation, the number of customers has been reduced and it has affected the economic position of this company negatively.

As per the commercial viewpoint, political instability as well as drastic change of people’s lifestyle due to pandemics has reduced profits and revenues of this company. As per the financial position of the UK, the GDP Value along with PPE has been reduced and it acts as a big threat in managing this aviation company (Waclawski and Noone, 2017).

  • Supply chain issues

Supply chain issues are contemplated as a big threat in the aviation industry around the world including this UK company, British Airways. In order to enhance the number of aircraft deliveries, this company has faced supply chain risks for 8 to 10 years. This company has a huge network of suppliers and due to this reason, this company has faced issues regarding controlling budgets as well as schedules (ŞANLI, 2021).

It has enhanced disruption in production as well as reduced efficiency in the supply chain. In recent days, various types of new technologies have been implemented and British Airways has faced a huge number of financial losses in developing new programs and capital in supply chains.

  • Enhancing competition in international market

British Airways have faced more competition from Airbus and Boeing and these companies have dominated the market segment negatively. Therefore, the opportunities of this company have reduced along with enhancing the domestic and international competition. Besides that, the traditional market has an extremely high price margin that is one of the most common reasons for enhancing risks regarding international and domestic competition.

  • Retaining talent in the aviation industry

During pandemic situations, many well-experienced have quit this job due to fear of transmission and this company has faced many issues regarding retaining talent. The issues related to workforce shortage are considered as one of the major risks that have been faced by this company and it has reduced technology installation along with profits of the company (Cahill et al. 2020).

  • Incapability to innovate

Due to various aviation companies in the market, this company has faced issues regarding reduced modification and reduced innovation. The passenger population is improving day by day and this company has to adopt new tools and technologies in order to manage them successfully.

  • Risks regarding rules and regulations

The government has started various types of rules and regulations for aircraft designs, pilot training activities, and aircraft maintenance. British Airways has its own portfolio along with intellectual property, which includes trademarks, data, software, and others. It has made clashes between rules and regulations as well as the company has faced issues regarding agreements with suppliers and employees (Insua et al. 2018).

Risk’s analysis

According to the report of the 4TH ACI world economic impact assessment, it has been depicted that 60% of passengers have been reduced in the aviation industry due to worldwide lockdown declaration by the government. The profits and revenues of this company have been reduced drastically by enhancing huge numbers of threats and risks. In the word of Kaspers et al. (2019), the industry debt-to-EBITDA ratio has been reduced and it has reduced liquidity position in a drastic manner. The capital of this company has been reduced from 130 million US dollars to 95 million US dollars. On the contrary, it has been amazed that the return on capital has declined along with profits and revenues.

MAN133 Assignment Sample - International Business Issues and Practice

Figure 4: Revenues of British Airways

(Source: Britishairways.com, 2021)

Lack of workforce is one of the major issues in this company and it has reduced productivity in a negative manner. British Airways was recognized as the second largest airline in the United Kingdom; however, the annual report has shown that the revenues US reduced to 4.8 billion US dollars in the year 2020 along with a huge reduction of profits.

The parent company of British Airways, IAG has reduced 94% of airline activities due to huge financial losses and enhanced risks of the operating system (Britishairways.com, 2021).

Risk mitigation

It is needed to mitigate the risks by underlining all problems as well as setting goals to achieve success. As suggested by Banuara and Purba (2018), implementation of a risk management approach is extremely beneficial to understand the severity of the risk as well as to overcome problems accordingly. The company has to adopt low debt, which will make the company reduce the fluctuation of interest rates. In contrast, the company has to share profits that will help to reduce labor difficulties in an effective manner.

  • Strategies to mitigate financial risks

This company has to develop a solid plan along with an authentic business plan focusing on the management of capital and cash, which will help to reduce the financial risks effectively by enhancing the return of investment. Evidence has suggested that British Airways has to include exogenous factors such as exchange rate, industrial production index, and income per capita that will be beneficial to understand the finance of this company as well as assist to eliminate the risk.

Some financial solutions such as debt-equity offering, insurance, and contingent financing are needed to be included as financial transaction design, which will help to overcome the financial risks along with managing the profits and revenues (Ibrion et al. 2019). Furthermore, this company has to track accounts receivable in order to ensure paying invoices, it will be beneficial to reduce the economic risks significantly.

  • Paying of employees

As the financial risks have been reduced in a drastic manner, the decision regarding paying off employees will be beneficial in order to mitigate the financial risks during a pandemic situation. Though this company has an employee shortage, this company has decided to lay off 12000 medium quality employees in order to store some currency from them.

As per the scenario of British Airways, it has been depicted that 23% of pilots have been discharged by the company due to canceling flights during pandemic situations (Britishairways.com, 2021). The company has to hire well-experienced and well-suited employees, which will help innovate the new tools and technologies and the risks of reading competition have been reduced.

  • Government help

British Airways has to take support from the UK government in order to solve the drastic situation of reduced financial growth. The support from the government will help this company to return to financial stability along with maintaining the profits and revenues of this company (Xue and Fu, 2018). The annual report of British Airways has suggested that this common has taken 370 billion US dollars in order to overcome these financial problems.

  • E-wallet transaction

The company has to adopt e-wallet translation and it will help both customers and the company to transact in a cashless way. It will help to enhance sales and profits of the company in a significant pathway (Ryapukhin et al. 2019).

5. Stakeholder Engagement 

The shareholders of an organization are the personalities who are known to be working for the organization and are responsible for all the operations performed there. British Airways is a well-known UK originated Airways which pays maximum attention to the shareholders in comparison to their position in the aviation industry. As stated by Dağlı (2018), stakeholders include customers, employees, shareholders as well as the government authority who are known to be looking after both the internal and external environment of British airways.

The action that is taken by British airways depends on the stakeholders as based on the decision taken by them in various fields the company needs to perform accordingly. They maintain a protocol of informing all the shareholders regarding the decision taken by the board of British airways to maintain a healthy relation with them. The internal shareholders are the employees whereas the external are customers and the government of the UK.

Shareholders

The activities, as well as the reputation of the particular airways, are in the hand of the shareholders and thus transparency matters the most in running a business successfully. Different communication channels both offline and online such as conferences and meetings are used to maintain connectivity. As mentioned by Ahmed et al. (2020), conferences with different stakeholders are seen to be performed by British Airways on an individual as well as a group basis to stay connected with them and resolve their issues properly.

They are working hard on providing a better workplace to the shareholders such that the employees are willing to work flexibly and maintain long-term relations with British airways. They are seen to be taking proper care of their stakeholders by providing the employees with treatment and education according to the requirement such that they can serve the existing customers in a better manner.

Employees

The employees of the shareholders are personally responsible for customer service, crew members, engineers, and pilots. As urged by Maddaloni and Davis (2017), transparency is Coordination such that the financial status of the company is shared with stakeholders such that they work according to their needs and do not feel the burden as it helps them to work appropriately. Different initiatives such as rewarding them, appreciating their hard work, encouraging each other, and supporting culture diversity teams.

The working ability of the employees are checked after a certain interval of time and are trained `to increase their efficiency. To bring innovation in their services people from different cultures are allowed to participate in British Airways. Leaders of the team are selected based on their working experience and team managing quality. The employees are motivated by providing them discounts on air tickets, providing incentives and increasing their salary based on their working performance.

The administrative head of the nation

One of the most important stakeholders among all is the government of the UK as without them an organization like British airways cannot establish its business. As urged by Bahadorestani et al. (2020), all the rules, regulations, and policies of the government need to be maintained by the company as the legal sector is completely dependent on the government.

Customers

The main aim of British airways is to serve their customers in the best possible way by filling their demand. The needs of the customer are eventually fulfilled by British airways by maintaining a close connection with the customers.  As per the view of Shackleton et al. (2019), they work regularly on their drawbacks based on the feedback provided by the clients on different social media such as Facebook and Instagram. It assists them to develop their standard of service and adopt various strategies such as flowing shareholders theory to gain ideas.

MAN133 Assignment Sample - International Business Issues and Practice

Figure 5: Stakeholder’s theory

(Source: Shackleton et al. 2019)

The feedback of the customers is done regularly such that they can track their improvement as well as a decline in their activities. As depicted by (), discounts and offers are provided to all the existing customers per day to gain the attention of the costumes largely. The involvement, as well as the engagement of the customers, can be done parallelly.

The main reason for gaining an enormous amount of profit is the huge amount of customers available. Sustainability is highly maintained in the British airways which adds an execution feature to them and has been accepted and represented by the customers.

Competitors

The innovative working strategy of British Airways and its first position as the largest airways in the UK allows it to have well-renowned competitors such as Virgin, jet 2 as well as jet. As stated by Viglia et al. (2018) the competitive market of the British airways is high which increases the level of competition in the market and forces it to use various competitive strategies to maintain its reputation and position suitably.

The facility of proving world-class facilities to the customers at the lowest price in comparison to its competitors increases the level together with the number of competitors.

Suppliers

One of the most critical stakeholders of the British airways is the suppliers as they are equally responsible for the image of the British airways. The important suppliers of British airways are Airbus and Boeing. They are known to be supplying important parts of type flights such as engines.

The items are needed to be supplied by them within appropriate time such that they do not get delayed in launching as well as rectifying the disrupted parts of the flights at inappropriate times. As per the view of Lavery (2018), there is the presence of different online portals which provide opportunities to the customers to purchase their tickets.

They are simultaneously counted as the suppliers as they are assisting British airways in their business. The online portal makes business with high reputed companies such as British airways such that they can make their business successful. Suppliers such as Boeing, not only supply engines to British airways they are suppliers of other companies as well.

6. Recommendations

MAN133 Assignment Sample - International Business Issues and Practice

Figure 6: Recommendations

(Source: Urban, 2017)

Recommendations are provided in this study in order to reduce the financial risks as well as improve technological features. These recommendations will help to enhance the profits and revenues of the company in an effective pathway.

  • Recommendations 1: Development of screening system

It can be recommended that the company has to develop a screening system, which will help to maintain transparency between passengers. As mentioned by Urban (2017), this development will assist to enhance screening efficiency as well as declining the number of false alarms. Along with this, the company has to focus on both online and offline customers in order to enhance the profits as well as revenues of the company.

  • Recommendations 2: creating a budget

It can be recommended that the company has to create its own budget, which is considered the first step to solve the problems. It is needed to use various types of software based on online budgeting tools that can help to understand the one-time cost, return on investment, capital income, and other financial positions clearly (Karaman et al. 2018).

  • Recommendations 3: Lower the unnecessary expenses

It can be suggested that British Airways has to reduce the unnecessary expenses such as the implementation of unnecessary packages, technologies, and others, which will help to solve the risks of finance (Banuara and Purba, 2018). This company could also focus on the stakeholder’s management that will be beneficial to solve mentioned issues.

7. Conclusion

Based on this study, it can be recommended, this study has highlighted agile methodology in order to project management based on British Airways. It has helped to monitor and evaluate various types of issues and risks related to the aviation industry. It has been analyzed that this company has faced financial issues such as reduced profits, capital, and return on investment has been seen due to the pandemic situation.

The revenues have decreased to 4.2 billion US dollars in the year 2020, which is reduced by 15% compared to the previous year. Besides that, due to the declaration of lockdown, this company has faced enhanced competition, reduced passengers along with a reduced workforce. Making an authentic budget along with reducing expenses will help to reduce these problems. Furthermore, government help and proper decision-making regarding finance will be beneficial to mitigate risks.

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