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British Airways Plc (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

British Airways Plc

British Airways is engaged in the operation of international and domestic scheduled air services for the carriage of passengers; freight and mail; and the ancillary services. The company primarily operates in Europe and the Americas. The company is headquartered in Harmondsworth, Middlesex and employed around 42,377 people as on March 31, 2008.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Vast international operations and presence
  • Strong operating performance
  • Employee productivity

Weaknesses

  • Sluggish revenue growth from key geographic regions
  • High debt burden

External

Opportunities

  • Global travel and tourism industry
  • Growing air cargo industry
  • EU-US aviation agreement

Threats

  • Rising aviation fuel prices
  • Increasing competition from low cost airlines
  • Economic slowdown in the US and Europe
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