British Airways has many stakeholders that impact its objectives and operations. Key stakeholders include customers who want reasonable quality and priced goods and services, employees who seek job security and satisfaction, competitors who can impact decisions, suppliers like Boeing and Airbus who are major providers, shareholders who want financial success, and regulators whose rules impact the industry. Managing relationships with these various stakeholders and balancing their needs and objectives is important for British Airways' success.

1. 1
Stakeholders Objectives and its impact on
British Airways.

2. BA StakeholdersBA Stakeholders
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Governme
nt/Regulati
ons
Local
Communiti
es
Shareholde
rs
Environmen
tal
Issues
Employees
Competito
rs
Financial
Institutions
Suppliers
Media
Customers

3. Stakeholders ObjectivesStakeholders Objectives
CustomersCustomers
Customers are the source of
profit for the company.
Customers want products and
services of a reasonable
quality and reasonable price
for those goods and services.
BA wants to keep the existing
customers and aims to attract
new and younger audience.
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4. Stakeholders ObjectivesStakeholders Objectives cont.cont.
Employees in BA have the power of
influencing the customers.
The cuts the company has to
make, however, result in
employee dissatisfaction.
The cabin crew staff have been
addressing their demands
through strikes several times.
EmployeesEmployees
Employees and management are
intimately connected with the
company.
Managers and employees have
individual interests and goals :
(i) Security of income (ii) A
safe and comfortable working
environment (iii) Interesting
works (iv) Job
satisfaction(v)Skills and Career
development (vi) Pay and
status
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5. Stakeholders ObjectivesStakeholders Objectives cont.cont.
CompetitorsCompetitors
BA is the largest UK
airline by turnover with
£8.99bn(yr ending 31st
March 2009), followed by
easyJet(£2.69bn) and
Virgin Atlantic(£2.24bn)
Although BA is the
market leader, the low-
cost airlines can affect the
decisions the company
makes.
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6. Stakeholder ObjectivesStakeholder Objectives cont.cont.
SuppliersSuppliers
Boeing and Airbus are
the main BA suppliers.
They have high interest
and big impact on the
company and vice versa.
BA has only one fuel
supplier meaning it also
has power over the
decisions made by BA.
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British Airways also depends on
online travel agents such as
cheapflights.co.uk, expedia.co.uk,
lastminute.co.uk , etc. People often
buy from such websites since they
are convenient and often provide
cheaper deals.

7. Stakeholder ObjectivesStakeholder Objectives cont.cont.
MediaMedia
The media has a great
impact on the image of
the company, especially
covering the cabin crew
strikes.
BA is trying to keep a
good relationship with
the media in order to
have good relations
with its publics
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8. Stakeholder ObjectivesStakeholder Objectives cont.cont.
Financial institutionsFinancial institutions
Financial institutions have
both high impact and
interest in BA. They can
refuse or grant funding.
The need of funding
depends on BA’s gearing
ratio and liquidity.
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9. Stakeholder ObjectivesStakeholder Objectives cont.cont.
ShareholdersShareholders
Strong relationship
with the shareholders is
very important.
They have high interest
in the financial success
of the company.
Shareholders must be
enquired before making
big decisions such as
changing a board
member and
authorising new
strategies.
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10. Stakeholder ObjectivesStakeholder Objectives cont.cont.
Local communitiesLocal communities
BA is trying to be a
good corporate citizen
with lowering the
carbon footprint and
having a satisfying
relationship with the
local communities.
It presents itself as a
socially responsible
company.
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11. Stakeholder ObjectivesStakeholder Objectives cont.cont.
Government/RegulationsGovernment/Regulations
The sector has a wide
range of legislation:
European, Domestic
and International.
These regulations can
have a high impact on
the whole industry but
they are not tailored
especially to the
company itself.
Due to bilateral
agreements between
countries, some
carriers cannot
operate on specific
routes.
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12. Stakeholder ObjectivesStakeholder Objectives cont.cont.
Environmental IssuesEnvironmental Issues
Unfavourable weather
conditions such as the
volcanic ash cloud can
have a great impact on
all BA’s operations.
BA, like most major
airlines, has promised
to reduce its CO2
emissions, waste, noise
and air pollution.
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