In this Business Analysis Training session, you will learn Case Study - Stakeholder theory and its impact on British Airways.. Topics covered in this session are: • Why is knowing your stakeholders important? • BA Stakeholders • Stakeholder Relationships • BA is for a two-way communication To learn more about this course, visit this link: https://www.mindsmapped.com/courses/business-analysis/business-analysis-fundamentals-with-hands-on-training/

1. Page 1Classification: Restricted
Business Analysis
Training
Case Study - Stakeholder theory and its
impact on British Airways.

2. Page 2Classification: Restricted
Agenda
• Why is knowing your stakeholders important?
• BA Stakeholders
• Stakeholder Relationships
• BA is for a two-way communication

3. 3
Stakeholder theory and its
impact on British Airways.

4. Why is knowing your stakeholdersWhy is knowing your stakeholders
important?important?
The stakeholder relationship model explains what
the connections between the organisation and its
stakeholders are, and to what extent they influence
each other. Good knowledge of the groups
involved and understanding of the stakeholders can
help the company raise its profile.
4
BA has a great
number of different
stakeholder groups,
only 10 of them are
considered the
most dominant.

5. BA StakeholdersBA Stakeholders
5
Governme
nt/Regulati
ons
Local
Communiti
es
Shareholde
rs
Environmen
tal
Issues
Employees
Competito
rs
Financial
Institutions
Suppliers
Media
Customers

6. Stakeholder RelationshipsStakeholder Relationships
CustomersCustomers
Although customers
are the source of profit
for the company they
have little impact on
how the company is
managed.
BA wants to keep the
existing customers and
aims to attract new and
younger audience.
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7. Stakeholder RelationshipsStakeholder Relationships cont.cont.
EmployeesEmployees
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.
This means that
employees and management
do not have strong
relationships.
The “Front face” of BA is
heavily unionised.
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8. Stakeholder RelationshipsStakeholder Relationships 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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9. Stakeholder RelationshipsStakeholder Relationships 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.

10. Stakeholder RelationshipsStakeholder Relationships 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
10

11. Stakeholder RelationshipsStakeholder Relationships 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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12. Stakeholder RelationshipsStakeholder Relationships 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. 12

13. Stakeholder RelationshipsStakeholder Relationships 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.
13

14. Stakeholder RelationshipsStakeholder Relationships 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.
14

15. Stakeholder RelationshipsStakeholder Relationships 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. 15

16. BA is for a two-way communicationBA is for a two-way communication
Back in the 1996 BA realises the need of
feedback and two-way communication with
its customers.
◦ Mailing lists
Many campaigns followed with different
objectives of using those mailing lists – not
only for feedback, but for increasing ROI as
well.
◦ e-Dialog campaign aiming at contacting travellers
who have just returned from a trip and inspiring
a new purchase while still in post-holiday mood.
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17. BA is in for a two-way communicationBA is in for a two-way communication cc
British Airways realising the power of social
media and interaction with the brand, has
created Metrotwin – an online community
bringing London and New York together. A
place where people recommend and discuss
places of interest in the two cities.
The specific aim of this platform is to reach
younger audiences and provide added value.
Another platform where BA is getting in
touch with its customers is Twitter – lively
discussions on routes and promotions as
well as problem-solving team on hand.
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18. 18
Terminal 5 is working – a successful British Airways Campaign

19. "Terminal 5 is working“"Terminal 5 is working“
Situation Analysis:
In March 2008 Heathrow opens a new terminal which is
considered the new home for British Airways. Its first 48 hours
of operation were not successful. There were lost suitcases,
slow processing and angry passengers. In order to show
customers that all of these issues have been resolved, BA
decides to make a communications campaign.
The campaign:
It focuses on issues such as the length of time it takes
customers to get through security, flight punctuality, baggage
arrival times and other services that were reported as
unsatisfactory.
Objectives:
The unsuccessful launch of the new terminal had to be followed
by some image management in order to bring back the value BA
had for its customers. The main objective being responding to
the negative opinions of the travelling public.
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20. "Terminal 5 is working“"Terminal 5 is working“ cont.cont.
Strategy and plan:
◦ Launching a dedicated website where
passengers share their T5 experience
◦ Taking actual pictures of travellers and making
billboards with facts from their journey such
as length of time, punctuality of arrival, etc.
◦ Gathering information about travellers every
day and creating adverts for the newspapers
to print the next day.
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21. "Terminal 5 is working“"Terminal 5 is working“ cont.cont.
Measurement and evaluation:
o A survey conducted by the company in
August 2008 shows that 82% of the travelers
rated the terminal “very highly”.
o The campaign made passengers aware of 96
check-in kiosks, 140 customer service desks
and 90 “fast bag drops” where the check-in
is completed for about ten minutes.
o BA cleared their image and proved itself as a
innovative and customer-orientated
company.
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22. "Terminal 5 is working“"Terminal 5 is working“ cont.cont.
The SuccessThe Success
The “Terminal 5 is working” campaign was a success
because it was an honest way to show travellers that
despite the rough start, BA is working towards making
the flying experience more convenient and
satisfactory.
The success also relies in the good communication
between BA Marketing department and the creative
agencies which helped implementing the idea.
 The campaign won several awards, including Best Poster Campaign,
Best Consumer Advertising Campaign and Advertising Campaign of
the Year.
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23. ReferencesReferences
 L Etang, J and Pieczka, M (2006) Public Relations, Critical Debates and‟
Contemporary Practice Lawrence Erlbaum
 Key Note., 2010. Airlines Market Report. , [Online] Available at: http://0-
www.keynote.co.uk.brum.beds.ac.uk/market-
intelligence/view/product/2388/airlines?
highlight=airlines+2010&utm_source=kn.reports.search# [Accessed on 24
Oct 2010].
 Sweney , M., 2008. Terminal 5 ads take off for BA. [Online] (Updated 25
Sept) Avaiable
at:http://www.guardian.co.uk/media/2008/sep/25/advertising.britishairways
[Accessed 23 Oct 2010].
 Williams , E., 2008. Terminal 5 Is Working. [Online] (Updated 06 Aug)
Avaiable at:http://www.creativereview.co.uk/cr-blog/2008/august/terminal-
5-is-working [Accessed 23 Oct 2010].
 Blyth, A., 2008. Terminal 5Six Months On. [Online] (Updated 25 Sept)
Avaiable at:http://prweek.com/uk/news/search/848962/Terminal-5-six-
months/ [Accessed 23 Oct 2010].
 http://www.britishairways.com/ [Accessed 23 Oct 2010].
 http://www.metrotwin.com/ [Accessed 23 Oct 2010].
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24. Thank You!Thank You!