Case analysis Essay Example | Topics and Well Written Essays - 2250 words

Case analysis - Essay Example This paper analyzes one of the managerial blunders that were taken by a company. This is in regard to the construction of terminal five, at the Heathrow Airport, in Terminal Five. The company that was responsible for constructing this terminal was British Airways. British Airways is the largest airline carrier in the United Kingdom. This is based on the number of fleets it operates, the size of the company, and the international destinations of the company. The intention of the company in constructing this terminal was that it should give it the capacity of increasing its revenue, and improving its public status and image. However, this turned out to be one of the strategic blunders of British Airways. This paper would examine this blunder, in relation to the theories of strategic management. Initially, the air transport industry was a government owned and managed industry. This is in almost all the countries of the world. However, because of the emergence of capitalism, and liberalization of the economies, various governments began to liberalize the airline industry, and allow for private ownership. This includes countries such as the United Kingdom which has allowed for the private ownership of the airline industry (Barney and Hesterly, 2006). For example, the British Airports Authority is a private company that manages and operates six airports in the United Kingdom, and this includes the London Heathrow Airport. It is at this airport that British Airways decided to construct the terminal five, which was to enable it expand its operations, and increase the number of its passengers. It is important to explain that the airline industry is driven mainly by profits, and this makes it to be one of the most competitive business industries in the world (Fojt, 2006). This is the reason why there is an emergence of other airline companies operating in the United Kingdom, and they include Virgin Atlantic, British Midland International