BUSINESS PROCESSES

Introduction to Business Processes

Introduction to Business Processes

Introduction

Defining the exact steps of a business process will vary somewhat from one corporate structure to another. However, there are some elements or sub-processes that can be found in just about any business process. To some degree, these sub-processes will always occur in an order that lead to successful completion of the manufacturing process.

Depending on the nature of the industry involved, orders from clients may be secured before the actual process of production begins. However, many companies operate with a business process that allows for the production of goods in anticipation of sales to consumers.

Both British Airways (BA) and Ryanair (RA) are successful airlines at the top of their respective markets. BA is a more traditional, long haul full service carrier, while RA is part of the new bread of short haul, low cost, low frills carriers. The aim of this report is to give an overview of the industry, and the two companies, looking briefly at their history and future strategy and then to perform a financial analysis on both companies from users perspective: long-term investment for the common shareholder, creditors, analysts and providers.

British Airway (BA)

British Airways is the largest airline in the United Kingdom and one of the largest in the world with a total number of employees about 50,000 and a route network comprised of 150 destinations in 72 countries. Its fleet is composed of more than 350 aircrafts. BA is the airline company with the most flights from Europe to North America in the world(DOGANIS 1991).

BA was formed in 1973, as the outcome of the merger between State-owned British Overseas Airways Corporation to British European Airways. The Conservative Government then privatised the airline in 1987. During the 90s, BA was the world's most profitable airline. Its slogan was: "The World's Favourite Airline". In addition to jointly operating the famous Concorde supersonic airline, it pioneered "flat-bed seats" for first class passengers on long hauls. Moreover, BA was a founding member of the Oneworld Alliance of eight airlines, including such carriers as American Airlines, Iberia and Qantas Airways.

However, from 1996 onwards, the company entered a period of turbulence.

Increased competition, high oil prices and a strong pound all hurt profits. In 1999, BA reported a 57% slump in profits, the worst since privatisation. Furthermore, the terrorist attack on the World Trade Centre on 11 September 2001 the airline industry led to a massive downturn in passenger traffic. Airlines that were most affected are those high-price international carriers like British Airways. BA dropped many of its long-term unprofitable routes in October 2001 in an effort to keep its financial head above water. Over 20 aircraft have also been withdrawn from line service(thescotsman.scotsman.com).

During fiscal 2005, the company carried more than 35 million passengers on its services. For the three months ended 30 June 2005, BA's revenue increased 8% to 2.06 billion GBP. Net profit totalled 90 m GBP, up from 23 million GBP.

Ryanair (RA)

Ryanair was Europe's original low-cost ...