Macro and Micro Environmental Factors Affecting British Airways

British Airways

British Airways
Macro Environmental factors
The two macro environmental factors are:
 Social factor: It has been observed that the major role is played by the people or the
customers who avail the services of the airline sector. The customers are more conscious
about the prices and this factor affect the operations of British airways. In the airline
sector, the customers have the wide choice to select from the different services offered by
the competitors. On the other hand, the customers also look for the value of money that
would help them to offer high quality service and standards at less cost, so they get
attracted towards the other airlines services that provide good value for money. The
customers also get attracted towards the websites that offer higher discounts (British
Airways, 2019). So, by considering all these factors it can be said that it directly impacts
the operations and profits of British Airways as customers have wide choice to select and
there are many competitors present in the market. Political factor: British Airways is one of the largest international airlines that fly in
more than 400 destinations on the global platform. Political stability is considered as
essential aspect that affects the company. The example of British Airways in relation to
this can be of terrorist attacks at Brussels airport in March 2016, which has resulted in the
decline of IAG share price. Presently, the company has also been involved in the political
debate for demanding a third runway at Heathrow airport from the government of UK. ,
In relation to political stability it has been examined that factors such as level of
bureaucracy and corruption impact the airline operations (Catherwood, Finlay and
McLaughlin, 2016).
Micro Environmental factors
The two micro environmental factors are:
 Competitors: The Company has the major threat from the competitors as it is enhancing
in the European market and due to this, the direct impact can be seen on the market share
of the organization in the competitive business world. The competitors are Emirates,
Etihad and Singapore Airlines. In relation to these competitors, some have the low cost
1