SWOT and PESTEL analysis of British Airways

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SWOT and PESTEL analysis of
British Airways

Executive summary
There are many different parameters which impact the business of the British airways.
This report deals with the macro economical factors which plays a huge importance in the
business of airlines such as in British airways. The framework used tells about the strengths
which are used to negate the threats and the weaknesses which are coming in the way of gaining
opportunities. It tell about the importance for British Airways to follow the corporate social
responsibility and work ethically.

TABLE OF CONTENTS
INTRODUCTION....................................................................................................................... 4
SWOT ANALYSIS OF BRITISH AIRWAYS ...........................................................................4
PESTEL ANALYSIS.................................................................................................................. 4
INFLUENCE OF PESTEL ON SWOT ......................................................................................5
Social threats and opportunities................................................................................................ 5
Economic opportunities and threats.......................................................................................... 5
Political threats........................................................................................................................ 6
Legal threats............................................................................................................................. 6
LEADERSHIP STYLE IN THE ORGANISATION....................................................................6
SUITABLE LEADERSHIP STYLE............................................................................................ 7
CORPORATE SOCIAL RESPONSIBILITY..............................................................................8
CONCLUSION............................................................................................................................ 9
REFERENCES.......................................................................................................................... 10

l壱INTRODUCTION
British airways is one of the leading airline companies operating in UK. Being a leading
company, British airways has to face many types of challenges as well as opportunities from the
external and internal factors. Pestel analysis is a framework which is used to analyse the key
factors which have the power to influence the operations of the organisation (Karami, 2017). It
helps in providing an insight in the external factors which can affect the organisation. However,
SWOT analysis is more about the actions taken. British Airways is a trusted company and the
flag carrier of UK. This report also deals with different types of leadership styles and the
responsibility followed by the company.
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壱SWOT ANALYSIS OF BRITISH AIRWAYS
Strengths: British Airways is a very trusted brand and has a global scale identity. This makes the
brand easily recognisable. The company has better IT integration with the services offered. The
company is also a market leader in UK having huge fleet size.
Weakness: There are several employees related issues which leads to service disruptions. This
company follows an easily imitable business model. There are also many disruptions due to the
issues in the infrastructure systems.
Opportunity: British Airways have the opportunity to venture in the global operations that is to
start the business operation in new locations (Efthymiou and et.al., 2018). It can also form
alliances with some other global airlines which can help in boosting the business of airline.
Along with this the company has the opportunity to partner with different aviation companies
and expand the business.
Threats: There rise in fuel prices is a major threat which can reduce the profit margins. There is
also rise in labour costs with the increase in competition in the European market which can
adversely affect the market share of British Airways.
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弐PESTEL ANALYSIS
Political: There are many strikes from the employee union in UK which leads to affecting the
airline services as well as the brand image. There is a situation of uncertainty is created after the
Brexit which lead the the airline lose their influence on the European framework.