BUSINESS ENVIRONMENT.

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BUSINESS
ENVIRONMENT

Impact of Macro Environment on British Airways
PESTLE ANALYSIS
Political Factors:
• Changes in government policies
•Company demanded third runway at Heathrow airport from UK government
• Level of bureaucracy, corruption, availability of trade union
• Faced terrorist attacks at Brussels airport lead to decrease in share price.

Contd..
Economic Factors:
• Inflation, recession, currency rates,
interest rates
•Overall economic condition of the
country
•Cost of fuel
• Financial crisis faced by UK in recent
years
• Increase in social status and global shift
in economic.

Contd..
Technological Factors:
• Constant Upgradation of technology is
required
• Use of internet for check in
• Arrival management system
• Departure management system
• Digital revolution worldwide.

Contd..
Legal Factors:
•Slot capacity
•Different security guidelines of every country
•Infrastructure to route flights
• Problems in entering to new market due to their
rigid rules

Contd..
Environmental Factors:
•Take care of waste management, air, noise
and water pollution
•Appropriate measure to reduce the effect
• Government has set rules for limited
radiation and emission
• Company follows national, international and
local environmental regulations for different
destinations

Impact of Internal factors on British Airways
STRENGTHS:
•Serving since more than 90 years.
• Associated with IAGC International airlines which is 3rd in terms of revenues.
• Developed a strong brand by conducting influential campaign
• Enjoys high level of trust and recognition.
• Supported by UK government
• Have its own engineering branch
• Tech savvy

Contd...
WEAKNESS:
• Major dependence on UK market for revenues.
• Creation of employee union have affected the revenues.
• The company has global presence but there are destinations which are left
untouched such as India China.

Impact of External factors on British Airways
OPPORTUNITIES:
•Expansion in the market due to growing demand of investment in tourism
• Small competitive companies have forced to exit from the market hence,
created market for British Airways.

Contd..
THREATS:
• Large discounts provided by
competitors.
• Airlines industry is highly regulated by
the government
• Alternative mode of transport are
available in several countries.