Impact of Internal and External Factors on British Airways

This presentation discusses the impact of internal and external factors on the performance of British Airways. It covers the strengths, weaknesses, opportunities, and threats faced by the company, as well as the influence of political, economic, social, and technological factors. The presentation concludes with the importance of analyzing and adapting to these factors for maintaining competitiveness in the industry.

BUSINESS IN PRACTICE
Introduction
Business and operations of business get affected by the several factors
which impact the overall performance and profitability of a company
in long run. Internal factors of a business are those in which are under
the control of business and have a direct impact on the functioning of
a business, such as employees, company culture, strategies, financial
and other resources, vision, mission etc.
Internal factors
Share-holders and owners: Usually the member of top management
who is responsible for conducting business activities
Employees: They are the one who executes the business activities,
plans, procedure, generate ideas and deal with contingencies.
Innovation: In order to keep up the pace with the rapid changes and
technological advancements, British Airways must embrace
innovation to be competitive and relevant in the industry.
SWOT Analysis
Strengths: British Airways is one of the oldest and largest airline carrier brand with strong position in UK. Key success
of British Airways has been emphasis over customer experience, technology, operational and fleet efficiency.
Weaknesses: Due to Rolls Royce Trent Engine 1000, British Airways have faced many technical and operational issues
including flight delays, on air problems etc. Result of which punctuality have declined and several aircraft were
damaged and on standstill.
Opportunities: Rising demand of tech based services and rapid growth in technological sector have opened a path for
success for flying carriers. Focusing on digitalization and integration of technology, British Airways can expand the
customer base and grow faster, resulting in competitive edge over others.
Threats: Complex and rigid regulations of government such as, safety, security, consumer and employment rights and
most importantly to reduce carbon emission produced by heavy engines.

BUSINESS IN PRACTICE
External Environment
Political factors: Political factors plays a central role in the aviation
industry as airlines companies need to operate as per the regulations
and restrictions impose by the government as there are several factors
such as prices, use of airport, path chosen for the destination, business
partners etc. for customer and workers safety.
Economic factors: Changes in the economy or economic factors have
direct impact over the business of British Airways.
Social factors: Demographic features, income of consumer, education,
lifestyle, attitude, culture are the factors that has to keep in mind in the
aviation industry as not everyone make use of air transportation
Technological factors: Innovation in technological industry and
globalization have made the world contactless where everything is
done on internet.
How British Airways impact its context external environment
Operations of business is governed by the several rules and regulation formulated by the government of each nation.
However, the business have several impact on the external factors which are mentioned below:
Customers: British Airways with their ongoing innovations ensure that the customer gets exceptional experience from
the services with more added value.
Environment: Aviation industry have a significant impact on environment, their operations emit great amount of carbon
which is a rising concern for an each nation.
Technology: With the integration of technology into their business British Airways changes the buying pattern of
customers.
Economic: With their operations British Airways generated job opportunities at a greater scale due to which people get
affordable salary and improves their standard of living.
Conclusion
Above mentioned report states that internal and external factors of a business can have a significant impact over the
performance level of the company. Marco external factors such as political, social, economic, technological and legal
factors determine the way business conducts its operational activities. By analyzing these factors business firms can
mitigate the risk of these factors to a certain level and ensures smooth functioning of a business, therefore it is essential
to review and revise the policies as per the changing trends to remain competitive in the industry.
References:
Allely, K., and et. al., 2021. Beyond consumption and discard: a comparative sedimentological analysis of two shell
deposits from Albatross Bay, Australia, and the Farasan Islands, Saudi Arabia. Quaternary International. 584. pp.44-58.