Contemporary Developments in Business Management

Contemporary Developments
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Primary External Influences for British Airways........................................................................3
TASK 2............................................................................................................................................7
i. Relevance to British Airways and its influences on policies and decision-making.................7
ii. Effectiveness of British Airways’ response to the Marketing Communication Mix............10
iii. Areas of improvement in response of organization..............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Contemporary development of business can be defined in several terms and this
development can be considered as a result of increasing competition and globalisation of the
companies. Contemporary development is more specifically based on technology and companies
giving more emphasis digitalization of operations. This report will discuss about what are the
factors that affect development of a business organisation. External factors become more
important to consider when company operates in international market and is a globalised
organisation. This report will discuss about impact of external business environment factors for
British Airways, founded in 1974 and headquartered at London, UK, British Airways is a flag
carrier airline of UK. Parent company of British Airways is International Airlines Group and
serves to around 183 destinations with a fleet size of 278. British Airways provides high quality
service to the customers and its services are divided in terms of class of service namely,
economy, business etc. and along with this several other elements are included in its service.
Along with external factors affecting British Airways the report will also include discussion and
analysis of marketing communication mix of British Airways. Marketing communication mix is
the mix which include different mediums and selection of these by the Marketing
communication mix.
TASK 1
Primary External Influences for British Airways
All organisations regardless of their nature and size get affected by external factors of
environment in which their business operates (Barton and et.al., 2016). In context of British
Airways its business and operations gets significantly affected by environment which extends to
national boundaries because British Airways is an international organisation. Primary external
influences for British Airways are;
Political
This is one of the important and primary factors that influence British Airways. This factor
mainly consists of political system and its condition in a country and because of international

operations of British Airways this also includes international political conditions. Brexit is an
important example for British Airways. Earlier as UK was a member country of European Union
(EU) it was subject to several benefits allowed to EU countries and because of its exit from EU
UK is no more allowed for any benefit of EU country. Moreover this has also affected relation of
UK with EU countries and this makes direct influence of British Airways in as being a UK
organisation. Some of the factors which has affected because of this are operating license, safety
regulations, traffic rights and environment regulations of the countries. Other than this British
Airways is operating in aviation industry and this is why political influence plays central role in
its success. The role that government plays in market attractiveness significantly affects success
of the aviation industry and this is added by business opportunities of the country and
governmental regulations in the country. increasing concerns of all governments across the world
is another reason which affect operations of the aviation industry.
Economical
This influence of the external environment is concerned with finance and cost of the business
environment. Some of the important measures included in this are taxation rates, interest rates,
economic condition of the country in terms of GDP, income per capita, level of unemployment
and economic stability (Bhandari and Bhandari, 2017). This factor exerts positive and favourable
influence when GDP and income per capita is high, tax and interest rates are low. This is because
these elements of the economic factor keep the cost of the business low subsequently increasing
its profit. All these are important factors in economic context and these have significant impact
on the operations of British Airways. Economic slowdown has made negative impact on the
operations and profitability of the British Airways. Along with economic conditions and
regulations of the countries where British Airways operate also plays important role in success of
British Airways and its profitability. This is because high economic rates in terms of taxation and
other measures like low GDP can directly affect business of British Airways in that particular
country. Brexit has not just added influence in political factor but has also affected economic
influence for British Airways. This is because EU countries started placing varied charges on the
UK businesses and also created economic uncertainties in the UK. But amidst all these negative
situations arising important factors that contributes in sustained growth of British Airways was