Contemporary Developments in Business and Management

Contemporary Developments
in Business and Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Overview of an external influences towards which an entity is subjected to and explaining the
significance of each and every external influence to an enterprise.............................................3
TASK 2............................................................................................................................................6
a. Relevance of the CRM for an organization .............................................................................6
b) Effectiveness of British airways response...............................................................................7
C) Areas for improvement in response of British Airways.........................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Contemporary business development relates with the external influences that impacts the
performance of an enterprise, Such factors includes the economic, political, social, technological
changes that affects the performance and the position of the firm in an overall industry.
Moreover, it highlights the different customer relationship management practices that is adopted
by British airways in order to develop better relations with its customers.
TASK 1
Overview of an external influences towards which an entity is subjected to and explaining the
significance of each and every external influence to an enterprise
The British Airways is counted as an international Airline company of UK. There fore it
is affected by various external factors in operating the Airline Business that are as follows-
Political factors- It relates to the government regulations along with the stability and
instability of the government. The airline industry is seen as subjected to the highly strict
regulations. Such regulations are considered with respect to the routes which has been selected
by an Airline company, the status of an Airline used, fare set, business partners with which the
company is working and cost paid regarding infrastructure (External factors. 2018).
Governments of several countries across the globe had put forward many of the security
measures in fighting towards the breach of rules and regulation and illegal immigrations. Airline
company participates with various governments bodies for guaranteeing the security and the
safety measures. In case of the British Airways, it operates in very challenging and risky political
environment that is always carrying the threat of terrorist attacks which as a result leads to the
political stir. Moreover, in the previous year, Brexit had sparkled a political turmoil that has
impacts the economic performance of the country. This factor has negatively influenced British
Airways as it has lost large amount of the money. Because of all such issues, government has
made strict regulations with respect to the product and prices which has influenced the proper
functioning of the British Airways. So, the British Airways requires to show utmost care towards
the political influences and the legal regulation for achieving smooth functioning of the business.
Economic factors- This factor refers to the economic performance of the country, it also
includes change in interest rate, exchange rates, disposable income of consumers and an overall
economic condition in UK that has direct an impact on the performance of British Airways. Cost
of the fuel is counted as the most important factor for the British Airways. In the year 2015,

British airways has used nearly 5.7 million tonnes of fuel. For example, in 2015 , British
Airways expenses on the fuel has been decreased by the amount £ 484 million, or the 13.8% in
comparison to previous year along with increasing the scope of its operations. However, the
decrease in the fuel prices has proved to be an important factors which is beneficial for the
business (Zinovieva and et.al., 2016). Moreover, there are wide range of other economic factors
that has an impact on the revenues of the organization. For example- rapid fall in the prices of oil
in the past two years, resulted a drop in the number of corporate customers on the key oil routes,
that has resulted in decrease in the revenue of passenger amounting to GBP 288 million. Thus,
due to an uncertainty following a Brexit situation, BA faced range of economical impacts.
Because of the political stir and the intervention of the government, rate of the pounds
depreciated and revenues of the British Airways were adversely affected. Despite getting
advantage from interest rates and lower fuel prices, the problems tends to persist with the
occurrence of adverse natural external influences. The sharp downturn in the economy from past
few years has affected demand of air travel which has affected BA.
Social factors- British Airways has formulated and implemented newer tactics and
strategies with respect to their target customer segment. Thus it could be analysed that the
organization has identified the needs of the customers and has provided a low cost services
facilitates the changing attitude. In case of the BA, it has faced huge number of issues like ATC
strikes in France. Because of this factor, ATC union strikes and government had cancelled
several flights over France (Vatharkar, Gao and Fomin, 2018). By considering all such
scenarios, it is ascertained that social and cultural factors need to be considered as it impacts
customer needs and potential market size. It is important for the British Airways in focusing on
the lifestyle, constant trend changes, tastes as such aspect could seen as significant opportunities
in overcoming the limitation.
Technological change- It acts as the most important external factor that has the great
influence on the working of the Airline companies. It could be understood easily as this industry
requires heavy use of the technology. Nowadays, passengers prefers to book and access the
tickets online along with the check-in services through their devices instead of standing in the
line or manually booking the tickets. Failing in being technical-savvy results in loss of client. In
other words, it also means that an aircraft are lighter that provides fuel and speed economy.
Increased level of technological advancement could make an Airline gain an advantage of