Contemporary Developments in Business and Management Assessment

Contemporary Developments in
Business and Management
Assessment

INTRODUCTION
Current business advancement refers to the outside factors that influences the
exhibition of the organization. These factors incorporate the technological, legal, social-
economic, environmental factors that is having an influence over the performance and the
situation of the corporate in the industry as a whole. This report provides the relevance of
customer relationship management to the British Airways. Besides, it features about the
impact of CRM over the business in terms of its policies and the decision-making process.
TASK 1
Impact of external influences on the organization and the significance of each and every
external factor over it
BA is the growing airline organizations in the United Kingdom. It is possessed by the
International Airlines Group and operates in excess of across 300 airplanes. BA is
additionally among the main European global flight administrators that fly to in more than 70
distinct nations and carries over forty million users each year. 2019 can be considered as the
both a difficult and beneficial year for BA. There are several kinds of challenges that is being
faced by the British Airways in carrying its business operation effectively.
Political factors
The aviation industry is mainly impacted by the govt. regulations and the political
environment in UK and the political stability has a direct influence over its profitability. The
aviation industry in UK is mainly regulated by the European Union legislation and the areas
where most of eth regulation is required to be followed includes operator licensing, safety
regulations and other licensing like personnel licensing. Apart from this government control,
the other challenges which are of political aspect such as uncertainty in association with the
Brexit which also had a deep influence over the airline industry. Both Britain and EU is
working on the ways to figure out the things before the end of the year 2020. The major
issues include border, customs and the immigration rules (Kerridge, 2018). The aircraft
associations would require to consider a couple of things to beat the negative effects of Brexit
in both the short and a long time since quite a while ago run. The various pieces of their
business that aircraft brands must focus on for beating the challenges made by Brexit
consolidate "Monetary and Financial Regulation, corp. governance and operational strategy,
and the CRM". BA had quite recently adopted a reasonable system to manage the effects of

Brexit and answered to its customers that its flights will be running as showed by their
conventional schedule following Brexit. Therefore, all these factors had the huge influence
over the British Airways and it was important for it to take a close look over it for reducing
its negative impact over the business and work smoothly.
Economic factors
This factors also have a direct influence over the business functioning especially in
the airline industry. The economic environment in the United Kingdom is very uncertain after
the announcement of the Brexit in the year 2016 (Ozili and Arun, 2020). The economic
slowdown in UK has made the country suffer a lot mainly because of the Brexit. The Brexit
has brought economic slowdown in the country which has caused many of the headquarters
in UK to be shifted to the EU. The major factors that supported the British Airways in
sustaining its growth and profits involves high investment in the strategic areas, concentrating
on the customer satisfaction and experience, adapting in business model to the changing
economic conditions. Even under such circumstances the company has faced the British
Airways has shown a nice growth in its revenue. The total revenue of the organization in the
year 2018 grew by 6.1% in comparison to the last year’s, reaching from £12,271 in the year
2017 to £13,021 million. In the same period, the operating profit of British Airways rise to
10.3% reaching from £1,769 million to £1,952 million. Therefore, even after facing high
level of problems in the early years of Brexit, the company managed itself in a better way
which helped it in achieving its desired objectives by analysing the negative impact
associated with it.
Social factors
Social factors such as demographic variations further have a noteworthy role with
respect to the airline industry. The fundamental objective of the market of airline brands like
BA is the twenty to thirty years old whose travel propensities are unique in relation to the
past peers and who appear to spend more time in comparison to the baby boomers on their air
travel in the growing Western regions (Koch and Tritscher, 2017). While consumers, just like
the security or accommodation, have turned out to be the focal concentration for plan
operators and administrative authorities, the social picture, and the brand image of the carrier
organizations have additionally turn out to be a significant factor having an influence over the
org.’s productivity. BA other than from the CRM likewise keeps up a substantial spotlight on
the overall productivity, dependability and its image in public. In the past few years,