Contemporary Developments in Business and Management: A Case Study of British Airways

CONTEMPORARY DEVELOPMENTS IN BUSINESS AND MANAGEMENT
British Airways

Table of Contents
INTRODUCTION........................................................................................................................2
TASK 1...................................................................................................................................... 3
SIGNIFICANCE OF EXTERNAL AND INTERNAL BUSINESS ENVIRONMENTS...........................3
PESTLE FRAMEWORK........................................................................................................3
SWOT ANALYSIS............................................................................................................... 5
TASK 2...................................................................................................................................... 7
CRITICAL ASSESSMENT ON RELEVANCE OF GLOBALISATION TO BRITISH AIRWAYS.............7
CRITICAL EVALUATION OF EFFECTIVENESS OF BRITISH AIRWAYS RESPONSE....................12
AREAS FOR IMPROVEMENTS..............................................................................................14
CONCLUSION.......................................................................................................................... 15
REFERENCES........................................................................................................................... 16
APPENDIX............................................................................................................................... 19
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INTRODUCTION
This report is focused on the current business scenario in travel agency activities. This report
is prepared on British Airways. British Airways is among the largest airlines of the United
Kingdom that was privatised in 1987 (British Airways, 2018). The activities of the British
Airways include not only transportation of passengers and travellers but also operate for
domestic and global freight, mail and other additional services. There is continuous growth
in the company over the years along with an increase in the level of competition is intense
in the field of travel and tourism industry.
The first part of this report includes an analysis of internal and external factors of the
business environment. It also examines the influences of external factors of business
environment on the competitive advantages of British Airways. In the second part of this
report, globalisation is the selected to assess British Airways. The role of globalisation is very
important in influencing the policies as well as a competitive strategy within British Airways.
It also evaluates the effectiveness of the response of the organization along with
recommendations on areas for improvement.
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TASK 1
SIGNIFICANCE OF EXTERNAL AND INTERNAL BUSINESS ENVIRONMENTS
The large tourism market is divided into small sub-market on the basis of demographics,
geographical, psychological and behavioural segmentation. The travellers and tourists are
grouped by British Airways as per their needs, desires and expectations. The impact of 4
external factors of the business environment can be understood by using PESTLE analysis.
PESTLE FRAMEWORK
POLITICAL: the airline companies such as British Airways are largely affected by the political
environment in the UK. Heavy regulations and limitations are imposed by the UK
government on the airline schedule making the operations of airline difficult owing to
security measures (Masood, et al. 2016). This resulted in the increased expenses of the
British Airways. The working of British Airways is also affected by the engagement of
employees and workers with trade unions. The assurance from the company British Airways
for considering security measures for the safe journey has increased the confidences of the
consumers to travel.
It is essential for the company British Airways to consider the impact of political elements
while emphasising the legal regulations on the employee as well as traveller interest. The
British Airways have stooped its flight to some specific countries that include the Middle
East and other primary countries due to the possibility of a terrorist attack (Westphal, 2016).
For example, the war-like situation in Iraq and Syria led to cancellation and decline in a
number of flights to these locations.
The airline services are also largely affected due to frequent strikes form employee unions in
the UK. The recent incident being 2900 crew members in the mixed fleet of British Airways
resorting to strike over poverty pay along with threats for a strike in July 2017 by around
1400 crew members (Ross, 2017). It results in the disruption of the operations thereby
affecting the brand image of the British Airways. After the withdrawal from the European
Aviation Safety Agency post- Brexit, the maintenance approvals and airworthiness of the
flights that originated from the UK might not be recognised by other European countries
(Ollila, 2017).
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