Impact of PESTLE Factors on British Airways

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE and SWOT analysis of British Airways..................................................................1
Evaluate how the changes in PESTEL factors has influenced the Opportunities and Threats
business and comment how the airlines industry is responding to the threat and weakness by
using their strength.................................................................................................................3
Compare and contrast the different styles of leadership........................................................5
Recommend a suitable leadership style that will help the business to meet their objectives.6
Critically evaluate the Corporate social responsibilities of airlines industry.........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is the entity or the enterprise that is engaged in the commercial, professional or
the industrial activities. The term business refers to the organised efforts and the activities of the
individual in order to manufacture the goods and services with the ai of profit maximization.
There are various factors which is impacting the internal and the external factors of the business
organisation so that they can make the required change in the strategies and the polices (Vilchez
and de la Hiz, 2018). British airways is the chosen organisation for this report, It is the flag
carrier airline in the United Kingdom and its headquarter is in London, England. It is established
in 1947 and is the second largest UK based carrier and the passenger’s carrier. This report will
cover the Analysis of internal and external environment and also analyse the influence of their
strength on the weakness and the threat of the company. Moreover, the report discusses the
various types of leadership style and the corporate social responsibility of the firm.
MAIN BODY
PESTLE and SWOT analysis of British Airways.
SWOT analysis is the strategic approach of understanding the internal environment in the
business so that they can make the best use of their suitable resources in order to get the
effectiveness in the different operations. Organisation make the necessary changes in their
operational activities in order to cope up with the situation so that they can sustain in the market
for a longer period of time. In context of British Airways, the SWOT analysis of the various
factor is explained as follows:
Strengths Weaknesses
 The companies having trusted and
strong global brand image.
 The companies having effective it
integration with the services offered.
 The company is the market leader in
the United Kingdom with large
business size.
 Employees are showing organisational
issues as service disruptions.
 Infrastructure system issues as the
company is facing huge conflicts.
 There are various issues by which the
company is slowdown their business.
Opportunities Threats
 The companies having use expansion  These is the huge impact of Covid-19
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opportunity with their services so that
they can increase their revenue
growth.
 The company can't reach to the
international market as they can serve
the new attraction of point.
on airlines industry as they have to
ship down the whole operations.
 There is the huge competition in the
market as there are the large number
of supplier in the United Kingdom.
PESTLE analysis is the framework of analysing the external environment so that they can
take the necessary measures in order to cope up with the business environment (Franke, 2019). It
includes the various factors like Political, Economic, Social, Technological, Legal and
Environmental in order to understand the external environment in the business. In context of
British Airlines, This framework helps in understanding the macro factors so that they can they
can make the further strategies and action plan in an apprioate manner. Explanation of these
factors is explained as follows:
 Political factor: these are the factors which includes trade policy, fiscal policy and tax
policy imposed by the government that is having a huge impact on the structure of
company and they may be change their Strategies and action plans in order to cope up
with the political factors. In context of the British Airways, There is the frequent strikes
from the employees Union in the United Kingdom and affecting the brand image in the
market. Post Brexit, the company has huge loose over the development of the European
Aviation Safety Agency.
 Economical factor: these are the factors which determine the economic performance of
the company that is directly impacting the the various operations in an organisation.
These factors includes inflation rate, foreign exchange rate, interest rate, economic
growth patterns and foreign direct investment. In context of British airlines, the
companies increasing their profitability due to the low fuel prices and uncertainty due to
the impact of brexit reduce the major investment by United Kingdom careers. This affect
the smooth running of the business as this slow down the business operations.
 Social factor: these are the factors which determine the cultural trends, demographics,
population etc. This helps in making the right use of organisational resources and also
trends for Western countries like the UK countries when there is the high demand during
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