Context of Business

Context of Business

Contents
Introduction ................................................................................................................................................3
Main body ...................................................................................................................................................3
1 Discuss a SWOT and PESTEL analysis of chosen company ...................................................................3
2 evaluate how the changes in pestle factors influence the opportunities and threats of the business 6
3 Different styles of leadership................................................................................................................7
4 recommend a suitable leadership style which helps the organisation to achieve the business
objective..................................................................................................................................................9
5 critically evaluate the corporate social responsibility of the chosen organisation................................9
Conclusion ................................................................................................................................................11
References.................................................................................................................................................12

Introduction
Airlines is the industry where the companies are engaged in providing air transport
services which helps the people to access to the air mode of transportation. In this the company
utilize the aircraft's as a mode of transportation. These types of companies are generally under
the partnership or alliances with one another companies under any contract so that they can
provide best offers to clients which resulted in enhancement of sale. The report is based upon
British Airways which is the second largest UK based carrier, fleet size and passengers carried
company. The company was founded in the year of 1974 and had quarter is located in London.
183 are the places in which the enterprise is providing their services. The report is being
discussed about micro and macro factors which affects performance of the company. Further, the
report is being discuss the about how the company is addressing there is strength in order to
neglect their threats and weaknesses which is affecting their opportunities which are present in
the competitive market. There are several different leadership styles which help the company to
operate their functions and a recommended suitable leadership style. Lastly the corporate social
responsibility is also discussed.
Main body
1 Discuss a SWOT and PESTEL analysis of chosen company
SWOT analysis model
With the help of the internal factors the company can determine the affects their
operations and that is discussed below:
Strengths:
 the company use to provide safety journey to their customers. Only in the year of 1974
the hijacking incident was happened because of this only the firm was come under top 20
safest airlines company. The company has developed a sustainable brand and because of that only the company is
engaged in investing more so that they can expand their business at international
territories. For the same company is developing their technologies which helps them in
achieving their targets in better manner.

Weaknesses:
 Rolls Royce Engine trend 1000 engines has generated many issues for British Airlines.
And because of this only the enterprise has limited in their aviation Agencies as this
become a hurdler for firm to enter in market. The chosen organization has very badly impact because of Covid-19 and brexit and for
the same the company has under goen huge loss. And because of this the company failed
to meet their basic expenditure.
Opportunities:
 The enterprise can expand their businesses while adopting several opportunities which
helps them to stabilize their resources and other important resources. This helps the firm
to address more customers so that they can earn profitability from market.
 The company is already spreading out International root system so that they can attract
the new and old customers which resulted in enhancement of sale.
 It is important for the firm to use digital technologies more frequently so that they can
manage their work in a better manner. This helps them to increase their profitability. The
updation in technology can be used by company in grabbing the endless opportunities
from market place.
Threats:
 There are several threats because of the competitors in the same competitive market
place. In Aviation industry there are less barriers with respect to get entry in market but
only some of the companies can survive who have deep pockets. As it is the most
expensive industry and high investments are required by the enterprise. It is important for the company to have a deep knowledge with respect to their market
and customers as this helps them in analyzing the requirements of customers so that they
can satisfy them in effective manner.
External factors
It is important for every company to analysis all such factors which are not under the
control of firm as they are known as external factors. Analyzing such factors helps them to
determine the techniques which can be used by them in order to grab a stable position in
marketplace. The model is discussed below:

 Political factors: It is important for every company to determine the political factors
which affect their operation and make it difficult for the firm to conduct their business.
As there are several other Airlines which are together working in the same way and this
assists them to get alliance is used to attempt political benefits mutually. In the year of
2005 their were imbalance in political factors and for which there are many problems
faced by the nation. These practices are resulted in downfall in customer self-confidence
this was because of terror attacks before 10 years and resulted and struck safety laws for
Airlines.
 Economical factors: This factor is being discussed about such activities that can be refers
as in monetary values as they are extremely plays a significant role for the business
organizations. The demand of travelers are less because of this pandemic situations and
this resulted in loss to aviation industries. The entire world economy crimp consequence
and demand for the air travels are also rising which resulted in a growth of the such
industry.
 Social factors: It is very significant fro the company to analysis the current trends in
market so that the chosen organization can focuses on developing the powerful brand of
firm in the market. The changes in Demographic leads to a introduction of the grey
market that are spending more on leisure. The lifestyle, taste perception and fashions are
changing of their people are resulted in new opportunities so that there company can
grow in market.
1. Technological factors: Every type of business organizations who belong to aviation
industry are required to advance their technologies which helps them to increase their
quality of services which helps them to satisfy the targeted audience. The company can
provide better services to customers which can includes the tickets of flight and the other
benefits that can be taken by the customers during their journey. Further, several
establishments give possibility for a joint investment funds undertaking.
 Environmental factors: There are several environmental aspects which must be
considered by the firm as it is their responsibilities to save the available resources and
take care of environment. The British Airways used to reduce the petrol and energy
consumption which required improvement in engine technology.

 Legal factors: There are several legal factors that must be looked by the company so that
they can perform their functions and operations in legal manner. This helps them to
protect their rights and duties of customers and other rival firms.
2 evaluate how the changes in pestle factors influence the opportunities and threats of the
business
From the above discussion with respect to internal and external factors which affects the
functions of British Airways. It is discussed below:
Base Changes Opportunity/ Threat
Political Factor Brexit There are several threats in
this factor as changes in laws
resulted in changes in policies
which make it difficult for the
firm to survive for the longer
term in market.
Economical Factor Changes in labour cost It will be difficult for the firm
to heir the workforce at higher
wages.
Social Factor Determine the needs and
wants
With context to this factor it is
an opportunity for the
company to determine the
desires of their targeted people
so that they can satisfy it.
Technological Factor Advancement of technology It is very highly required by
the company to grab the
opportunities while
developing their technology
sector in order to provide their
services (Garg, Mishra and
Wadhawan, 2018).
Environmental Factor Changes in environment It is an opportunity for the

company to look after the
requirement of the
environment so that they can
save it by adopting several
techniques.
Legal Factor Changes in policies With references to the positive
changes it is an opportunity
for the company to expand
their business into the
international territory. When
there are formations of the
policies then it will be difficult
for the company to follow it
and that may resulted in
costly.
3 Different styles of leadership
Leadership Style
 Authoritarian leadership: it is the leadership style which allows a leader to impose
expectations and define the outcomes. As in this a one person shows can turn out the
successful in situation when a leader is most knowledgeable in the team. This type of
leadership is also used when the team members are not clear with respect to the guidance.
As it help leaders of British Airline in saving the time in order to take decision with
respect to the operations of a company. It helps in implementation of plan in order to
reduce the mistakes.
 Participative leadership style: it is the rooted and democratic theory as the presence is
involving the team members in the decision making process which helps the company to
motivate their team members and resulted and better outcomes from them (Wirawan,
Tamar and Bellani, 2019). The team members also filled included engaged and motivated
in order to contribute their ideas while applying their knowledge into the operations of

company. It is used in order to encourage the creativity of employees and helps the
British Airways to achieve the high level of productivity.
 Delegative leadership style: this type of leadership style focuses on delegating the
initiatives to the team members so that they can also use their mind in order to complete
the task given to the team. This is also a successful strategy which is competent in order
to take responsibility and prefer engaging every team member into the project. The
disagreement among the members may split and divide a group because of this it resulted
in a poor motivation and low morale. This helps in innovation and creativity of their
employees within the organisation. It is also used in order to create a positive working
environment which is beneficial for the company as well as for the employees and
resulted in developing a positive brand image.
Management Style
A management style is the manner which can be adopted by the managers in order to work so
that they can fulfill their objective behind their job roles. The management style includes the way
in which the managers used to plan, organise, take decisions, delicate their powers and manage
their subordinates and staffs. The managers are responsible to adjust with the team members and
responsible to consider different factors while keeping their focus on successfully achieving their
targets (Eggert and et. al., 2018). There are several types of Management styles and some of
them are discussed below:
 Autocratic management style: this type of Management in which the managers use to
follow top to down approaches as it is the one we communication from employers to
employees within the organisation. It is considered as the most controlling management
style in which the managers used to manage the decisions within the organisation and
holding all the powers in their hand. In this type of management style the managers are
treated as the drone as they used to monitor closely the performance of their subordinates
(Ghafouri and et. al., 2020). It is also helpful in order to establish a higher level of trust
between the people of organisation and the employees are also accepting the decisions in
an easier manner.
 Democratic management styles: in this type of management style the managers use to
encourage the workforce to give importance during the decision making process but the

ultimate decision will be taken by the managers only. In this type of Style the
communication goes in both ways from down to top and top to down. The cohesiveness
is increased in this type of management style. This type of process allows a diverse
opinions skills and Idea in order to take best decision for the organisation.
 Laissez - fire management style: in this type of Management style the managers use to
take hands of approaches to leaders. The staffs are trusted to do their work without
supervision and they are left to control their decision making and problem solving issues
(Mirshojaeiyan and et. al., 2018). In this type off management style the delegation and
delivery stages of work which resulted in the freedom to the workforce in order to control
their workflow and outcomes.
4 recommend a suitable leadership style which helps the organisation to achieve the
business objective.
The British Airways is recommended to adopt the participating management style as it is
the most different method of leading the team members. Those companies who are using a
participative management is time it will be easy for them to make decisions based upon their
feedback (Werhane, 2019). This also helps the organisation to motivate their employees while
engaging them into the process of decision. In this type of leadership styles the ultimate decision
is made by the leader rather than the group as a whole. This type of leadership styles helps the
manager as it was very involving with the employees and always and sure that they are truly
involved.
Benefits
 Increase the team morale: This type of leadership style helps the team members to raise
their voice because of this their employees plays an active role in the success of the
organisation.
 Promote collaboration: employees are provided the flexibility to work together in order to
reach their set goals by developing an effective plan (Putra and Cho, 2019). The
collaboration helps the organisation to contribute in order to get higher moral as well as
improve the communication between the team members within the organisation. This
resulted and developing a positive working environment of the company.

 Team members are ready to accept the decision: knowing that each team member
contributes to the decision-making process makes them feel they are more confident
about the final outcome whatever the leaders will take.
5 critically evaluate the corporate social responsibility of the chosen organisation.
Corporate social responsibility is the type of International Private business self regulation
which helps the company to contribute to the social goals in the nature of charitable by engaging
in or supporting the volunteering or ethically oriented activities (Salimi, 2019). It is considered
as a form of corporate self regulation and considered as from voluntary decision at the level of
individual organisation to mandatory screens at regional, domestic and international level.
British Airways are passionate about managing their business Responsibility in order to support
the people and the local communities while celebrating equality, diversity and inclusion.
Companies under off fight against the human and wildlife trafficking and the company is doing
its best in every manner so that they can reduce the aviation environmental impact.
Is the British Airways also investing sustainable fuels to flying greener, more fuel
efficient aircraft, so that it will be easy for them to drive a change within the industry of airlines
(Chatterjee and et. al., 2018). From the year of 2020 the company has committed to offset the
carbon emission on all the flights within the United Kingdom as for this the company is investing
on a range of global carbon reduction projects which includes rain forest protection and
reforestation programs. The unprotected and sustainable impact of coronavirus on the aviation
industry resulted in cancellation of flights which is a heavy loss for the airline industry. The
companies also engaged in a flagship Charity program where the companies are under a
partnership with comic relief and help the disadvantaged young peoples to get the best possible
start in their life (Corallo, Lazoi and Lezzi, 2020). The company is also engaged in tracking the
climate changes as they are adopting such technologies in a manner so that they can protect the
environment also which can result in reduction of environmental impact due to the flights.
The company is also supporting the workforce so that they can be motivated in order to
work within the company while getting in proper features from the British Airways which helps
them to satisfy their livelihood in an easy manner. The organisation is very famous as they used
to support their workforce with respect to their well-being from physical health to mental
resilience right through to financial health and social support. This organisation used to regularly

increase the awareness programs for their employees so that they can have good physical as well
as mental health. The organisation has also developed the department which helps and supports
those employees who are in need in order to overcome physical or mental issues.
The company has also tried to encourage their people to celebrate and be proud of
diversity (Estaji and Pourmostafa, 2020). The organisation has also increased the gender balance
by working with schools and colleges in order to promote the opportunities in every respected
area of career. The government has also introduced the gender pay gap legislation as it requires a
company that employs more than 250 people to report their Gender and bonus gap. The British
Airways also reports the same to the government (Razak, Sarpan and Ramlan, 2018). The
company also tries to support the local communities so that they can directly or indirectly
contribute to their livelihood.
Conclusion
From the above report it can be concluded that with respect to the airlines industry it is
necessary for the company to analyse the internal and external factors which affects their
operations and it is helpful in order to determine in the several techniques in order to influence
the opportunities and threats which are present in the competitive market. There are several types
of leadership and management styles which can be adopted by the organisation while
determining their pros and cons. It is important for every type of business organisation to have a
corporate social responsibility as their own or application which helps them to protect the
environment. It is necessary for every airline industry to work in order to protect the surrounding
wherever they are operating their operations.

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