SWOT and PESTLE Analysis of British Airways

Context of business

INTRODUCTION
Organisation implement it's activities within business environment which incorporates different
forms of elements that have essential influences over their functioning. Moreover, within this
firm is required to gain formal understanding of whole overcoming elements as to ensures
strategic advantages. For this report, the undertaken company is British Airways, It is the flag
carrier airline of the United Kingdom. It is headquartered in London, England, near its main hub
at Heathrow Airport. The airline is the second largest UK based carrier, based on fleet size and
passengers carried, behind easyJet. The topics which are going to be discussed in this report are
SWOT analysis, PESTLE analysis and corporate social responsibility affects of business.
Moreover, the various leadership style and effectiveness of organisational culture upon company
process is also discussed in this report.
TASK 1
1.
SWOT analysis
This is considered as the strategic framework which enables business to effectively identify
it's ability, weakness, opportunity and threats. Moreover, it would also permit them to develop
effective measures to overcome from weaknesses as well as obtain effectual advantages from
growth opportunity. So, the Swot analysis of British Airways are performed below:
Strengths
 Strong brand: Brand have essential commercial value. Moreover, British Airways had
account for around 23 years withSaatchi & Saatchi, a firm which developed various of its
known advertisements, incorporating the influential Face campaign. Since year 2007,
respective firm have utilised Bartle Bogle Hegaarty as their advertising agency.in
addition to this, they have formed themself as a brand with higher level of customers
recognition as well as trust.
 Tech-savvy company: British airlines have formed system of online order as well as is
performing for shifting completely from paper to e-tickets and for diversifying their
online operations. In respect to developing effectiveness of internet within trvel and
tourism sector. Moreover, stronger online presence is desireable for firm into premium
services.
1

Weaknesses
 Over dependence into UK market: Above 50% of revenues of British Airlines come from
United Kingdom marketplace that seems to become good but undertaking risk into
internationalisedeconomy one may undertake risk to have market myopia.
 Employee Unions: British Airways have a huge unionised personnel. In addition to this,
collective bargaining takes place on continuous basis as well as breakdown into process
of bargaining that may disrupt activities as well as adversely impacts the performance of
business. Also, its continued potential for managing employement costs that enhances
risk into particular areas.
Opportunities
 Expanding market: With growing as well as developing economies teh interconnectivity
demands, investment into travel infrastructure, middle class expansion, raising
international tourism and enhancing global business develop effectual opportunities for
major airlines for forming their routes. Additionally, with advent of new customers
groups of traveller and budget travelling segments ther would enhancement into services
demand of this industry.
 Pressure upon smaller players: Because of Government interventions by large &
impcting operations of airline firms various rivals are forced for existing market because
of higher cost of competing & struggle of international economy.
Threats
 Competition into market: Fare discounting through firms have historically had few bad
impacts on British Airways outcomes as they usually need to reacts to rivals fares for
maintain trafficking of passengers. Additionally, few competitors have structures of cost
which are lower in comparision to British Airways targeting budget travelling segment.
PESTLE Analysis
Political Factors
Political components are playing an undeniably more fundamental element in the flying industry
venture. There are various thought processes inside the again of the developing meaning of
political variables comprehensive of the component of political equilibrium in the utilization of
increment, the situation of administration rules in expressions of commercial center class and
2