SWOT and PESTEL Analysis of British Airways

This report provides a comprehensive analysis of British Airways, including SWOT and PESTEL analysis. It evaluates the opportunities and threats faced by the airline and how it addresses its strengths and weaknesses. The report also discusses different leadership styles and recommends a suitable style for meeting business objectives. Read more on Desklib.

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Perform a SWOT and PESTEL analysis for chosen airline........................................................1
Evaluate how the changes in PESTEL factors have influenced the Opportunities and Threats
business. Critically comment on how the airline is addressing their Strengths to negate Threats
and Weakness affecting their Opportunities................................................................................3
Compare and contrast the different styles of leadership. Comment on the appropriate
leadership and management style at the chosen airline...............................................................4
Recommend a suitable leadership style that will help them meet their business objectives.......6
Critically comment on their Corporate Social Responsibilities in the processes using evidence
from your research.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business includes number of activities and task which is significant for accomplishing desired
goals and objectives. It is crucial for business to develop effective strategies in order to gain
competitive advantage over other rival companies. There are different factors and elements of
internal and external market environment which will lead to have impact over business and its
operations (Shayganmehr and et.al., 2021). Leadership practices assist company to enhance
business practices as well as motivating employees to conduct business practices in significant
manner. This report is based on British airways. This is a flag carrier airline company of United
Kingdom and its head office is located in London, England. British Airways is consider as one of
the largest company is airline sector and it is providing its products and services to different
market area. This report includes SWOT and PESTEL of British Airways as well as different
factors which influence opportunities and threats has been determined. In this report different
leadership and management styles has been analysed. Apart from this, Corporate social
responsibilities has been determined in this report.
MAIN BODY
Perform a SWOT and PESTEL analysis for chosen airline.
There are different factors of business environment which will lead to have major impact
on business and its practices. It is crucial for organisation to determine and analyse different
factors of internal and external business environment in order to successfully carry out business
practices as well as accomplishing desired goals (Belás, Kmecová and Čepel, 2020). SWOT and
PESTEL in respect to British Airways is mention below –
SWOT analysis
This stands for strength, weakness, opportunity and threats of business. This is significant
tools for business as it assists in taking correct and accurate decision for enhancing business
practices as well as accomplishing desired goals. SWOT analysis of British airways is mention
below –
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 Strength – British airways is one of the largest and well known organisation which
dealing in airline sector. This company has strong brand name that is significant for
influencing customers. British airways is consider as the safest airline as it is considering
number of safety measure in order to provide better services to customers.
 Weakness – There are some weakness of British airways company which lead to have
negative impact on business and its practices. British airways has limited market share as
compared to other rival companies. This lead to have affect over sales and revenues of
business.
 Opportunity – There are various opportunities for British airways company in order to
enhance business as well as increase its profitability (Braslauskas, 2020). Respective
company has opportunity to expand its services to new market or territories as it will lead
to attract more customers towards business. British airways organisation needs to
consider new and advance technology in its business operations with the motive of
increasing its performance and capabilities.
 Threats – There are some threats in business environment of British airways company.
Rise is fuel cost will lead to directly reduce profits margins of business. so increase in
cost of fuel can be consider as major threat for respective business and directly affects its
performance. British airways organisation has also major threat form strong rival
companies. This company is dealing in highly competitive market area that can have
direct affect on business.
PESTEL analysis
PESTEL analysis is very effective tools that could be consider by organisation in order to
determine different external factors along with its impact on business practices. PESTEL
analysis stands for political, economical, social, technological, legal and environmental factor.
This is mention below in context of British Airways –
 Political factor – It is important for organisation to analyse political factors as it includes
government rules and policies that directly affect overall functioning of business.
Political factor consist of taxation policies, rules and regulation and various other
elements (Beynon and et.al., 2020). British Airways is correctly following different rules
and policies that is developed by UK government for security and safety of passengers
flying.
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 Economical factor – This factor of external business environment consist of economic
growth, GDP rates, inflations rates and so on. It has been analysed that lower fuel price in
market area will lead to directly increase profitability of British Airways company.
 Social factor – This factor consist of perception or belief of customers regarding business
and its services. It is crucial for British Airways Company to develop positive image in
market area with the motive of attracting more and more customers. Respective company
is able to increase the perception of customers for British airways as low cost carrier.
This lead to have positive impact on business practice.
 Technological factor – UK market area has one of the advance technology in all over the
world. It is essential for respective company that is British Airways to consider new and
innovative technology in its business practices in order to successfully and effectively
conduct business practices. This factor will lead to have positive impact on operations
and functioning of respective company and assist in gaining competitive advantage.
 Legal factor – There are number of legal factor which will lead to include British
Airways performance. Legal factor includes health and safety law, wages and salary law,
copy rights and so on. It has been determined that airline business is gradually controlled
and respective company is following all laws and rules in order to maintain safety and
security of customers.
 Environmental factor – Environmental factor is one of the crucial factor which affects
British Airways business (Corallo, Lazoi, and Lezzi, 2020). This includes air, water,
noise pollution land take and waste management are some of common environmental
factors that respective company have to deal with. It has been analysed that change in
weather and climate conditions will lead to have negative affect over business.
Evaluate how the changes in PESTEL factors have influenced the Opportunities and Threats
business. Critically comment on how the airline is addressing their Strengths to negate
Threats and Weakness affecting their Opportunities.
PESTEL analysis is one of the effective and significant tool that assist respective
company that is British Airways to determine and evaluate different elements of external
business environment. It is important for organisation to take correct and accurate actions in
order to increase the influence of positive impact as well as attain desired goals and objectives.
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Through PESTEL analysis respective company is able to determine different opportunities and
threat for business. It has been analysed that there are number of opportunities that could be
attain by airline companies in order to increase business practices as well as improve its overall
profitability. British Airways is beyond question maybe the most perceptible names in the UK.
British Airways holds various possibilities in its belt. In spite of the way that they face huge
threats right now, they really can start using their advantages for their potential benefit to easily
overcome these perils. The airplane has a name like no other and it is hard for some other
transporter to have its spot. Hence, organisation don't have an incredible arrangement to worry
about considering the way that business can without a doubt change their course in fascinating
waters. Through this it has been determined that respective company that is British Airways has
both economic opportunities and economic threats for business.
British Airways company has opportunity to gain economic benefits as UK market area
has growing or high economic rates which will lead to positively influence overall performance
or capabilities of business (Shayganmehr and et.al., 2021). This will lead to have significant
impact over improvement in profitability and revenues of British Airways company. Reduction
in cost of fuel can be consider as great opportunity for respective company as it directly helps in
increasing profits. British Airways organisation has opportunity to gain competitive advantage
by considering new and innovative technology in its business practices. New and advance
technology will assist in increasing effectiveness and efficiency of business. Through this British
Airways airline is able to provide better quality services to customers as well as provide more
easily while travelling through British Airways. High competition in airline market area can be
consider as one of the major threat for respective company. There are various strong companies
dealing in airline sector that will lead to have major impact over performance and profitability of
respective business.
Compare and contrast the different styles of leadership. Comment on the appropriate leadership
and management style at the chosen airline.
Leadership can be describe as the ability of an individual to direct or influence number of
people in order to carry out business practices in significant manner. It is essential for
organisation to have effective and efficient leadership practices in order to enhance business
activities as well as motivating employees. Through effective leadership practices respective
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company that British Airways is able to provide proper guidance to employees so that they can
conduct business activities in required manner. There are different types of leadership and
management styles which is significant for conducting business practices in effective manner as
well as increasing overall performance of employees. Different types of leadership and
management style is compared below in order to determine the most effective style for
enhancing business practices and accomplishing desired goals.
 Autocratic leadership style – This type of leadership or management style is consider as
one of the strict style as in this leaders are focusing on imposing expectation as well as
define outcomes. Autocratic leadership styles grant a pioneers to compel suppositions and
describe results (Shayganmehr and et.al., 2021). A one-singular show can wind up being
productive in conditions when a pioneers is the most taught in the gathering. Yet this is a
useful framework in time-obliged periods, creativity will be relinquished since
commitment from the gathering is limited. The tyrant leadership style is moreover used
when associates need clear principles.
 Democratic leadership style – Democratic leadership style is likewise consider as
participative leadership style. A democratic leadership style gets people to might what
you want to be done at this point with the end goal that they need to do it. The epitome is
to remember associates for the powerful communication. Partners in this manner feel
included, attracted and motivated to contribute. The pioneers will commonly win at last
the last say with respect to the unique cycles. In any case, if there are clashes inside a get-
together, it will in general be a drawn-out collaboration to show up at an arrangement.
There are different benefits to this participative leadership style. It can cause trust and
advance fortitude and investment from laborers. It considers creative mind and helps
laborers with creating and make.
 Delegative leadership style – Delegative leadership style centers around appointing drive
to colleagues. This can be a fruitful technique if colleagues are skilled, assume liability
and lean toward participating in singular work. Be that as it may, conflicts among the
individuals may part and separation a gathering, prompting helpless inspiration and low
confidence. This type of leadership is also known as Laisser faire leadership. This kind of
management and leadership style is significant in order to create positive working
environment for employees.
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 Transactional leadership style – This is consider as one of the effective leadership style
which will assist in enhancing performance of employees. Transactional leadership styles
use "transaction" between a leaders and their supporters - prizes, disciplines and different
trades - to take care of business. The leaders lays out clear objectives, and colleagues
realize how they'll be remunerated for their consistence (Corallo, Lazoi, and Lezzi, 2020).
This "give and take" leadership style is more worried about after set up schedules and
techniques in a proficient way, than with making any transformational changes to an
association.
 Transformational leadership style – Transformational leaders conduct or carry out their
workforce without micromanaging they trust arranged agents to take authority over
decisions in their designated occupations. In transformational leadership styles, the
pioneers inspires their disciples with a fantasy and a short time later desires and
empowers them to achieve it. The pioneers furthermore fill in as a genuine model for the
vision. Transformational leadership is a leadership style in which pioneers backing, move
and convince agents to create and make change that will help create and shape the future
accomplishment of the association.
Recommend a suitable leadership style that will help them meet their business objectives.
Leadership style is very crucial for organisation as it will lead to provide correct guidance
and direction to employees for successfully conducting business practices. It is important for
British Airways company to consider correct and accurate leadership style in order to increase
overall performance and profitability of business. Leaders should have capability and potential to
successfully manage employees as well as motive them to carry out business practices in
required manner. It has been determined that participative leadership style is most effective and
efficient for respective company that is British airways. This will help in providing number of
benefits to business as well as motivating employees to increase its overall performance. There
are various advantages that could be attain by respective company by considering participative
leadership style (Shayganmehr and et.al., 2021). Participative leadership is a style of leadership
where all individuals from the association cooperate to decide. Participative leadership is
otherwise called majority rule leadership, as everybody is urged to partake. There is typically a
pioneer who administers the interaction. This pioneer works with a conversation about the
current issue or the choice that should be made. The pioneer imparts all appropriate data for
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choosing to the entire gathering. The gathering shares thoughts regarding how to take care of the
issue. The gathering settles on the best choice dependent on the data and thoughts introduced. At
the point when you urge representatives to offer their thoughts on organization issues, you will
get an assortment of answers for browse. To be associated with the dynamic cycle for the
organization, the staff should be personally associated with how the organization works.
Participative leadership energizes coordinated effort. Employees in specific affiliations can
feel covered or unheard if their endeavors to contribute considering their conclusions or
experience - are disregarded. In participative leadership, there is a conversation for these designs
to be heard (Corallo, Lazoi, and Lezzi, 2020). Participative leadership works with a free
movement of considerations. Each delegate has something to contribute. While all
responsibilities may not be significant or essential, setting up an environment wherein they can
be discussed invites others to contribute their musings: things would then have the option to be
refined, surveyed, and dependent on. Participative leadership improves affirmation. If people
acknowledge they will be heard, they will undoubtedly contribute, and to feel like their
responsibility is regarded. This is a focal basic for a bright, pushed worker power. Laborers that
are given a voice in the movement of the association feel before long committed for the
accomplishment of the association. The staff certainty stays at an irrefutable level in light of the
fact that there is an appreciation for the chance to be significant for the association dynamic
cycle. So this is very effective leadership style of British Airways company as it assist in creating
positive working environment as well as encourage employees to contribute their maximum
efforts for accomplishing goals of business.
Critically comment on their Corporate Social Responsibilities in the processes using evidence
from your research
Corporate social responsibility can be describe as one of the crucial part of business which assist
company to be socially accountable for itself as well as its stakeholders along with public. It is
very important for organisation to consider corporate social responsibility practices in order to
develop positive image in market area. It has been determined that business is taking number of
resources and other raw material from society and environment in order to conduct its business
practices. So it is very important for respective company that is British Airways to carry out
different activities that is beneficial for society, environment and individual. Corporate social
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responsibility conducted by respective company needs to includes different elements such as
responsiveness, responsibility and obligation.
 Responsiveness – Corporate social responsibility is significant process as it assist is
determining how business and their partners progressively interface and care for the
climate. On the other hand, corporate social responsibility refers to an organization's
ethical commitment to society. Along these lines, responsiveness and responsibility are
connected. Notwithstanding, responsiveness can be made through open assumptions for
corporate duties (Corallo, Lazoi, and Lezzi, 2020). It is important for British Airways
company to be responsive towards society and environment. This company needs to
consider the impact of its business practices on environment, society as well as people.
 Responsibility – It is crucial that British Airways company is taking complete
responsibility for its practices and task performed. It has been determined that business
should be accountable for its task and activities for the welfare of society and
environment.
 Obligation - It is generally acknowledged as an obligation of current business. Corporate
social responsibility goes past bringing in cash for investors. It's worried about securing
the interests, everything being equal, like workers, customers, suppliers, and the networks
wherein organizations work. British Airways needs to go beyond earning money or
increasing its profitability.
CONCLUSION
From the above report it can be concluded that there are different elements of business which
will lead to have direct affect over business and its practices. It is crucial for organisation to
analyse different factors of internal and external business environment with the motive of
gaining more opportunities as well as overcoming threats. It is essential for organisation to have
effective and efficient leadership practices in order to enhance business activities as well as
motivating employees. It has been determined that participative leaders should have capability
and potential to successfully manage employees as well as motive them to carry out business
practices in required manner. Apart from this, it is very important for organisation to consider
corporate social responsibility practices in order to develop positive image in market area.
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REFERENCES
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