Business Context of British Airways

Context of Business

Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT Analysis...........................................................................................................................3
PESTLE Analysis........................................................................................................................4
Pestle factors influencing the opportunities and threats of the business.....................................4
Strengths help in negating the threats and weakness affect the opportunities.............................5
Comparing and contrasting the styles of leadership....................................................................6
Suitable leadership style for the British Airways........................................................................7
Corporate social responsibilities of British Airways...................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
This report consists of the business context of the British Airways. This airline is
the flag carrier of the UK. The airline is headquartered at London, England that is near the main
hub at the Heathrow Airport. The airline is the second largest UK based carrier after EasyJet.
The net income of the airlines is £1,952 million. The report consists of the SWOT and PESTLE
analysis of the company. The Pestle factors that are influencing the threats and opportunities of
the business are discussed. The strengths of the airline are addressed in negating the threats as
well as the weakness affecting the opportunity is discussed. The various types of leadership
styles are compared and contrasted in the report. Suitable leadership style for the British Airways
is chosen for achieving the objectives of the airline. The corporate social responsibilities of the
British Airways are discussed at the end.
MAIN BODY
SWOT Analysis
Strengths – The safety of the British Airways is increased and the accidents are reduced to great
extent. The company is investing and in making the business sustainable by improving the
overall experience and technology along with expanding the international network. The company
is also reducing the carbon footprint by investing in the fuel efficiency.
Weaknesses – The Rolls Royce engine has created problem for the British Airways as it has
decreased the punctuality of the British Airways. The organisation is facing issues with the
working of the human resource as the pilots went on the strike and caused a legal dispute. The
airline is heavily dependent on the local market for the revenue generation.
Opportunities – The airlines can expand the services for increasing the revenue such as starting
the premium services for attracting the high-end customers. The tactics used by the airline is
introducing the hospitality services for the improving the customer base (Tan, 2019). The
expansion into the international market is a great opportunity as it can help in reducing the
dependency of generating revenue from the home country only.
Threats – The covid-19 pandemic has decreased the revenue as the travelling was completely
stopped and even after the starting of the airlines they have to include many Standard Operating
Procedures (SOPs) for the prevention against covid-19. The competition in the market has
distributed the shares and shared with the other suppliers.

PESTLE Analysis
Political – The airlines are affected by the government policies of US and UK. The UK is
regulated by the EU regulations and effects the safety regulations, operator licensing, personnel
licensing and traffic lights. CAA oversees the safety standards, security issues, consumer rights
and environment for the airlines.
Economic – The uncertainty of the UK environment due to the announcement of the Brexit has
caused loss and became a disadvantage as it has slowdown the economy in UK. The uncertainty
has caused the impact on the profitability of airlines. The sustained growth and profitability of
airline is due to the strategic focusing on the customer experience and adaptability of the
business in changing economy.
Social – The airlines focus on the millennial because the travel habits are varied from the
previous generations and they spend more in the air travelling in the Western Markets. The
company is focusing on minimising the environmental impact and the operational efficiency.
The fear of the corona virus has also hit the airline hard.
Technological – The airlines has decided to invest in the technology for making the services of
higher efficiency and gain more profitability through that. The airlines are has decided to take
full advantage of the emerging technology by transforming digitally.
Environmental – The central concern of the regulatory authorities is the impact on the
environment by the airline industry (Bose, 2018). The British Airline has made the business
sustainable by making firm steps for minimising the environmental impact by reducing the
carbon foot print and increasing the fuel efficiency.
Legal – The legal factors are important concern for the airlines. Noncompliance results in major
fines for the airlines along with destroying the reputation of the brand. The airlines have to
follow the laws related to the labour, operational areas; security and environmental impact the
airline need to be in compliant with the overseas as well as domestic market.
Pestle factors influencing the opportunities and threats of the business
The opportunity of British Airways is in the expansion of the business in the international
market and expansion of premium services. The opportunities get influenced by the pestle factor
as the Brexit is causing uncertainty in the economy for operating the business, the laws of the
government while working in the expansion to the international market be challenging for the
airlines. The airlines have to deal with different laws related to the labour, security and