This PESTLE analysis provides valuable insights on the challenges and opportunities that lies ahead for British Airways in the global business environment.
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Contents INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 PESTLE analysis for British Airways:........................................................................................1 CONCLUSION................................................................................................................................2 REFERENCES................................................................................................................................3
INTRODUCTION The PESTLE analysis is a tool which is used by the management to determine the impact of various external factors on the operations of business. The following PESTLE analysis of British Airways provides valuable insights on the challenges and opportunities that lies ahead for the company. MAIN BODY PESTLE analysis for British Airways: Political Factors affecting British Airways: Over the last few years, British airways has been operating in a challenging political environment characterised by terrorist attacks in countries such as Paris and Brussels and on top of that, Brexit. With the recent Coronavirus epidemic, restrictions on airline industry has ever increased. Business Airways needs to consider the influence of such events and lay more emphasis on such regulations and decide on what course of action to take during such difficult times. Economic Factors affecting British Airways: The global economy has experienced a dramatic decrease in growth during the last decade which has affected the airline industry severely. With Brexit, disposable income of the people has decreased and the consumers are not willing to pay the former prices of the airlines (Gupta, Gupta and Gupta, 2019).As a result, many of the competitors of British Airways have already decreased their prices significantly. Management of the British Airways needs to plan strategically to deal with this economic slowdown and come up with cost-effective and attractive pricing for the consumers to fight the competition. Social Factors affecting British Airways: Changing demands and lifestyle of consumers urges them to spend more on leisure and travelling. A new class of customers has emerged due to the same. This a great opportunity for British Airways to increase the market share and earn more revenue. The management of the airlines needs to come up with a marketing module that attracts this class of consumer and offers them the best worth for their money. Technological Factors affecting British Airways: 1
British Airways is making effective use of advance technology to increase engineering and quality of service that it is providing to its customers. Airlines these days are investing huge amounts in R&D projects in the field of security and alternative sources of energy. Services such as web check-ins are being provided by every airline company. Thus, it gets imperative for British Airways to invest considerable amount of resources in technological advancements and take full leverage of early lead that it has already taken in the field. Environmental Factors affecting British Airways: Considering the high media coverage, ecological influences have become extremely important. This factor presents a huge opportunity for British Airways since it’s the only airlines that has started reporting their environmental results 2 decades back. British Airways is already making sure that they have the least impact on the nature by latest technology engines, alternate sources of fuel and reducing the average noise per flight (Isson and Harriott, 2013). Management needs to adopt policies to continue the same trend. Legal Factors affecting British Airways: British Airways operates internationally so it has to comply to a lot of rules and regulations of each country. Various health and safety laws has been made after considering the conditions that the employee and consumers are facing in this industry. British Airways has faced legal problems quite regularly in the recent past. Thus, management needs to dedicate some considerable sources for scanning the legal horizon and complying by all rules and restrictions to protect itself from any lawsuits in the future. CONCLUSION It can be concluded that many challenges exist in business environment for the British Airwaysbutitneedstocapitaliseandfocusontheopportunitiesintechnologicaland environmental aspect of its macro-environment. 2
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REFERENCES Books and Journals Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The impact of Europe 2020 policy.NOLEGEIN-Journal of Corporate & Business Laws. pp.1-11. Isson, J.P. and Harriott, J., 2013. Aligning Key Business Challenges across the Enterprise.Win with Advanced Business Analytics. p.35. 3