Business Environment Changes and British Airways Analysis Report

This report analyzes the business environment of British Airways, exploring the impact of global changes and external forces on the airline. It examines drivers of change, such as technological advancements and marketing innovations, and how BA responds to them. The report applies models like Fisher's Change Model, and employs strategic tools including SWOT and PESTEL analyses to assess the airline's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors affecting its operations. The analysis includes real-life examples, such as the implementation of online platforms and social media applications, to illustrate the company's adaptation to the changing business landscape. The report concludes by summarizing the key findings, emphasizing the importance of understanding and responding to environmental changes for the airline's success.

Portfolio paper

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment refers to the external forces that influencing the business decisions.
This assignment is related to British Airways which is founded in 1974 by British government
(Belobaba, Odoni and Barnhart, 2015). In this assignment will be discussed about changes that
will be occurred in global business environment. Driver of changes will be defined relating to
academic models. Real life examples will be explained through applying models and theories.
TASK
Change in the global environment- There are various change that occur in the global
environment of British Airways such as the company highly used social pace and internet to
create brand equity. With the help of online medium, BA manufacture websites, applications and
e-commerce sites, traveller can book their tickets which positively affect the economic condition
of the company.
Drivers of change- They are those factors which bring change in the overall industry. Technical
change of driver highly affect the business environment of BA because there are various change
related to work and other services are occurred cause of it. The company also adopt that change
and respond towards them. For this, there is an model of change which is as following:
Fisher's Change Model
It is a model which is used to explain that how people and organisation respond to
change. This model is developed by John Kotter and identified eight stages that people follow in
succession through a change process (Choi, Lee and Olson, 2015). This model entails eight steps
of establishing urgency, forming a powerful coalition of guidance, creating a clear vision,
communicating this vision, encouraging staff to affect change themselves, planning for short
term wins and consolidation. There are various change generate in BA cause of drivers of change
and the firm positively respond towards them.
For example, cause of marketing innovation and technological change, the company
launched a Facebook application called “Perfect days” which encourage travellers to share a
travel wish list and itinerary via a Facebook (Gaspar and et. al., 2016). By providing training and
development sessions, the firm can influence staff so that they can get knowledge and
information about new technologies and changes which are occurred through changes. This
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create positive impact in the business environment of BA in for form of profit or generating high
revenue.
SWOT Analysis- It is a strategic tool & technique that is used by organisation to identify the
strengths,weakness, opportunities and threats. SWOT analysis of BA is as following:
Strengths Weaknesses
 BA has a substantial brand presence
and excellent global presence.
 There are limited market share fro BA
cause of intense competition.
Opportunities Threats
 Alliances and code sharing with other
global airlines can boost BA's
business.
 There are various competitor in the
market such as Air India, Singapore
Airlines etc. which create competition
for the company.
PESTEL Analysis- It is a tool that is use by firm to understand and identifying impact of
external factor that impacted the business environment of the organisation. PESTEL analysis of
BA is as following:
Political Economical
 Frequent strikes from employee unions
in UK affect the airline services and
brand image of the company.
 Low fuel price increased profitability
from the airlines in the short term.
Social Technological
 BA needs to fully aware of whole
health issues that can be faced by the
passengers during travelling so that it
can provide better services to help
them.
 Technical investment and warehouse
management system will improve
customer experience and reduce cost.
Environmental Legal
 Mandate on airlines on purchasing  Discrimination laws are placed by
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carbon pollution permits for operating
in EU religion.
government to protect the employees
and BA follow them or treated fairly by
giving same opportunity regardless of
age, gender etc.
CONCLUSION
From the above information, it can be concluded that change in business environment and
external forces affect the environment of the firm. In this assignment, Drivers of change, model
of change and real life example in context of response are defined in the report.
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REFERENCES
Books & Journals
Belobaba, P., Odoni, A. and Barnhart, C. eds., 2015. The global airline industry. John Wiley &
Sons.
Choi, K., Lee, D. and Olson, D. L., 2015. Service quality and productivity in the US airline
industry: a service quality-adjusted DEA model. Service Business. 9(1). pp.137-160.
Gaspar, J., and et. al., 2016. Introduction to global business: Understanding the international
environment & global business functions. Nelson Education.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Online
Change in global airline industry. 2019. [Online]. Available Through:
<https://www.wns.com/insights/articles/articledetail/62/5-trends-for-the-global-airline-
industry>.
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