Analysis of Global Business Environment

The assignment analyzes the global business environment, specifically the airline sector, and its drivers of change such as technological advancements, open economy, economic, socio-political, and legal factors. It also discusses Porter's National Competitive Advantage Theory and its application to the aviation industry. The document highlights the importance of social media engagement and e-commerce in gaining customers' loyalty and creating brand image.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
Topic: Global Business Environment..............................................................................................1
REFERENCES................................................................................................................................3

Topic: Global Business Environment
With advent of technological advancements and open economy, airline sector has seen a
rise in both revenues and expansion aspects. There is a need to understand that the influence of
macro environmental factors such as economic, socio-political and legal on this sector. It has
directly and indirectly shape the strategic decisions in maintaining the profitability and
productivity in this sector (Trigg and Trigg, 2016). In addition to the above, there are other
drivers of change which has uncertain effects on the operational running of airline sector such as
cybersecurity, shift towards using alternative fuels and energy sources, terrorism and new modes
of consumption (Hillary, 2017). These drivers have helped the aviation industry, especially
companies like Eastern Australia Airlines to excel and gain competitive advantages.
Moreover, the threats and challenges associated with cybersecurity is increasing with the
use of digital tools and brought concerns. It also highlighted the execution of sensor networks
and improved levels of surveillance to minimise the tensions (Audretsch and Caiazza, 2016).
Along with, sustainability component has been reviewed by overcoming the noise pollution to
maintain the environmental sustainability of aviation sector (Boshyk, 2016). The regulations led
to a fine line between the social and quality regulation and helped the management to adopt
strategies and methods to maintain the quality and delivery of services. Moreover, it shed light
on the changes that have been made recently for smooth running of operations including
recycling interventions to attain carbon footprint by the year of 2050, use of new engines that
consumes less than half fuel and emit 50-80 percent less carbon (Kasemsap, 2016).
Furthermore, Porter's National Competitive Advantage Theory might prove beneficial in
understanding competitive advantages in the aviation sector and assess the factors available to
emphasize on gaining positioning and recognizing strategy and economic competition. This
model helps in knowing the forces that support the companies' and include demand conditions,
factor conditions, structural components and rivalry with related supporting industries (McLean,
2018). Here Eastern Australia Airlines might be facilitated with gaining knowledge and
transparency about ideas exchange that assist in disintegration of long standing practices. This
model supports in highlighting the advantages of the drivers to maintain credibility and
reputation.
Nevertheless, these drivers focused on improving the conceptual framework to boost
revenues and profits for the aviation companies. The administration has adopted the usage of
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social media and social media engagement via online medium called internet. It has helped them
to gain customers' loyalty and create brand image. For instance, combination of automation and e
commerce led the convenience component for the customers on a larger scale. The focus in
enhancing the standardizations uniform and adhere to the compliance to transform the operations
more accessible (Ringham and Miles, 2018). It carefully helped the process optimization to
minimise the costings and improving the effectiveness for the safety of passengers and bringing
sustainability.
To sum up, aviation sector is growing towards the forwarding direction by customers'
engagement in the real time scenario. The focus is on building trust and credibility at both the
local and global marketplaces to sustain the competition and protecting the environment.
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REFERENCES
Audretsch, D. and Caiazza, R., 2016. Technology transfer and entrepreneurship: cross-national
analysis. The Journal of Technology Transfer.41(6). pp.1247-1259.
Boshyk, Y. ed., 2016. Business driven action learning: Global best practices. Springer.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kasemsap, K., 2016. The roles of knowledge management and organizational innovation in
global business. In Civil and Environmental Engineering: Concepts, Methodologies,
Tools, and Applications (pp. 1156-1180). IGI Global.
McLean, M., 2018. Understanding your economy: Using analysis to guide local strategic
planning. Routledge.
Ringham, K. and Miles, S., 2018. The boundary of corporate social responsibility reporting: the
case of the airline industry. Journal of Sustainable Tourism. 26(7). pp.1043-1062.
Trigg, D. and Trigg, M.C., 2016. International business–operating abroad. In The Global
Business Handbook (pp. 35-48). Routledge.
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