Management: Analysis of Virgin Atlantic Airlines using PESTEL, SWOT, McKinsey's 7S and Porter's Five Forces

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note

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Table of Contents
Introduction......................................................................................................................................2
LO1 Analyse the impact and influence which the macro environment has on an organisation......2
LO2 Assess organisation’s internal environment and capabilities..................................................6
LO3 Evaluate and apply the outcomes of an analysis using Porter’s five forces..........................10
LO4 Devise appropriate strategies to improve competitive edge..................................................13
Conclusion and recommendation..................................................................................................18
Bibliography..................................................................................................................................20

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Introduction
Virgin Atlantic Airways Limited is a British airline with the headquarters in Crawley,
United Kingdom (Virginatlantic.com 2019). The strategic context that can be taken into
consideration includes the fact that the fleer size of 46 is considered as one of the highest in the
world (Virginatlantic.com 2019). The fact that the company uses a fixed fleet consisting of
Airbus and Boeing provides the company with an expansion strategy (Virginatlantic.com 2019).
The airline is known for indulging in day-to-day flights across the world and seasonal flights
both of which provide Virgin Atlantic Airlines with the permit for travelling with customers as
well as goods (Virginatlantic.com 2019).
However, one of the drawbacks of Virgin Atlantic Airlines is the fact that it had seen a
significant amount of employee turnover in the recent years (Virginatlantic.com 2019). The
mission statement of Virgin Atlantic Airlines is to provide top quality flight services to the
customers (Virginatlantic.com 2019). The vision is to improve the current level of employees
and increase the base of operation within the next five years so that increase in profit-making
activities can take place (Virginatlantic.com 2019). At the same time, the aims and objective of
Virgin Atlantic Airlines is to ensure that it remains as one of the most productive and reliable
airliner in the world (Virginatlantic.com 2019).
LO1 Analyse the impact and influence which the macro environment has on an
organisation
The application of the PESTEL analysis can help to determine the macro environment
forces and the impact it may have on an organisation. PESTEL refers to the macro environment

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factors such as Political, Economical, Social, Technological, Environmental and Legal factors.
According to Michalak, Rahwan and Wooldridge (2017), the PESTEL analysis takes into
consideration some of the important as well as key factors that are essential to be taken into
account for the expansion of a market. Macro environment considerations include a large part of
the society and the microenvironment. The analysis of the macro and microenvironment is done
in order to identify the necessary changes that are required to be made based on the strategies. As
stated by Booth (2016) it can be used as a method to conduct a macro environmental scan so that
the components of strategic management can be can be implemented. In the case of Virgin
Atlantic Airlines, the application of the PESTEL analysis can help the company to understand its
potential in the business. Virgin Airlines uses these techniques and tools to ensure that strategic
direction and business growth is attained. The application and the use of PESTEL are provided in
the table. This includes:
Category Political Economic Social Technologica
l
Legal Environment
Factors Policies of
Governmen
t
Taxes
Inflation
Interest rate
Demograph
y
Culture
Life style
Technical
advancement
Innovation
Legislations
Laws
related to
employment
and
sustainabilit
y
Environmenta
l regulations
Management
of wastes
Impact on
business
The
political
The
economic
The social
environment
The technical
advancement
The legal
laws related
The
environmenta

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environmen
t across the
world can
fluctuate
based on
the
Governmen
t impact
that exists
in the
countries. It
can be seen
that in the
case of
Virgin
Atlantic
Airlines,
the political
environmen
t in London
can be of
assistance
for the
condition of
London is
stable and
thus, can
help in the
financing
the airline.
It can also
be said that
improvemen
t needed for
increasing
the base of
operations
or for
expanding
its
dominance
can be done
based on the
economic
strength that
exist in
of London
can be
considered
as
supportive
as well as
the social
environment
of the
destination
countries. In
this regard,
it can be
said for
Virgin
Atlantic
Airlines, the
social
support can
help the
customers
and the
community
in the field of
airlines needs
to be applied
by Virgin
Atlantic
Airlines so
that the
company can
remain
updated in the
technological
side. It is
necessary that
Virgin
Atlantic
Airlines
import
technical
changes so
that the
company can
continue to
provide the
to flying
commercial
and
passenger
jets are
relaxed in
the United
Kingdom
and in the
United
States.
However,
laws related
to
employment
and other
HR policies
are strict in
the United
Kingdom.
Therefore, it
is necessary
that Virgin
l regulations
are strict in
the United
Kingdom,
and so a flight
company like
Virgin
Atlantic
Airlines need
to ensure that
it maintains
such laws.
The law
include
reducing the
amount of
pollution so
that the
company can
maintain its
Arial
business. This
also involves

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company.
However,
the
destination
countries in
which the
flight is
directed at
can create
major
problems
for the
company
and in the
process can
hinder any
chances of
progress.
Thus, the
political
environmen
t can pose
huge threat
London. In
this regard,
it can be
said that for
Virgin
Atlantic
Airlines, the
economic
condition of
the source
country can
be
considered
as one of the
best for the
developmen
t of the
company.
can be
considered
as strength
for the
company. It
is necessary
to
understand
the manner
in which the
social
environment
of Virgin
Atlantic
Airlines can
contribute
for its
development
. Based on
this, it can
be said that
Virgin
Atlantic
best and
comfort travel
experience to
the customers
Atlantic
Airlines
comply with
such laws
and at the
same time
abide by the
Governing
rules that
are
established
in other
destination
countries
regarding
landing the
flight and
any rules
related to
political tie-
ups
using
sustainable
mode of
travelling so
that
customers can
remain
comfortable
during the
flight hours.