Management Economics: British Airways Case Study

Management Economics

TABLE OF CONTENTS
1INTRODUCTION.........................................................................................................................4
21......................................................................................................................................................4
1About company and its services................................................................................................4
32......................................................................................................................................................5
1Evaluating demand and market equilibrium.............................................................................5
43......................................................................................................................................................7
1Elements or Factors that influence the Price Elasticity of Demand of products and services. .7
5CONCLUSION..............................................................................................................................9
6REFERENCES............................................................................................................................10
1INTRODUCTION.........................................................................................................................4
21......................................................................................................................................................4
1About company and its services................................................................................................4
32......................................................................................................................................................5
1Evaluating demand and market equilibrium.............................................................................5
43......................................................................................................................................................7
1Elements or Factors that influence the Price Elasticity of Demand of products and services. .7
5CONCLUSION..............................................................................................................................9
6REFERENCES............................................................................................................................10

INTRODUCTION
Application and use of economic study for business or organisational purpose
is recognized as management economics (Bowes and Krutilla, 2014). It is a comparative
advantage subdivision which interacts to applying microeconomics analysis to management and
business unit decision-making methods. This serves as a means of communication among theory
of economics with functional policies. This fills the key differences among "theory and practice”.
In business context economics is used to analyse the market position, brand value and
competitive state of business in global economy. This study includes British Airways’ critical
assessment of economic indicators that is assistive government guidelines. In addition to such an
implementation of various economical principles such as production and consumption, cost
benefit analysis, pricing controls on external factors that could affect the price elasticity as well
as supply inside the corporate sense.
1.
1 About company and its services
History: British Airways PLC is the largest international airline in the world. Via its own
operations and those of its alliance partners, British Airways serves 95 million passengers a year
using 441 airports in 86 countries and more than 1,000 planes. It is based at Heathrow Airport in
London, the busiest international airport in the world, and has a global flight network through
such partners as USAir in the United States, Qantas in Australia, and TAT European Airlines in
France. British Airways' earliest predecessor was Aircraft Transport & Travel, Ltd., founded in
1916. British Airways Subsidiary is the world's second largest air carrier. British Airways
provides 95 million commuters a day using 441 train stations in 86 nations and much more than
1,000 aircraft through its activities and that of its partnership spouses. This is headquartered at
London's Heathrow Airport that second busiest air base, and has a regional airline system with
affiliates including US Air throughout the U.S., Qantas in Australia, and TAT European Airways
in France. Aircraft Export & Fly, Ltd., established in 1916, has been the early ancestor to British
Airways (About British airways, 2019).
Industry, Products and Services: the organisation provides air travel services as
economy class, business class. Long haul and Mid-haul services in which first class, club world
and world travelling services are provided to customers. Recently it refined its products by tying
3