Strategic Analysis of British Airways: A Comprehensive PESTEL, Porter's Five Forces, and SWOT Analysis

Strategic Analysis
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Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 UK External Business Environment....................................................................................3
3.0 Internal Environment Analysis............................................................................................7
4.0 Analysis of the SWOT Position...........................................................................................9
5.0 Main Issues Faced by organisation....................................................................................12
6.0 Analysis the business unit of the organisation with any name of the strategy which the
organisation can adopt..............................................................................................................13
7.0 Conclusion..........................................................................................................................15
8.0 Recommendation................................................................................................................16
Reference List..........................................................................................................................17
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1.0 Introduction
The following assignment is based on the strategic analysis of British airways. British
Airways is considered as the biggest airline company incorporated in the United Kingdom.
The organization was founded on 31st march 1974. The UK based organisation provides a
wide range of standard quality travel services to its customers. The task introduces about the
different tools that are used for the external as well as internal market analysis such as
Political situation, economic situation, social factors, technological factors, legal factors, and
environmental situation. There has been introduction of the strength, weaknesses,
opportunity, and threats analysis of the organization. The task introduces about the Porters 5
force model and the internal environment analysis. There are several issues faced by the
British airways evaluated in the assignment.
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2.0 UK External Business Environment
2.1 PESTEL Analysis
British Airways is regarded as the biggest foreign airline company in the UK. It provides
excellent facilities to its customers. The PESTLE analysis of the British Airways comprises
of the evaluation of the external situation affecting the business of airline.
2.1.1 Political situation
Every business is required to be controlled by the political structure of UK. Likewise, the
airline business is also required to comply with several regulations. The airline industry is to
follow the regulations while making use of airport slots, while selecting the directions by
airline, fixing the price of the airfare, working with the business partners as well as payment
of the cost of infrastructure. The government in many nations levy several security measures
in order to fight gains the threat of violence and resolution of the issues related to the
immigration.
2.1.2 Economic situation
An economic crisis is considered as very usual in the business related to airline. Business
travel and tourism has diminished significantly because of such crisis. The introduction of
Brexit has created a severe impact on the economic structure of the United Kingdom leading
to severe inflation in the country. This has also declined the business of British airways and
other airline companies. The global depression in the year 2008 has created an adverse
influence on the business operations of the British Airways. The downturn in 2008 has
enhanced the charges of services and oil, United Kingdom has encountered with serious
economic crisis, the reduction of the value of sterling. Other economic issues such as the
capital market risks, increase in unemployment, attrition of budgets of household activities,
decreasing property rates, etc has declined the confidence of consumers and the airline
business.
2.1.3 Social situation
Every kind of traveller, either the business or general travellers, prefers trustworthy airlines.
They tend to make sure that their journey by flight goes calmly and smoothly. Because of the
downturn in 2008, they are very concerned regarding the flight price. They desire to get
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