Impact of External and Internal Factors on Emirates Airlines

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

1STRATEGIC MANAGEMENT
Executive summary
The aim of this report is to discuss about the impact of the external and internal business factors
on the business operation of Emirates. In doing so, different models such as PESTLE, Porter 5
forces and SWOT analysis are being used in this report. Based on these models, it is identified
that there are number of opportunities as well as threats being faced by Emirates inn their current
business operations. One of their major opportunities is the introduction of low cost services and
their major threat is the increase in the cost of jet fuel. Based on these issues, this report
recommended a few steps, which can help Emirates in managing their profitability and
enhancing their global operations in the future.

2STRATEGIC MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................3
2. External environmental analysis..................................................................................................4
2.1 Political factors......................................................................................................................4
2.2 Economical factors................................................................................................................4
2.3 Social factors.........................................................................................................................5
2.4 Technological factors.............................................................................................................5
2.5 Environmental factors............................................................................................................6
2.6 Legal factors..........................................................................................................................6
3. Porter five forces analysis............................................................................................................7
4. SWOT analysis............................................................................................................................9
5. Recommendations......................................................................................................................10
6. Conclusion.................................................................................................................................10
7. Reference...................................................................................................................................12

3STRATEGIC MANAGEMENT
1. Introduction
Determination of the internal and external business environments is one of the major
factor considerations for the contemporary business organizations. This is due to the reason that
the current business state of affairs is getting changed rapidly and frequently with time. Hence, it
is getting more important for the contemporary business entities to cope up with these changes
and design their business strategies accordingly (Brueckner, Lee and Singer 2014). In addition,
with the help of the determination of the internal and external business factors, the potential
impacts of them can also be identified and the business organizations can be immune. In the
current business scenario, one of the intensely competitive business sectors in the airline sector.
This is due to the reason that commercial airline sector is witnessing huge growth across the
world and more brands are entering this sector. This is posing challenges for the existing players
as well as viability issue for the new entrants.
In the commercial airline market of United Arab Emirates, the leading airliner is the
Emirates airlines. They are based in Dubai International airport and currently are the fourth
largest carriers in the world. Emirates are also operating one of the highest numbers of aircrafts
in their fleet, which further helps them to provide the vast connectivity across the world (Squalli
2014). However, increase in the competition especially in the forms of low cost carriers is
affecting their profitability along with the change in the preference pattern of the customers.
Thus they are having the need for effective determination of the internal and external business
factors to identify the potential impacts.