Understanding the Business and Economic Environment: The Tourism Industry

Understanding the
Business and Economic
environment The
Tourism Industry

Contents
Introduction.................................................................................................................................................3
Main body....................................................................................................................................................3
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

Introduction
The business environment refers to all factors of economy that affects the commercial
and consumer behavior which influence the buying habits of the customers and companies
therefore it has an impact on the operations of the business organization. The term business
environment means all the individuals Institutions and other forces that are outside the control of
the business enterprise but have an effect on the operations of the business (Chen, Lin and
Chang, 2017). These factors can be either large scale or small scales. This essay reports talks
about British Airways which was founded in 1974. The headquarter is situated in London. The
company is dealing with the services with respect to the aviation industry. The company has
expanded it services into the Global with the help of digital media marketing. The report is being
discussed about the aviation industry and STEEPLE model is used to determine the external
factors. Further, the micro factors which affects the demand and supply of goods and services.
Competitiveness of a market and its impact on the business is discussed. Lastly, the problems
are discussed which are faced bunches company during the last year's.
Main body
Aviation industry is a business where the companies use to attract their customers with
the help of providing accommodations and entertaining tourists while operating the tours. The
British Airways is the Flag Carrier airline of the London, United Kingdom. It is the second
largest in terms of fleet size, international flights, and international business UK based career
Airlines was founded in 1974. The company has very strong business trends but in this pandemic
situation the Airways has reduce their employees by 12000 jobs. It is expected while seeing the
current scenario that it will took several years to return to the previous performance and level
of profitability (Chen, Suntikul and King, 2020).
STEEPLE MODEL is used to determine the external factors which affects the operations
of the company. Social factor includes the demographic changes which means the historical
shift of high birth rates to high infant death rates in the society as this leads to the development
of the aviation industry. British Airway not only maintained the customer experience but also
focuses on the operations and impact on the social image. In this pandemic situation the