British Airways: Macro Environment Analysis, Strengths, and Weakness

This report analyzes the macro environment of British Airways, focusing on the impacts of the digital revolution on production and consumption. It examines the political, economic, social, technological, legal, and environmental factors (PESTLE analysis) affecting the airline, with specific attention to the UK market. The report highlights the company's strengths, such as its strong brand image and use of digital technology, and weaknesses, including its dependence on the UK market and low return on investments. It also discusses the interlinked nature of the macro environment with the company's strengths and weaknesses, referencing competitors and stakeholder involvement. The report concludes with a list of references, offering a comprehensive overview of the external and internal factors influencing British Airways' business operations and growth strategies, including its potential for international expansion through BRICS economies.

Business Environment

P4 Positive and negative impact of
macro environment
• Macro environment is refers to that environment which
are not in the control of the business.
• With the helps of the Macro environment, firm can make
its growth and development of its business.
• There are different types of the macro factor which create
impact on the business operation of the British Airways.

CONTINUED
Following are the positive and negative impact of
the macro environment.
 Impact of the digital revolution on production
and consumption
 Impact of the digital revolution on production
and consumption
 Impact of the digital revolution on production
and consumption

P5 Internal and external analysis
. Following are the PESTLE analysis and its
impact on the British Airways
• Political factor
The political environment of the UK is not
stable. This create impact on the operations of
the BA in a way that they are not able to
expand their business on the Heathrow airport
• Economical factor
In the recently increases in the number of the
flight taxes which leads to the passenger for
paying more amount for the tickets
• Social factor
With the increasing in the number of the
visitors in the business firm's revenue is also
enhances and it helps to them for ensure the
long term business growth.

CONTINUED
• Technological factor
There are many types of the technologies are used by the BA.
Technologies such as Self service check-in machines at Heathrow
airports
Legal factor
The significant legal factor which is effecting the BA is the power of
the trade union.
• Environmental factor
It includes this use of the flue for the carrying out the business
operation from has to face many types of problems.

CONTINUED
Internal analysis
• Culture of the company
The culture of the company is very cooperative and make
focus on the innovation.
• Stakeholders
The company is also made efforts to involved their
stakeholder in their business.
• Competitors
Virgin Atlantic; Jet Airways etc. are major competitors of
British Airways.

P6 Interlinked macro environment
with strengths and weakness
Strengths
• The company have strong brand
image which helps to them for
gathering more customers in their
business.
• BA is using high level of IT
digitization in their business and
have effective interaction with the
internet.
Weakness
• The company is totally depended on
the UK market which restrict to their
intentional growth and development.
• The make different types of
investment which shows low rate of
return on investments.

CONTINUED
Strengths
• The main strengths of the company is they
have strong brand image.
• It is directly interlinked with the use of
digital and technology changes.
• Through the BRICS economy firm get
chance to expand their business.

CONTINUED
Weakness
• The main weakness of the company is that they are highly depended
on the domestic market. For overcome with this problems company
can use of the digital and advance technology.
• The organization receive low rate of the return on the investment
from the business. So they can capture the market more effectively
and also it helps to them for generating more revenue.

REFERENCES
 Gupta, A., 2013. Environmental and pest analysis: An approach to
external business environment. Merit Research Journal of Art, Social
Science and Humanities. 1(2). pp.013-017
 Rosenbusch, N., Rauch, A. and Bausch, A., 2013. The Mediating Role
of Entrepreneurial Orientation in the Task Environment–Performance
Relationship A Meta-Analysis. Journal of Management. 39(3).
pp.633-659
 Galati, A., Crescimanno, M. and Siggia, D., 2016. Website quality and
internal business factors: an empirical investigation in the Italian wine
industry. International Journal of Wine Business Research. 28(4).

THANK YOU