British Airways: Impact of External Environment on the Company

This report provides an analysis of British Airways, examining the internal and external factors that influence its operations. It utilizes PESTLE and SWOT analyses to evaluate the political, economic, social, technological, environmental, and legal factors, as well as the strengths, weaknesses, opportunities, and threats impacting the airline. The report discusses how competition and external regulations affect British Airways, particularly the shift in customer preference towards middle eastern airlines and the impact of government regulations. It concludes that while British Airways remains a major player in the airline industry, it faces significant challenges from external factors, requiring continuous adaptation and strategic planning to maintain its competitive edge. Desklib offers more resources for students, including solved assignments and past papers.

INTERNAL AND
EXTERNAL FACTORS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
The report is based on British Airways that are operating more than 20 countries, it has
provided most convenient options according to the customer that’s is why there are more than
5000 people are daily travelling through this airway. Further, the report evaluated internal and
external factor that are affected the organisation. Also, discussing different ways in which chosen
firm impacted on the external environment.
MAIN BODY
External factors-
Political factors- In the year 2016, there are more than $750 billion are globally generated by
British airways, some of the government regulations are addressing for concerning about
security of passenger, safety or many other issues. Also, large number of companies are
generating the value in order to partnering with other airline companies. So, it can be
beneficial for governments as well as companies & passengers. Moreover, globally the
corporate and businesses travellers are enjoying major benefits. Also, the industrial
regulation is harmonized manner profits for the entire world.
Economic- These factors also influencing the airline industry, the industry have been
impacted by several downturns. The Airlines companies are affected by the recent seen and
economic growth are slow. The air travel markets saw a low in early 2009 so, it was
premium travel which were more badly affected.
Social- Airlines creating social value as related to the other businesses doing in this type of
there are many industries which are help in profit from the airline industry. Along with this,
it is the hospitality industry in order to attain globally that depends on heavily transports.
This industry impacted on the basis of social forces. These stimulated the demand for the air
travel that reducing the prices. Also it has help to created employment. There are some of
the result that has been seen as improvement in social image.
Environmental- The effect of environmental factors is the airline industry that might higher
than most of industries. Fuel is the major expenditure for it. As a result, the company need for
investment more in fuel-efficient and environment-friendly carriers.
Technological- Technological factors are important that can be understand from the
heavy use of technology for aviation. There are both of the companies and travellers

know how great a role it plays, technology means speed but also convenience and
safety. Whether it is passenger or air traffic safety, that critical role of technology.
There world wide web that has brought in the higher revenues and profits. Along
with this, there are most of the bookings that are taking place online even in the
aircraft which are enable by best in class technology.
Legal- The passenger’s safety one of the important area on which airlines are held
liable in order to air crashes or any other kind of disaster. The Air transport are also
regulated with several acts which are important. Some of new laws have been
enforced related to how airlines treating their passengers.
Internal factors-
The internal factors are related to the SWOT analysis in which the biggest strength of the
organisation is brand image, the brand image of British Airways are comparatively high in
the market so there are large number of customers who have daily travel. Also, the weakness
is related to disruption due to infrastructure system issues. Some of the major opportunities
are venturing global operations that are help for planning in order to initiate for
improvement customer experience and efficiency. Further, threats are related to intense
competition which are affected the company by middle eastern airlines.
External environment
The external environment is related to all the factors which are affect the British Airways
such as society, regulation and political system, competition, economy etc.
How company impact by its context external environment-
The company is impacted because the competition is increases day by day and that is
why the customers are shifted to middle eastern airlines. That has impacted the organisation
for declining the productivity. Also, government has passed the law regarding pandemic
which has also affect the number of customers due to current process
CONCLUSION
It has been concluded that British Airways is one of the biggest and major in the airline
industry. Also the report discussed internal and external factors with the help of PESTLE

and SWOT analysis that are impacted the chosen firm. Further, explained external
environment and its impact on the company.

REFERENCES
Books and journals
Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The
impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws,
pp.1-11.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Chodakowska, A., 2018. The mobility revolution in the automobile industry. Electric cars and
battery management.
Chapman, R. J., 2019. Exploring the value of risk management for projects: improving capability
through the deployment of a maturity model. IEEE Engineering Management
Review. 47(1). pp.126-143.