Analyzing the Impact of Global Business Changes on British Airways

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GLOBAL BUSINESS ENVIRONMENT
PORTFOLIO
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Title- To determine the impact of changes in the global business environment on the
airline industry: a case study on British Airways.
The dynamic nature of business environment includes wide ranges of changes which also put
a vast impact on business processes and efficiencies in a direct and indirect manner. In the
global business environment, several factors such as – political, economic, social,
technological, legal and environmental factors put a huge impact on work activities.
Furthermore, Airline industry of UK is increasing rapidly and flourishing across the globe;
thus changes in global markets likewise – economic recessions, changes in technology,
changes in customers’ demands and fluctuations in currencies have a positive and negative on
profitability and revenues of the company (Compact, 2014). British Airways is one of the
largest airline services provider sector in the UK operated across the world; it is famous
among customers' for quality services and customers' satisfaction level. The industry has been
also facing ups and downs of the global business environment. As it has been analysing that
the UK economy is facing a recession due to which customers’ are unable to spend more on
consuming luxurious activities. In this sense, British Airways is unable to generate higher
income within the UK, besides this, the organization is also operating in other countries so
that fluctuations in currency rates hinders’ business decision making and operations.
Along with this, changes in the political condition of the global environment may also
hamper business processes as strict government laws or regulations force businesses to fulfil
them in a positive manner; otherwise, their business will get shut down. In the present
scenario, the increasing use of technology by economies and societies has been also attracting
industries; business owners are tending to adopt these technologies with an aim to make
improvements in operations or process. Although, integration of digital technology and
innovation in the airline industry is critical in order to operate efficiently. It assists managers
to ensure on-time performance streamline, improve and simplify the customers’ experience as
well as operational experiences (Salvatore, 2015). By considering the airline industry,
numerous technological changes have been occurred in past decades; the reason behind this is
to make people feel like home. In other words, companies have adopted some effective or
innovative ideas thus to provide the best travelling experience to people.
Therefore, in order to determine changes in the global business environment, it is essential for
managers to determine all the factors of the business environment. For this purpose, they can
also conduct SWOT and PESTLE analysis. It assists them to identify all those elements
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which are involved in global markets; these factors assist to determine how to respond
positively towards the global environment and gain a high competitive edge. For example –
technological changes in global markets help British Airways to grab better future
opportunities by implement new tools or techniques in their production process and provide
higher customers’ satisfaction level to target audiences. Moreover, with technological
advancement, these organisations are able to reach out to more number of customers and
increase its customer base.
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References
 Compact, U.G., 2014. Overview of the UN Global Compact. Recuperado de
https://www. unglobalcompact. org/ParticipantsAndStakeholders/business
_associations. HTML.
 Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
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