Contemporary Developments: British Airways External Influences Report

This report provides a comprehensive analysis of the external influences impacting British Airways (BA), a leading airline company. The report begins by identifying key external factors such as political, economic, social, technological, legal, environmental, and competitive forces that affect BA's operations and strategic decisions. It delves into the implications of Brexit, economic conditions, social trends, technological advancements, and legal regulations on the airline. The report then examines the marketing communication mix employed by BA, assessing its relevance and impact on policies and decision-making, particularly in attracting its target market of millennials. The report evaluates the effectiveness of BA's marketing communication mix, highlighting advertising, sales promotion, and direct marketing strategies. Finally, it suggests areas for improvement in BA's response to external challenges and competitive pressures, offering insights into enhancing its business performance in the dynamic aviation industry. This report provides valuable insights into how external forces shape the strategies and performance of a major player in the airline industry.

Contemporary Developments
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Primary External Influences for British Airways........................................................................3
TASK 2............................................................................................................................................7
i. Relevance to British Airways and its influences on policies and decision-making.................7
ii. Effectiveness of British Airways’ response to the Marketing Communication Mix............10
iii. Areas of improvement in response of organization..............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Contemporary development of business can be defined in several terms and this
development can be considered as a result of increasing competition and globalisation of the
companies. Contemporary development is more specifically based on technology and companies
giving more emphasis digitalization of operations. This report will discuss about what are the
factors that affect development of a business organisation. External factors become more
important to consider when company operates in international market and is a globalised
organisation. This report will discuss about impact of external business environment factors for
British Airways, founded in 1974 and headquartered at London, UK, British Airways is a flag
carrier airline of UK. Parent company of British Airways is International Airlines Group and
serves to around 183 destinations with a fleet size of 278. British Airways provides high quality
service to the customers and its services are divided in terms of class of service namely,
economy, business etc. and along with this several other elements are included in its service.
Along with external factors affecting British Airways the report will also include discussion and
analysis of marketing communication mix of British Airways. Marketing communication mix is
the mix which include different mediums and selection of these by the Marketing
communication mix.
TASK 1
Primary External Influences for British Airways
All organisations regardless of their nature and size get affected by external factors of
environment in which their business operates (Barton and et.al., 2016). In context of British
Airways its business and operations gets significantly affected by environment which extends to
national boundaries because British Airways is an international organisation. Primary external
influences for British Airways are;
Political
This is one of the important and primary factors that influence British Airways. This factor
mainly consists of political system and its condition in a country and because of international

operations of British Airways this also includes international political conditions. Brexit is an
important example for British Airways. Earlier as UK was a member country of European Union
(EU) it was subject to several benefits allowed to EU countries and because of its exit from EU
UK is no more allowed for any benefit of EU country. Moreover this has also affected relation of
UK with EU countries and this makes direct influence of British Airways in as being a UK
organisation. Some of the factors which has affected because of this are operating license, safety
regulations, traffic rights and environment regulations of the countries. Other than this British
Airways is operating in aviation industry and this is why political influence plays central role in
its success. The role that government plays in market attractiveness significantly affects success
of the aviation industry and this is added by business opportunities of the country and
governmental regulations in the country. increasing concerns of all governments across the world
is another reason which affect operations of the aviation industry.
Economical
This influence of the external environment is concerned with finance and cost of the business
environment. Some of the important measures included in this are taxation rates, interest rates,
economic condition of the country in terms of GDP, income per capita, level of unemployment
and economic stability (Bhandari and Bhandari, 2017). This factor exerts positive and favourable
influence when GDP and income per capita is high, tax and interest rates are low. This is because
these elements of the economic factor keep the cost of the business low subsequently increasing
its profit. All these are important factors in economic context and these have significant impact
on the operations of British Airways. Economic slowdown has made negative impact on the
operations and profitability of the British Airways. Along with economic conditions and
regulations of the countries where British Airways operate also plays important role in success of
British Airways and its profitability. This is because high economic rates in terms of taxation and
other measures like low GDP can directly affect business of British Airways in that particular
country. Brexit has not just added influence in political factor but has also affected economic
influence for British Airways. This is because EU countries started placing varied charges on the
UK businesses and also created economic uncertainties in the UK. But amidst all these negative
situations arising important factors that contributes in sustained growth of British Airways was

low unemployment rates in UK. Other than this measures taken by British Airways also played
important role in sustaining the growth of British Airways.
Social
This is another important factor influencing aviation industry and this is mostly concerned with
customers of the company. Consumer trends are important element of this factor and their
demographic conditions and characteristics. This also gets affected by the decision of the
company to what segment of the customers company targets are what are the preferences and
taste of that segment of the customers. The segment of the customers which has been focused
and targeted by British Airways is Millennial. Millennial refers to a specific generation and
British Airways has selected millennial as their target market because travelling habits of
millennial are different from the previous generation. Other than this their disposable income is
also higher in travelling compared to previous generation (Clarke, 2019). In UK this is more
favourable for British Airways because of high tendency of people to go for travel and holidays.
In its attempt to attract customers British Airways involves into excellent operational efficiency
and maintaining favourable image of the company. Reliability and social image are also
important and for attracting customers one of the important factors is providing high quality of
service and British Airways keep quality and convenience at central focus.
Technological
This factor has become centre for growth and development and along with that this also
contributes in competitive strength of the company. British Airways is requiring focusing on
environment sustainability and more cost efficient measures and this is possible through
technological development. In context with British Airways it also needs to focus on fuel-
efficient and safe aircrafts (Fozer and et.al., 2017). Digitalisation of operations and functions is
also a part of technology of the company. In context of British Airways is investing in
technology to make its fleet more fuel efficient and to offer superior experience to its customers
along with this better quality, efficiency and higher profitability are some other reason and
objectives for British Airways to invest in technology. Along with this British Airways is also
focusing on digital transformation to get complete advantage of merging in its daily operations
worldwide.

Legal
Legal factor is another most important factor to influence aviation industry and British Airways.
In case of non-compliance to these legal regulations company can be subject to major fines and
negative impact on reputation of the company is another influence (Perera, 2017). British
Airways is international airline and this is the reason that legal environment for more than one
country. Some important legislation and regulations are concerned with safety of the customers,
environmental safety. Legal environment for aviation also includes regulations for air crashes or
type of damage or disasters such as accidents of aircrafts.
Environmental
Increased carbon footprint and its negative impact on the environment have required that
companies place major emphasis on their activities having impact on environment. Aviation
industry is also required to place emphasis on this and British Airways is also required to do so.
British Airways has taken some steps in order to achieve environment sustainability for which
sustainable business model was developed (Corvo, 2017). Sustainability now has become one of
the core areas of strategic importance of the brand by continuous investment in growing the fuel
efficiency of its fleet and reducing its carbon footprint. This is the reason that Parent Company of
British Airways is committed to net zero. This is the reason that through its plan Flight Path Net
Zero Company has planned to achieve net zero CO2 emission by the year 2050. In this plan
company has projected 20% reduction in carbon emission by 2030.
Competitive Influence
This is another and primary external factor that influence business organisation. Airline
industry is increasingly getting more and more competitive, technology and customer service are
important factor for competition. Several organisations are operating in aviation industry and all
these organisations has their own competitive strength some of them are of offering low fares
and some of them are providing more qualitative services. This differentiate in their services and
value provided by them (Achinas and et.al., 2019). This also makes it easier for customers to
select what is their preference whether it is the quality of service of low price of the services.
British Airways focuses on high quality services along with affordable price of the services. Top
competitors that influence Easy Jet, Jet2, Virgin Airline, Delta Airline, Monarch Air groups and

to stay ahead of them in competition and attract customers British Airways will need to track
their activities. This will help in analysing functions which competitor is undertaking and how
they can affect position and profitability of British Airways.
The above mentioned factors are some of the primary and important external influences
on the British Airways (Christodoulou and Cullinane, 2019). These are the factors that provide
opportunities for organisation to grow and develop in the market and these factors also provide
challenges which organisation is required to deal with and overcome in such manner that it does
not make any negative impact on the organisation.
TASK 2
The theme selected here is Marketing Communication Mix aviation industry is getting
more and more competition and this requires that to stay strong in competition they employ
effective promotions by the company. Marketing communication mix can be defined as a blend
of promotional variables through which company can promote and communicate to target
market.
i. Relevance to British Airways and its influences on policies and decision-making
Marketing Mix refers to mix of promotional methods that are chosen by the company and
there are several reasons because of which this has become important for companies to focus on
this and create right mix. Communication mix is meant to influence and impact target market and
audience and this is why the mix is required to be such that company can influence its target
market (Genchev and Todorova, 2017). British Airways also employ effective promotional mix
and communication strategies and this is why it is important and relevant to British Airways.
Communication Mix plays important role in success of marketing and promotional efforts of the
company and as British Airways targets millennial it is very important that communication mix
of the company is right and effective in attracting and influencing millennial. Variables in a
communication mix that have been employed by British Airways are;
 Advertising
 Sales promotion
 Direct marketing/Internet Marketing

Among all these available variables, British Airways focuses on advertising and sales
promotion. In advertising British Airways use print and media advertising and they are paid
specific attention in its marketing strategy. Some of thaw ways in which these communication
mix affect policies and decision making are that company employs some of the efficient
personnel so that they can create attractive and impressive content for these advertisement. This
is first way in which communication mix affects the decision making and policies require that
content is created which can communicate values provided by the company through its high
quality (Smedescu and et.al., 2016). Another decision that is affected by communication mix is
right decision regarding channel and what source should be selected for such as magazine and
newspaper in context of print advertisement. This is also an important decision for the success of
the communication mix.
Another variable in communication mix which is selected by the company is sales promotion.
This communication mix is an important area which requires significant decision making
regarding what type of decisions should company make and what impact it will make on the
business success of British Airways. Some of the strategies for sales promotion that are applied
by British Airways are;
Money off coupons- This means that some of the online sites for travel and tourism allow
discounts and off money on tickets of the British Airways. But these coupons are not directly
offered by the British Airways. This involves decision about what websites should be allowed to
offer discounts and policies that are involved is regarding relationship of the British Airways
with various websites and external partners.
Competitions- This is another approach for sales promotion in this occasionally British Airways
allow participants to win free trips to selected destinations (Sitorus, 2017). This involves
decision regarding what should be right way of doing so and how British Airways can do that
and how it can fulfil its objectives through offering the free trips.
Point of sale material- This approach includes display stands and banners and posters which are
extensively used by British Airways at airports and other locations.

Loyalty Programmes- This is an additional sales promotion technique which is extensively used
by British Airways. In this various loyalty incentives are provided to frequent flyers and British
Airways executive club members.
In its communication mix British Airways also employs direct and internet marketing in this mix
it employs different ways through which British Airways can promote and communicate to its
target market. British Airways targets millennial and internet marketing is one of the best manner
to connect with millennial and influence them to travel through services of British Airways.
Some of the ways in which policies get affected by communication mix are;
This communication mix definitely affects policies that are concerned with marketing and
promotion in British Airways (Rusdi Hidayat and et.al., 2018). This are based on the values of
the company and also ensures that communication mix and content included in this is based on
attractiveness of different segments and this is the reason that communication mix of British
Airways involves different variables in it.
Financial policy of British Airways is another policy to get influenced because of
communication mix because communication mix of the company involves and significant
financial expanse and financial policies of the British Airways gets affected because of that.
British Airways employs traditional mediums of promotions and they are comparatively costly
than modern digital marketing and this is why financial policy of British Airways also requires to
be aligned in that manner.
Brand management policy, this is another policy that gets affected by communication mix. This
is because marketing and communication mix is an important way through which brand is
managed and communication mix directly impact on brand management (Singh and et.al., 2016).
Brand management simply refers to promising and then maintain that promise and provide
services through which brand can maintain its promise. British Airways believes that image of
the brand is important and this is why communication mix should wisely involve what promise
company can maintain. British Airways promise to provide high quality and they have kept that
promise through their services.

These are some of the policies that get influenced by the communication mix at British
Airways (SEUKINDO, 2017). The policies are of utmost important and communication mix at
the British Airways influence these in positive manner so that company can achieve its
objectives.
ii. Effectiveness of British Airways’ response to the Marketing Communication Mix
Effectiveness of very important for all organisational functions regardless of their type
and nature but this becomes more important when organisational functions are directed towards
influencing external parties of the organisation. Customers are most important for organisation
and this is why it is very important that communication mix which is employed to influence
customers and target market of the company is effective (Akbar, 2019). Effectiveness of
communication mix can be defined as cost effective and at the same time communication mix is
able to fulfil and achieve its objectives. Objective of communication mix is to exert most positive
impression of brand towards customers and potential so that they can be influenced to buy
products and service of the organisation.
Concerned with effectiveness of the marketing communication mix of British Airways it
can be said that it is effective as this involves different variables in its communication mix.
These variables are designed in such manner that they identify attractiveness of each segment of
customer that British Airways that they target and how they can influence its customers. These
communication mix variables also allow British Airways to different advantages of them. For
example print and media advertisements are traditional forms of marketing communication and
this is why British Airways has employed them. Some of the advantages of this are reach to large
number of audience, simple form of communicating, it can communicate to its target market by
identifying what is the channel of communication which is an attractiveness to audience. For
example in context of print media company can identify what newspaper and magazine should
be selected by British Airways so that it can reach to its target audience. This also an important
benefit of this form of advertisement that it does not remain limited to target audience and this
way any other potential except target willing to use services of British Airways, which might be
occasional or first time traveller can identify about British Airways and its services (Naumovska
and Blazeska, 2016). Disadvantage of this variable of the marketing communication mix is that it

is expensive and along with that presently this channel and variable has also lost its
attractiveness because of digital marketing communication mix.
Regarding effectiveness of direct and internet marketing communication mix of the
British Airways it can be said that they have effectively employed this in order to get several
benefits of this. Important benefit of this mix is increased visibility of the brand along with
reduced comparative cost than other traditional mediums of marketing communication. British
Airways uses social media platforms for its internet promotions and its website is another
platforms through which British Airways promotes its brand. Increasing social media users
provide and effective opportunity to British Airways to promote its brand and services. Social
media platforms allow to promote services and brand in several manners such as organic social
media promotions and paid social media promotions and British Airways enables it to take
advantage of all these advantages (Hänninen and Karjaluoto, 2017). Direct marketing involves
that British Airways promotes its brand and services by directly communicating with customers
and this is possible through email marketing. Social media and digital media advertisements are
not limited to promotions of the brand and extends to several other benefits such as identifying
and analysing consumer trends and success of the promotional campaign of the British Airways.
This way British Airways enables it to all these advantages of the social media and internet
marketing. But it comes with its own drawbacks and British Airways has to understand and
identify these so that it can reduce its impact to minimum possible. These drawbacks are
identifying and understanding consumers for personalised promotions. Developing content for
promotion to attract attention of audience to ensure that promotions and marketing efforts of
British Airways does not get lost millions of social media advertisements.
Another marketing communication mix element employed by British Airways is sales
promotions of several types. This creates direct impression on the customers and company can
experience its impact in its business activities (Perera, 2017). for example allowing discounts on
its standards price will attract more customers and British Airways will be able to experience
direct impact on it sales. Discount is an important sales promotion method because of the trend
of discount in all sectors and industry and airlines can also take advantage of this. This is simple
and customers are able to understand the benefit they are being allowed and this makes it an
effective marketing communication mix. Loyalty program are also effective as along with

increasing customer satisfaction these also contribute in increasing loyalty of the customers so
that they remain customers of British Airways (Leite and Azevedo, 2017). These also has some
drawbacks as these are more helpful and effective in attracting existing customers are not much
effective in attracting new customers for the British Airways.
iii. Areas of improvement in response of organization
It is stated that communication is one of the main element and key of the success of companies.
Hospitality sector is the one whose main aim is to please and satisfy their customers. For this
purpose, British Airways focuses on marketing communication mix and uses several different
ways of modes of communicating or interacting with their clients and making them aware about
effectiveness of their services and products. For making its position as 2nd largest airline and also
becoming the leader it needs to focus on some areas for improvement. There are several modes
which are being used by British Airways but still it needs to improve some areas in order to
being in the competition and becoming market leader such as:
Personal selling: It is stated that British Airways focus on advertising and others modes of
communication but by focusing on direct selling they can interact with customers in an effective
manner. One of the main aims of suggesting this mode of communication is direct communicate
with customers and understand their human behaviours (Paesbrugghe, Sharma, Rangarajan and
Syam, 2018). When marketers direct communicates and meets to customers then they are more
likely to get informations about their customers’ needs, their like, their dislikes and also solving
their problems at that time. It can help them out in improving their relation and retain their
customers with the company for the long run by interacting with them directly.
Discounts and other offers: Providing discounts and other offers to potential and other
customers is one of the best ways of advertising and attracting customers to the great extent. In
this type. British Airways can be in the competition by selling their products at discounted price
or providing offers to them like by one get one free, extra code on purchasing up to 2000 and
others. Coupons, rebates are some best communication tools which can allow this company to
improve relation, trust of customers and motivate them to buy their services and products as
well. One of the main reasons of suggesting this tool is helping company in improving
communication, increasing revenue, cash flow and attracting new customers (Boronczyk,
Rumpf and Breuer, 2018).